Follow Business Albania September 2018 by Follow Business Albania MAGAZINE

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FOLLOWBUSINESSALBANIA ART/CULTURE

CONTENTS 10

WB’S MARYAM SALIM DISCUSSES THE WORLD BANK PARTNERSHIP WITH ALBANIA

ALBANIAN PUBLIC ADMINISTRATION PERFORMANCE, OVERCOMING THE CHALLENGES

THE GROWTH OF FDI STOCK IN ALBANIA

I’M BORN, NOT MADE HOTELIER

150 YEARS OF BUDAPEST WATERWORKS “TRADITION AND INNOVATION”

BOOKING.COM HAS 3,000 PROPERTIES IN ALBANIA

GROWTH RATES OF GDP, EMPLOYMENT AND TAX REVENUES – SOMETHING IS AMISS

TRAVEL & TOURISM 2017-2018 REVIEW

ALBANIA CAN MAKE IT TO DEVELOP HIGH-LEVEL PATENT CAPACITY

B2B CENTRE MIC - ACADEMY OF CULINARY ARTS AND TOURISM

NECESSARY FOR ALBANIA TO ESTABLISH A QUALITY TOURISM EDUCATION INSTITUTION FOR THE YOUNGSTERS

LUFTHANSA GROUP WINS FOUR SKYTRAX AWARDS

THINK OF HARD CHOICES YOU WILL FACE IN THE NEAR FUTURE ABOUT REAL ESTATE MARKET

BRAND EVOLVED… OF COURSE NOT THIS WAY

ALBANIA’S GDP GROWTH IF ELECTRIC POWER PRODUCTION REMAINED CONSTANT

SHARING BEACH SAFETY EXPERIENCE WITH PORTUGAL

A BOOKMARK INSPIRED BY ALBANIAN CULTURE AND HERITAGE

IN SEARCH OF IMPACT FROM USA TO ALBANIA: USING COMMUNICATION TO CHANGE POLITICS

HILTON GARDEN INN? IT IS ALL ABOUT EXCEPTIONAL SERVICE

The ownership of trademarks is acknowledged. No part of this publication or any part of the contents thereof may be reproduced, stored in a retrieval system or transmitted in any form without the permission of the publishers in writing. An exemption is hereby granted for extracts used for the purpose of fair review.

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GAME OVER

FOLLOW BUSINESS ALBANIA FBA PUBLISHING © KUMI PRINT Editor in Chief: Rudina Hoxha Lead Design: Leart Zajmi Contributing and Producing Team: E. Zaloshnja M. Sheta M. Hasani K. Prifti S. Lleshi B. Leone A. Halilaj E. Hasanbelliu WEB: www.FollowBusinessAlbania.com EMAIL: info@followbusinessalbania.com NOTICE The publishers regret that they cannot accept liability for error or omissions contained in this publication, however caused. The opinions and views contained in this publication are not necessarily those of the publishers. Readers are advised to seek specialist advice before acting on information contained in this publication, which is provided for general use and may not be appropriate for the readers’ particular circumstances.

September 2018

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FINANCIAL DEVELOPMENT

THE WB COUNTRY MANAGER FOR ALBANIA, MARYAM SALIM

September 2018

FOLLOWBUSINESSALBANIA

FINANCIAL DEVELOPMENT

WBâ&#x20AC;&#x2122;s Maryam Salim Discusses the World Bank Partnership with Albania By Rudina HOXHA

The Country Manager of the World Bank for Albania, Maryam Salim shares with FBA what institution is doing to assist Albania in meeting its development challenges.

What are the areas that the World Bank is assisting Albania in its reforms towards joining EU? EU accession is a key priority for Albania. The EU accession road offers already an important anchor for the countryâ&#x20AC;&#x2122;s upgrading of markets, business environment governance and service delivery. As development partners, we make sure that we align our efforts to this goal and coordinate September 2018

with EU institutions to help the country with strategic guidance, technical assistance and project financing in all our areas of engagement. To join the EU, the country needs to achieve several criteria, on which progress is measured every year. To meet its economic criteria for EU Accession and in order to support long-term growth, the country needs to strengthen macroeconomic resilience. We have supported the country in achieving fiscal consolidation through improving spending efficiency, strengthen the budget management framework; improve asset quality in the banking system; improve the business environment by upgrading and implementing regulatory reforms. In addition, we are helping the country to enhance its capacity to withstand competitive pressure and market forces within the Union. Supporting reforms to improve infrastructure quality in a transparent and fiscally responsible way as well as engaging in the dialogue on the quality of the education system, improving inclusiveness of labor markets and developing the capacity for technological absorption. Another area, is service delivery, as a core function of the public sector in general and

View from ADISA Office in Gjirokastra. Photo credit: WB

public administration more specifically. The Citizen-Centric Service Delivery Project supported by the World Bank, is focused on the improvement of service delivery, through separation of front office and back office functions, setting uniform standards for service delivery, and supporting digitization efforts of the Government. The results are visible, especially in Kavaja, Fier, Gjirokastra and Kruja where integrated one stop shops have been established, and where the interaction between public servants and citizens has seen great improvements as demonstrated from client satisfaction surveys.

Where is focused the WB supported project on tourism? The Project for Integrated Urban and Tourism Development (63.8 Euro Million) supported by the World Bank is focused in the South of Albania which comprises the area between Fier-Vlora and Saranda and covers both the coast and the hinterland, including Berat, Permet, and Gjirokastra. This geographical area, while it does not 11

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FINANCIAL DEVELOPMENT

VIEW FROM CITY OF BERAT Photo credit: WB

correspond to a specific administrative region, has been recognized by both national entities and the private sector for its tourism potential. It includes several of Albaniaâ&#x20AC;&#x2122;s most attractive and diverse tourism assets, such as the cities of Berat, Gjirokastra (UNESCO World Heritage sites), Porto Palermo, the Blue Eye, etc. The Project supports a combination of hard investments and soft initiatives which together aim at making the south of Albania a better place to live and visit. This is expected to be achieved by upgrading and revitalizing city centers in Berat, Permet, Gjirokastra and Saranda, enhancing tourism assets along the south of Albania touristic circuit (such as Porto Palermo, Zvernec Island) and improving the capacity of local governments to manage this tourism destination.

Are there visible results that you can talk about?

Blue Eye Photo credit: WB

It is still early in the project implementation but we currently have two ongoing investments. The first visible results of the project is the improvement of the staircases leading to the promenade in Saranda which is a key structuring element in the city center for the movement of tourists and residents. The second investment is September 2018

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FINANCIAL DEVELOPMENT

the improvement of the “Mihal Komneno” cobblestone road which leads to the Berat Castle which will also make this road a safer route for pedestrians to access the castle from the city center [road]. These two investments are the first of many, which aim at improving the quality of urban infrastructure and bringing life to the city centers of these tourism hubs.

In the coming months construction works will start in the Gjirokastra Bazaar – where we are partnering with the Albanian-American Development Foundation – and supporting the rehabilitation of the cobblestone roads, sidewalks and underground infrastructure. We also aim to launch shortly the rehabilitation of the vehicle access road to the Berat castle [Muzak Topia Road] which will make it safer for buses, and private vehicles to access one of the main tourism attractions in the city, and will also support an improvement of parking facilities near the castle. What is the state of the financial sector in Albania? What are its challenges? The financial sector in Albania is dominated by banks. They represent about 90% of total financial system assets, about 87% of which are foreign owned, including from Austria, Greece, Italy, Turkey, etc. The banking system in Albania is liquid, well capitalized, and profitable.

September 2018

the banking sector. As result of authorities’ efforts, supported by the World Bank and IMF’s policy advice and technical assistance, the NPLs reached a low of 13.4 % in April 2018 from a high of 25% in September 2014), impacted by write-offs and restructurings.

Considering the size of the economy and the sector, there is room for further consolidation, or entrance of reputable players, and efficiency gaining in the system. Despite the large banking sector, domestic private sector credit stands at only 35 percent of GDP compared to above 50 percent in regional peers. The bank credit growth has shown recently signs of recovery especially in the credit to households. Small and medium enterprises, the backbone of the Albanian economy, have difficulties accessing term financing. The main constraints faced by these enterprises in accessing external financing are the backlog of non-performing loans (NPLs) and related efficiency constraints in

The reforms are continuing and further positive changes are expected. In addition, there is a need for the Government and the Bank of Albania to try and find ways to stimulate financing to this sector by making the banks more interested, developing non-bank financial institutions, and making medium and small enterprises more bankable

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EU INTEGRATION

Albanian Public Administration Performance, Overcoming the Challenges By Rudina HOXHA

Albana Kociu, Director of the Department of Public Administration in Albania, sits down with FOLLOW BUSINESS ALBANIA to talk all about what her Department is doing to attract and retain civil servants. “We worked hard not just to put in place the necessary bylaws which would ensure the implementation of the law, but also come up with innovative methods to make the process easier while increasing the attractiveness of the civil service at a time when working for the administration was not so alluring, especially for young professionals,” Kociu said. She also underlines that it is a topic of particular importance to have prestigious schools in the EU on board. “It is a great guarantee that we are not alone in our efforts to train the administration but are supported by some of the most prestigious schools in the EU which are ready and available to offer their expertise and assistance.”

September 2018

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EU INTEGRATION

As the talks with the EU are about to be launched, please can you brief on the actual stage of the reform in the Albanian public administration? Public Administration Reform has been and remains one of the most fundamental reforms currently underway and in this aspect there has been significant achievement. There have been intensive developments with respect to reaching milestones set as we aim at creating and upholding a meritocratic and professional public administration, able to offer quality services to its citizens but also face the challenges that the EU integration process and the opening of negotiations will bring. If we were to look at the developments of other countries which joined the EU before us, we can easily understand what a determining factor the level of preparation of the public administration played in the process. Thus, our attention has been focused on creating an efficient civil service, on recruiting the best candidates, as well as ensuring professional development of existing civil servants. It is quite important to acknowledge the fact that apart from being able to face the challenges of the integration process and have the necessary capacities to do so, our administration needs to be motivated and dedicated to perform and in this respect, we have embarked on an ambitious journey to implement a cultural change within our administration. There have been major changes regarding the way the civil service functions. The new legislation, which entered into force in the beginning of 2014, the law on the civil servant, was also one of the preconditions at the time upon which the candidate status of Albania would depend on. It was a law that required qualified majority in Parliament and as such both the government and the opposition had to agree on. After its approval, the real challenge was its proper implementation and in view of this, the Department of Public Administration, as the responsible institution for the implementation of the law had its work cut out. We worked hard not just to put in place the necessary bylaws which would ensure the implementation of the law, but also come up with innovative methods to make the process easier while increasing the attractiveness of the civil service at a time when working for the administration was not so alluring, especially for young professionals. We began by applying an online application procedure, at first just for a limited number of positions and then gradually transforming the application process fully online through a dedicated application platform. For the first time, everything related to the civil service was September 2018

available online, in real time, and the application costs were reduced to almost zero as a candidate would only need to upload the necessary documents just once on the platform. To date, this is one of our greatest achievements and it brought about a completely different way of applying for a job in the civil service, undoubtedly bringing a cultural change in itself. Another achievement worth mentioning is the creation of a top level management corp which basically means that in the highest levels of the civil service positions there is a completely unique way of being recruited and retained and this is also one of the elements that Albania has been positively evaluated upon by OECD/SIGMA, also in comparison to the region.

ongoing process but with the necessary political and technical commitment I'm quite sure that we will have more successful stories to share in the future as we continue to work towards reforming the public administration and towards creating a civil service that is fully professional and capable of facing the challenges that the EU integration process will bring but also able to serve its citizens with the quality of services that they deserve. Public Administration Reform needs to be fully implemented and we need to prove that its positive results will be further replicated in the future and that what has been achieved thus far will become the norm. I am certain that if Albania were to begin accession negotiations, it would encourage the administration to keep on working harder towards better results and towards creating a truly European Administration.

How is EU helping in this regard? The transformation of the Training Institute into an Albanian School of Public Administration, thereby giving more emphasis to training needs and capacity development of the entire administration is yet another milestone reached.

To recap the answer to this very interesting question which would need pages and pages of explanation it's important to emphasize the fact that apart from all the achievements, we are very aware of the challenging work that awaits us and we are also very aware that there is indeed and always will be room for improvement. It's important to know that public administration reform in itself is a never-ending,

The reforms thus far would not have been possible without the support of our partners. The EU has provided immense assistance in the area of Public Administration Reform in the form of projects and various other means of financial support provided through EU funds. The pre-accession funds are certainly fundamental in our reform efforts. The EU is the biggest donor to Albania and in this respect its reconfirmed commitment to support Albania in the reforms' implementation, focusing on governance, justice and rule of law, connectivity, competitiveness and socio-economic development is fundamental to the development of these fields. On public administration reform specifically, the EU supports us in the implementation of the Cross-Cutting Public Administration Reform Strategy and its Action Plan. There is an ongoing Sector Reform Contract for 15

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EU INTEGRATION

PAR at the amount of 32 mil EUR not leaving aside the support weÂ´ve received in terms of capacity building, just to mention a few.

link between the political appointees and the administration and as such their role is key.

I believe the EU is undoubtedly committed to provide assistance in the transformation of Albania's public administration as it sees such reform as an absolute priority for the opening of EU accession talks, also in view of the need to have a well-prepared public administration once EU accession negotiations are opened.

A neutral and professional civil service in general is yet another assurance towards having sustainable reforms. We are investing so much in the administration and the development of employees and for that reason it is quite important that we ensure their sustainability first and foremost thereby ensuring the sustainability of reforms.

How is DoPA building capacity to manage for reform development results? What Sustainable public management should be about keeping the sustainability of this based on proper policies and objectives pursued by managers. reform? Reforms in general and public administration reform in particular are a never ending process, requiring constant efforts and are always developing. We must acknowledge

All of the above are direct contributors to ensuring the sustainability of reforms and in this respect, without leaving aside our achievements, it is also important that we

the need to keep up with the pace of the changes around us and also ensure that what has already been achieved is not obsolete. So here we are, working hard each day to bring about change but how do we ensure that these systems and mechanisms that we put in place are sustainable and continuous? How do we promote a reliable and sustainable reform process? This is a challenge in itself.

acknowledge the need for further improvement. It goes without saying that our development partners have been our greatest supporters in this challenging task.

Leadership plays a crucial role in implementing and maintaining change processes and the employees themselves play also a crucial role as those who are implementing these reforms on a day-to-day basis, on the ground. We need to ensure that the technical level is impartial, professional and sustainable. Our country has addressed this with the establishment of a Top-Level Management Corp, consisting of the highest level of civil servants. A well-functioning TMC will provide the necessary professionalism and neutrality needed to ensure the continuity and sustainability of reforms. They are the 16

What incentives are in place to attract and retain civil servants? It all starts with having in place the necessary legal basis and then most importantly applying this in practice. With the former civil service legislation there was much room for subjectivity when evaluating candidates. For example, to be considered the winner for a position that you had applied for, you had to be among the top three ranked candidates. However, it was your director superior who had the right to pick the winner among the top three ranked. All candidates applied for one given position. With the new law, we no longer have a group of people applying for just one position but rather for a group of positions. Moreover, it is actually the person who has managed to achieve the most points the

one that gets to choose first the position they wish to have, amongst the group of positions for which he or she has applied for. So we've gone from a system where it was the director who selected the winner, to a system where it's the winning candidate who chooses the position where they wish to be employed in. This in itself, guaranteeing the transparency of the process and eliminating interventions, is an incentive on its own.

Another very important policy which is foreseen in the legislation but is also applied in practice is career development within the system. All civil service vacancies are first offered to existing civil servants, either through lateral transfers or promotions and then to candidates from outside the system. This is yet another incentive which basically guarantees that once you're in the system and if you perform well you have real chances of being promoted. Just looking at the figures speaks volumes. Just in 2016 there were 146 lateral transfers and 188 promotions compared to only 2 lateral transfers or 0 promotions in 2012 or the years before. There are a number of capacity development opportunities that apply solely to civil servants. Trainings abroad, mobility schemes, internships available thanks to various memorandums of understandings that the Albanian Government has signed with various partners. We are currently working on setting forth a sustainable Young Civil Servants Scheme which is currently in the final piloting phase. These are all elements through which we seek to not just attract the best candidates but also retain them by offering training opportunities and undoubtedly a clear and certain career path. It is an everyday challenge towards improving the system but also fighting prejudices. A change in perception needs not just concrete proof but also time to be understood and believed by the general public. We have made positive steps towards improving the way the citizens view the September 2018

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EU INTEGRATION

gious schools in the EU which are ready and available to offer their expertise and assistance.

What are the next steps for DoPA? This is definitely a challenging year, not only for the Department of Public Administration but for the entire administration. Our objective remains further development of a professional, impartial, independent and meritocratic civil service. In this context, apart from managing the recruitment process across the administration, we have been working on the restructuring of line ministries and we are currently working on the subordinate institutions and agencies.

administration. This is also indicated by the numbers in terms of those who apply for civil service vacancies. There are approximately 18 candidates per positions compared to just 5 or 6 candidates in previous years. This shows an increased trust in the procedures and on the other hand it increases the quality of candidates by bringing in a greater pool of those who apply. Thus, the process guarantees a higher competition amongst the best candidates. Another interesting fact is that the average age of candidates is 32, meaning that there is a higher level of young professionals applying in the civil service which in turn indicated a certain level of attractiveness of the public sector. We have been more and more active in increasing visibility by organizing job fairs, visiting universities and informing the new graduates on real and concrete employment opportunities. It is a work in progress and we strive to turn these practices into ´business as usual´ practices. Each day, we work hard to surpass ourselves and this is our ongoing challenge.

Does DoPA work with other countries like Poland for example which has a National School for Public Administration (on the training of civil servants)? In this reform process, continuous development of employees is crucial. In this context, trainings, exchanges, getting to know the best practices, etc. undoubtedly contributes to the professionalism of the administration. In the recent years, there has been a continuous improvement of professional training system in Albania, from the point of view of content in the development of qualitative curricula, with 104 training September 2018

modules, as well as in terms of development and quality control of training. As a result, the year 2017 marked a higher performance. The number of training days for civil servants, as well as the variety of training topics compared to previous years, have increased. In this context, we can mention that the average amount of training hours for civil servants has increased from 25 hours in 2016 to 40 hours of training in 2017.

We’ve recently finished a very successful twinning project with the French and Italian Schools of Public Administration and as mentioned above, we are piloting a young civil servants scheme in Ecole Nationale d'Administration (ENA-France). Not too long ago, we had a workshop with some of the major schools of public administrations in EU Members States and also we are in process of working on a MoU to see how we can further our cooperation and how these schools can assist our administration in terms of capacity development. It is a topic of particular importance to us and having these schools on board is a great guarantee that we are not alone in our efforts to train the administration but are supported by some of the most presti-

This restructuring process seeks to eliminate functional overlappings between existing structures. Furthermore, the development and full functionality of the Human Resource Management System is on our list of priorities. I would also like to mention that the government seeks to further strengthen the role of the Albanian School of Public Administration as the training institution for the civil servants but also as an important actor in terms of establishing and enforcing relations with other national schools of public administration in the region and in EU member states.

What we work on and dedicate our time, energy and passion each day is an intensive reforming process which oftentimes has a very technical nature. The results of these efforts are not so visible to the general public but we take pride in seeing an improvement in the way the citizens are being served by the administration, knowing that this is a result of all the work that goes on ´backstage´.

At the end of the day, the important thing is to change the perception and prove that public servants are here to serve the public with the required professionalism and commitment that should follow. 17

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FOLLOWBUSINESSALBANIA

FOREIGN DIRECT INVESTMENTS

By Eduard Zaloshnja, PhD Research Scientist at Pacific Institute for Research and Evaluation, Washington DC

The Growth of FDI Stock in Albania 20

A foreign direct investment (FDI) is an investment in the form of a controlling ownership in a business in one country by an entity based in another country. It is thus distinguished from a foreign portfolio investment by a notion of direct control. September 2018

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FOREIGN DIRECT INVESTMENTS

Figure 1. FDI stock in billion Euros 2012-17

6.54 5.68 4.98

4.56 4.11

3.91

2012

2013

2014

The latest Bank of Albania data show that at the end of year 2017, the accumulated (over the years) stock of FDI-s in the country reached a record level â&#x20AC;&#x201C; 6.5 billion Euros. This level represents a 67% increase compared to the end of year 2012 (Figure 1). The main source of the increase in the last two years has been the Trans Adriatic Pipeline (TAP) and investments by Royal Dutch Shell.

Figure 2. FDI stock by country of origin OTHER 15.8%

GREECE 19.6%

AUSTRIA 6.4%

SWITZERLAND 13.6%

TURKEY 8.0%

ITALY 10.0% CANADA 13.6% HOLLAND 13.0%

At the end of 2017, Greece remained the main country of origin for the FDI stock in Albania with 19.6% (Figure2), followed by Switzerland and Canada with 13.6% each (Switzerland due to TAP and Canada due to Bankers Petroleum).

At the end of 2014, Italy was ranked third as country of origin for FDI stock in Albania. However, due to TAP and investments from Royal Dutch Shell, Switzerland and Holland have moved Italy to the fifth place

(Table 1)

September 2018

The origin of the investment does not impact the definition of an FDI; the investment may be made either "inorganically" by buying a company in the target country or "organically" by starting or expanding the operations of a business in that country.

2015

2016

2017

Table 1. FDI stock by country of origin 2014-2017 (in million Euros) YEAR GREECE CANADA ITALY HOLLAND TURKEY AUSTRIA GERMANY CYPRUS INTERNATIONAL ORGANIZATIONS USA SWITZERLAND FRANCE LEBANON OFF-SHORE TAX HAVENS CAYMAN ISLANDS KOSOVO FYROM UNITED KINGDOM SLOVENIA UAE CROACIA BULGARIA LUXEMBURG SERBIA PANAMA BRITISH VIRGIN ISLANDS SWEDEN NORWAY CHECK REPUBLIC MONTENEGRO SPAIN BOSNIA BELGIUM JAPAN HUNGARY ROMANIA ISRAEL CHINA KUWAIT EGYPT POLAND TOTAL

2014 1179.6 725.3 523.7 506.0 413.1 358.3 129.5 116.7 116.0 88.4 79.4 71.4 46.5 39.3 26.0 25.6 21.6 20.8 18.3 16.9 14.9 12.9 12.6 3.8 1.5 1.2 1.1 1.0 1.0 0.9 0.6 0.4 0.3 0.2 0.1 0.0 -0.7 -2.5 -8.0 4563.5

2015 1204.7 691.5 547.5 702.8 411.0 386.9 137.2 140.3 128.2 94.5 120.6 75.5 58.7 56.9 27.4 28.9 36.0 23.8 24.7 19.0 13.6 14.7 13.6 5.2 1.5 1.2 3.3 0.7 0.7 1.0 0.3 0.3 0.2 0.1 0.1 1.2 4.0 -2.0 4.2 1.9 4981.7

2016 1232.6 739.5 604.4 718.0 512.9 359.6 122.7 142.1 117.1 80.8 550.1 88.1 58.4 103.6 23.4 41.6 40.9 38.4 15.9 19.3 12.7 18.1 2.8 17.3 1.7 1.4 2.6 0.5 1.8 -0.6 -1.2 0.5 0.2 0.4 -0.1 1.2 6.4 -4.1 4.2 2.3 5677.3

2017 1278.7 882.9 651.5 845.7 520.4 419.0 115.9 154.0 96.4 70.7 888.3 182.8 59.3 134.6 15.2 45.2 41.6 46.8 17.5 18.6 14.2 21.4 5.6 19.8 6.3 1.6 3.4 0.7 1.9 1.1 -0.2 1.1 0.2 0.5 -0.1 1.2 7.7 -31.7 4.4 2.6 6546.8

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LET’S TALK ABOUT TOURISM

I love to participate in the complete process of a new hotel creation, from the initial idea to foundations, architectural and design aspects to its opening to the public. All phases are very emotional and very intriguing. Each step requires tenancy, leadership and long term vision.

I’m Born, Not Made Hotelier

The "reasonable success" I have is different to most people. Today I am the founder of the JP HOSPITALITY & Business Partners, a young company with long past experiences gained through full dedication to the hospitality and people around 5 continents.

By José Pinto*

JP HOSPITALITY & Business Partners are ready to assist with their experience and know-how in any type of project related to tourism in Albania and overseas. Together we can transform an unproductive site into a rewarded area for all the investors and local community. When I look back to my almost 50 years in hotels, I am fortunate to belong to an “Academy” of hospitality professionals who, instead of getting into golf courses or sailing or any other elite sport, I chose to continue working into hospitality, its investors and young hoteliers. They are the ones who see on the hospitality industry their new businesses from which the country that they were born and have grown up expects wonders.

"I have been fortunate like many of my peers to learn from great, passionate and true hoteliers, who devoted their time and know-how to others, either by serving or passing on what they have learned from other true and lovely people.“

I have associated the JP HOSPITALITY & Business Partners with great group of professionals who are ready to assist with their experience and know-how in any type of project related to tourism. Together we can transform an unproductive site into a rewarded area for all the investors and local community. The map of Madeira, the place of birth of Mr. Jose Pinto.

My professional career started when no mother or father would appreciate seeing their son or daughter join “the hotel.” This was just when I was aspiring to finish my 12th grade. I had to still work on and off between my work and my studies, travelling from one country to the other for a few more years until I got my master graduation in Hospitality Management in 2010. With just one international hotel chain operating in my home town at the time, today the company I have dedicated more than half of my life runs more than 6500 hotels worldwide. Despite my six decade of complete dedication, I remain active and fully passionate in the development of new ideas with innovative approaches to any business within the hospitality industry.

I am fully time committed embracing new challenges with the same dedication and heart as I was, now better since the knowledge gained can be put into practice with much less questions or fear as it was in the very beginning.

The formula to achieve such a success is not a secret but it is based on offering the best possible know-how to any investor and assure them that tourism is a very rewarding industry once the principles are followed. It comes down to one principle that transcends time and geography, religion and culture. "It's the golden rule - do unto others as you would want done to you” as said by a great and passionate hotelier.

It is that simple - “having in mind that value make us who we are. The beliefs of putting people first, embracing change, acting with integrity are key and motor of JP HOSPITALITY & Business Partners.”

* Founder of JP HOSPITALITY & Business Partners

September 2018

Unveil the hidden gastronomical treasures of Albania

mullixhiu

069 66 60 444 book@mullixhiu.al

THE LEADING LAW FIRM IN ALBANIA

Leading Law Firm in

Albania

Partner of Yingke Law Firm China

www.lpalbania.com

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PUBLIC UTILITY

FACTSHEET ABOUT THE COMPANY • 5380 km water network • 1 million m3 daily capacity • 766 wells • 2 drinking water treatment plants • 1 770 employees* • 2 360 000 people served • 94 million m3/year waste water treatment • 7 wastewater treatment plants

150 years of Budapest Waterworks “Tradition and Innovation” By Rudina HOXHA

Budapest praises that it missed water only one day during the Second World War. Since those times to date, Budapest Waterworks has become one of the leading water utility service providers in Central Eastern Europe by sticking to tradition, to the most sophisticated technologies and devices and above all, to values. Founded in 1868, Budapest Waterworks (BWW) celebrated its 150th anniversary by hosting a glittering, exclusive gala dinner at RaM Colosseum Budapest on 14th of June, 2018.

The evening was attended by prominent members of the diplomatic corps in Hungary, including the Albanian Ambassador to Hungary, H.E. Arian Spasse with his Spouse, representatives from Albania and Kosovo, Hungarian Government representatives and top Hungary’s and other foreign business associations’figures. The BWW’s CEO, Mr. Csaba Haranghy, who opened the evening, stated that "Budapest Waterworks is one of the most prominent, leading and decisive companies in Hungary. Throwing a glance to that past, back to our traditions and values created by our predecessors, up to this day, we look with honor and pride.” September 2018

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PUBLIC UTILITY

Haranghy said that among others, the success of this company lies on the inherited professionalism and expertise of the BWW’s professionals over the course of one and a half centuries. “It is not a coincidence that the motto of our Jubilee is “Tradition and Innovation.” While preserving the tradition, we all commit to further develop and increase the professional knowledge and experience accumulated over one and a half century.”

The beauty and responsibility of this mission, he said, determines our everyday lives. "The constant renewal and maintenance works of the Budapest Waterworks and the dedicated openness to innovation and development enhance the strength of this company, whose domestic and international reputation can be aﬃrmed without modesty"” Haranghy highlighted that "The Company has made use of its 150-year experience and expertise in over a dozen countries in the past decades." "One of our major projects in Sri Lanka has reached a new milestone: the Company successfully completed the reconstruction of two water treatment plants that partly provides drinking water supply for Colombo, the biggest city of Sri Lanka. Other references in the world testify successful completion of work such as Indonesia, China, Turkey Azerbaijan, South-East Europe etc."

Evis Gjebrea, Deputy Director of Tirana Waterworks UKT (a municipal water company in the City of Tirana), who was present in this event, told FOLLOW BUSINESS ALBANIA that a two-year contract has been signed between “UKT”, Budapest Waterworks and Lorenco&Co for the strategic middle term study of the Masterplan on Tirana Waterworks UKT with the aim to improve the water supply system for the Albanian capital. For the moment, according to her, the project is in its second stage consisting in the study of the hydraulic model to maximally use the water resources and best orient the major investments in this sector.

September 2018

View from the dinner gala organized on the occasion of 150th anniversary of BWW in Budapest.

It was the Mayor of Tirana, Mr. Erion Veliaj who, during his last March visit in Budapest, thanked BWW for the cooperation on the Masterplan while underlined “we are learning from the best.” On the other hand, Mr. Tamás Bencze, BWW’s International Business Development Director, highlighted that BWW is willing to share its huge experience with the Albanian water sector. “We are ready to share our extensive gained experience with the Albanian water sector and help the water utilities improve their operation and security of supply, financial management, revenue collection

as well as the number of satisfied customers through the most sophisticated technological and company management solutions, by avoiding the repetition of same mistakes in the course of their development path,” Bencze told Follow Business Albania. Based on the cooperation experience with Tirana Waterworks UKT and utilities in the Balkans Region, he added, “we understand that majority of them are facing the same challenges and that a great potential for technical and financial growth can be seen if appropriate investments are identified and step-by-step phases are determined.”

During the visit of Tirana Mayor, Mr. Erion Veliaj in Budapest. ExperiDance performance was part of the celebrations during the gala dinner.

Bencze said that “BWW feels obliged to exploit its best knowledge not only in Budapest but throughout the world while we notice the desire of many partners to cooperate.” He revealed that negotiations are underway in many European and Asian countries while cooperation agreements have already been signed in the fields of consultation, technological development and prime contractor agreement 27

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TRAVEL

Booking.com Has 3,000 Properties in Albania By Rudina HOXHA

“We have over 3,000 properties in Albania which cover listings in over 14 property types from apartments, hotels and holidays homes to chalets, lodges and farm stays,” says Lauren Cooper, Regional Communications & PR Manager Europe of Booking.com in an exclusive interview with FOLLOW BUSINESS ALBANIA. In this interview, Cooper makes a panorama about the activity of Booking.com worldwide. For about 22 years in operation, with its seat in Amsterdam, Booking.com has developed from a small Dutch start-up to one of the largest travel e-commerce companies in the world. It numbers more than 17,000 employees in 190 offices in 70 countries worldwide while it supports its own activity in 40

What is the number of the worldwide hotels and chains that Booking.com use? With over 28 million bookable listings worldwide we have more amazing unique places to stay than any other company including apartments, B&Bs/guest houses, hostels, homestays, holiday homes, boats, motels, villas and campsites and of course hotels.

How many in Albania? Balkans?

At Booking.com our aim is to connect travelers from all over the world with their ideal stay in the most seamless and enjoyable way possible. To that end, we have properties that go beyond the hotel. In every market we operate in across 30 dierent category types from homestays to apartments, villas, igloos, boats, tree-houses.

What areas or products Booking.com covers?

Our mission is to empower people to experience the world and that goes far beyond just the booking. We’ve focused on delivering a great booking platform and that’s something we’ll continue to do, Is Booking.com only for Hotel Reservation? but increasingly we’re looking at ways to

We have over 3,000 properties in Albania which cover listings in over 14 property types from apartments, hotels and holidays homes to chalets, lodges and farm stays.

September 2018

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TRAVEL

We help our partners capitalize on the digital opportunity, opening up new customers globally, improving occupancy rates and driving incremental revenue. We help make the accommodation market a level playing field where smaller B&Bs can feature alongside established hotel chains and new destinations can compete with well-known favorites.

most cost effective marketing channel to drive incremental business for our partners.

How can hotel and hotel chain use the Booking.com services? The world of travel has changed immensely over the last 20 years. Like many other industries, it’s gone from a largely manual process to an increasingly digital one. Many properties have found it hard to adjust to that digital transition and the opportunities it presents to fuel business growth. That’s where Booking.com comes in.

be with our customers throughout their trip. So for example, how can we help them when they’re trying to find something to do or when they want to find somewhere to eat.

It is a simple, completely free process for a property to sign-up up to Booking.com and can be completely managed online via join.booking.com. In addition, we have teams all over the world to support our partners through the process and help them market their property in the best way. It’s therefore really easy for our partners to test Booking.com as a marketing platform and see how much additional business they can drive from all over the world.

Has Booking.com representatives by region or continent? Booking.com is a dynamic and diverse company. We were born in the Netherlands and continue to be headquartered in Amsterdam, with around 5,000 employees based in the city. That said we’re an incredibly international company, with 17,000 employees around the world representing 130 nationalities in more than 190 offices.

With over 28 million bookable listings worldwide we have more amazing unique places to stay than any other company including apartments, B&Bs/guest houses, hostels, homestays, holiday homes, boats, motels, villas and campsites and of course hotels

We will also continue to look and test new technologies to take even more of the friction out of travel.

Can you share the volumes of sales or revenues generated to hotels by Booking.com? Booking.com enables our accommodation partners to capitalize on the internet opportunity and reach a global customer. Simply put, Booking.com is arguably the September 2018

"Gjergj Fishta" Boulevard, Building, No.146, Entrance No.2, Alpas Center, Tirana, Albania

Tel: +355 (0) 42 270 936 Email: info@icts.al

www.icts.al www.ictseurope.com

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ECONOMY

By Eduard Zaloshnja, PhD Research Scientist at Pacific Institute for Research and Evaluation, Washington DC

Growth rates of GDP, employment and tax revenues â&#x20AC;&#x201C; something is amiss The history of economy has showed time and again that when the economy grows, employment and tax revenues grow accordingly. Empirical evidence has proved that there is a strong positive correlation between employment and real GDP and tax revenues (net of inflation). The more people are employed, the more goods and services are produced, and the more tax revenues go to state coffers.

Looking at Albaniaâ&#x20AC;&#x2122;s GDP in the last 13 quarters for which the data are available, it can bee seen that its real year-on-year growth (net of inflation) has averaged 3.4%. The growth rate was only 1.7% at the beginning of 2015 and reached the 4.5% level at the beginning of 2018, with individual rates over different quarters being close to the trend line (Figure 1). The growth trend line indicates that the economy has been expanding consistently in the last 13 quarters for which data are available. September 2018

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ECONOMY

Looking at employment data overs the same period, it can be seen that its yearon-year growth has averaged 4.9%, which is 1.5 percentage points higher than the average real GDP growth.

Figure 1 - Year on year real GDP growth 4.3%

4.3% 3.9%

3.7% 3.2%

4.5% 3.5% 3.6%

3.2% This discrepancy runs against empirical evidence – normally employment grows slower than the GDP.

2.3% 2.3%

Moreover, looking at individual growth rates for each quarter, it cannot be seen the same consistency noticed in GDP growth. In some quarters, year-on-year growth rates are extremely higher than the trend line and in some much lower

Q1-18

Q4-17

Q3-17

Q2-17

Q1-17

Q4-16

Q3-16

(Figure 2).

Figure 2 - Year on year employment growth

This discrepancy can be explained by the fact that IMF and EuroStat exercise a much stricter supervision over INSTAT in relation with GDP data, as compared to employment data.

10.6%

8.5%

The unexpected jumps in employment do not seem to be statistical flukes – more likely they are statistical glitches.

6.8% 5.5%

While employment data may not be reliable, tax revenue data are. They come directly from the Treasury, which by law, has to be precise to the cent.

5.2%

4.9% 4.3%

This is not good for the business climate in the country. Businesses need to be taxed

Q1-18

Given that tax laws have not been changed significantly over the last three fiscal years,

Q4-17

these oscillations in tax revenue growth rates can be explained with the inconsistent work of tax and customs authorities.

Q2-17

However, looking at individual growth rates for each quarter, it cannot be seen the same consistency noticed in GDP growth. In some quarters, year-on-year growth rates are extremely higher than the trend line and in some much lower (Figure 3).

Q1-17

Q3-16

Q1-16

Q2-16

1.7%

Q4-15

Q3-15

Q2-15

Q1-15

1.9%

Q3-17

Accounting for inflation, tax revenue’s year-on-year real growth averages 3.4% over the same period, a rate close to the GDP’s growth rate.

3.7%

3.6%

3.4% 3.5%

Q4-16

Q2-16

Q1-16

Q4-15

Q3-15

1.7%

Q2-15

Q1-15

1.7%

consistently – they need not be subjected to the whims of tax authorities or the temporary needs of the government for tax money

Figure 3 - Year on year real tax revenue growth 12.7%

7.9%

7.3%

6.6% 5.2%

4.9%

-1.3%

Q1-18

Q4-17 Q3-17

Q2-17

Q1-17

0.8% Q4-16

Q3-16

Q2-16

0.3% Q1-16

Q3-15

Q2-15

Q1-15

0.3%

Q4-15

2.2% 0.8%

-3.3% September 2018

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REAL ESTATE

Travel & Tourism 2017-2018 Review By Morena SHETA

One of the Fastest-Growing Economic Sectors It’s interesting that 1 in 10 jobs globally rely on the travel and tourism industry! This makes travel & tourism one of the world’s largest and fastest-growing economic sectors which provides a broad range of opportunities. Statistics on T&T report for 2017 reveal that travel and tourism can be considered as a dynamic engine of employment. This industry has undergone, and is still undergoing, seismic upheaval over recent years. In ten years timespan the industry is expected to grow at a rate of more than 4% annually.

- Also in 2024, international tourist arrivals are forecast to total - 1,762,110,000generating expenditure of USD 2,052.4 bn. - Travel & Tourism investment is expected to rise by 4.3% pa over the next ten years to USD1,408.3bn in 2028 (5.1% of total).

Economic Contribution to T&T As an important economic activity T&T brings direct economic impact, indirect and induced impact. Total Contribution is reflected to GDP and Employment of the country. This industry plays a crucial role in creating jobs, driving exports, and generating prosperity across the world.

The forecast expansion of this industry will require improved structures, stronger governmental support, along with proper leadership, advanced know how and usage of technology to ensure sustainable and inclusive growth for all stakeholders and millions of people who depend on it.

Direct Contribution of T& T to GDP

Meanwhile the growth of this industry is in these dimensions:

and jobs supported by:

- The direct contribution of Travel & Tourism to GDP is forecast to rise by 3.8% pa, from 2018-2028, to USD3,890.0bn (3.6% of total GDP) in 2028 - By 2024, Travel & Tourism is forecast to support 10.2 % of total employment.

such as the purchase of new aircraft and construction of new hotels)

reflects the ‘internal’ spending by residents and non-residents for business and leisure purposes as well as government 'individual' spending - such as cultural (eg museums) or recreational (eg national parks).

Indirect Contribution includes the GDP 1. Investment spending- (for eg activity

2. Government 'collective' spending on behalf of the community at large’- (eg tourism marketing, administration, and security services, resort area security

services, sanitation services)

3. Domestic purchases of goods and services by the sectors dealing directly with tourists- (for eg cleaning services by hotels, of fuel and catering services by airlines, and IT services by travel agents) ‘Induced’ Contribution measures the GDP and jobs supported by the spending of those who are directly or indirectly employed by the Travel & Tourism industry. The direct contribution of T&T to GDP was 3.2% of total GDP in 2017, and is forecast to rise by 4.0% in 2018, and to rise to 3.6% of total GDP in 2028. In 2017 T&T directly supported 118,454,000 jobs 3.8% of total employment. This is expected to rise by 2.4% in 2018 and rise by to 4.2% of total employment in 2028.

BREAKDOWN OF TRAVEL & TOURISM'S TOTAL CONTRIBUTION TO GDP AND EMPLOYMENT 2017 GDP (2017 ALLbn) 78 202

134

EMPLOYMENT ('000)

DIRECT

139

+ INDIRECT + INDUCED = TOTAL CONTRIBUTION OF TRAVEL & TOURISM

September 2018

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REAL ESTATE

% OF WHOLE ECONOMY INVESTMENT

Estimates and Forecast

9.0

2017

2017 1

USDmn

ALBANIA

2028

2018

% of total

USDmn

Growth

% of total

Growth

7.0

Direct contribution to GDP

6.0

Total contribution to GDP

5.0

Direct contribution to employment 4 4

2028

2017

2018

2016

2014

Capital investment

2015

0.0 2013

1.0

Business spending

2008

Leisure spending

2011

2.0

2012

3.0

Domestic spending

2010

4.0

Visitor exports

2009

Total contribution to employment

8.0

2017constant prices & exchange rates; 22018 real growth adjusted for inflation (%); 32018-2028 annualised real growth adjusted for inflation (%); 4'000 jobs

% OF WHOLE ECONOMY GDP

The direct contribution of T&T to GDP in 2017 was ALL134.1bn (8.5% of GDP). This is forecast to rise by 3.9% to ALL139.3bn in 2018. This compasses the economic activity generated by industries such as travel agents, airlines, hotels and other passenger transportation. The direct contribution of T&T to GDP is expected to grow to ALL220.4bn (9.3% of GDP) by 2028.

10.0 9.0 8.0 7.0 6.0 5.0 4.0 3.0

account for 111,000 jobs directly, an increase of 1.4% pa over the next ten years.

ALBANIA TRAVEL & TOURISM'S CONTRIBUTION TO GDP: BUSINESS VS LEISURE, 2017

2.0

50.0 40.0 30.0 20.0

'000 JOBS

2028

2017

2018

2015

2016

To let aside all the highlights of famous magazines about Albaniaâ&#x20AC;&#x2122;s Riviera, beautiful nature and great hospitality, global growth has left its footprint in this country.

2013

0.0

2014

10.0

2011

As T&T deep analysis reveal, 2017 was one of the strongest years of GDP growth in a decade with robust consumer spending worldwide. Global development has mainly been felt in emerging economies such as Albania.

70.0 60.0

2012

Albania from 2017 to 2018 and Beyond

ALBANIA TRAVEL & TOURISM'S CONTRIBUTION TO GDP: DOMESTIC VS FOREIGN, 2017

FOREIGN VISITOR EXPORTS AS % OF TOTAL EXPORTS

2010

T&T investment in 2017 was 4.5% of total investment. It should rise by 4.8% in 2018, and rise 5.1% of total in 2028.

2008

Visitor exports generated USD1,494.2bn 6.5% of total exports in 2017. This is forecast to grow by 3.9% in 2018, and grow by 4.1% pa, from 2018-2028, to 6.9% of total in 2028

T&T generated 93,500 jobs directly in 2017 (7.7% of total employment) and this is forecast to grow by 3.3% in 2018 to 96,500 (7.8% of total employment). This compasses employment by airlines, travel agents, hotels and other passenger transportation service. (excluding commuter services). It also includes, for example, the activities of the restaurant and leisure industries directly supported by tourists. By 2028, T&T will

2009

2028

2017

2018

2015

2016

2013

2014

2011

2012

2010

2008

0.0

2009

1.0

Visitor exports are crucial component of the direct contribution of T&T. In 2017, Albania generated ALL235.5bn in visitor exports. In 2018, this is expected to grow by 3.6%, and the country is expected to attract 4,854,000 international tourist arrivals. By 2028, international tourist arrivals are forecast to total 6,607,000, generating expenditure of ALL387.4bn.

120.0 100.0 80.0 60.0 40.0 20.0

September 2018

2028

2017

2018

2015

2016

2013

2014

2012

2011

2010

2009

2008

0.0

Worldwide Travel&Tourism is experiencing tremendous growth. The challenge is to make sure that the progress is sustainable and inclusive

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PATENTS

Albania Can Make it to Develop High-Level Patent Capacity Live from Paris, Saint-Germain-en-Laye By Rudina HOXHA

“My message would be: It is possible for an emerging country to develop a high-level patent capacity. It is not a question of country’s size but a question of priority in its policy.” This was the main message of the former European Patent Office (EPO) President, Benoit Battistelli (who was succeed by Antonio Campinos on July 1, 2018) during an exclusive interview with FOLLOW BUSINESS ALBANIA in the sidelines of the European Inventor Award 2018 ceremony in Paris, Saint-Germain-en-Laye, attended by some 600 guests from the areas of politics, business, intellectual property, science and academia. In addition, he urged the Albanian universities and companies to

Ex European Patent Office (EPO) President, Benoit Battistelli

apply for patents at EPO. “This implies to make people more aware of the importance of the patents on the economy,” he added. Launched by the EPO in 2006, the European Inventor Award is one of Europe's most prestigious innovation prizes, highlighting individual inventors and teams of inventors whose inventions provide answers to some of the biggest challenges of our times. The winners are selected by an independent jury consisting of international authorities in the fields of business, politics, science, academia and research, who examine the proposals in terms of their contribution towards technical progress, social development, economic prosperity and job creation in Europe.

September 2018

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PATENTS

What can you say about the relations between the EPO and the National Patent Offices, concretely with the Albanian Patent Office? How is Albania doing in terms of the registration of patents? Generally speaking, EPO is an international organization and its 38 member states are very diverse. They all belong to Europe geographically but they are very different in terms of their economic development. That is why we have developed a policy to try to upgrade the patent capacity of all our member states in order to have a more proportional system. In this context, Albania is specifically benefitting from this policy which we call it “welcome policy”. So, it is a policy for the new members. Since Albania joined the EPO, it has been benefiting from such trainings in order to train the qualified EPO professionals for the national office but even for the private companies.

The winners of 13th edition of the European Inventor Award ceremony.

But this implies to make people more aware of the importance of the patents on the economy.

At the end of your tenure, what do you think is the main driver for the EPO’s success?

In addition, we have helped Albania’s EPO Office to use modern IT tools in order to develop its capacity. We also have helped Albania’s EPO Office to modernize its legislative and regulatory framework. The third pillar of our cooperation is to develop what we call the patent awareness activities. One of the main challenges for the emerging countries is to develop a culture of patents, a culture of intellectual property and this implies to organize meetings, seminars, directly with the universities, with the companies, specialists and SMEs. So there is a large program of all these events. As an EPO, we have created what we call ‘The European Patent Academy’ which is in charge of developing all these events within all the member states especially for the developed countries and for the less developing economies.

Are new patents being filed from Albania? Can we talk in figures? I visited Albania two years ago. I know that the level of patent application is very low. But once again, I think it is possible. Instead of speaking of the size of economy, we have countries in Europe which are able to develop good capacity in patents. So, it really depends on the policy to develop innovation in each country. So, I am convinced that the Albanian universities or some Albanian companies could apply for patents at EPO. September 2018

I think that the main reason is the high qualification of our staff and also their high motivation. You don’t work at EPO just by chance. You work at EPO because you are motivated. You are motivated to contribute to the future of Europe and you are motivated by the fact that we provide services which are useful for the economy. It is difficult to be hired by EPO because it does exit a strong competition. To give you an example: for each posting, we receive about 200 candidates. In other words, they are very motivated and highly qualified. This is the first reason. The second reason is that we are in a system where if you have the support of all the member states, it is possible to take decisions. And we devote all our sources only to the patents. With this technical and political support, you can obtain successful performance.

What was your impression European Inventor Award 2018?

about

I think each year, it is more and more impressive because we have more and more candidates. This year, we had around 530 candidates and to select 15 out of them and then 5 out of the 15 is extremely difficult. So, I am always impressed by these inventions. At the same time, the inventors are very interesting people. What we think as European Patent Office (EPO) is that these people are not enough known. They are the Heroes of our times and people do not know much of them, except in some cases. So, we are trying with your help and that of the international media to draw the public attention on them.

What is your message to emerging countries like Albania? My message would be: It is possible when you are an emerging country to develop an high level patent capacity. It is not a question of country’s size but a question of the priority in the country’s policy

The 13th edition of the European Inventor Award ceremony took place on 7 June 2018 in Paris, Saint-Germain-en-Laye. There are 6 prizes awarded in the context of European Inventor Award 2018 under 6 categories: Industry/ Research/NON-EPO Countries/SMEs/ Popular PRIZE and Lifetime Achievement. The winners of these prizes are as follows: 1. Agnés Poulbot and Jacques Barraud from France – Industry 2. Jens Frahm from Germany – Research 3. Esther Sans Takeuchi from USA Non-EPO Countries 4. Jane ni Dhulchaointigh and team from Ireland – SMEs 5. Ursula Keller from Switzerland Lifetime Achievement 6. Erik Loopstra and Vadim Banine from The Netherlands/Russia – Popular Prize For more information about the winners of EIA 2018, please check: https://www.youtube.com/watch?v=UDlLH 3MMyTo&feature=youtu.be

Address: Pedonale, Tamare , Albania. For reservation, please contact: 0697207077

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TOURISM

B2B CENTRE MIC - ACADEMY OF CULINARY ARTS AND TOURISM B2B Centre MIC - Academy of Culinary Arts and Tourism is an organisational unit of College of Hospitality and Tourism Maribor and a centre of life-long learning in Hospitality, Tourism and Wellness. B2B centre provides professional and wider audience with different high-quality workshops, courses and seminars annually such as; bread baking, making fresh pasta, vegan food and desserts, massage courses, baby food, different wine tastings, cake Lorem ipsum cheese dolor sit amet baking, potica baking (special national pastry), rum and chocolate tasting, workshop, wine workshops and many others that can be found at our website www.vsgt.si. Several times a year we also invite different national and international high ranking chefs for knowledge transfer that is opened for public.

September 2018

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TOURISM

Our current and on-going projects are:

We are tightly involved with Chamber of Commerce and Chamber of Craft, Slovenian Ministry for Education, Slovenia Ministry of Economic Development and Technology Science and Sport, Slovenian Agency for Mobility, Municipality of Maribor and other stakeholders, tourism industry, tourism board and many others. Our tight connection results as a different project work at different levels.

• Wine and Spirit Education Trust London (level 1, 2 and 3) – special upscale professional seminars with certified wine expert. Seminar is held in English and recognised worldwide. • The introduction of the new categorisation system in Slovenia that includes Hotelstars standards - education and training organized jointly with the Ministry of Economic Development and Technology, is aimed at both the professional and the general public. • Local tourist guide course • Special course for adults with connection with Employment Service of Slovenia and local industry for the education of chef and waiter assistants and hotel maids (approx. 70 candidates). • Erasmus+ Mobility project with Malaysia for transfer of knowledge and intercultural understanding. Lorem ipsum dolor sit amet • Erasmus+ Mobility project for student mobility (study and internship). • Professional Master exams in connection with Chamber of Craft. • Special refreshment courses and contemporary gastronomy for existing gastronomy professionals in Carinthia region in connection with Chamber of Craft and EU funds. • "Cafovanje" - Autumn College Event celebrating local community and collaboration with different stakeholders. • "Cafoodfest"- Municipality Street Event where students of different educational institutions compete in preparation of unique street food made out of local ingredients paying respect to the cultural heritage of Slovenia. We close the street in front of the College in December. The event lasts for two days, is opened to public and is supported with unique animations (artist dance suspended from the College walls, fashion display and the opening of the College Restaurant Seven winter terrace. • Actively bidding for European Region of Gastronomy 2021 together with other stakeholders.

We are also involved in different regional and national events such as Golden Fox - FIS Ski World Cup, Festival Lent, Cheese festival, Food Diplomacy in connection with US Embassy, Global Wellness Day, etc September 2018

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The International Chamber of Commerce (ICC) is the worldâ&#x20AC;&#x2122;s largest business organisation with a network of over 6 million members in more than 100 countries. We work to promote international trade, responsible business conduct and a global approach to regulation through a unique mix of advocacy and standard setting activitiesâ&#x20AC;&#x201D;together with market-leading dispute resolution services. Our members include many of the worldâ&#x20AC;&#x2122;s largest companies, SMEs, business associations and local chambers of commerce. Learn more or become a member at: www.icc-albania.org-al

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TOURISM

Necessary for Albania to Establish a Quality Tourism Education Institution for the Youngsters Following the example of Slovenia: College of Hospitality and Tourism Maribor. MSc. Helena Cvikl is the Director of College of Hospitality and Tourism in Maribor, Slovenia. She is a top professional in the field of quality tourism education, a licensed evaluator for the categorisation of accommodation and restaurant facilities while cooperates with the Slovene Ministry of Economy, Development and Tourism through various projects from the field of tourism. After being in Albania one year and a half ago, Cvikl states that Albania possesses so many cultural and natural beauties and thus “has all possibilities for a quality development of hospitality and tourism.” Besides highlighting that Albania needs a center or institution to promote a quality tourism development, the creative lady invites Albanian government to see the international programme (less expensive than in the other European countries) she is establishing in the School as a great opportunity for the Albanian young people where they can get a quality education in hospitality and tourism.

“Cooperation with Albania is definitely something we aspire. A year and a half ago, the Slovenian Embassy invited me to Albania where I visited various governmental institutions and schools and discussed the possibilities of cooperation and our activities. I expressed my willingness to share our experience with your country. Your country possesses so many cultural and natural beauties and thus has all possibilities for a quality development of hospitality and tourism. Tastes of fresh goods and vegetables from your country bring beautiful childhood memories and I think that this is your advantage besides the landscape and breathtaking natural beaches. But most of all, I would like to emphasize the warmth and kindness of your people. What you need is a competent and professional staff and that is something your country September 2018

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TOURISM

We are establishing an international programme which will be less expensive than programmes in other European countries, such as in Switzerland or France, and I wish that your government sees this as a great opportunity for young people in your country and enables them to get a quality education at our school.”

“Ambassador of the Year has become a traditional project of College of Hospitality and Tourism Maribor. The purpose of the event is to award the student whose exceptional creativity, dedication to profession, professional work and achievements in national and international competitions contributed to the promotion of hospitality in Slovenia and Europe.

needs to be conscious of and incorporate in its development strategy. Therefore it is necessary to establish such center or institution, public or private, which would offer a quality education to young people. Our philosophy is that during their studies we need to enable possibilities for our students where they can achieve different skills, not only theory, but also skills in entrepreneurship, marketing, hotel management, restaurant management, service, kitchen… Students must learn how to apply theory in practice, how to cope with values such as discipline, persistence, resourcefulness, creativity, consistency which are important for life in general. We teach our students to step above the average and strive for excellent services as 5-star destinations demand.

July 2017

The mission of our college as an internationally acknowledged educational institution in tourism and gastronomy is also to follow global trends, study examples of good practice around the world and transfer them into national and local environment. The main and final event of the project is special since every year the project Ambassador of the Year tells a new story, connected with the history and tradition of the local community and environment. This year the project will be dedicated to wine culture, vine and its importance for Maribor. College of Hospitality and Tourism Maribor follows innovatively designed business model based on practical and economy oriented study programme that has been successfully implemented in the school Restaurant 7, where students of catering under the supervision of mentors independently perform all professional processes. Implementing theory in practice helps them developing necessary skills. We are proud to say that our Restaurant 7 was classified as TOP 10 among restaurants in 2018. Inspired and encouraged by this, we started the new ambitious project – establishment of school hotel that will be a new place for practical training of students. The hotel will welcome its first guests and the first generation of students already in the next study year. Enabling students the experience of working in a hotel, cooperating and learning about all processes needed for the successful hotel management will give them practical experience and skills for more self-confident and successful development of their own career.

We believe that fulfilling our educational mission with the new school hotel will definitely bring new activities, new faces and nonetheless economic benefit to our city“ September 2018

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POLITICAL COMMUNICATION

Lufthansa Group Wins Four Skytrax Awards • Close to 20 million passengers select the best airlines in the world every year • Lufthansa Group airlines honored with four Skytrax World Airline Awards Last July, Lufthansa was elected as the “Best Airline in Europe” and the “Best Western European Airline”.

The awards were presented to Lufthansa on the occasion of a ceremony held by Skytrax in London. The market research institute Skytrax specializing in the aviation industry had previously surveyed about 20 million passengers from more than 160 countries worldwide.

Moreover, Austrian Airlines is champion in the category “Best Business Class Onboard Catering”.

The survey was carried out by the market research institute Skytrax specializing in the aviation industry.

Passengers were asked to assess the offering on board and services of the airlines at the airports. Skytrax has been conducting this survey on an annual basis since 1999.

The detailed results of the World Airlines Awards can be found at: www.worldairlineawards.com

Passengers from across the globe voted in favor of the German premium airline and thus also acknowledged the service provided by Lufthansa. “We would like to thank our customers for this vote of confidence and our employees for their commitment and customer orientation”, says Andreas Otto, Product Manager of the Lufthansa Group for the premium airlines and Chief Commercial Officer of Austrian Airlines. “We are well aware of the challenge of living up to this award at all times. For this reason, we see this recognition as an incentive to fulfil the promise we make to our customers”, he adds. Austrian Airlines was given two awards. The employees were given the award as the “Best Airline Staff Service in Europe”. 52

September 2018

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REAL ESTATE

Think of hard choices you will face in the near future about Real Estate Market By Morena SHETA

Take a moment and think of a hard choice you will face in the near future…Well it’s complex! Hard choices are supposed to make you agonize and struggle, like whether to accept the current job position or uproot for a challenging post, live in or leave the city, quit or give yourself another chance, buy or rent a house … and there are so many confusing situations when people just have to choose between two or more alternatives.

It might also be to Save now or Invest it all! And when it comes to finances, nothing hurts more than a little money loss. The stake is high especially in areas which are integral parts of the economies’ growth phenomenon and are tightly correlated to many other sectors. Same counts for housing market which its demand is perceived as an investment and cost decision for stakeholder’s finances. As studies say, in the space of hard choices, when drawing pros and cons of Saving now or Investing all, using the normative brain power to identify the best alternative, decisions viewed as expenses are based not on a growth model but rather a survival model. Looking forward to 2020 and beyond, real estate players really need to understand how the economic and social changes are effecting their real estate landscape. Emerging markets are growing and this reflects an open door of opportunities and a broader range of risks exposed to everyone according to World Real Estate Market Forum 2018 output.

Fundamental Shifts of Worldwide Real Estate Landscape The world is rapidly changing and coming

to new unpredictable standards. Data and presumptions reveal a complex future environment. Try to picture it: - By 2050, the urban population will increase by 75% to 6.3 billion, from 3.6 billion in 2010 - By 2025, there will be 37 ‘megacities’, up from 23 today, and 12 of these will be in emerging markets - Global construction output is expected to almost double to US$15 trillion by 2025, up from US$8.7 trillion in 2012 - Demand for infrastructure spending and investment is likely to run at US$1 trillion a year for the next 20 years in the 40 most important emerging markets - The number of people over 60 will exceed the number under 15 for the first time - With a fast-growing population, by 2030 we’ll need: 50% more energy, 40% more water, 35% more food - The stock of institutional investment grade real estate will expand by more than 55% from US$29.0 trillion in 2012, to US$45.3 trillion in 2020. It may then grow further to US$69.0 trillion in 2030. According to World Real Estate Forum 2018. September 2018

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REAL ESTATE

High energy price and climate change will encourage developers to be more innovative in design and eco- efficiency.

2050

1970

Competition among mega-managers will rise and only local knowledge will guarantee the success in real estate. In these terms, having hints about the development of housing market in Albania would be valuable. Real estate market in Albania is significantly complex because the purchase of a dwelling is considered the largest capital expense for Albanians. During the last 20 years there has been a boom of construction in this sector, but still the demand has failed to overcome the real estate offer, although there are some supportive incentives with bank loans or installment for real estate purchase.

Private capital will fill the gap left by banks and new investment funds and structures will be developed to address transparency and liquidity shortcomings. Environmental issues, technology and demographics are already the new value drivers in this sector.

1950

–– Urban –– Rural

Local Knowledge will give advantage: Albania Case

Generation grown up in digital world will be behind smart appliances, smart meters, smart building management systems, integrated distribution management systems, city-wide energy management systems and closer to clients.

2040

0 2030

2020

100

2010

1,000

2000

200

EUROPE

1990

2,000

2050

300

2040

3,000

2030

400

2020

4,000

2010

500

2000

5,000

1990

600

1980

6,000

1960

700

–– Urban –– Rural

Several real estate subsectors will emerge such as retirements, healthcare and agriculture due to global ageing population. Higher investment opportunities will increase competition among real estate managers and the investment community. Technology is finally reshaping the sector.

Millions

7,000

1950

The trend in megacities will rise the cost of prime urban real estate per square meter, affordability will fall, leading to greater urban density and smaller apartments.

WORLD

1980

Demand for new urban real estate types, infrastructure spending and investments will be felt especially in emerging economies.

Millions

1970

Urban and Rural Population Europe

1960

Statistics show that the greatest time of social migration has already started and by 2020 it will be firmly established. Existing cities will swell and new ones will be built which will be associated with a surge of constructions and urbanization phenomenon.

Interesting enough is that despite the declining on purchasing power, construc-

tors do not decrease their housing prices. Significant studies try to prove that house pricing in Albania tends to have a hedonic nature. Hedonic price method estimates the value of the characteristics of a commodity that indirectly affects its market price. The application of this method in Albania has revealed that attributes such as size, bedroom, elevator, toilet, age, and district have a positive effect on the price of the house. Meanwhile independent variables such as floor level and balcony indicate a negative effect on the price. Apparently Albanian household prefers to live in the lower levels of the building and seems to be more rational and ask for more space inside the apartment rather than balcony

The Proportion of World Population Aged 60 Urban Population 1950-2050

25% 20% 15% 10% 5%

Population in millions 7,000

21% 8%

10%

6,000 1950

5,000

2000

2050

Source: UN report World Population Ageing 1950–2050

4,000 3,000 2,000 1,000

Rest of world

Asia

Africa

Source: United Nations, Department of Economic and Social Affairs, Population Division (2012). World Urbanization Prospects: The 2011 Revision

September 2018

2050

2045

2040

2035

2030

2025

2020

2015

2010

2005

2000

1995

1990

1985

1980

1975

1970

1965

1960

1955

1950

As real estate is a business with long development cycles – from planning to construction takes several years – now is the time to plan for these changes!!! 55

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BRANDING

Brand evolved… Of course not this way Story of the brand in digital world By Vusal Gambarov, PHD

Just couple of weeks ago agency called Cambridge Analytica announced its closing. Surprisingly to me, reactions to this historical event were not so dense. Maybe we are really prone to forget. But why this news deserves more interest than it attracted? Even though it`s called Cambridge it has nothing to do with famous university of same name. This organization was closer to even more famous another organization – Facebook. If you recall scandals happened around Facebook with some details you know what I mean. Actually, scandals which took Mark Zuckerberg till hearings in the Congress started with Cambridge Analytica.

And finally with VALS (Values and Lifestyles) Model we accepted that demographics and geographics are not enough to define segments. But, here we have great BUT. So far, we always had these segments, but segments were not homogenous in their premises. Let`s say family watching Friends series were consist of different types of people. That`s why companies had to deliver messages to masses, instead of small groups. It was almost the same with all media outlets. Destiny changed with digital technology. Know we have all individual devices (computers, tablets and smarphones), where by recognizing every person companies easily can deliver

Firstly, let me state what was Cambridge Analytica just with some referring to Wikipedia: Cambridge Analytica Ltd (CA) was a British political consulting ﬁrm which combined data mining, data brokerage, and data analysis with strategic communication during the electoral processes.

Worldwide people focused on Facebook sharing information with third parties, but me personally were not focused there. CEO of Cambridge Analytica Alexander Nix in one of his presentations disclosed that they own up to 5000 different types information about every American. And you know what? I can`t imagine how much Facebook has more. I asked even in the classes: Can you count so many things about yourself? In that presentation Mr.Nix talks about how perfectly they have segmented American electorate according to Psychographics. They called this database as OCEAN. Yeah of course they are not first who did it. Journey started with Edward Bernays and Ernest Diechter, the father of motivational research nailed it. 56

September 2018

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BRANDING

set of information for different types of manipulations? Just consider these questions and let me pass to main topic: How digital world evolves brand. message tailor-made. And this was exactly how database taken from Facebook (according to the declaration of Zuckerberg without the permission of Facebook) served to Cambridge Analytica and their clients. Another but continues with a question. Closing of Cambridge Analytica is the solution? Google knows less than Facebook about us? How we can be sure that they are not using this very sensitive

Brand identity system (BIS) is perceived as the alphabet of brand building process. Even in my experience I observed that we start the process of brand building, in other words Marketing and Brand Strategy with brand identity. This stands for some core brand elements like logo, color palette or some signs which represent and communicate core values of the brand. Companies are so strict with these elements that they call document where it all indicated as “Brand Guidelines”, “Brand Constitution” or even “Brand Bible”. Yeah, bible…

Brands were (are) strict with their BIS because of risk of losing the face. Be consistent to be perceived monolith. But now if there are hundreds types of persons around brands can easily spot them and communicate with them properly. Fun catches me, but you are prone to emotional messages. So the same brand can talk to you emotionally, to me funny. No need to be strict with color selection then. So on and so forth. And it ends up with strict rules adapted to persons. Enea mentions that his study results are even temporarily. As the people and trends are changing fast, studies like this cannot be permanent.

I was always thinking of these strict rules will get soften one day. But how? Seems like we are getting the answer. My master student Enea Kuka for his graduation worked on Brand Anthropomorphism. This concept states that brands are starting to behave like humans. Obviously, digital technology and especially social media accelerated it. Now we have Twitter account of Wendy`s trolling people. Literally like human. Enea found out huge humor in online behavior of brands. Even some unsuccessful cases where attempt to joke ended up by being trolled. Let`s connect the dots here and how softening brand identity rules is related with brand anthropomorphism and Cambridge Analytica scandal. September 2018

I will conclude with parallelism with humans. Even we are treating or communicating different people with different ways. With kids we are compassionate, with workers strict, but caring, with media cheering, on social media cool… Like brands… As I said once in the class, now we say that brands have personalities and identities like humans. In the future we will say differently: “You know what? Humans also have faces, personalities, identities and ideas… like Brands…” Vusal Gambarov, PHD vgambarov@epoka.edu.al

prof.vusal @vusalgambarov

Tel. Fix: +355 422.23.738 - Cell. +355 693.06.84.54 Rruga Muhamet Gjollesha Godine 59 Tirana Albania

WAT World Academy of Tirana

World Academy of Tirana (WAT), ย ย ย ฦคย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ศ ศ Wย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย อ อ อ อ วก ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย อ ย ย ย ย ย ย ย ย ย ย วฃ

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World Academy of Tirana ย วค ย ย ย ย ย ย ย ย วก ย ย ย ยดย วก ย ย ย ย ยดวก www.wat.al, info@wat.al

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ECONOMIC GROWTH

Albaniaâ&#x20AC;&#x2122;s GDP Growth if Electric Power Production Remained Constant

By Eduard Zaloshnja, PhD Research Scientist at Pacific Institute for Research and Evaluation, Washington DC

September 2018

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ECONOMIC GROWTH

Figure 1. Year-on-year Real GDP growth rate in Albania, if electric energy production remained constant 5.0% 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5%

Real GDP Growth

Q1-18

Q4-17

Q3-17

If energy reamined constant

In the last four years, no new major electric power generating facility is added to the electric grid of Albania.

In Figure 1 are presented year-on-year real GDP growth rates for the last 13 quarters for which INSTAT has published data.

Meanwhile the whole domestic production of electric energy is based on hydropower, which is highly dependable on rainfalls. In the first quarter of 2018, for example, the domestic production of electric energy reached the record high of 3.2 GWh, whereas in the third quarter of 2017, it reached the record low of 0.4 GWh.

Alongside those rates are presented year-on-year growth rates after excluding the impact of electric energy production to GDP (assuming it remained constant).

In average, the value of electric power production comprises 20% of Albania’s GDP. As such, fluctuations in production – from quarter to quarter and from year to year – have significant impact on GDP growth. And this impact has nothing to do with the economic or political conditions of the country – at least in short term, they depend only on the whims of Mother Nature… Given this dependence of GDP growth on the highly uncontrollable electric power production, it is necessary to analyze it excluding the impact of the latter (i.e. assuming it remains constant). Such an analysis can point to the GDP growth related only to controllable factors, like government policies, macro stability, investor and consumer optimism etc. September 2018

Q2-17

Q1-17

Q4-16

Q3-16

Q2-16

Q1-16

Q4-15

Q3-15

Q2-15

Q1-15

0.0%

As it can be seen in the Figure 1, in some quarters, electric energy production has dragged down the GDP growth (when rainfalls have been low) and in some quarters it has boosted it (when rainfalls have been high). The most notable has been the first quarter of 2018, when GDP’s year-on-year real growth was almost 4.5%. If the impact of electric energy production is excluded, the GDP growth would be only 2.4%.

Since electric energy production starts falling rapidly after March, the slow GDP growth of only 2.4% in the first quarter may spell trouble for the subsequent quarters. If the rest of the Albanian economy does not pick up steam until the end of the year, the Government’s objective of 4% GDP growth for year 2018 could be in jeopardy 61

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TOURISM

Sharing Beach Safety Experience with Portugal By Rudina HOXHA

Portugal is distinguished for having beach security systems which have resulted quite effective in avoiding accidents. Two of Portugal's four sides are flanked by the Atlantic Ocean and the country has nearly 800 km of breathtaking coastline and with around 80 beaches in the Algarve alone, with its many hidden coves. Portugal has ushered in the 21th century with many beaches patrolled by land and sea for peopleâ&#x20AC;&#x2122;s safety and a huge improvements for disabled access. In this respect, The Instituto de Socorros a Naufragos (ISN) - The Portuguese Institute for Lifesaving is willing to share its experience with Albanian authorities. Since 1892, when the ISN was founded, some 33,000 persons have been rescued, as well as 9,000 boats and 550,000 persons had been helped. It operates all over the Portuguese coast through 32 lifeguard stations. According to Olga Sofia Marques, Head of the Bathers Assistance Service from ISN, Portuguese law says that the beaches, which are exploited by private individuals, must guarantee surveillance. In this sense, it is stipulated that for every 100m of beach front, there must be 2 lifeguards and one more every 50 meters. She says that ISN cooperates with some companies in the form of a public private partners to make its efforts more effective, one of them is Volkswagen Financial Services in Portugal, represented by its manager Luis Schunk.â&#x20AC;?

September 2018

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TOURISM

Dear Ms. Marques, over the recent years, Portugal has developed the art of being safe around water and the beaches. What kind of approaches did it follow?

Volkswagen Financial Services, offer 28 VW Amarok Pick-ups duly equipped for the assistance and safety surveillance at the beach.

Portugal bets on a culture of safety, campaigns for sensitization during the year in schools and during summer at the beach and swimming pools. Campaigns vary according to target audiences (children, teenagers and adults).

The Portuguese State has swimmersoldiers and drivers to operate the Amaroks. These are most useful in unguarded areas.

Summer means swimming. And the accidents in the water have been reported now and then in Albania through years. What kind of effective beach safety systems can you share with us and what is needed to make this happen? According to Portuguese law, beaches, which are exploited by private individuals, must guarantee surveillance. In this sense, it is stipulated that for every 100m of beach front, there must be 2 lifeguards and one more every 50 meters.

You are partnering with some companies in the form of a public private partnership that help you to increase the effectiveness of your efforts. Can you explain how this works in practice? Yes, we do have some partners who, within the scope of their social responsibility, help ISN. For example, during the 3 summer months, the importer of the VW Group and

Another partner is the Vodafone Foundation, promoting and facilitating communications on the beaches, which developed a free app available at the beach with several safety information that is continuously updated. They also offered 4x4 bikes and water scooters to reinforce security at the beach. These means also operated by specialized military personnel. Furthermore, the Vodafone Foundation also provides fundings for awareness campaigns on beaches and swimming pools. Lidl Portugal is another partner who has developed with us the surf-saving campaign for surfers, teaching rescue techniques with boards and basic life support. On the other hand, and for the adult population, a thorough information about the “agueiros” is transmitted: how to identify and avoid the latter, and how to act in case of being caught in a rip current. Similarly, prevention against skin cancer is also part of the program, whilst adults and children are instructed to perform basic life support.

Motorbikes 4x4 – Project Vodafone Foundation 2012

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AMAROK- Project VW importer and VW Financial Services in Portugal 2012

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In your view, what are three beach safety tips for families? 1. Whenever possible try to enjoy swimming at guarded beaches. 2. Respect the lifeguards' directions and your national beach safety regulations. 3. In case of emergency, do not enter the water yourself, call qualified help, Call 112 or similar emergency number in your country.

Schunk: Beach Security, Key value for Touristic Destinations Mr. Schunk, Volkswagen Financial Services is one of the partners in this public/private partnership. What is your motivation to participate in the program? The beach safety standard that has been achieved in Portugal is outstanding and a benchmark in Europe. The level of fatal incidents on the coast is minimal despite the growing number of beach tourists and the sometimes rough conditions of the Atlantic Ocean. In fact, the quality of infrastructure and the security at the beaches is becoming a key value proposition for Portugal as a touristic destination. By supporting the ISN with patrol and rescue vehicles we support a relevant social cause, namely to increase the safety on the beaches and to effectively safe lives. These are values that we as a company do promote and that form part of our corporate social responsibility program. The fact that the 28 VW Amaroks that patrol the beaches every summer carry our logo helps of course to give visibility to our social engagement to the general public and it also demonstrates the versatility and quality of our cars. Also, the presence of vehicles at the beaches provides all VW Group employees in Portugal and also our customers with a sense of pride.

We are happy to see that the ISN is starting to consult and support other authorities to implement beach safety policies and infrastructures

September 2018

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ART/CULTURE

A Bookmark Inspired by Albanian Culture and Heritage By Dorela Lazaj

The idea was born as all others are: as a joke, or as a creation for a loved one. A couple of years ago, I wanted to show a friend of mine (we were pen pals then), what a “fustanelle” was. So I thought it could be a good idea to design a bookmark with one of our most famous writers in it, and sent it over. During this process, many images came to my mind and all of them were equally precious. Pictures of photographs from the past, memories and highlights of our history and culture then came together and I felt a great need to promote Albania as I see it through my eyes. My friends then wanted to buy the bookmarks for themselves or as souvenirs for their friends and this slowly developed into a business idea. Dordolet’s aim is to mix the best of culture and heritage, and to introduce it in products that are usable and accessible. But what exactly is a Dordolet’s? It is a18:5 cm bookmark, printed with the highest resolution pictures and a durable double paper-plastic material. Each bookmark has its explanatory paragraph in English at the back, There are five options in this collection and each one tells a story of beauty, dignity and the past, which we tried to bring to the reader as simply as possible. Each bookmark, elegantly wrapped with hard paper covering, is perfect for tourists and literature lovers. The company’s philosophy is special for Albania. It has to be fun and it has to be in harmony with traditional values. It has to build a bridge from the reader to the explorer of Albania, to the child who discovers her own past. Currently, the bookmarks are being sold in Adrion Ltd, in Tirana, Shkoder, Gjirokaster and Berat, Destil Hostel, and Furra e Books. Dordolet’s is soon expanding as a brand into other products we are designing, targeted to youth, tourists, government offices, and the international community in Albania. More than a company, Dordolet’s is a social enterprise with the aim of emancipating the young generation into acknowledging its own values and opening up a space for free creative expression

September 2018

Through our offices in Tirana, Saranda and Vlora we will be there for you on every step of the way. Our team will be happy to provide our services to you. We can help you get the Albanian property or investment of your dreams. info@albaniapropertygroup.com www.albaniapropertygroup.com

September 2018

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September 2018

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POLITICAL COMMUNICATION

Edlira Gjoni shaking hands with late Senator John Mc Cain.

In search of impact from USA to Albania: Using communication to change politics Edlira Gjoni: Good communication influences politics and citizens. Let’s use it to inspire trust! 68

Edlira Gjoni is a journalist, lecturer and experienced communications professional in Albania and in the international arena. After her long communication services in German and Swiss projects in Education and Entrepreneurship, Ms. Gjoni moved to USA in September 2017 to participate in the prestigious program for the Next Generation Leaders at the McCain Institute for International Leadership. Edlira was one of the eight selected applicants in the tough competition to participate in the program which is based in Washington DC. As part of the program, Ms. Gjoni was exposed to the most influential US policymakers, governors, senators, congressmen, mayors, university leaders and institutional change-makers. She is thrilled with her US experience and with the new network of people who are willing to support Edlira on the implementation of her Leadership Action Plan, aiming to inspire effective political participation in Albania.

New perspectives in political communication The importance of political communication has been underestimated by many Albanian politicians who wrongly believe they have the right skills to build bridges just by talking. Exactly as Bernard Shaw has put it, “The single biggest problem in communication is the illusion that it has taken place”. The ability to talk endlessly holding a mike, is not a communication skill. Political communication is a way of getting across a clear message that applies public communication principles, such as: the truth, high integrity, authenticity, courage and setting inspiring examples. The real challenge for politicians is to relate political discourse to everyday concerns and do it in a respectful and civil way. For a politician to be impactful and influential there are several traits to master in communication, from the ability to come to a decision to the careful preparations of campaign messages for targeted audiences, from the language and tone used in politics that should avoid negativism and smearing attacks on opponents, from the ability to define the problem and September 2018

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POLITICAL COMMUNICATION

confront it, to the courage to establish clear responsibility for their actions. This set of skills requires a high sense of responsibility and accountability. If one doesnâ&#x20AC;&#x2122;tâ&#x20AC;&#x2122; feel responsible for what is communicated, he or she might be a politician, but not a leader. This should change. We need new,

talk about facts of the day and plans of the future, with carefully elaborated ideas. Talk about issues, not about people. Politicians must drop the irony and gossip found in smear campaigns. We - voters and candidates - should all have a willingness to engage in open and honest discourse, no social media anonymity and should refrain from distorting what the other side says. Other immediate changes that might be welcome in the political arena in Albania: politicians should respect their audiences and make effective use of media opportunities to get across clear messages.

trustworthy leaders of character. It is time to use the present as a new point in time to do things differently. There are new ways to connect issues with people in a very open, transparent, and respectful strategic way that instils trust.

How can we improve communications in our political processes? It is important to talk about issues based on data, facts, research and analysis. To listen carefully with an open belief system and to

September 2018

Preparation is required to articulate accurately the messages, to be held responsible for their statements, to set long term goals, serving as role models, and inspiring followers. More should be done in learning how to truly respect and include the opponents and the voters in the political ideas, winning the trust of many people in the audience. We should also learn how to solve conflicts - from small crises to more challenging ones, starting with the quarrels often seen in the social media between politicians. Most importantly, truth! Is foundational to good political leadership. Truth helps every politician stand out and build trust. Talk about the real issues that are important to the people, not the issues that arise from political propaganda or agendas. Our politicians should focus on the vision

and strategies instead, preparing us all for a better future. The essence is to think and learn from yesterday, speak to the issues today and influence change tomorrow.

How can effective communications be applied in Albania? As we know, the art of communication is the language of leadership. The sooner we learn this, the better. We can apply effective political communication by introducing the subject to students at a very early stage. Including it in the official curricula of formal school and informal training will better position young people for politics and government service. Current and emerging leaders can commit themselves to communications training based on the principles stated above. We are at a time where we can focus on the new ways of communicating with honesty and responsibility. This new course to communications results in leaders being accountable to the voters for their words and actions.

This the essence of my approach to leadership and the communication trainings to be held soon in Albania with young man and women participating in politics, where we can talk openly and honestly about what we want Albania - and its leaders - to be. Thank you!

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HOSPITALITY BRANDS

Hilton Garden Inn? It Is All About Exceptional Service By Rudina HOXHA

“It’s a beautiful hotel, a stunning hotel, lots of natural daylight, high quality products and materials (which make a difference) but of course backed up by hopefully the best service in Tirana,” General Manager of Hilton Garden Inn, the first Hilton branded hotel in Albania, Michael Walker told FOLLOW BUSINESS ALBANIA, just a few days before its opening.

Hilton Garden Inn Hotel will be soon inaugurated. How do you feel? “I feel very proud. It’s the first Hilton branded hotel in Albania. It doesn’t happen twice. It’s the first of its kind, a first in country so as a General Manager, a Hotelier, it fills me with immense pride. It’s a great opportunity, I was very grateful for the opportunity to take up this role. I feel it’s a great thing for Albania, clearly there is great potential for Albania generally in terms of it’s economy, but tourism specifically I feel has clearly big potential for Albania and I think big international hotel brands can help take the hospitality industry to a new level here in Albania. It will help do great things for the Country, great things for tourists, great things for business and leisure travelers, which makes Albania more attractive as a destination to visit, which can only bring better things to the economy. Ultimately if the level of Hotel accommodation in the city gets better, its better for business and also obviously it’s better for tourists, so its win win, I can’t think of anything negative about Hilton which is such a big company, being present and having a foothold here in Tirana. So I am proud to be part of that. There is a clear buzz about tourism at the minute and I feel it’s a bit of a turning point for the Country, I often describe Albania as one of the last hidden gems of the Mediterranean, it is a beautiful country with lots to offer, lots of natural beauty, 300 days of sunshine, it’s a great proposition for people globally and anything we can do to help put Albania on the map I think it’s a good thing.”

Can you make a short panorama of the new Hotel? Why do you think it is going 70

to make a difference in the Tourism sector in Albania? “It is the first Hilton branded Hotel in Albania, with that comes the standard of Hilton in terms of service, in terms of product. Hopefully as you have seen today, it’s a fantastic product, really high specifications, really high quality, but also great value for money. The Hilton Garden Inn brand is known for that. It’s a great ‘in-between’ brand and that’s the idea with our ‘focusedservice’ brands. The services are tailored to a guests needs, to a specific travelers reason for travelling, reason for staying in a hotel, and it works really well. This hotel should sit in the Albanian Hotel market all being well as a 4-star property, it is a very flexible brand, this is a very high-end version of a Hilton Garden Inn, it has as you have seen fantastic conference and event space, nearly 1200 square meters in total all on one floor, which is really unique for the market, no other hotel that I’ve seen has conference and events space to this level, its planned for events. It’s designed specifically for large business conference and events as well as social events. The technology, the facilities, everything is custom made for that purpose, so it’s a fantastic service for those needs. The Hotel is in great location, within reach of the City center and attractions but at the same time very well connected to the Airport and the new highway with the new flyover, so you can be very quickly on the Coast, I am going to Durres later today, you skip a lot of the City Centre traffic and you can get straight out to the Coast very quickly, or straight to the airport very quickly, and a lot of business on the highway, it’s very well connected to those, but at the same time you can still access the city center very easily and very quickly within 5-10 minutes, you can be in the Centre where all the central attractions are for tourists and certain points of interest for business travelers. As well as the brand being an ‘in-between’ brand, in terms of the Hotel market, the location is the same. It’s a really great location in that respect.”

What do you feel is the most important asset of this Hotel in your view? “Straightaway for me it is the Team. A hotel is just bricks and mortar without the people, that’s what brings it to life and for me that’s the most important part of a new opening, you can have a fantastic product, but until you breathe life into it with the team, it’s nothing. So that’s without a doubt, we have not yet finished the team, but already I can feel we have a great team of people, a great leadership team and I feel that is what is going to really make the difference. The biggest asset is the team and that flows through into the service, because that’s what really differentiates a Hotel, the people and the service. You know when you stay in Hotel with a team like that, it makes a difference, you feel at home, if you are business traveler it’s like a home from home. You get to know the team, they know you by name, they know a little about you outside the Hotel and that makes a difference. For leisure travelers coming on Holiday, that service can really make a difference to their Holiday and if you don’t get that right it can of course do the opposite. We want to get that right.”

What makes the Hotel exceptional? “I would say the same. The service. That personal touch where the team know exactly what you need before you even know you need it. They pick up on signals, they get to know you as a guest, they know what you want, when you want it, and they are offering it to you as a guest before you even know you want it. That’s what it’s all about, it’s all about exceptional service. At the same time I genuinely believe we have a great product to back that up, beautiful rooms, stunning public areas (you have seen some of the artwork and the design features). It’s a beautiful hotel, a stunning hotel, lots of natural daylight, high quality products and materials (which make a difference) but of course backed up by hopefully the best service in Tirana.” September 2018

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WINE ENCOUNTER

Chryssa Giatra Batzi has a long experience in wine industry. She presented in Tirana some of the main Greek wines.

Are You Missing Greek Wines in Your Cellar? By Rudina HOXHA

“A Greek Symposium: Wine Tasting” A UNIQUE EXPERIENCE OF GREAT WINES OF GREECE was organized at Plaza Tirana Hotel on June 19-20, 2018 under the auspices of Greek Embassy in Tirana. This ‘symposim’ was in the series of the institutionalized events under the brand "GREAT" which aims at making the Albanian businesses and consumers to know more of the most selected Greek food and wines. The event, “A Greek Symposium: Wine Tasting” A UNIQUE EXPERIENCE OF GREAT WINES OF GREECE, uses the ancient and modern meaning of the word "Symposium" (a drinking party or convivial discussion, especially as held in ancient Greece after a banquet (and notable as the title of a work by Plato). During the two days of the event, the participants had the chance to take part in a workshop, wine tasting and B2B seminars. In addition, a four course dinner was extended by the Greek multi-award winning Executive Chef, Mr. Sotirios Evangelou, paired by 14 wine labels of indigenous varieties of Greek grapes such as Muscat, Mantinia, Malagouzia, Assyrtiko, Aghiorgitiko, Limnionas, Mavrotragano, Xsinomavro, Limnio and others. The most well-known Greek wine varieties were presented to the Albanian public by Mrs. Chryssa Giatra Batzi, a well-known Greek Oenologist and Sommelier of 20 years in the wine industry. Being for the first time in Albania, Mrs. Batzi gave an exclusive interview to FOLLOW BUSINESS ALBANIA. She is very optimistic of the opportunities our two countries will have now after this prestigious event and in a near future. In her view, Albania is an upcoming market with many opportunities looming in.

What was your first contact with wine? Chryssa Giatra Batzi, Greek Oenologist and Sommelier She has studied Oenology and Spirits Technology, Sommellerie and holds an MSc degree in International Wine Management from O.I.V. Paris. Working as a sommelier in 5 stars Deluxe hotels and Michelin starred restaurants, gave her a priceless experience in gastronomy and hôtellerie. Eight years ago, while doing her Master in Paris, she worked in some of the top wineries in Burgundy. For the past 6 years she has been in the wine business (marketing, exports, blogging, pr, sales, service,) and teaching at Lemonde Institute all about wine, coﬀee, beverages, water, traditional Greek food and olive oil as a certiﬁed oil taster. Her newest project is her own business in private and corporate wine consulting, wine- gastro tourism and seminars.

September 2018

Well, I remember that I wanted to study informatics. But I was fortunate not to succeed.  Instead I won the right to study for Oenology and Spirits Technology. It was a coincidence. First when I heard the news, I cried all the time because I did not like wine. But I really liked chemistry. My parents, both pharmacists, told me to go for oenology and see how it would go. They were right. Soon I fell in love with the wine. Now wine is my love; it is my passion. I was very fortunate to enter this school. Since then, wine is the thing I know how to make it. By now, I am 20 years in the business of wine.

What is your best wine experience for you? After I finished my studies for oenology in Athens, I worked in the wine industry and I made some studied as a sommelier. I have been working in different hotels and restaurants all over Greece. But there was a moment when I understood that I wanted to study wine management. So, I left for France where I studied for international wine management. This course was based in Paris. What was so amazing and interesting

about this experience was the fact that 15 students from all over the world including me had the chance to travel in 24 countries. In each of them, we had the chance to participate in wine courses in the local universities. Also we were introduced to different markets by the local specialists and visited different wineries. We did this for one year and a half. It was the best experience of my life. It was tiring and very demanding but so unique.

Based on your experience in wine industry, how can the quality of wine be sustained? What I would recommend is not a secret. Everyone knows it. The good wine is made in the vineyard. So, when someone starts planting vines, he must find the proper place with the right weather conditions and with the proper soil and ingredients. This way, he can cultivate the vine and can take the best “first raw material” he can. If you have a good fruit, then it is very easy to make a qualitative wine. Of course, you need the knowledge and the wine making techniques. But, for me, you have to respect the vine, the Nature and the Nature will give you the proper fruits. So, you will make a good wine 71

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SPORTS & BUSINESS

Christiano Ronaldo, a Portuguese professional footballer who plays for Juventus and the Portugal national team.

Game over By Vusal Gambarov, PHD

Football is the actuality of the season. World Cup became a joy of millions. Of course, for those who were disappointed, it was more sadness, than joy. It was obviously one of the most interesting and full of surprises World Cup ever. From now on, for enthusiastic fans of football, even maybe any sport it`s better to quit reading. Because, I will try to ruin all historical and perceived romanticism regarding sports.

We loved when Michael Jordan proved that human being can hang on air for around a second. We were excited with the dribbles of Zico, Bonek, Maradona and Ronaldo. Sport was a game. But game is over now. Sure, what we watch on TV`s seems like a game. But, not as we know it. Do you think that to have only European national teams in semi-finals of Russia 2018, or as last 4 World Cup winners is a coincidence? But we all agree that Latin Americans are magicians of football. Maybe we grew upâ&#x20AC;Ś and magic is finished. After shameful failure at Euro-2000 Germany decided to take it seriously. They defined nationwide program where over 1 billion euros spent to produce 1300 professional players in couple of years. 52 centers with 366 regional coaches

September 2018

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SPORTS & BUSINESS

were involved in the project. And result was great. Germany swept World Cup title 4 years ago. Products of the project? Manuel Neuer, Mesut Ozil, Sami Khedira, Marco Reus, Mario Gotze, Ilkay Gundogan and others. Belgium took same steps few years later, reached World Cup semis this summers, Iceland became one of best 8 national teams in Europe (Euro 2016) again thanks to the same pathway. Styles are differing, but one commonality defines everything: respect to science.

Now sports, especially football is not a game anymore. It is business directed by the science.

I will share some realities of the football industry to give clear idea on where are we now and what to expect in the future. When PSG spent 222 million euros for Neymar, it seemed to be crazy money. But be sure in couple of years we will talk about half billion for a player. But you know what is interesting? Last year Forbes announced brand values of sport clubs from all over the world. Admired teams of millions from different regions of the world, football clubs, expected to be “respected” properly. But the fact was that none of Real Madrid, Manchester United or Barcelona could reach half billion dollars threshold. It must be hurting…

Neymar alone costs less than only some few clubs. Instead Chinese software company Tencent almost there to have half trillion dollars of value. Can you imagine? How many of you know about Tencent, which is the owner of WeChat, WhatsApp of China? So, to improve financial conditions of clubs, in other words businesses, there is a need to raise money circulating. Even new coming kits are getting more expensive every year. A good fan buys not one kit in 5-6 years, but complete line of home, away and additional kit every year. If you are a fan, you must support your team. Every summer big clubs spending their preparation period in US or Far East. Coaches are complaining about this schedule. But what about business? I want you also to get clear vision about September 2018

trophies. Now it is not the target anymore… for all teams. Everyone wants to win of course. Fans are looking for glory. But what is reality? Every team, every player has a positioning. It`s totally same as brands and politicians. When Real Madrid, Barcelona or Bayern München are satisfied only by getting Champions League, Borussia Dortmund and Arsenal looking for being frequent at Champions League and forcing to go as far as possible. Quarter Final or Semis. Welcome! If you think that Arsene Wenger was sacked because Arsenal couldn`t become champion for some long period, you are very romantic, sorry. Arsenal is out of Champions League for 2 years back to back. It means a lot of money deficit. So, Wenger needs to rest a bit. Mircea Lucescu implemented great project at Shakhtar Donetsk. He gave around 10 great players to Brasil national team, through his genius. He never aimed Champions League though, but to win Europe League? Why not? It`s all about the positioning.

Cristiano Ronaldo signed for Juventus and his four years on the board will cost to Fiat Chrysler, the owner of Juve, around 250 million euros. Seems like big money, but it will be earned back probably first year. Where is football? Just business, yes? Science states that human body can recover from any type of tiredness in 48 hours. Lebron James having 100 NBA

games played last season makes sense from this perspective. What about football players? Successful ones play around 70 games in a year. So, let me predict that in next few years we will have more tournaments in the calendar. Why not to watch extra 25-30 games of Cristiano Ronaldo. 250 million have to be paid back at the end of the day… What about our countries? Small and not so developed countries like ours, have to find a niche. For football clubs still, main monetization tool is to attend to European Cups. Besides that, rumors (even proven cases) of match fixing, should be seen even though not fair, but monetization tool for them. Almost no money comes from fans through ticket and merchandise sales. Sponsorship and TV broadcast deals are also not so bright. So, for Albania, to buy, to sharpen and sell players is a good option. But they need good scenes to air them. And this may be European Cups. And of course, to work on fan management and PR is a must.

Almost the same construct is effective with arts, especially music. Of course, in this case goals and scores should be replaced by notes and tones. They also use science for the sake of business. Enjoy your scientific music at the office and industrial football during the weekend! 73

17 Years

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