The proposal to raise VAT for accommodation establishments from 6% to 10%, as part of the 2027 fiscal package, has triggered a reaction from the tourism sector. Zak Topuzi, head of the Association of Tour Operators, opposed the initiative, warning that the tax increase would weigh on businesses and weaken Albania’s competitiveness in the region.
According to Topuzi, the reduced VAT rate is not a favor to the hotel industry, but a measure aimed at creating equal competitive conditions with other countries. He cited Montenegro as an example, where the VAT rate for hotels is 7%, and stressed that Albanian businesses are facing rising costs and declining profits.
“The draft decision the government is pushing for raising VAT from 6% to 10% is a direct blow to tourism”, he said.
Topuzi also raised concerns about the prices of tourism services in Albania which, according to a study he referred to, are about 25% to 45% higher than in Montenegro and, for certain categories, up to 45% higher than in Greece. “Under these conditions, Albania is falling out of the regional competition scheme. Many businesses have closed their plans for next year and profits have been reduced”, Topuzi stated.
He emphasized that beyond fiscal policies, the sector also needs formalization and improved service standards. According to him, the association is consulting with experts and interest groups to prepare a report with concrete proposals, which will be presented to the relevant institutions within the week.