Tourism market and product development (EURO 7.7 million)
This component will provide support to municipalities for improvement of management of their services. The main focus will be the financing of activities that support. Main investments include provision of knowledge/equipment for:
- Equipment for planning, collecting and managing of local taxes and fees;
- Technical assistance to improve the delivery of services
- Establishing geographic information system (GIS) and systems for asset management.
A rapid tourism sector diagnostic developed as part of the Tourism Destination Audit for the South of Albania and in consultation with key tourism sector stakeholders confirmed the need to diversify and add value to tourism products in the south of Albania.
Among selected municipalities Berat, Gjirokastra, Permet and Saranda municipalities have all identified tourism as their primary economic driver but have currently committed to supporting its growth to varying degrees.
Based on discussions with key local tourism stakeholders, also aiming to establish sustainable structures that span beyond the proposed project, it was agreed that this component will support the development of the following activities:
1. Market Research to guide product development
This involved the development of a regional level (south of Albania) market research, with deep-dives in the four selected municipalities. This is expected to provide the basis for market and product development in Years 2-5 of the project.
2. Tourism product development
This activity would entail:
(i) defining opportunities for new product tourism value chain development,
(ii) establishing partnerships between municipalities, and local tourism stakeholders to drive destination management,
(iii) developing a business plan for the Destination Management Partnerships which would include concepts for the development of new tourism products,
(iv) investing in at least 20 new tourism products and ensuring that they are connected to potential markets.
Broader tourism sector support. This Subcomponent will also support activities aimed at establishing a system of robust tourism statistics which could guide market and product development and, based on available funds, could also support the responsible ministries in the further operationalization of the tourism law (enacted in October 2015).