Foreign Direct Investment in Real Estate and Its Impact on Tourism Development in Albania

Antoneta Polo (), Fejzulla Beha (), Enkela Caca () and Ilirjana Zyberi ()
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Antoneta Polo: Faculty of Economics, "Eqrem Çabej" University, Gjirokastra, Albania
Fejzulla Beha: Department of Business and Management, Universum International College, Pristina, Kosovo
Enkela Caca: Faculty of Economics, "Eqrem Çabej" University, Gjirokastra, Albania
Ilirjana Zyberi: Faculty of Economics, "Eqrem Çabej" University, Gjirokastra, Albania

Sustainable Regional Development Scientific Journal, 2025, vol. II, issue 2, 12-20

Abstract: This study explores the impact of foreign direct investment (FDI) in the real estate sector on tourism development in Albania over the past decade. The analysis draws on data reflecting investment trends and tourism dynamics, revealing a clear relationship between increased FDI and growth in tourism revenues and international arrivals. The findings indicate that foreign capital has played a pivotal role in improving tourism infrastructure, expanding accommodation capacity, and modernizing services, thereby strengthening Albania’s attractiveness in regional and international markets. Beyond direct economic effects, FDI has contributed to service quality improvements, diversification of tourism products, enhanced competitiveness, job creation, stimulation of local businesses, and increased fiscal revenues. The study emphasizes that sustained benefits depend on consistent public policies, supportive regulatory reforms, and favorable market conditions to ensure long-term, balanced, and sustainable tourism development.

JEL-codes: F21 L83 R33 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:bfb:srdjou:2025-02_1

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