Albania's burgeoning tourism sector, evidenced by the 3.4 million foreign visitors between January and May 2025 (around a 4% increase compared to last year) has, of course, spurred economic activity. However, it also presents local populations with very real problems.
Projections estimate that tourist numbers could even reach 12–14 million by the close of the year, which unfortunately pushes living costs sky-high, specifically in popular tourist destinations; think escalating rents and inflated prices for everyday food, beverages, and various services. Locals are having to contend with these pressures, leading some to warn that unchecked overtourism could quite possibly degrade the environment, erode cultural heritage, and impact the overall well-being of residents.
The Rising Living Costs
Take Pogradec, for instance. The situation here sees locals feeling the squeeze. Residents express frustration after having to pay 650 lek (about 6.7 EUR) for a simple coffee, tap water (yes, even that), and a Coca-Cola at a hotel bar near the lake, remarking that water seemed to be priced as though it was a luxury item. This feeling mirrors a wider experience; the influx of visitors seems to have bumped up prices everywhere - in bars, restaurants, and supermarkets. Daily expenses are just becoming harder to afford for many Albanians.
Experts note that a large number of tourists increases demand for accommodation, food, and transport, which creates those seasonal price hikes. These market changes tend to favor tourists who simply have more money to spend.
The rental market is perhaps where the strain is most noticeable. In Tirana, it's not uncommon to see monthly rents for small apartments going for anywhere between 300 and 800 euros. Bigger apartments? Expect to pay 550 to 1,300 euros, with 2024 experiencing a substantial 10–20% rise from the previous year. High demand in areas like the old Blloku and near the Air Albania Stadium have caused rents to increase by approximately 7–23%, largely because long-term rentals have been converted into short-term accommodations for tourists. Finding those affordable long-term rentals in central areas is proving difficult.
The "Airbnb-ization" Effect
The preference for daily rental apartments (they're often cheaper than hotels) has brought about what some term an "Airbnb-ization" of Albania's housing market. AirDNA data indicates a fairly significant 38% surge in short-term rental units, rising from just over 12,000 in April 2023 to well over 23,000 in April 2025. This is reaching peak-season levels from August 2024. While these apartments are certainly appealing to tourists who are conscious of their budget (often 34–45 euros per night in Tirana), the affordability comes at a cost. It greatly reduces the availability of long-term rentals, pushing up prices and, unfortunately, displacing local residents. Experts are quick to point out that these units attract tourists (families included) that are trying to save money, which is putting even greater pressure on the housing market.
Food Prices and Local Production
Tourism's ripple effect even touches food prices; supermarkets are certainly reflecting the strain. According to Alban Zusi, who heads up the Albanian Export Center, domestic products, such as dairy and processed meats, often come with higher price tags than imported alternatives, owing to high production costs and the euro's value decreasing by 30–40%. This makes local goods less competitive, pushing accommodation providers to opt for the cheaper imported goods when catering for the influx of tourists. It also affects the labor market, with workers in agro-processing moving towards those higher-paying, seasonal tourism jobs. As a result, producers are having to increase wages, which contributes further to rising costs.
Declining Local Consumption
Enri Jahja, president of the Association of Bars and Restaurants, reports a noticeable 20% fall in local spending at coastal bars and restaurants over the last couple of years. High prices mean many Albanians are now choosing to vacation abroad. While tourists have made up for some of this loss, overall consumption in the sector hasn’t really grown, suggesting that foreign visitors are, in effect, merely substituting local spending, rather than actually increasing it.
Car Rentals: An Exception
Housing aside, the car rental sector seems to be avoiding the kind of price spikes seen elsewhere, despite a surge in tourist demand. Greater competition among operators appears to be keeping daily rates stable. You can typically expect to pay around 15 euros for a basic car, but maybe 150–200 euros if you're after something more luxurious. This offers a good example of how market forces can alleviate price pressures, that is, when supply expands to match demand.
Broader Impacts of Overtourism
Overtourism in Albania brings more than just financial implications, putting significant pressure on its infrastructure and natural resources. Some key problems highlighted by experts include:
- Traffic gets noticeably worse, particularly in coastal towns and historical sites, due to the rising number of visitors.
- Environmental damage is caused by the increased use of resources (like water and energy) and the waste produced by tourism, which harms the land and sea ecosystems.
- Public services like waste management, transportation, and healthcare struggle to keep up with the increased demand.
- There’s a danger that Albania’s unique culture might be lost as local traditions become commercialized and villages are transformed into tourist hotspots.
- Residents report feeling displaced in their own neighborhoods due to the noise, traffic, and overcrowded services, which lowers their overall quality of life.
Expert Solutions for More Sustainable Tourism
To handle the issues arising from overtourism, specialists suggest a varied approach aimed at balancing the economic advantages with the well-being of local residents:
- Subsidies might be provided to low-income families living in popular tourist destinations to help them deal with the rising cost of living.
- Price controls, applied temporarily, could regulate the prices of basic necessities during the busiest times of the year.
- Laws protecting housing could limit turning homes into short-term rentals, helping maintain available housing for residents.
- Investing in public transportation, to make it cheaper and more accessible, could reduce traffic problems.
- Taxes could be aimed specifically at tourism to fund public services, helping both locals and tourists.
- Urban planning should prioritize the quality of life for those who live there alongside supporting tourism growth, experts suggest.
Overtourism, in most cases, requires careful attention rather than being inherently bad, according to experts. For policies to be effective and fair, detailed studies are needed to understand where the growth comes from and what negative effects it has. Involving local communities in decisions and investing in sustainable tourism strategies are vital. These steps will ideally make sure Albania's growing tourism sector benefits everyone while still protecting its cultural and environmental treasures.