Albania is becoming an increasingly popular destination for both foreign visitors and Albanians as the numbers continue to increase. In the first five months of 2017 the number of foreign tourists was 9.5% higher y/y at 1,321,474, the statistics institute INSTAT said on June 22. The total number of tourists in May, including Albanians, was 721,054, up 1.9% y/y, data indicated. The number of domestic tourists was 3.4% higher y/y at 360,972 in the fifth month of the year.

Although awareness of Albania as a holiday destination is still relatively low in many parts of the world, and there has been a period of political instability in the run up to next week's elections, positive publicity about its benefits as a holiday destination may be encouraging more holiday makers to visit the "undiscovered" country. This year CNN rated Albania the 12th best holiday destination in the world describing it as "Europe's best kept secret" with its sunny climate, pristine beaches, fascinating communist history as well as its cuisine which it says is similar to that of Greece but at "less than half the price". The Lonely Planet also extolls its "stunning mountain scenery" and says its beaches "rival anywhere else in the Mediterranean," urging tourists to hurry and visit as the word about Albania is "well and truely out". Currently, most of the foreign tourists are from Kosovo (29.3%), followed by Macedonia (13.6%), Montenegro (10.1%) and Greece (8.8%).

To encourage tourism, the Albanian government cut the value added tax (VAT) rate for the tourism sector to 6% from 20% in May, with the aim of increasing investments in the tourism sector, which is one of the most promising in the Balkan country.

In May, the number of foreign citizens arriving in Albania edged up by 0.4% y/y to 360,082, after jumping by 25.7% y/y in the previous month.  Of these, 98% were visiting for non-business purposes (accounting for 353,277 of foreign visitors). Foreign nationals visiting Albania for business purposes in May also jumped by 67.5% y/y to 6,805 and comprised 1.9% of the total arrivals of foreign citizens. However, the number of foreign visitors that entered Albania purely for holidays and day trips in May was 134,364, down by 7.8% on the previous May.

The vast majority (79.7%) of foreign visitors arrived in Albania by land, while 13.5% and 6.8% arrived by air and sea respectively.