Denada Jushi
If you decide to walk the streets of the capital, it seems like finding Albanians has become difficult. This is because tourists continue to visit Albania even in these cold days.
But, according to INSTAT data, tourists, at the end of the year we left behind, had a significant impact on the increase in prices.
The year 2025 found Albania at the peak of the tourism boom that began in 2021. With over 12 million foreign citizens visiting the country, tourism was confirmed as one of the most important sectors of the economy, generating income, employment and increased activity in Services. But, in addition to the benefits, the high influx of tourists is also producing a side effect: rising prices.
Official INSTAT data show that, although overall inflation in 2025 remained relatively moderate, around 2.2–2.3%, below the Bank of Albania’s long-term target of 3%, the impact of tourism is being felt significantly. The price hike is not evenly distributed across the economy, but is concentrated in sectors directly linked to tourism demand.
Specifically, in December 2025, according to INSTAT, three main groups directly related to tourism activity, such as rent, water and energy, contributed about 54% of the price increase, at a time when annual inflation was 2.2%.
Rents continue to be a problem. One of the most significant consequences of the tourism boom is their increasing cost. During 2025, rents increased by an average of 4.5%, while in the second half of the year the pace accelerated significantly, reaching a peak of 8% in December. This is because a significant portion of housing is rented out for short periods through platforms such as Airbnb to tourists.
According to real estate agencies, rental prices for 1+1 apartments in the most sought-after areas of Tirana have reached up to 900 euros per month. Meanwhile, within just one year, the increase in prices in the residential market has ranged from 6% to 57%. For local families and young people, this situation is turning housing into an increasingly heavy economic burden. (referring to Sinjalizo's article on rents)
Another indicator is transportation. Transportation Services also increased by 3.9%, indicating that tourist demand is increasing the cost of everyday Services.
Of course, tourism has brought significant benefits to the economy, but for citizens, these benefits are being accompanied by a rise in the cost of living, adding to the burden on families and local residents.
But how have European tourist cities solved this problem?
Their experience shows that this phenomenon is not unique to Albania. Cities like Barcelona, Lisbon, and Amsterdam have faced the same problem and have intervened through restrictions on short-term rentals, taxation of tourist properties, and investments in social housing, thus helping their citizens.
Data for 2025 show that tourism is becoming a major factor in the Albanian economy. This means that, in addition to the benefits, there will also be challenges to manage, balancing policies so as not to inhibit tourism, but at the same time not to add even heavier burdens to the country's citizens./acqj.al
