6.4 million euros from hotel accommodation tax - The influx of tourists increases income for municipalities in the country
The increase in the number of tourists in Albania has brought even more revenue to the municipal budget, despite the fact that informality in accommodation structures in the country remains an ongoing concern.
Referring to data from the local finance report for 2024, revenues from hotel accommodation tax have increased progressively, but the potential is higher.
Specifically, in 2024, revenues from this tax are recorded at 6.4 million euros, an increase of 53% compared to 2023, or 2.3 million euros.
While if we compare it with 2020, the increase is approximately 5.1 million euros or several times higher. Revenues from this tax account for 1% of the total budget revenues of local governments.
The taxable base for hotel accommodation is the price paid for accommodation, which can be expressed as the price per room or the price per person/night. The tax rate is up to 5% of the payment for accommodation. This tax liability is calculated by multiplying the tax rate approved by the municipality by the accommodation fee per night, according to the nights of accommodation in the hotel. The invoice issued by the hotel includes the accommodation fee and the tax amount.
The calculation of this tax, based on the legislation in force, is made according to the division into two categories: 4-5 star Hotel Entities and Hotels, Guesthouses, Hostels, Motels and any other accommodation unit according to the definitions of the law on tourism in force. It usually varies from 35 - 350 lek / night / person, depending on the location of the municipality. This tax is paid by the client and collected by the accommodation structure, which then transfers it to the municipalities.
A worrying problem in the tourism sector is informality, which appears in various forms such as non-registration of accommodation structures or real capacities, non-declaration of nights of stay or declaration of fictitious numbers.
To combat tax evasion and the discrepancy between the number of tourists and sales, the government recently adopted a decision according to which accommodation structures must declare no less than 65% sales of their capacities during the period May 1-September 30 and no less than 30% from the period October 1-April 30.
On the other hand, data from the short-term rental accommodation market shows that there are currently over 18,200 active short-term rental units listed on various booking platforms.
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