Albania Targets Luxury Tourism as Riviera Development Faces a Sustainability Test

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The Albanian state sees in its southern coast the possibility of upgrading its touristic offering by developing a luxury segment on the Albanian Riviera, with investments in premium lodging, coastal infrastructure and yachting. Destinations such as Dhërmi, Himarë and Palasë will be key in that respect, as the Albanian authorities hope to evolve from their status as a budget destination and attract tourists looking for boutique hotels, private yachting facilities and a longer stay in the region. Such evolution is taking place within the context of a significant increase in international tourism for Albania, with the attractiveness of its Ionian shores, mountain scenery, historical sites and relatively affordable prices attracting tourists from Europe. However, this growth also raises some serious concerns related to construction, environmental issues, accessibility to the coast and coastal infrastructure.

The Riviera’s changing hospitality market

The coastline between Vlora and Saranda has become a focal point for new accommodation and leisure investment. Dhërmi combines beaches and traditional hillside architecture with an expanding hospitality offering, while Himarë attracts visitors through its waterfront, surrounding villages and access to quieter stretches of coast. Palasë, meanwhile, has emerged as a major location for resort and mixed-use development.

The investment direction increasingly includes high-end hotels, branded accommodation, restaurants and marina-related services. Albania’s tourism legislation provides a framework for attracting investors in four- and five-star accommodation, including a special investor status for qualifying projects. The government also identifies priority tourism development areas where public assets and infrastructure can support approved investment.

This framework reflects an ambition to raise the average value of tourism activity rather than relying exclusively on high visitor numbers. Premium accommodation can generate greater spending on hospitality, dining, transport and experiences, while potentially extending the season beyond the busiest summer weeks.

However, a shift towards luxury does not automatically guarantee sustainable development. Building density, water consumption, waste disposal and access to beaches remain important considerations, particularly in coastal settlements with limited infrastructure.

Stronger rules for beach management

Albania has taken steps to formalise how its beaches are allocated and managed. Regulations introduced in 2024 and subsequently amended established clearer conditions for operating beach stations, including procedures governing the use of coastal space.

Changes implemented for the 2025 season strengthened the role of accommodation businesses in managing designated beach areas. The government also presented the reforms as a means of increasing public beach space and distributing it more evenly along the coastline.

Further adjustments were approved in May 2026, addressing the timing of beach-station contracts and allowing amendments where accommodation capacity or coastal conditions change, subject to agreement between the relevant parties.

In May, tourism and coastal authorities also inspected areas including Dhërmi and Jalë ahead of the summer season. Their priorities included beach cleanliness, accommodation standards, maritime equipment, piers, pontoons and the formalisation of coastal activities.

These measures point towards tighter administration of the Riviera’s tourism infrastructure, although they should not be interpreted as proof that a single new spatial-planning and eco-certification regime has been imposed across Dhërmi, Himarë and Palasë.

Vlora Airport and southern connectivity

Improved access remains central to the region’s tourism ambitions. Vlora International Airport is intended to provide an additional gateway to southern Albania, potentially reducing dependence on Tirana for visitors heading towards the Riviera.

The airport project has attracted considerable attention because of its strategic location near the country’s southern coastal destinations. Once operational, it could make travel to Vlora, Himarë and surrounding resorts more convenient for international holidaymakers.

However, the airport’s development has faced delays, legal scrutiny and environmental controversy. It should not yet be presented as a fully operational gateway with established direct international flight connections. Its eventual contribution will depend on construction progress, regulatory approvals, airline agreements and the development of reliable ground transport.

For now, Tirana remains the country’s principal international aviation gateway, while road journeys continue to play an important role in reaching the southern coast.

Maritime tourism and the Ionian opportunity

Albania’s premium tourism ambitions also extend offshore. The Ionian coastline is well suited to sailing, yacht chartering and private maritime experiences, with growing interest in destinations around Vlora, Himarë and Saranda.

The government already has a regulatory framework for maritime tourism activities, including the certification of operators and rules governing seasonal anchoring stations. These arrangements are intended to formalise commercial activity and establish clearer operating conditions.

Developing marina infrastructure could attract yacht visitors and encourage longer stays, creating additional demand for restaurants, specialist services and luxury accommodation. Nevertheless, the expansion of berths and mooring concessions requires careful oversight to prevent excessive construction and pressure on sensitive coastal waters.

Balancing investment with preservation

The potential of Albania is the development of a tourism economy that goes beyond cheap beach holidays. High-level hotel services, better transportation, boat tours and countryside excursions can help the country increase its reputation abroad and spread the economic benefits among southern regions. But whether or not the strategy will be effective will depend on the regulation and enforcement of regulations. Construction activities on the coast, public accessibility, water management and coastal preservation need to be at the core of the planning process. The Albanian Riviera has already attracted the attention of the international audience as a luxury destination. The next step should be to make sure that investments will not harm the coastline.