PRESS RELEASE
Governor Sejko: Address at TEA 2.0 event

Your Excellency Prime Minister,

Dear Minister of Tourism and Environment,

Honourable Minister of Economy, Culture and Innovation,

Dear representatives of business and banking sector,

I have the pleasure to welcome you to the new premises of the Bank of Albania, formerly known as “Dajti” hotel.

This cultural monument, which has already been returned to the treasure of our cultural heritage, was reconstructed with a clear vision: conserving the values and architectural style of the time. The rebounding project of this building was both demanding and awarding at the same time. From today, this building, which is a multi-functional structure, will serve as a home for the Bank of Albania. At the same time it will be available to institutions and the public, as a place for information and educational activities, thanks to the dedicated premises.

Following, a short film, that I kindly invite you to watch together, transmits this transformation.

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I am delighted that today we are opening the doors to welcome an event dedicated to a powerful engine of our country - tourism - which impact on the economy is increasingly emerging.

The progress achieved in the field of tourism is evident. Over 2023, the number of tourists climbed to 10.1 million, while income from them reached EUR 4.2 billion. In fact, according to the United Nations data, Albania was ranked the fourth country in the world for the pace of tourism growth over 2023. According to preliminary data, this growth momentum has also continued in the first months of 2024. Nowadays, income from tourism account for around 20% of GDP, turning Albania into one of the most preferred tourism destinations across region, alongside with Croatia and Greece.

The swift progress has led to a qualitative improvement of the balance of trade, as reflected in the improvement of the sovereign debt risk ranking by international agencies during 2023, from B+ level to BB level - according to Standard & Poor's.

On the other hand, the growth of foreign visitors has also boosted the improved image of Albania in the eyes of foreign investors. In recent years, Albania is experiencing an increasing interest for investments in the sector of residential buildings, mainly in coastal areas. This investment reached at EUR 350 million only in 2023.

All these have provided a direct contribution in: the growth of the Albanian economy by 3.44% over 2023; the fall of unemployment to historical minimum of 10.7%; as well as the 14%rise in wages in the private sector. At the same time, in 2023, Albania also marked a historical record of foreign direct investments, amounting to EUR 1.5 billion, and an upsurge of 11.3% in remittances, reaching at EUR 930 million.

Meanwhile, we as the Central Bank, have managed to continue implement calibrated policies, to safeguard price stability and financial stability. The current level of inflation, down to 2.2% in May 2024, reflects these polices.

Last, I would like to emphasise that banking sector has also contributed in this regard, by increasing attention and financing to the tourism sector, as well as through the continuous digitalization of processes and products it provides.

Over the recent year, the Bank of Albania with the support of the Albanian Government has undertaken multidimensional reforms, particularly reforms for addressing non-performing loans and for modernizing and digitalizing the payment system. These reforms are bearing their fruits. The non-performing loans ratio, today fluctuate around 4.7% from around 25% 10 years ago, recording thus historical minimum levels.

The joint reforms have also provided a crucial contribution to the increase of formalization in economy. Nowadays, Albania is delisted from the FATF grey list of Moneyval Committee. This fact illustrates both the progress made in the field of Anti-money laundering and the increased confidence of international partners.

Without doubt, tourism will continue to be an integral part of the Albania’s path towards progress. In these circumstances, the advancement in developing new tools to improve, in one hand, the provision of tourist services and, on the other hand, to promote local businesses, is indispensable. TEA application best fulfils these goals. Simple in use and rich in information, it helps tourists and visitors to live a complete and varied experience, in turn bolstering the visibility of Albanian businesses.

I encourage you to not only use, but also promote this application. I also wish for TEA to accompany you during your exploring journeys throughout Albania.

Thank you!