Ida Ismail
From Lalëz Bay to Ksamil, the postcard of the Albanian coast is changing rapidly. While the government passionately defends the tourism boom and the status of strategic investors as the country's new economic engine, another battle is being fought on the ground.
Behind the facades of luxury resorts lies a question that is dividing society: Are we building a sustainable economy or are we destroying the very natural assets that gave Albania its value?
The coast is undergoing a major urban transformation, with tourist and residential projects often supported by strategic investor status and policies aimed at attracting domestic and foreign capital. But, after the dizzying investments, a fierce debate is taking place regarding the way the territory is being used, especially in areas that were previously protected by law.
Strategic investments: Tourism or real estate development?
Data from the Albanian Investment Development Agency (AIDA) show that 56 projects with strategic investment status were approved during the period 2016–2025. Of these, 40 belong to Albanian companies and 16 to foreign investors. However, their sectoral distribution raises questions about the initial objective of the law.
In theory, the strategic investment law was designed to promote development in diverse sectors of the economy, such as energy, manufacturing, technology, infrastructure, and agriculture. In practice, 71.4% of strategic investments have focused on tourism, mainly in resorts, tourist complexes, and residential developments along the coastline.
Areas such as Lalëzit Bay, Palasa, Dhërmi, Himara, Ksamil and Saranda have become epicenters of this model. This orientation has prompted strong criticism for uncontrolled concreting and the use of “strategic” status as a tool for rapid real estate development, where buildings are built for immediate sale and not necessarily to generate long-term economic benefits.
In parallel with this trend, real estate prices on the coast have increased significantly. According to real estate expert Ervin Demirxhiu, demand continues to remain high, especially from foreign buyers:
"The market on the coast remains extremely dynamic. Villas are being purchased mainly for seasonal residence, while apartments are seen as a pure investment for daily rental."
The European Commission has also repeatedly expressed reservations about the extension of the strategic investment law, which has been postponed six times. Progress reports have highlighted serious concerns about environmental impacts and developments in areas of high ecological sensitivity.
However, Prime Minister Edi Rama recently declared that the law has fulfilled its mission and will no longer be needed after the current deadline expires. In a meeting with journalists from European Union countries, Rama said:
"This law has helped attract investments that otherwise would not have come to Albania. Albania is now entering a new phase of economic development, where capital and large investors are coming without the need for special legal facilities, but are seeking more security and protected status."
From the Blue Eye to the Narta: How the new law left natural monuments without protection
Some of the strongest debates are related to projects that are being developed directly within or near areas of special natural value. The project “Durres Yachts & Marina”, worth about $2 billion, has been accompanied by controversy after reports of structural problems in some of the buildings under construction. To the south, Green Coast in Palasa continues to expand with new 1 to 9-story buildings, while Lalëzit Bay is experiencing such an intensity of construction that it has called into question the infrastructural capacities and caused irreparable loss of natural spaces.
But the biggest clash has been centered in the Narta and Zvërnec areas of Vlora, where environmentalists and citizens have taken to the streets in the capital to protest a major tourism project that is destroying biodiversity. The lagoon and surrounding habitats home to hundreds of bird species, including flamingos, making the area one of the most environmentally sensitive spots in Albania.
Concerns deepened after the adoption of Law No. 21/2024, which amended the basic law on Protected Areas. One of the most debated changes is the removal of “buffer” zones around natural monuments. This means that areas such as Syri i Kaltër, canyons or caves no longer enjoy additional protection against intensive construction near them. The new law expands construction possibilities, sanctioning that even within a National Park a tourist super-resort with all the accompanying infrastructure can be built, as long as “environmental integrity is guaranteed”. Furthermore, the law gives full powers to the National Council of Territories (NKT), which decides on everything through closed-door meetings and without public hearings.
According to environmental expert Taulant Bino, this new legal framework turns the environment into a booty to be sold: "I see with regret that everything we have built for decades in the field of nature protection is being questioned. There will be 8-story structures there, where the pine trees will remain lower than the buildings. The biggest problem is the underground interventions in the sand dunes. These are priority habitats and any intervention can bring irreversible consequences."
The Albanian Ornithological Society (AOS) and the organization EcoAlbania sent the law to the Constitutional Court, but the request was rejected in July last year (2025). According to them, the law violates the Aarhus Convention on public participation and creates great legal uncertainty.
PPNEA expert Joni Vorpsi adds that the classification of the areas was not done on a scientific basis: "The consequences will be very serious, not only for biodiversity, but also for the very process of Albania's integration into the European Union."
IKMT Theater: Demolition at the peak of the season, while the official concrete does not stop
At a time when new giant projects are being approved, authorities paradoxically continue actions to demolish existing buildings at the height of the tourist season. According to IKMT data, last year 447 unauthorized constructions were demolished and 232 fines were imposed.
On the coast alone, 106 buildings collapsed:
- 67 at Cape Rodoni
- 20 in Palasa, Dhërmi and Jalë
- 10 on the Vlora coastline
- 3 in Ksamil
- From 2 in Velipojë, Shëngjin and Shiroka
The inspections have also revealed serious problems with technical safety. In Golem and Qerret, according to the chief inspector of the IKMT, Afrim Qendro, out of 55 active building permits, only two buildings were found to be in full compliance with legal safety criteria. However, the development of these actions in the middle of summer, when the country expects the largest influx of tourists, has raised questions about the strategy and the message being conveyed to the world.
Amidst new permits, drastic legal changes, citizen protests, and selective demolitions, the big question mark remains. In the end, tourism is not measured solely by the number of visitors or the height of five-star hotels. If the sand of the Narta dunes is replaced by concrete subsoil and if the pine trees are drowned by 8-story buildings, what will tourists be left to see in a decade?
Albania is at a critical crossroads, either curbing its insatiable thirst for rapid concreting, or going down in history as the country that sacrificed its natural paradise for short-term real estate gains. The clock is ticking, and the environment cannot wait for the next sessions of the KKT.acqj.al
