Communities in southern Albania are seeing economic growth and job creation through heritage tourism, following years of slow development and population decline. The Integrated Urban and Tourism Development Project (PIUTD), supported by the World Bank and the Government of Albania, has played a central role in this transformation by restoring historic sites, improving infrastructure, and expanding tourism services.
Kristian Kondi, manager of Zonja Gjena restaurant in Berat, described the changes over the past decade: “Ten years ago, when I was a child, there were only two or three shops in this alley. After 6PM, it was dead quiet, the lights were off and not a soul was around.”
PIUTD targeted 12 key tourist locations for restoration—including Qafa e Pazarit, Saranda’s promenade, and several castles—by enhancing accessibility. Nearly 200,000 square meters of public space have been upgraded with repairs to streets and plazas as well as new signage, lighting, benches, ramps, trails, sidewalks, and visitor information points.
Tourism has surged as a result. Data from INSTAT shows that Albania experienced an 82% rise in tourist arrivals in 2024 compared to 2019. In southern cities like Berat and Gjirokastra, visitor numbers have increased even more sharply during that period.
The increase in tourists is encouraging private sector investment. Local families are converting historic homes into bed-and-breakfasts and developing cultural experiences. New infrastructure such as hiking trails and e-buses is supporting adventure tourism. Since PIUTD began in 2019, the number of tourism-related businesses has more than doubled in project areas.
Rudina Liçaj, a tour operator in Saranda noted: “We used to have tourists only in July and August. Now tourism in Saranda is year-round.”
Job opportunities have expanded across hospitality, tourism services, and transportation sectors. Over half of the new jobs created are held by women, youth or people with disabilities—groups often underrepresented in employment.
This renewed economic activity is also reversing population decline as former residents return home to invest or start businesses. Kristi Magllara returned to Saranda after living abroad for 15 years: “I noticed the growing momentum of tourism in Albania. I felt it was the right moment to return home, develop my family business, and bring new business ideas.”
Hajdar Ceribashi decided to invest his savings into hospitality back home: “I never imagined I would return to Gjirokastra. But with all the investments made in the city...I decided to come back and invest all my savings in hospitality,” said Ceribashi.
Sustainability remains central to PIUTD’s approach through preservation efforts at sites like Gjirokastra Castle along with improvements for eco-tourism services. Municipalities now operate dedicated tourism units focused on long-term sector development.
Ervin Ceca, Deputy Mayor of Berat said: “We’ve built more than roads, squares and facades... We’ve created a development model that values nature, culture, and community.”
Southern Albania’s experience demonstrates how heritage preservation combined with international support can create jobs while fostering sustainable local economies.