Follow Business Albania December 2018

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DECEMBER

2018

Enjoy maximum Freedom.

SchĂźco Sliding Systems.

For more information or support, please contact our sales representative: +355 68 20 50 919 or a.hasani@alukoenigstahl.com

The largest German Investment in Albania.

We had a vision of creating a new state-of-art business park through applying Lindner’s pioneering concept, which combines the best elements of high-quality, European business environments with a future oriented green approach.

And... we did it!

We created a new, excellent working location. Only 20 minutes far from the city center, leaving behind the noise and pollution of the city, while entering in a green environment.

“A city within a City“ TBP is a great place to work and to do business. We as TBP want to have a working environment where we can meet new partners and create successful partnerships. Supporting and helping each other is a fundamental topic in our park.

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TECHNOLOGY/INNOVATION

Epitech Celebrates Its 1st Anniversary There is already ample information that EPITECH, the University of Innovation and High-Tech Expertise, is finally present in Albania.

Not only in Albania, but also in the Balkans and Southeast Europe too.

We have just completed a year in Albania in the field of higher education and our objectives are clear. These objectives are visible, tangible and accessible.

We have planted seedlings and we are enjoying the fruits from the very first year and the yields look promising.

Our students, since the first year of their studies, have begun to work for many prestigious companies operating in the field of Information Technology, showing the same performance as fully qualified employers.

This makes us very enthusiastic that our project will succeed, and we will achieve the goal we set ourselves: To be the Albanian Higher Education avant-garde. And do not be surprised if tomorrow those Economic Operators, open their affiliates in Albania, thus contributing in unemployment rate decrease and economic growth, making Albania a leader in the Digital Domain of the Region.

In the coming years, besides its main mission, Epitech will expand its activity with many other projects, with which, you will soon be introduced.

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December 2018

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TECHNOLOGY/INNOVATION

Greeting Speech by Mr. Armend Tahiraj, Managing Director at Epitech Balkans Dear parents and students!

All of you supporting and encouraging collaborators!

People at first were skeptical about our initiative, but we are already 1 year old and enjoying our first successes. If we look back in the past, we didn’t have an easy path, but what lies ahead is a very long and beautiful journey.

We made real the presence of France in Albania, furthermore, we made Albania a reference in the Balkans and the Southeast Europe.

Our goal has always been not just delivering diplomas but preparing a whole generation of high-tech experts across Europe and beyond.

And you know what we achieved during our first year here?

All our enrolled students have not only passed successfully their exams, but they are also working for prestigious companies operating in the field of Information Technology, showing the same performance as fully qualified employers.

But there is just one thing for sure, that any student who will successfully complete the studies at Epitech Balkans, will be proficient enough to work worldwide because they hold all the necessary tools for success, attaining an employment contract during their studies.

I would like to thank the Prime Minister and the Ministry of Education, Sports and Youth for believing in our project.

Many thanks to students and their parents without whom this initiative would not be realized, and I would also like to ensure them that the investment they made for their children will be the best one.

Finally, I would like to thank our Partners who continue to contribute to our mission's success: Thank you for your assistance in this matter. Your help is greatly appreciated.

I wish you all a lot of success and prosperity in your families for the New Year 2019!

December 2018

Mr. Armend Tahiraj, Managing Director at Epitech Balkans

I appreciate the study at Epitech because it allows me to obtain a double degree in IT expertise and IT management and to create my own startup with an innovative idea that may change the world

For my internship, I chose France because IT is very developed in France & also because our director helped us choose companies with worldwide technology uses, so we could practice and learn more each day

The study method at Epitech is entirely different. We learn everything through practice and, by practicing each day, we gain in-depth knowledge that will help us find a better job in the future

As a former Epitech student, it was evident that we could use and give back to Epitech. It was therefore an easy choice when we had the opportunity to welcome three young, hard-working Epitech Balkans students for an internship in France. They want to try new experiences and are passionate about learning new technologies 5

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CONTENTS TECHNOLOGY/INNOVATION

CELEBRATES 04 EPITECH ITS 1 ANNIVERSARY ST

FINANCIAL DEVELOPMENT

10 AADF, A BRAND IN ALBANIA 14

PPP PAYMENTS COMPETING WITH PUBLIC DEBT SERVICING

By Eduard ZALOSHNJA, PhD

SECURITY

ICTS EUROPE FIRST 22 THE INTERNATIONAL SECURITY FORUM IN TIRANA

TOURISM DEVELOPMENT

YEARS OF AUSTRIAN AIRLINES 26 25 IN ALBANIA ENTREPRENEURSHIP

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FINANCING HOSPITALITY DEVELOPMENT PROJECTS: WHAT EVERY DEVELOPER AND INVESTOR NEEDS TO KNOW.

By Jose PINTO

OF ENTREPRENEURSHIP / INNOVATION AND 30 RELATION ECONOMIC GROWTH IN ALBANIA TOURISM

HOTEL FORUM IN VIENNA MENTIONS 34 INTERNATIONAL ALBANIA AS THE NEXT TOURIST DESTINATION BUSINESS PROFILE

SULA: “GLOBAL WOMAN CLUB, ONE OF THE 38 MIRELA BIGGEST ORGANISATION FOR WOMEN IN EUROPE AND

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RELATION OF ENTREPRENEURSHIP/ INNOVATION AND ECONOMIC GROWTH IN ALBANIA

MY GOAL IS TO BECOME TOP LEADER IN MY INDUSTRY.”

By Morena SHETA

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.

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.

All photos used in the magazine are by Shutterstock unless otherwise credited.

December 2018

BUSINESS NEWS

TAX RATES, 42 COMPARABLE MUCH LOWER TAX REVENUES INCOMES

IT TO BE BLAMED OR TO BE TAKEN ACTION…?

46 ISMIDDLE INCOME TRAP MARKETING

TRIANGLE THAT MAKES SOPHIE CAFÉ THE MAJOR 50 THE COFFEE CHAINS ON THE LIST TOURIST ATTRACTION

55 AMORGOS, FINDING THE PERFECT BLEND MANAGEMENT

SCHOOL OF 58 IEDC-BLED MANAGEMENT CHOCOLATE WORLD

A CHOCOLATE WORLD COMBINING 60 CIOCCOLATITALIANI, CAFETERIA, PASTRY AND CUISINE ENERGY

FDI IN RENEWABLE ENERGY 64 ATTRACTING SHOULD BE THE WAY TO GO ART/CULTURE

KOSOVO OPERA SINGER EARNING 66 BLOOMING INTERNATIONAL FAME MILLENNIALS

A WAKEUP 68 IT'S CALL! 9

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FINANCIAL DEVELOPMENT

The 80-page report opens by the AADF Chairman, Mr. Michael Granoff, who considers the Foundation a brand in Albania. “A Brand of execution and results; a brand of honesty and transparency; a brand of creativity and social commitment; and a brand of successful team building between the private sector, local and national government and other development partners,” he says in his opening message.

TID Tirana Tirana’s “New Bazaar” was awarded in London with the price “Best Renewal Project for 2018”, by the Emerging Europe Awards. Its revitalization instantly turned this area into one of Tirana’s most vibrant, frequented places. It has become an iconic landmark of the AADF’s transformational power, generating overwhelming optimism and positive energy. It is the meeting point for small businesses, youth, international and domestic tourists and visitors of all ages.

AADF, A BRAND IN ALBANIA Recently the Albanian-American Development Foundation (AADF) released its 2017 annual report highlighting the range of projects completed, the partnerships created and the long-lasting impact on the lives of Albanians.

Entrepreneurship One of the direction on which AADF has invested is Entrepreneurship. AADF helps and creates successful businesses and entrepreneurs as key ingredients for the successful and prosperous growth of a free private sector. The AADF creates Initiatives that lead to innovation, community development, cooperation, which in turn generate economic growth. The goal of the program is to provide tools, resources and support to Albanian entrepreneurs to turn their ideas into ventures, maximize their impact and build businesses which will benefit their communities.

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December 2018

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FINANCIAL DEVELOPMENT

CFFA, a non-banking financial institution, was established through a joint partnership agreement between AADF, Crimson Capital (operating in the Balkan Region), Norfund (Norway) and the Tirana Municipality.

TID Gjirokastra The City of Gjirokastra is a UNESCO World Heritage Site and one of Albania’s most important cities embedded with deep history, tradition and culture.

Major services and products provided from CFFA include factoring and financial leasing. CFFA has specialized in currently underdeveloped services to offer access to funding and capital to SMEs and startups which are capital constrained.

The “Qafa e Pazarit” area, the City’s most important spot, worn out, forgotten and neglected, has experienced a deep structural intervention, thanks to the AADF’s revitalization project.

In close partneship with local businesses, local government and Ministry of Culture, the project aims to improve and expand the range of services available to tourists and extend the touristic season to a year-long activity.

According to AADF's Co-CEOs, respectively Mr. Aleksandër Sarapuli & Mr. Martin Mata, “since AADF’s inception, attracting talented and ambitious individuals and turning it into one of the stellar organizations in Albania has been an unchanged objective for us. We think we have made significant strides towards fulfilling that ambition.”

Protik ICT Resource Centre Protik marks the first intervention of AADF into the ICT sector. It provides assistance and support to tech startups, training and education opportunities to the ICT community, and introduces ideas and practices to young entreprenuers in the high-tech sector.

Protik serves as a hub for local firms and entrepreneurs to present and discuss ideas and find collaboration opportunities. This project is a result of a partnership between AADF, USAID, the Albanian Government and the ICT Association in Albania.

The AADF was created with the help and approval of the US Government in 2009 as a legacy organization of the AAEF.

TID Vlora TID Vlora is the 8th intervention in the list of AADF’s projects in urban areas of prime cultural heritage and tourism importance.

The historical center of Vlora, largely neglected and abandoned during the last decades, contains numerous buildings and sites with cultural and historical significance. The revitalization program will turn this area into a powerful small business community and make it one of Vlora’s touristic destinations and landmarks.

It began implementing programs in 2011. The AADF has now committed over $42 million to 40 different projects with more to come.

Over 60 domestic and international donors have partnered with AADF, contributing an additional $80 million to their efforts.

The AADF focuses on private sector development in its broadest context. It has three key areas of activity where its major projects are focused: Education and Leadership, Entrepreneurship, and Cultural and Eco Tourism SOURCE: http://www.aadf.org/anreport/

December 2018

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Rruga e Barrikadave 1001, Tirana, Albania

Vlerat që na bashkojnë.

Tel: +355 42 54 764 Mob: +355 68 20 52 744

E-mail: info@albsig.al

ALBSIG was established in 2004 as part of Kastrati Group, one of the biggest investment groups in Albania and Balkan region. The company provides life insurance, reinsurance solutions and non-life insurance products to various large, small and medium-sized enterprises and to indiviual clients in Albania.

ALBSIG serves its customers through a network of 22 branches all over Albania and 400 agencies and has more than 280 employees. ALBSIG is offering more than 25 insurance products.

ALBSIG has a varied product portfolio that allows it to cater to a large customer base. Products and services are distributed through an extensive network of own sales staff, agents and exclusive partners throughout the Albanian territory.

ALBSIG is one of the leading insurance companies in Albanian insurance market.

Customer confidence in our ability to meet our liabilities at any time, forms the basis of our success. Dynamism describes ALBSIG in terms of client service. ALBSIG has been working continuously on making all of its customer processes more efficient and faster, including the modernisation and optimisation of all procceses, and also by providing very high-quality services.

MALËSI E MADHE

TROPOJË

HAS PUKË

KUKËS

SHKODËR

MIRDITË

LEZHË

DIBËR

KURBIN

MAT

KRUJË

BULQIZË

DURRËS

MORE THAN 22 BRANCHES MORE THAN 25 PRODUCTS MORE THAN 280 EMPLOYEES

TIRANË

KAVAJË

PEQIN

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ELBASAN POGRADEC

LUSHNJË KUÇOVË

GRAMSH

FIER

BERAT

KORÇË DEVOLL SKRAPAR

MALLAKASTËR

TEPELENË

GJIROKASTËR

DELVINË

For more information please visit www.albsig.al

PËRMET

VLORË

SARANDË

KOLONJË

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PUBLIC-PRIVATE PARTNERSHIPS

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

PPP Payments Competing with Public Debt Servicing 14

December 2018

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PUBLIC-PRIVATE PARTNERSHIPS

Yearly costs in million dollars 450 400 350 300 250 200 150 100 50 0 2013

2014

2015

2016

2017

2018*

2019*

Net debt servicing

2020*

2021* PPP payments

In the last five years, PPPs have been used extensively both in the public service sector and in the construction sector – mainly in motorway constructions.

The IMF, Wold Bank, and Bank of Albania, among others, have sounded alarm bells related to PPPs, because low debt servicing costs will not last forever (Bank of Albania, for example, has hinted that it will

As a result, the yearly payments that the government makes to the PPP firms have risen sharply. In 2019 these payments are planned to be around $115 million. In 2013, they were only $15 million.

Bank of Albania

Given that PPPs are guaranteed by the government, yearly payments to the firms involved represents an obligation of the Treasury, similar to the payments that go for servicing the public debt.

The latter have registered a gradual fall in the last five years, due to the fall in bond yields (not due to the fall in nominal debt).

In 2013, net debt servicing costs were around $400 milllion, and in 2019, they are predicted to be around $300 million.

increase interest rates in the coming year, if GDP growth and inflation keep rising).

However, the Albanian government looks decided to continue the current course with PPPs. And the price for it will be paid by future governments‌

As the Albanian government is planning to shift more services and investments towards PPPs and away from public financing, the yearly payments for the former are predicted to rise, while debt servicing is predicted to fall (Figure 1).

And both these costs will be a burden to Albanian taxpayers in the future, competing for the same pool of public money.

December 2018

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ADRIA HOTEL FORUM hotel investment conference Feb 20th – 21st 2019, Crowne Plaza Belgrade

Adria Hotel Forum (AHF) is the leading Southeast European hotel investment conference, which gathers all the relevant actors including international experts, presidents and members of the boards of the largest regional and global hotel companies, ministers, investors, institutional representatives, financial institutions, consultants, architects, lawyers and other experts.

For the first time, the 7th AHF will be held in Belgrade, Serbia in Crowne Plaza hotel on February 20th and 21th 2019 on the following theme: IS THE FUTURE BRIGHT? It is a question how can we boost the tourism arrivals and at the same time hotel investments and development on a larger scale, while the money is still cheap and the investors’ interest is relatively high. What are the hotel products that should be developed in the region and how can we take advantage of the Far East markets that are booming at the moment (China, India, South Korea)? How should Croatia and Montenegro compete with the upcoming markets like Turkey, Tunisia and Greece and how should capital cities like Belgrade, Zagreb and Ljubljana compete with already mature markets like Vienna, Budapest and Prague. And is Albania a new hot spot?

In addition, AHF 2019 participants will be discussing where are the investors coming from, where the money goes, what are potential development locations in the region, are we ready for the new brands, what are regional ROIs in compare to the wester Europe and trends in hostel design.

Some of the AHF panelists are the leading global hotel investment funds that are interested to invest in this region. Together with them, leading regional companies linked to hotel industry together with the global participants from companies like InterContinental Hotels Group, Accor Hotels, Colliers International, STR, Hilton Worldwide, Hyatt International, HDC and many others will be joining the discussion.

AHF is the place where all relevant decision makers and the leaders in hotel industry “have to be”.

Until now AHF has gathered more than 1800 attendees, 250 panelists, 100 round-table discussions and presentations, and more than 150 partners.

www.adria-forum.eu

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HOSPITALITY DEVELOPMENT

Financing hospitality development projects: What every developer and investor needs to know.

By Jose PINTO*

As an hotelier with a vast international experience in hospitality, real estate, resorts and business hotels developments, and most recently as hospitality consultant, I do recommend that Owners and Investors or Governments seeking to invest, develop or create new sites for future tourism developments to look for international consultant experts in the field. *Founder of JP HOSPITALITY & Business Partners

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December 2018

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HOSPITALITY DEVELOPMENT

As experienced in different parts of the World, investments on the hospitality field most of the times originate from sources with experience in different kind of businesses with proven track records in their business field or on the City that they operate assuming that investing in upscale residential, hospitality (Hotels /resorts) and/or mixed-use categories is the same as investing and developing any other business.

View from Ksamil beach, Albania

In reality, Investing in Hospitality (Hotels/Resorts) is more complex.

Investors and developers MUST look into preliminary studies performed by a consultant company. They also must have in mind that it’s important that such consultant company has enough experience in all necessary fields (Real Estate, Marketing, Finance, Legal Advisory, Experienced Hotelier) among others.

that the development project offers a substantial real estate component, meaning residences, condominiums, villas and/or apartments adjacent to small scale hotels or resorts or mixed building concept.

The reason is the immediate ROI from the sales of real estate.

View from the Lin village

Often lack of critical elements required to start such projects and to entice potential investors are missing due to lack of knowledge and do create delays, unexpected expenditures and approvals for next steps.

Often the challenges we see when requested to meet to evaluate the viability of a potential ground-up development project is in the initial proper feasibility study which is not often perceived as necessary.

And therefore the set-up of a proper investment presentation is not appealing to investors.

What has changed in terms of the appetites of international investors is the requirement December 2018

In the meantime, let’s be ready with all it takes to convince them that Albania has all for investing, including one of the most unspoilt Coast with two Oceans, Mountains and hills that are gems for eco-tourism, unique culture and Bio Food and cities and villages that resist time. And on top of all, its most conspicuous feature of being the most hospitable people in Europe.

We, at JP HOSPITALITY (www.jphospitality.eu) are associate with local and international partners with a wide experience and we are ready to assist that your dreams can come through in and for "My Albania."

Having a strong brand operator is necessary and it is an integral part of the investment opportunity, but approaching or getting them on board before a strong and clear feasibility study is performed is not advisable.

Investors or developers require an experienced operator as part of the deal, but that also require deep research’s that often are missed.

Albania is the new Gem in Europe. I am sure the demand for international investment is and will be increasing once extra benefits are awarded.

The great news for developers/investors desiring to build any Hotel/Resort or upscale mixed projects is that hospitality brands are seeking to expand their portfolio and brand presence especially in Albania.

To conclude, we encourage the owners, the developers and the investors to follow up the necessary steps that guarantee a successful investment journey. It is imperative that you are fully aware of the destination and the market you want to invest, so that your success in attracting the ideal international investor gets "excited."

Contact details: As said “the great news “ is also international investors have appetite for investment in projects or large development projects once they sound and convince them on their returns therefore a solid presentation and convincing team must be at hand.

JP Hospitality Eu jose.pinto@jphospitality.eu www.jphospitality.eu Tirana, Albania

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Amazing apartments, Enjoyable stays. www.enjoyalbania.al

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SECURITY

The ICTS Europe First International Security Forum in Tirana 'ICTS Displays the Heavy “Artillery” to Increase the Security Level in Airports In mid-November, ICTS EUROPE brought together in Tirana all its operational managers from the United States of America and Europe with the aim to elaborating the global trends and the best practices in the Aviation Security and free movement of passengers. This time, ICTS chose Albania to hold this Forum seeing it as a country which is more and more developing in the field of civil aviation given its ambition to build new airports.

A group of foreign civil security experts were part of this conference and they drew out the best practices from the relevant international industry. Some of these experts were Patrick Cuschieri - UEA Civil Aviation, Carmit Shveka - GM of 'Four Winds' , an Israeli company in charge of training the sniffer dogs; Leah Mehlin – Security Manager of Southampton Airport, United England; Viola Wang- Head of Asia - ICTS Europe Systems; 15 operational directors of various branches of ICTS Europe, regional directors of ICTS Europe, diplomats accredited in Albania, tour operators, airlines, media and others.

Among the Albanian state representatives, the Deputy Interior Minister, Mrs. Rovena Voda, Minister of State for Entrepreneurs of Albania, Mrs. Sonila Qato, Executive Director of Albanian Civil Aviation, Mr.Krislen Keri, Director General of Policies in the Ministry of Transport and Infrastructure of Albania, Mr. Thimjo Plaku and 22

Mr. Panagiotis Fistedis (first on the Left) with some of the key participants in the Forum.

others participated in the conference.

Panagiotis Fistedis, Managing Director of ICTS in Southeast Europe and Mediterranean at ICTS Europe, who opened the conference, underlined that “The international standards in an airport guarantee a safe door for an influx in tourism and investments. These standards are applied in every airport in the world and the same must be applied in Albania, too. In the airport we have today in Albania and in every other which we might have in the future in this country, we need to have international standards applied.”

He added that “We are operating in Albania for 14 years by now and what makes ICTS stands out is that we do not aim a contract or a job application for a certain term. What distinguishes ICTS is that we take care of the people and the industry. We are careful in investing in human resources, procedures, training in cooperation with all the authorities and the government to make things even better.”

On the other hand, the experts talked on the best practices which the industry is using and the new technologies which can improve the security standards and facilitate the flow of the passengers in the airports. In this context, the Conference demonstrated the latest technological solutions used mostly by the countries which are characterized safe for the travelers.

The Conference was held in full complicity with the vision of Albanian government to increase the level of quality and security in the civil aviation and the further development of this field with the construction of new airports. That’s why representatives from the Ministry of Energy and Transport and Civil Aviation were involved in this debate.

The Conference aimed to convey the message that the security of Civil Aviation in every world country is a shared effort of

a number of authorities starting from the Civil Aviation Authority, the Airport and the Police Authority to other users of the airport.

Every person in the airport must be treated on the basis of the Civil Aviation security according to the program of the Civil Aviation Authority in order that all can speak in the same language and have a common understanding.

The role of police in the security of aviation is vital because it is the only Rule of law and responsible for that, therefore it is exclusively allowed to re-act by using the guns. The threats are constantly sophisticated and the industry should be always proactive and cooperate in good will.

In Albania, what is obvious is a developing civil aviation market with an increasing number of passengers which is going beyond every expectation.

And more security measures are translated into a safer country for all the tourists who want to visit Albania but have considered it so far as an unsafe one. And this conference, the first ever organized in Tirana, was so important given than the 'Check in' is the first passport of a country for the foreign tourists.

ICTS Albania, a subsidiary of ICTS Europe, is a leader company in the European security market Created in April 2005, ICTS Albania provides security services to Tirana International Airport as well as securitizes a good part of the airlines that use Tirana Airport. It also provides security to Hotels in Tirana, industrial users, banks, embassies and others

December 2018

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DIPLOMACY NEWS

Romania Celebrates 100 Years Since the Great Union On December 3, the Embassy of Romania in Albania held the reception for the anniversary of its National Day in Rogner Hotel.

On December 3, the Embassy of Romania in Albania held the reception for the anniversary of its National Day in Rogner Hotel.

Members of the Parliament of the Republic of Albania, Diplomatic Corps and members of the Arumanian community were greeted by the Ambassador of Romania in Albania, H.E. Mircea Perpelea, the Embassy’s staff and the Honorary Consul of Romania in Korca, Mr. Elvis Toci and Mrs. Edlira Toci.

Speaker of Albanian Parliament, Mr. Gramoz Ruci, was the Guest of Honor of the Reception.

The Romanian Ambassador assessed the relations between Albania and Romania as excellent while the founding of the Romanian Union in 1918 as a precious contributor to the developments in Albania with the support it gave to the movement of the National Renaissance and the creation of the independent Albanian state.

The event continued with a cocktail party where the guests had the opportunity to celebrate together

The National Anthem of Romania and Albania were sung during the ceremony.

The Romanian Ambassador held a speech about the historical importance of the event.

December 2018

Speaker of Albanian Parliament, Mr. Gramoz Ruci, was the Guest of Honor of the Reception.

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HE ADVENTURE BEGAN BACK IN 1984 WHEN WALTER ANNARATONE, A MILANESE ENTREPRENEUR WHOSE FAMILY HAD OWNED A RETAIL BUSINESS FOR DECADES, DECIDED TO LAUNCH A SHIRT STORE FRANCHISE. HE REALIZED THAT THERE WAS DEFINITELY A PLACE ON THE MARKET IN ITALY AND ABROAD FOR A QUALITY PRODUCT WITH A SOPHISTICATED IMAGE. Two young entrepreneurs named Mario Pellegrino and Enzo Pellettieri joined him in this ambitious project. The first store, inaugurated over 30 years ago on Via Montenapoleone in Milan, is still a point of reference for the sales network and brand image.

Thanks to the brand's steadily growing success on the market and its popularity with customers, Naracamicie stores have opened throughout Italy and abroad. Today there are approximately 380 stores worldwide. In Albania, Nara Camicie shop was opened on August 3, 2018. It sells high quality shirts of Italian style. Initially the shop was very much into selling shirts and accessories only but soon it intends to expand its range of articles by adding jackets, blouses, trousers of the same quality and style.

Address: Rruga "Ibrahim Rugova" perballe ambasades Zviceriane , (ish blloku) Tirane 1001, Albania. Tel: 0693933095.

From March 2019, the shop will move to shopping mall "Toptani center ", second floor.

You can also find us at Coin Shopping Center, second floor.

Unique, like you!

Le creazioni di Alessia Sulli ale.handmade.jewelry

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TOURISM DEVELOPMENT

25 Years of Austrian Airlines in Albania The first service to be provided by Austrian Airlines to Tirana took place on Wednesday, 3 November 1993. Since then Austrian Airlines has been a reliable partner for business and leisure travelers and has continually increased its service between Albania and Austria.

Today the Austrian carrier services two flights a day between Tirana and Vienna, offering the ideal connection of the Albanian capital to the dense Austrian network with a total of 130 destinations in 55 countries. Due to the attractive connections and the high reliability passenger figures of Austrian flights from and to Tirana increased significantly during the last 25 years.

Airbus and Embraer Jets deployed on Tirana-Vienna route While the connection was initially flown with a Bombardier Q400 aircraft, mainly aircraft of the types Airbus 320 and Embraer 195 are deployed on the route today. Austrian Airlines launched a program in January 2016 to renew its medium-haul fleet: Until end of 2017 the Austrian Airlines fleet of Fokker aircraft (21 aircraft) was replaced by Embraer 195 medium-haul jets (17 aircraft) which are also deployed on the TiranaVienna route. The Embraer jets have an average age of four years and have a seating capacity for 120 passengers.

Austrian Star Alliance Terminal in Vienna: Ideal gateway between East and West Thanks to its favorable geographical location at the heart of Europe, the Austrian hub at Vienna International Airport is the ideal gateway between East and West. The airport’s minimum transfer time of 25 minutes is unique among the world’s hubs and is of special value to the passengers

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December 2018

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TOURISM DEVELOPMENT

European and World Champion Once again this year, Austrian Airlines achieved top rankings in the renowned SKYTRAX World Airline Awards 2018.

Austria’s national carrier is the European champion for service for the fifth straight year. The Austrian Airlines team clinched the title of “Best Airline Staff Service in Europe”. This award is in recognition of the performance of both the board crew and ground staff. In addition, Austrian Airlines won the world championship title in the category “Best Business Class Onboard Catering”.

In collaboration with its catering partner DO & CO, Austrian Airlines was presented with the gold medal for the world’s best Business Class catering.

Key Facts

transferring with Austrian to Europe, North America or Asia. Austrian Airlines operates seven lounges in the Austrian Star Alliance Terminal at Vienna Airport, including three Business Class lounges, two Senator and two HON lounges. Passengers are welcome to enjoy an assortment of delicacies from Austria and from around the world, supplied by DO & CO and complemented by a comprehensive selection of national and international beverages.

Tokyo, Cape Town and Montreal – new in the intercontinental network

As part of an expansion step in the current year, Austrian Airlines has integrated another long-haul aircraft, a Boeing

777-200 jet, in its fleet. The additional capacity enabled Austrian Airlines to expand its intercontinental route network.

On May 15, 2018, the airline has resumed flight service to Tokyo in Japan, and will begin operating flights to Cape Town in South Africa as of October 27, 2018.

As recently announced, Austrian Airlines will introduce flights to Montreal in Canada starting late April 2019, throughout the entire year, i.e. daily in the summer flight schedule and five times per week in the winter season. The flights from and to Toronto will be operated in cooperation with the Star Alliance and joint venture partner Air Canada.

264 million passengers have been transported by Austrian Airlines since 1957 (foundation) 25,000 bags are transported by Austrian Airlines each day 288,000 times a year the Blue Danube Waltz is played to passengers on board 13,500 pairs of red tights are worn by our female employees each year 35,000€ is the value of a Business Class long-haul seat 60 flying chefs refine the on board menus created by DO & CO 180,000 litres of tomato juice are served on board each year 1st place: The Austrian Airlines team won the SKYTRAX award “Best Service in Europe“ 10 Austrian speciality coffees are offered by our unique coffeehouse above the clouds 3.83 litres of fuel are consumed per 100 passenger kilometres flown by the Austrian Airlines fleet

December 2018

27

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ENTREPRENEURSHIP

growth strategy to become a ‘smart, sustainable and inclusive economy’. This requires for our economy to fulfill its potential, and progress at sectors which are less competitive.

Benefits of Entrepreneurship

Economic prosperity

Relation of Entrepreneurship / Innovation and Economic Growth in Albania

Based on its definition “Entrepreneurship is the mindset and process to create and develop economic activity by blending risk-taking, creativity and/or innovation with sound management, within a new or an existing organization”. On literature, long term relation between real GDP growth and entrepreneurship & innovation might effect on microeconomic objectives such as rapid growth and low unemployment driven by entrepreneurship and innovation. In the Albanian case, the debate exists whether self-employed workers account themselves as entrepreneurs and how much international corporations based here occupy the country’s innovation.

By Morena SHETA

Why do so many people say they want to start their own business, but so few actually do it? What happens on the way towards becoming an entrepreneur? There might be several internal and external factors that affect the process of decision making such as entrepreneurial mindset, culture, education, access to finances, knowhow, skills of labor force, regulatory framework, market conditions, level of technology etc.

30

According to Endogenous Growth Theory the economic growth comes from internal factors such are human capital, knowledge and innovation. Economic growth and entrepreneurship/innovation are positively and upward related to each other in the long-term. In a developing country case, such as Albania, is interesting to find out the impact of government policies on innovation and entrepreneurship fields and how much these variables have affected on the economic growth.

Under that updated interpretation of transition, the Europe 2020 strategy is the EU’s

Entrepreneurial process

Economically useful knowledge Source: Kauffman Foundation

According to the Global Competitiveness Report 17-18, Albania fails in the capacity to attract and retain talent, technological readiness is nearly on average among 119 countries, extent of staff training and availability of local specialized trainings is below average, capacities to absorb innovation are good, but it lacks spending on R&D, availability of scientists/ engineers and quality of scientific research institutions.

Through a deeper analysis: - In terms of the on-the-job trainings, Albania seems to perform not that well.

High quality and professional training services are provided not to a great extent.

The competitiveness of Albania in this sub index is valued with 4.0 and the country is ranked 94th.

December 2018

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- The trend for extent of staff trainings appears constant and decreasing, thus presenting not a very pleasant situation for the investment of the companies in employee development. The report values the trend with 3.8, referring to a far state from the best.

- The quality of business schools is assessed with 4.1, which positions Albania 77th among other countries.

This sub index reflects a concerning situation and leaves space for improvement - Albania lags behind in the capacity to attract and retain the talent. This comes from misallocation and not consistent incentives that provide the healthy environment for the efficient use of talent. Based on 2017 report Albania is ranked 121st and 116th for the capacity to attract talented people from abroad and retain bright people in the country instead of pursuing opportunities abroad. The trend seems worsening too.

- Based on 2017 report, Albania is positioned 34th for the good performance in technology transfer brought by foreign direct investment (FDI) in Albania. The trend is very positive and its performance is near its best.

- In Albania the latest technologies are reported to be available to an average extent. Nonetheless the trend is promising, still important actions should be taken to bring competitiveness in this sub index compared with the progress among 137 countries.

- Progress has been made in terms of production process sophistication where companies are trying to find ways to be more oriented towards the usage of the latest technologies rather than labor force. It has helped to reduce labor cost and be more time efficient in production processes. Based on 2017 report Albania is positioned 60th.

EU policy areas influenced by entrepreneurship

Employment and growth Competitiveness

Enterprise policy

Source: European Commission

December 2018

Researchand innovation

The Entrepreneur's Journey 06

CHAMPION Recognized as the leading organization in your field

05

SCALE-UP Seeking the maximum success of your core mission

04

STARTUP Seeklng a scalable business model

03

FOUNDER Executing on an idea (alone or with others)

02

LEARN Seeking knowledge and other like-minded people

01

INSPIRE Having a realisation or awakening

- Despite progress, Albania lags behind in creating wide spread and well developed clusters that would bring closers firms, suppliers, producers and institutions. Well-developed clusters would help to foster innovation in processes.

- Low position in Value chain breadth sub index is explained by a worsening of companies’ involvement in the value chain. Companies must advance and be more involved into other processes such as production, marketing, design etc.

- One categories of “Innovation” pillar where it excels is the capacity for innovation that companies hold to a good extent. This has brought companies to understand the importance of spending on R&D which appears to be to an average level.

- Despite average progress, lags behind in the presence of high-quality scientific research institutions. Based on 2017 report Albania is positioned 118th among 137 countries. The availability of scientists and engineers to set further innovation appears at its lowest.

- Performance on human resource and labor market is 4.68 out of a scale from 1 to 7, which reflects uncovered potentials this market offers for Albania.

Currently Albania is positioned last after Montenegro, Macedonia and Serbia.

- Focusing of Entrepreneurial Intentions sub-index Albania stands below Kosovo with 6.31% and Croatia 17% and Bosnia Hercegovina with 21%.

GDP per worker to increase such as inflation, FDI, level of technology and innovation. GDP growth seems to increase the GDP per worker capita, because the number of employed in economy seems not to be so volatile, but rather staying in level.

Key obstacles include low expenditure on research and development (about 0.4 % of GDP); weak links between the scientific and private sectors; as well as fragmentation of the national research and innovation system. As a result of this weak innovation policy infrastructure, almost all sectors of the economy mainly provide low-technology, labor-intensive and low-cost products and services. Most of enterprises are located mainly in Tirana and less in around cities due to above mentioned concern of infrastructure.

Meanwhile the government should take an active role to foster entrepreneurship and provide incentives for further progress. Even though some favorable incentives are taken, more is asked to level up to an entrepreneurial economy.

E.g.

• Training costs are 200% deductible for a period of ten years.

• Research and Development costs are 200% deductible for a period of ten years.

Next step for the government is to promote FDI, economic zones and Private and Public Partnerships (PPP). By the next year, the share of FDI to GDP is expected to be at the level of 9-10%.

Important for the long term economic growth is VET reform, creation of innovation centers and enrollment of youth in these programs.

On the other side….

What brings limitation to the case is the debate whether self-employed workers account themselves as entrepreneurs and how much international corporations based here occupy the country’s innovation.

While conducting a test during the time span of 25 years (1991-2016), it is observed that Employment and GDP per worker do not co-trend in the long run and neither of variables cause the other in the Albanian case.

In some scientific papers it is concluded that, other external forces cause

The role of entrepreneur is difficult, especially in Albania where many internal and external unpredictable factors affect its contribution to the economy. There is a marked room for improvement, but at the end is about who takes the risk…

31

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This panel highlighted Albania as the next tourism destination in the IHIDCF in Vienna.

Believing that it is the incoming destination, Albania is being eyed by many well-experienced world hospitality experts, who are having on their strategic development plans Albania as the “New Kid on the Block.”

This was the message conveyed by the International Hotel Investment & Design Club Forum (IHIDCF) which was hosted at Hilton Vienna Hotel in Austria on November 8 with the participation of 40 leaders from the field of design and architecture, investments, development, hotel operations and consulting and other hospitality related business experts.

The IHIDCF is a key platform, established in 2007, where the industry’s leading hotel investors, developers, operators and advisors come together every November in Vienna to speak about the latest trends and developments in the hospitality industry in CEE-SEE-CIS and Russia.

Focusing on CEE-SEE-CIS and Russia, the Forum, organized by Hotels Asset Management, Reburg & Partners and Michaeler &Partner, made a 350-people 34

audience familiar with valuable industry insights through experts on innovation in hospitality. About 5 panels discussed different aspects of hospitality including the New Ways of Hospitality – Staying Ahead of the Game; Design and Architecture – Hotel Design as an Innovation Driver; Developments – Investments – Transactions; Brands and Trends and Resorts – Paradise Found “The recipe for success – Hot Spots in Emerging Europe.”

Otmar Michaeler, CEO, Falkensteiner Michaeler Tourism Group, told Follow Business Albania that Albania is in his plans and that his company is interested to start the first project in Albania. “Let’s try. I hope that in the next months you will hear more about that,” Michaeler stated.

“We had some meetings with the Albanian government some months ago. We visited some properties in Albania. Personally I am convinced that Albania has a high potential as a tourist destination. In this respect, infrastructure is the most important pre-investment done by the government. If this investment will be done in the right way, then I think international investors and companies will invest in Albania,” Michaeler said.

Hilton Garden Inn was the newest Tirana hotel near city center and airport. This

International Hotel Forum in Vienna Mentions Albania as the Next Tourist Destination Lorem ipsum dolor sit amet

By Rudina HOXHA & Jose PINTO Live from Vienna, Austria

Calls on Hoteliers Stay on Top of Hospitality December 2018

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hotel, inaugurated last September, is expected to make a change in the hospitality landscape in the country. Marybelle Arnett, Vice President Development, Central and Eastern Europe, Hilton highlighted this fact saying that “We are very exciting to have entered Albania and the capital city with our Hilton Garden Inn brand. Our expectations are that the customer is going to love staying at the hotel and the owners are going to be very happy.”

In the same line, Jochem-Jan Sleiffer, Senior Vice President Operations, Full Service Hotels, Continental Europe said that “I think Albania has a great future over the next couple of years. I think we will see many of the hotel brands entering the market. We are very happy entering with Hilton Garden Inn and into Tirana. I think Hilton Garden Inn is going to be the first of many, many hotels in Albania in the next couple of years.”

From right to left: Mr. Jose Pinto, Ms. Rudina Hoxha and Mr. Andreas Augustin at IHIDCF

In his view, the Balkans region has a good growth of opportunities. “I think there is a particular opportunity in the region for the branded hotels. I think people stay in those hotels where they know what are going to get. That why having big brands like Hilton, Hilton Garden Inn, like Hampton, will be the future into the region.”

Conclusions

Frans- Jan Soede, with a 30 yearsexperience in tourism and hotel projects, investment forecast, operator-investor search and more, will open an office in Albania early next year.

“We are happy to announce the opening of an office in Tirana in January 2019 and from there, we intend to assist the real estate developers and the existing hotel owners in respect of performance and enhancement, operators search, project development on the coast in terms of resorts.

Resort is a very complex field of hospitality development, so it needs you to look at architecture, planning, cost estimation and bring the different right people under one umbrella. That is what we want to provide to Albania in terms of coast areas but even the rural areas.”

One of the IHIDCF organizers, the Austrian December 2018

Further it was also discussed how can other Hotel concepts, student living and micro living can be highly profitable and be fitted in new cities looking to diversify their portfolio.

On the design panel, efficient space concept and utilization, exciting new hotel/building design, modular, cheaper than conventional construction concepts were the hot topics. Lot of attention and discussion was dedicated to global design vs local architecture and Eco –conscious and commercial viable. Proper and dedicated Location study is key.

Service Apartments was a topic presented

by Reiner Nittka, CEO of GBI AG, who explained how this concept can be profitable and well accepted in Europe and other regions. He also raised the eye brows of the participants when he mentioned “the Commercial Living- does it exist?.

A big name in the design area, Andrew Linwood, Head of Hospitality areen design, asked to spread word among developers in Albania who need designers.

“Albania is the incoming destination. In fact, I suggested to my own family that we go on holidays to Albania last summer but it did not happen. But it might happen next summer. It is definitely a place to go. It has a Mediterranean climate and a Mediterranean culture; it has wine, it has sunshine and it has good food. What’s not to like? I think it is a huge future. You have a look at the map and see where it is. It has a great location in the Mediterranean. Clearly it has a great future. We love to be there. If you know any client who wants to build a hotel, we can design.”

OVERALL the focus of the forum was to discuss Innovation and review the Hospitality industry from different perspectives keeping in mind the effects of digitalization, changing guest expectations as well as the hotel profitability as quoted by Tanja Millner, the Event Director.

I hope the cooperation with Albania, he added, will be a long lasting one because “it is challenging to enter Albanian market for the time being because the whole market structure is under reorganization.

But I think there is a big future for us to take on different assignments.”

On the spotlight of the hottest markets where Albania was mentioned by being one of the near future Hot market, it was also wide spoken about the agreements of the 21st century and how owners/ investors are becoming more experts and want to be involved in the operational decisions . Investments experts are more and more looking into a detailed Feasibility studies and looking who is who when such is done. Reliability of the executer is key to decision.

This Forum made us feel excited as obviously the moment is coming towards Albania in the investment aspect

35

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Mirela Sula: “Global Woman Club, One of the Biggest Organisation for Women in Europe and My Goal is to Become Top Leader in My Industry.”

By Rudina HOXHA

Mirela Sula is a very successful Albanian businesswoman.

With the creation of Global Woman Club, a platform aiming to aspire women go beyond their comfort zone and reach their ideals and make their dreams true, she has earned a fame in Europe and further.

As many as 17 clubs for women in 17 countries which has helped hundreds of women to unlock their potential, set up their goals and achieve their dreams, bear their authorship.

Mirela is passionate about empowering women worldwide and always stands up for, inclusion, diversity, gender balance and supporting the next generation. Her mission is to create a global movement to improve women’s future, one economically empowered woman at a time. She uses her years of experience in teaching and leadership to inspire and motivate women around the world, working with them to deliver career and life changing results beyond expectation.

She sits with Follow Business Albania to share her thoughts about Global Woman Forum in Tirana she and her team organized last September and how she can help women in Albania as well to grow their visions.

38

Did Global Woman Forum in Tirana meet your expectations?

What impressed you most?

I come in Albania every year now with my team. I choose Albania as I feel is the best place for retreat and I want my team to know how amazing my country is.

Every time I touch the land there it makes me feel more connected with my true self and the world. To answer your question, I don’t come with expectation when I organise an event there, for me every time is like a test, do understand what people want there, how they are changing, how much I can motivate them toward change, growth and development.

It was absolutely a great trip and experience, not easy to organise one-week agenda with women coming from 15 different countries but all loved it. My team was very impressed with Albania and they can’t wait to come back again next year.

What is your opinion on the Albanian women? What should they do to go to the next level and how can Global Woman help them in this respect?

Albanian women are heroes; they have progressed so much in time. I remember myself coming from a small remote village, and I know what it means to start everything from scratch, you need to have a lot of courage and determination to activate your life in a December 2018

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new world, the world that women are re-building. And when I see women who are moving from one stage to another and looking for a better life it makes me feel optimistic.

This is what we do at Global Woman, we help women who believe in the vision of a better world to go beyond comfort zone and start creating what is missing around their life.

They get to realise that they have more potential inside and they can do much more than they think.

Global Woman is not a charity, is a business platform and we want woman to see themselves as heroes. No matter what happened in their lives or in their past, they are not victims, they can learn so much from that and rebuild their life again, even better.

At the end of 2018, what is the balance sheet you do and what is in store for 2019?

People who know me they know I don’t have a plan, but I have a big vision of building a global community where women have a big say, and play a big part on it. I am

really happy that now Global Woman Club is one of the biggest organisation for women in Europe and my goal is to become top leader in my industry.

You have created an international platform for Women which has become world-known already. What about in Tirana? When can we have a Global Woman Tirana?

Global Woman Club has now reached 20 big cities around the world in only 2 years, and I am so glad seeing the appetite of women to come together and support each other. I have organised the Global Woman events many times in Tirana and I am really hopping that one day the right person will appear and ask for it. We never go out there and advertise recruitment for having representatives in other countries.

The growth of Global Woman Club has been so natural, women come and join our events, they become members, they like it and then they ask “I love this, how can I get this club in my country” – and here is the beginning. We need to see that desire from a woman that is ready to commit, to bring a difference in her community and if Global Woman can help we are here, always ready when they are ready

View from the Global Woman Forum in Tirana last September.

About Mirela Sula Mirela Sula has worked in media and education for the last 20 years and has speaking experience all around the world. Her background takes in psychology and counselling, journalism, teaching, coaching, women’s rights and media training. Mirela is CEO and the founder of Global Woman magazine and Global Woman Club, with the recent acquisition of ‘The Business Woman Today’, an online network exclusively for women in business. Mirela is also the organiser of the Global Woman Summit and Global Woman Awards. She has appeared on “London Live TV”, “BBC Radio 4 Women’s Hours”, “Sky TV”, “Channel 5” and also featured at the “Evening Standard” and “The Guardian”.

For Global Woman, Mirela has created a project called ‘Phenomenal Global Woman’ where ten selected influential women from different corners of the globe travel to Hollywood to speak at a big conference, and also be filmed for the ‘Phenomenal Global Woman Show’ which will be broadcast on PBS TV. Mirela is studying for a PhD in Psychology at Regent’s University London to follow on from her Master’s degree. She is also author of several books.

Her last self-help book ‘Don’t Let Your Mind Go’ was a best seller and is also published in America and Turkey.

Mirela has received many awards for her work, including the ‘Inspirational Award for Women 2015’ for Human Rights, the ‘Best Up-And-Coming Inspirational Influencer’ Award from The Best You, in 2017 and the Universum Donna Award 2017 from the Universum Academy of Switzerland. She received The Best Book of the Year from The Author’s Awards in 2016 for her book, ‘Don’t Lose Your Mind’ and her new book, ‘Struggle to Success’, 50 Inspiring Stories of Migrant Women, was launched at the House of Parliament on the 11th December.

In December 2017 Mirela won the “Entrepreneur of The Year Award” from the Wealth Dragons, and ended the year in the list of the OOOM 100: THE WORLD’S MOST INSPIRING PEOPLE.

The lively spirit of two great people: Mrs. Mirela Sula dancing with Dr. Ervin Laszlo, a great philosopher, during the Global Woman Forum in Tirana.

December 2018

Her aim is to reach one million women entrepreneurs by 2020 for her Global Woman Club.

39

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Comparable Tax Rates, Much Lower Tax Revenues A $1.5 billion shortfall

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

42

December 2018

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Figure 1. State revenue as % of GDP 40.1%

41.8%

28.0%

ALBANIA

MONTENEGRO

Albania and its two northern neighbors, Montenegro and Serbia, have comparable tax rates, GDP per capita, and economic structure.

However, Albania has much lower tax

The area of revenues where Albania lags the most is in social funds (social security and public medical insurance).

SERBIA

revenues as a percentage of GDP. If we think of GDP as the fruits produced by a fruit tree, Albania plans to collect in 2019 only 28% of those fruits for public coffers, whereas Montenegro 40.1% and Serbia 41.8% (Figure 1).

Figure 2. Social funds revenue as % of GDP 11.8%

It plans to collect for these funds in 2019 only 5.6% of GDP, compared to Montenegro’s 11.8% and Serbia’s 12.7% (Figure 2).

12.7%

5.6%

ALBANIA

MONTENEGRO

SERBIA

Albania lags also significantly in the collection of Value Added Tax (VAT). In 2019 it plans to have VAT revenue at 8.8% of GDP, compared to Montenegro’s 14.6% and Serbia’s 10.5% (Figure 3).

Figure 3. VAT revenue as % of GDP 14.6%

10.5% 8.8%

In other sources of revenues, Albania is comparable to Montenegro and Serbia.

In other words, the gap in the two aforementioned types of revenues accounts for almost the whole difference in state revenues as a percentage of GDP.

ALBANIA

December 2018

MONTENEGRO

SERBIA

If Albania had the VAT and social funds collection levels of Montenegro and Serbia (while it has comparable tax rates), an additional $1.5 billion would be entering Albanian state coffers 43

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EMS-FEHN-GROUP THE SHIPPING AND LOGISTIC EXPERTS

Our Experience Ensures Your Success EMS-Fehn-Group ĐŽŶƐŝƐƚƐ ŽĨ Ϯϯ ĐŽŵƉĂŶŝĞƐ ǁŝƚŚ ŽĸĐĞƐ ŝŶ >ĞĞƌ͕ ƌĞŵĞŶ͕ ,ĂŵďƵƌŐ͕ >ƺďĞĐŬ͕ ŽƌƚŵƵŶĚ͕ >ĞǀĞƌŬƵƐĞŶ͕ ĞƌŐĞŶ͕ ZŝŐĂ͕ ŽůnjĂŶŽ͕ WĂůĞƌŵŽ͕ ZŝũĞŬĂ͕ ƵƌƌĞƐ͕ ^ŬŽƉũĞ͕ ^ƚ͘ WĞƚĞƌƐďƵƌŐ ĂŶĚ &ƚ͘ >ĂƵĚĞƌĚĂůĞ͘ D^Ͳ&ĞŚŶͲ'ƌŽƵƉ ŝƐ ĂĐƟǀĞ ŝŶ ĐŚĂƌƚĞƌŝŶŐ͕ ůŽŐŝƐƟĐƐ͕ ƐƉĞĐŝĂů ƚƌĂŶƐƉŽƌƚƐ͕ ĐƌĂŶĞ ƐĞƌǀŝĐĞƐ͕ ǁŽƌůĚͲǁŝĚĞ LJĂĐŚƚ ƚƌĂŶƐƉŽƌƚ͕ ƐŚŝƉ ŵĂŶĂŐĞŵĞŶƚ͕ ƚĞƌŵŝŶĂů ŽƉĞƌĂƟŽŶƐ͕ ǁĂƌĞŚŽƵƐŝŶŐ ĂŶĚ ĐƌĞǁŝŶŐ͘ D^&ĞŚŶͲ'ƌŽƵƉ ĞŵƉůŽLJƐ ĂďŽƵƚ ϮϬϬ ƐƚĂī ŵĞŵďĞƌƐ ĂƐŚŽƌĞ ĂŶĚ ϭϰϬ ĂďŽĂƌĚ͘ ůů ĐŽŵƉĂŶŝĞƐ ĂƌĞ ŽǁŶĞƌŵĂŶĂŐĞĚ ĂŶĚ ƵŶĚĞƌ 'ĞƌŵĂŶ ŵĂŶĂŐĞŵĞŶƚ͘ D^ &ĞŚŶ 'ƌŽƵƉ ŝƐ ƌĞƉƌĞƐĞŶƚĞĚ ŝŶ ůďĂŶŝĂ ďLJ EMS Albanian Port Operator ĂŶĚ 'ĞƌŵĂŶ ůďĂŶŝĂŶ >ŽŐŝƐƟĐƐ ŐĞŶĐLJ >ŽĐĂƚĞĚ ŝŶ ƚŚĞ WŽƌƚ ŽĨ ƵƌƌĞƐ͕ 'ĞƌŵĂŶ ůďĂŶŝĂŶ >ŽŐŝƐƟĐƐ ŐĞŶĐLJ ŝƐ Ă ĨƵůů ƐĞƌǀŝĐĞ ƉƌŽǀŝĚĞƌ ĨŽƌ ůŽŐŝƐƟĐƐ ƐŽůƵƟŽŶƐ 'ĞƌŵĂŶ ůďĂŶŝĂŶ >ŽŐŝƐƟĐƐ ŐĞŶĐLJ ^ŚƉŬ >ĂŐũũĂ ϭ͕ Zƌ͘ ͞dĂƵůĂŶƟĂ͞ <ƵůůĂƚ ŝŶũĂŬĞ͕ <ĂƟ ϯ͕ Durres, Albania

DĂŝů͗ ŝŶĨŽΛŐĂůĂͲĂů͘ĐŽŵ Website: ǁǁǁ͘ŐĂůĂͲĂů͘ĐŽŵ DĞŵďĞƌ ŽĨ D^Ͳ&ĞŚŶͲ'ƌŽƵƉ ǁǁǁ͘ĞŵƐͲĨĞŚŶͲŐƌŽƵƉ͘ĚĞ

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“squeezed between the low-wage poor country competitors that dominate in mature industries and the rich-country innovators that dominate in industries undergoing rapid technological change” (Gill and Kharas, 2007).

Since then the concept has been used frequently and interpreted in various ways

by Asian Development Bank, IMF, African Development Bank, EBRD, UN, government leaders, academics and media.

Particularly now that striving for sustainable growth is on highlight, it is very difficult to diagnose all the possible constrains and realize what the next move is. Above all, more concerning is the assumption that these middle-income economies have FALLEN….in a TRAP, and will STAGNATE.

Is it to be blamed or to be taken action…?

Middle Income Trap

By Morena SHETA

Popular expectations assume that when things seem to be going well, is the time to be prudent about the future.

What triggers the most awful “Time magazine cover curse” scenarios is the fear of being trapped, sometimes for a long time and performing below potentials. BUT… if it would be framed differently, would it change the game?

History has shown that economies might experience some “red-carpet” periods and gradually go through transition fog.

Like it happened with ASEAN countries (Indonesia; Malaysia; the Philippines; and Thailand) and Latin America (Argentina; Brazil; Chile; Colombia; and Mexico) which had already leveled up as a result of a successful transition from low-income to middle-income status, but their past successful growth could not be surely projected forward to high-income status.

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… But time has proved that societies in transition struggle and sometime fail in defining. It leaves open the question of how prevalent are the existent economic theories to suggest a well-constructed growth framework for middle-income economies in transition.

To have a better understanding of “transformation trap” process, let’s revert back to the origins of the definition.

Then and Now: Thirteen Years of Hindsight Might not be the first, but for sure not the last one to write about middle-income trap, taking into consideration that already by 2015 there were over 3,000 articles in Google mentioning the term.

It is seen as more important to understand how it all started back on 2005 when no credible growth strategy was useful for middle income countries and what it was meant to define.

In this environment ASEAN middle-income countries where straddling between a growth labor-intensive exports strategy against China export juggernaut and a considerable interest in transforming to “knowledge economies”.

The concept was introduced back in 2007, describing economies that were being

Thirteen years after, studies clarify some facts that diminish its prevalence: - It was more of an “ignorance trap” about the nature of growth in middleincome countries, falling between endogenous growth theories useful for high-income economies and the Solow growth model applicable for low-income countries.

- The trap was meant to convey an empirical work to prove that past growth is just not that informative about future growth and its predictive ability is generally even lower over longer horizons.

- It was short-hand for “a trap that can catch middle-income countries”, but not a statement.

What can be concluded and generalized in thirteen years hindsight, the most widelyaccepted proposition is that a “trap” is characterized by a context where growth is below potential, and slow-downs in productivity can occur at all income levels. Following that, all middle-income countries pass through some key transitions.

- The Lewis turning point occurs at middle-income levels, where economies must move away from labor-intensive technologies.

- Technological upgrading, where industrial policy becomes more important in managing the transition to greater technological sophistication.

- The move from authoritarian to democratic regimes, which it requires greater institutional stability and a move to democracy can prove to be beneficial.

Middle-income countries find themselves straddling between both strategies, thus they are so in need for a new growth model.

December 2018

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INCOMES

FYRoMMontenegro

Serbia

Source: National statistical offices.

Through which transitions is the Western Balkans passing?

The concept of transition has been reviewed taking into consideration the complexity of the process from low to high income status. According to EBRD, under that updated interpretation of transition, a sustainable market economy is regarded as being competitive, well governed, green, inclusive, resilient and integrated.

Assessment of transition qualities in EBRD countries

- Labor Productivity Gap: Firm level labor productivity is about 60% of the EU-11, and mostly the gap is driven by the low productivity in manufacturing sector.

Albania scores the lowest labor productivity among WB-6 countries, especially in service sector.

EU Eastern Europe

Western Balkans

Source: IMF World Economic Outlook

processing are the most undersupplied sectors in Albania.

- Challenging cross boarder integration: due to poor quality of transport infrastructure which makes trade more costly and time consuming.

The average cost to export in the EU-11 is at US$ 34 per unit compared with US$ 65 in Albania.

2018 Report by EBRD shows that WB-6 are experiencing:

Albania’s economic growth is projected to slow to about 3.5 % by 2019-20 as the increased economic dynamics gradually closes the output gap.

EU Southern Europe

- Significant resilience: Banking system has demonstrated resilience during recent year’s crisis, but still NPL rates are high. Over more progress towards transportation and implementation of the Third Energy Package.

In Albania the NPL rates are still in double-digit levels, albeit on a declining trend in all cases.

Countries in the region are at various stages of progress on three transitions: the transition to market economy, the transition to EU membership, and the transition to high-income status.

- Living Standards Gap: The WB-6 countries have significant convergence towards EU living standards. GDP per capita is roughly 1/2 of that of Eastern EU countries, 1/3 of southern EU members and a mere quarter of the richest EU members in the Western Europe.

EU Western Europe

- Public Governance lags behind: Progress has been made on political stability, but control on corruption still remains concerning.

Especially in Albania political connections as more important than either effort and hard work, or intelligence and skills, as the key to success in life

- EU Membership: which is the key driver of political, economic and institutional reforms.

Albania is facing challenges to cope with competitive pressure within the EU.

Albania’s GDP Growth 14 12

- Environmental- green challenges: Air pollution is a serious problem and level of carbon intensity is very high.

In Albania 10% of renewable energy comes from hydropower plants and 40% from biofuels/waste.

10 Albania’s GDP growth

8

Comparator

6 4 2 0 -2 -4

- Less inclusive growth: Inadequately educated labor force remains the main obstacles. Shortcomings in VET, preparational training, startup financing are not meeting the market needs.

Agriculture, forestry, hospitality and food

Transition scores for six qualities of a sustainable market economy Competitive

Wellgoverned

Green

Inclusive

Resilient

Integrated

Average

Albania Bosnia and Herz.

FYR Macedonia Kosovo Montenegro Serbia

4.4 4.7 5.4 3.4 4.9 4.9

4.4 4.7 5.4 3.4 4.9 4.9

4.4 4.7 5.4 3.4 4.9 4.9

4.4 4.7 5.4 3.4 4.9 4.9

4.4 4.7 5.4 3.4 4.9 4.9

4.4 4.7 5.4 3.4 4.9 4.9

4.4 4.7 5.4 3.4 4.9 4.9

WB-6 EU-11 EBRD

4.6 6.5 4.9

4.6 6.5 4.9

4.6 6.5 4.9

4.6 6.5 4.9

4.6 6.5 4.9

4.6 6.5 4.9

4.6 6.5 4.9

-6

2018

Kosovo

18

2017

BIH

21

2016

21

0

2015

Albania

23

5,000

2014

18

27

- Lack of Competitiveness: In market size, labor market efficiency, and weak business sophistication and innovation capacity.

Albania is less competitive for market size, infrastructure and labor market efficiency.

2013

25

2012

14

18

2011

20

15,000 10,000

2010

21 14

25,000 20,000

2009

14

13

35,000 30,000

2008

19

16

9

Others Information & Communication Professional, Sci. & Admin. Services Financial & Insurance Activities Construction Real Estate Activities Agriculture, Forestry & Fishing Public Adm., Defense & Social Security Industry Trade, Transport & Food Services

2007

10

10 18

5

11

2006

14

5

8

2005

22

14

2004

23

7

12

45,000 40,000

2003

6 7

3 5 6 4

2002

5

7

3 5 4 5

3 4 4 3

2001

11

4 5

7

2000

3 6 4 4

GDP per capita (PPP adjusted)

GDP PPP per capita Current International Dollar

3 3 5 3

- Loss due to business environment obstacles: Total annual sales loss counts to 13.2 % on average compared to 9.8% in the EU-11.

In Albania competition from informal sector, electricity, corruption and tax administration are the biggest business obstacles.

1999

GDP breakdown by sector in WB 6

Source: IMF

Economies are really moving slowly, but they are making more progress in the headway than they realize. The key is to focus at the headway, not how far they had yet to go. Forewarned, policy makers can make adjustments so that passage through transitions becomes an opportunity for continued rapid growth.

It is time to frame uncertainties and “now what?” into opportunities and “why not!”

Source: EBRD.

December 2018

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"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

Address: Pedonale, Tamare , Albania.

For reservation, please contact: 0697207077

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How was Sophie Café created? Can you make a factsheet of it please?

Sophie Café is an Albanian brand, created in September 2013. The etymology of the word “Sophie’ comes from the ancient Greek, meaning knowledge, wisdom and maturity. Our symbol is the Owl which symbolizes the maturity or a “Mother Owl” which takes care of every detail though with closed eyes.

Our slogan is “Remember me.” Why we have chosen this one? An ancient village in Africa, where the coffee was first found, is called “cofree” meaning “Remember me” in English language and “Me kujto mua” in Albanian language.

It’s a nice atmosphere at each of the cafes of Sophie, how do you keep it like this?

Sophie is the third place after home and work where you enjoy hospitality, warmth and a quality product. Alongside with these elements, the biggest importance goes to the dedicated staff which show a maximal commitment to every client with kindness, speed and quality service. Sophie Café guarantees a pleasant environment because it mixes the architecture (interior design), music and positive vibes which the staff conveys.

How would you say Sophie Café is different from other coffee shops?

Sophie Café is characterized by a potential and stoic administration structure consisted of three pillars: communication; quality product and hygiene. This triangle makes Sophie one of the major coffee chains on the list.

What is the most favorite blends of coffee here? The most popular drink?

If we would like to taste a good cappuccino, then the best place for that is Sophie Café.

It is one of the most demanded and favorable products in our Café.

A cup of cappuccino embodies a strong relationship of the coffee with the milk cream, a product of a perfect temperature, voluminous and viscos. Nobody can resist to it!

What are the plans for the rest of 2018 with the culmination on Christmas time?

The plans for the most culminating period of the year are projected from the festive events to the launching of a new winter product which is a surprise for the moment, to the music and the interior arrangement of a festive character as well as the will and the love over everything we will do.

The Triangle that Makes Sophie Café the Major Coffee Chains on the List Antoneta Domi, General Manager of Sophie Café in Albania sits with Follow Business Albania to reveal why Sophie Café is the most demanded today by the millennials mostly but not ONLY.

This is our Main Key!

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December 2018

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December 2018

51

MAK ALBANIA HOTEL

EVERYTHING YOU NEED , PLUS THE STYLE AND EXTRAS YOU LOVE

Italia Square, Tirana,Albania E: reservations.tirana@makalbania.com T: +355 (0)4 2274707 F: +355 (0)4 2274711

Facebook: @makalbaniahotel Instagram: @makalbaniahotel LinkedIn: @makalbaniahotel Twitter: @makalbaniahotel W: www.makalbania.com

Unveil the hidden gastronomical treasures of Albania

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069 66 60 444 book@mullixhiu.al

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TOURIST ATTRACTION

An invitation from the Greek Embassy in Albania to take part in the 16th International Convention on Tourism and Culture YPERIA 2018 in Amorgos island, Cyclades, in Greece from October 31 to November 5, 2018 turned out a revelation.

Though it took us around 20 hours (plane and Blue Star ferries) to reach the “Treasury “hidden island, everything was worthy as seeing the unique landscapes, the incredible beaches and the beautiful people of this happy place.

And you say: El Amor existe!

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December 2018

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TOURIST ATTRACTION

Amorgos, Finding the Perfect Blend Live from Amorgos, Greece

By Rudina HOXHA & Jose PINTO

December 2018

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View from Chora, the capital village of Amorgos.

Enjoying the characteristic desserts of Amorgos

This convention on gastronomy, tourism and culture, organized by Aegialis Hotel & SPA, in cooperation with Amorgos Women Association, led by Mrs. Eleni Kountouroupi, and other sponsors, brought in the island more than 80 international journalists and filmmakers and gastronomic critics.

Amorgos, with an area of 121 square km, a coastline of 112 km, and a population of 1,800 inhabitants, lies between the island of Naxos and Astypalea.

About 138 nautical miles from Piraeus while administratively belonging to the Region of South Aegean, the mountainous island has been inhabited since approximately 5,000 B.C. People hike the different paths that lead to various areas of the island.

over the world for the benefit of local community. The Amorgos’ secret formula remains in the family to this day, parents but mostly mothers pass the tradition of respect and preservation for their land to their sons, grandsons and so on and so forth.

The best example of this is Mrs. Irene Giannakopoulos, the Owner and CEO of Aegialis Hotel & SPA where the 16th International Convention on Tourism and Culture YPERIA 2018 was taken place.

Alongside with her family, she managed to build up this 5-star hotel, located near Aegiali beach in Amorgos. A typical representation of traditional Amorgian Hospitality, this family-owned hotel portrays the spirit of this island and its people while organizes a series of events to promote the culture and the traditions of Amorgos.

With many natural impressive sceneries, green olive groves and sandy beaches, Amorgos is characterized by the preservation of traditions and customs. Festivals to promote the remote island are organized all year around, one of them – the 16th International Convention on Tourism and Culture YPERIA 2018. Parallel to that, Amorgos hosted even the 9th short tourism film festival.

“I wish to all of you a very pleasant stay in Amorgos, with nice experiences and creation of new friendships and professional contacts,” Mrs. Giannakopoulos said to the media and the other participants in her opening speech of the event.

The goal of all these efforts are summed up in one sentence: to preserve Amorgos’s culture and traditions as well as preserve its environment in order to attract single and group visitors from all

Arriving in Amorgos, you fill like the time has stopped, the quietness of a busy city is not here. All you can hear is the sound

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Her wish happened.

December 2018

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The winners of the 16th International Convention on Culture & Tourism YPERIA 2018

Climbing the Monestery of Chozoviotissa

View from Aegialis Hotel & SPA in Amorgos

of the sea and the wind, a pleasure that most of us don’t have the time or the luxury to feel due to our daily activities. While the boatmen make you nostalgic…

and very ancient. The herbs taste like herbs and the fresh vegetables like they were picked on the corner of the magnificent Aegialis Hotel & SPA.

And for the cat lovers, Amorgos is also the land of the most “docile cats”. Everywhere you visit, they welcome you and look at you like saying “Welcome to Amorgos”. Such a form of affinity, never seen before, stunned all the visitors. For us, too, is hard to forget such a docile “miau.”

Amorgos also produces a variety of wines which are served the ancient way, from the Barrel to carafe to your table. The orange color, medium dry White Wine rules your table with your most delicious and fresh fish and shellfish (just fresh from the sea) as they claim and it can be witnessed.

Part of the program was also a visit at Monestery of Chozoviotissa for which we had to climb 350 steps to reach it but the sensation was incredible while the view around us was breathtaking. In addition, a visit at Chora, the capital village of Amorgos was unforgettable.

During the days of the event, very trained local ladies, as part of Amorgos Women Association, provided cooking demonstration for the participants including the characteristic Amorgos desserts of fava or kserotigana.

Narrow streets, all painted in white, and doors in blue and green, the churches, the vendors and the locals took us in a nice ride.

Gastronomy The ancient gastronomy of the Island is also well preserved, being the mountain goat a very exquisite dish, along with their “favas” or green bean paste looking like “hummus” when served, delicious December 2018

It was exactly the gastronomy which had inspired and given a big push to the development of the tourism in Amorgos given even the old and new skills of the local women.

Gastronomy remains a topic of endless inspiration for the elite representatives of various professions from the journalists (food journalists) to film critics, historians and herbalists and pharmacists 57

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MANAGEMENT

moved to their desired field of work. Eighty-three percent of alumni increased their professional networks. IEDC has an extensive alumni network of more than 83,000 executives from 85 countries, which provides program graduates with valuable business contacts. Currently, IEDC has alumni clubs in 15 countries.

IEDC-Bled School Of Management

There are additional incalculable benefits of the EMBA program. IEDC is well-connected throughout the world and has established partnerships with prestigious management develop universities and institutions in China, Latin America, and South Africa. These partnerships provide opportunities for mutual participant exchanges that enhance the overall experience of IEDC Executive MBA participants. Graduates receive both an EMBA degree and Masters degree in Management, both of which are Bologna accredited guaranteeing comparability in the standards and qualities of the program.

Transforming executive potential into executive performance There are few schools that can claim to have one of the four most innovative MBA programs in the world. That honor and title belongs to IEDC-Bled School of Management in Bled, Slovenia (AMBA, 2012).

As the first business school to offer an accredited MBA program in Central and Eastern Europe, IEDC has pioneered many programs and topics, which have become the gold standard in graduate and executive education. These topics include arts and leadership, business ethics, corporate governance, corporate social responsibility and sustainability. To this line-up, IEDC has added the most relevant topic of the decade: the challenges and opportunities of digital transformation.

With many graduate programs vying for attention these days, what makes IEDC’s Executive MBA program (EMBA) a cut above the rest?

First, the outcomes of the program speak for themselves. Seventy-six percent of graduates report an increase in their earning power; 93% of alumni say the program increased their competitive advantage, and 99% say they improved or enhanced their leadership effectiveness in the IEDC Executive MBA program.

Second, are the benefits. Within three years of graduation, nearly 75% of alumni from the EMBA program advanced to another position or

Aerial view of IEDC - Bled School of Management in Slovenia.

EMBA begins with classroom work that provides a strong foundation in strategic management, digital transformation, operations, finance, accounting and marketing. Participants then work in teams to perform an in-depth analysis of an integrative case study. As confidence grows, participants move into action-learning mode. They are assigned a complex, real-world project for a regional or international company. This demanding and comprehensive team exercise is carried out over a period of several months and allows participants to apply everything they have learned in the classroom.

As one recent EMBA graduate noted, “After the first intensive MBA module…my comfort zone was left behind. I learned to take risks and embrace team work. I am happy with my decision as I had the opportunity to meet incredible faculty, great colleagues and to improve myself.”

The most important and distinctive value proposition that IEDC offers is that they want to see you succeed as much as you want to succeed. To this end, participants get individual attention from an experienced international faculty and work closely with professional advisors, who custom-tailor the program to the needs and aspirations of the participant. Participants can choose from the 1 year, 2-year, or 3 year executive MBA program. Each format is designed to fit the participant’s business schedule 58

December 2018

www.iedc.si/mba

Executive MBA Program Boost you managerial potential.

Scholarships for Albanian applicants are available.

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CHOCOLATE WORLD

Cioccolatitaliani, a Chocolate World Combining Cafeteria, Pastry and Cuisine

By Rudina HOXHA

“The success of Cioccolatitaliani, not only in Albania but in all the countries where it is present, is primarily attributed to the quality of the products and its constant credibility for the market.” Fatmir Kule, General Manager of Cioccolatitaliani in Tirana is happy to share with Follow Business Albania the success of the ‘sweetest’ shop in Tirana.

He says that, initially, it was not easy to explain to the guests all about the concept of Cioccolatitaliani, which should be perceived not only as a pastry shop but as an all-day dining from the complete breakfast to the complete lunch to the complete afternoon and the complete dinner, from cafeteria to ice cream, pastry to cuisine.

Twice awarded with the certificate of excellence by Tripadvisor, Cioccolatitaliani Tirana represents a magic chocolate world which perfectly blends Cafeteria, Pastry and Cuisine.

Why Cioccolatitaliani in Tirana is so much demanded?

The cacao we use is only Fino de Aroma which is only 5 percent of the world produc60

tion. This is the most precious part of the cacao, manufactured in the Dominican Republic and Colombia. It is completely natural, free from any chemicals. That and our collaboration with the Luker Foundation, a local NPO committed to eco-sustainable cropping of the cocoa plants and to the education ol local farmers, explains why its price is a bit higher than the one people buy at the local market. The melting cacao has a 56 percent of cacao while in the ice cream goes up to 72 percent.

The success of Cioccolatitaliani, not only in Albania but in all the countries where it is present, is primarily attributed to the quality of the products and its constant credibility for the market. One element, not secondary, in the creation of the credibility is even the selection and the manufacturing of the products in front of the clients. This way, the high end consumers have the assurance and the control of what they eat.

Can you mention some of the main products you serve here?

The general idea of Cioccolatitaliani is the chocolate world, combined with the cafeteria, the pastry and the cuisine. The chances of intertwining are endless from chocolate soufflé (with 72 % of cacao) to ice cream, milk chocolate, dark and white chocolate, to the chocolate thins which we have started to produce ourselves in the choco-

late factory we have just built. Also here you can find pasta with chocolate chips.

Also the combination of the special café with the three kinds of chocolate, dark, white and milk one is so much demanded.

How did Cioccolatitaliani start out in Albania? What were the initial challenges the company faced?

Cioccolatitaliani Albania is a result of coincidence. Two Albanian brothers, upon a visit in Milan, got to know about Cioccolatitaliani and let’s say that it was a love at first sight for the product itself which is the basis of success but even the design and the arrangement of all the shops. More than two years were needed to convince Italy that this kind of initiative can work out even in Albania. Italy as well was later surprised by the constant success and the achievements of Tirana as part of Cioccolatitaliani.

The Headquarters of Cioccolatitaliani is in Milan while other branches operate in Dubai, Qatar, Oman, Morocco, Saudi Arabia and a new one has just openend in Prizren, Kosovo. More than 20 points are operating in Italy. Cioccolatitaliani in Tirana is the only onefrom all the points which ever got the certificate of excellence from TripAdvisor, and this year we were proud to receive the second one in a row.

The main challenge is the training of the staff because of the particularity of the December 2018

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CHOCOLATE WORLD

products. It is important to explain to them the chocolate world inside out. Since it is a very dynamic environment, our entire staff needs to absorb the necessary specific knowledge and transmit them to our guests properly and fully.

Since Cioccolatitaliani is a multi service in its essence, it is important that the client perceives it as all day dining from the complete breakfast to the complete lunch to the complete afternoon and the complete dinner, from cafeteria to ice cream, pastry to cuisine.

December 2018

This way, a constant training of the staff is needed, so the clients do not perceive it as only a pastry shop, not as a cafeteria, not as ice cream shop. Instead it should be perceived as a chocolate restaurant. And one of the challenges of its opening was to explain to the clients why our prices are a bit beyond the average of the market.

But this is a result of the fact that we self-import our raw materials given their cost as well as the transport and storage costs. Consequently they influence on the final price.

How do you like running one of the â&#x20AC;&#x153;sweetestâ&#x20AC;? shops in Tirana?

It is a daily ambitious challenge with respect to the quality standard and food security that needs to be guaranteed. It is the complexity of the format itself and the complexity with the spirit of cooperation with this extended staff of over 30 people.

In a gastronomic environment, harmony or lack of it is reflected to the client.

So, the main challenge is the creation of a harmony with the staff, a constant cooperation and a high quality

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The Nobel Peace Prize 2018 The Nobel Peace Prize 2018 was awarded on December 10 in a formal ceremony at the Oslo City Hall. Ms.Nadia Murad and Dr. Denis Mukwege were awarded the Nobel Peace Prize 2018 winners. In their peace prize acceptance speeches, which touched everyone listening, they called on the world to protect victims of wartime sexual violence.

The audience applauded them time after time, giving them standing ovations.

SOURCE: The Norwegian Nobel Institute

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December 2018

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ENERGY

Attracting FDI in Renewable Energy Should be the Way to Go For the first half of 2018 the Albanian economic growth was led by a rebound in electricity production and exports.

Nevertheless, while in 2018 heavy rainfalls have been a blessing, in contrast, protracted droughts in 2017 have been a curse for domestic electricity production. As such continuous droughts and floods which have been hitting the country in recent years put at risk energy production, its exports and the profitability of hydropower stations.

In order to diversify the risk of being almost totally dependent on hydroelectricity Albania should invest in other energy potentials. There is a great potential in renewable energy such as solar, wind or biomass energy. Actually, electricity, gas and water supply have been the sectors that have attracted more than one third of FDI inflows between 2014 and 2018. 1

By Isida MARA Research Economist at The Vienna Institute for International Economic Studies (wiiw), Vienna (Austria) Country expert for Albania. Research on labour market issues, migration and social policy

Still, taking into account the rise in demand for electricity consumption, the potential to attract FDIs in renewable energy sectors remains high. The sunshine amounts between 2400 and 2700 hours per year - a level comparable to Spain or Malta average hours with sun. Besides, the Trans Adriatic Pipeline (TAP) which will transfer gas from Azerbaijan - through Turkey, Greece,

Albania and Italy - to the EU countries is approaching its finalisation and gas delivery is expected to start by 2020.

For example, a number of project proposals, aiming at exploiting the natural gas supply through TAP, are developing.

In spring 2018 the government received a project proposal by Ivicom Holding GmbH, based in Austria, to build a 500 MV power plant that will produce electricity with gas supplied via TAP. The project has gained the status of strategic investment; its estimated costs are EUR 350 million and will be privately funded.

The first photovoltaic power plant in the Akerni, Vlora, with installed capacity of 50 MW - expected to start its construction works in 2019 - is another opportunity of attracting FDIs in renewable energy. Investing in the gasification of the country and alternative energy production such as photovoltaic power stations are among the alternatives that the government and the business community should strongly support and develop further

Source: wiiw Database, https://data.wiiw.ac.at/

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December 2018

December 2018

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ART/CULTURE

Blooming Kosovo Opera Singer Earning International Fame After her second project in Switzerland as Carmen in Bizet Opera “Carmen,“ Flaka Goranci, an Albanian Opera singer from Kosovo living in Vienna is looking forward to perform the same role next year in Austria and also to appear in concerts in Germany, Austria, Switzerland and Kosovo with famous orchestras including the Hamburg Symphony Orchestra.

The young but ambitions singer is earning international fame.

Goranci has been performing in many prestigious avenues like: Theater an der Wien, Vienna Konzerthaus, Gläserner Saal Musikverein, Stefaniensaal Graz, MuTh hall, Vatroslav Lisinski concert hall and others with great orchestras like Hamburger Symphoniker, Concentus Musicus, Dubrovnik Symphony Orchestra, Macedonian Philharmonic Orchestra, Albanian Symphony Orchestra, Kosovo Philharmonic Orchestra and others Initially Flaka Goranci started studying piano, before changing her major to 66

Flaka has worked under distinguished conductors including Nicolaus Harnoncourt, Erwin Ortner, Ulrich Windfuhr, Pawel Poplawski, Enrico Delamboye, Manfred Mayrhofer, Vittorio Parisi, Yishai Steckler, Gion Gieri Tuor, Zhani Ciko and others.

singing. She obtained her bachelor’s degree at the Music Academy of Tirana in Albania. Master studies followed at ”Buchmann-Mehta-School of Music” – Tel Aviv University in Israel.

With opera directors such Uwe Eric Laufenberg, Stephen Lawless, Carlos Wagner, Niv Hoffman, Andrea Zogg, Ulrich Schulz, Dani Ehrlich, Nikolin Gurakuqi and Michal Grover Friedlander.

She is a winner of the Hilde Zadek Scholarship Foundation (KS Hilde Zadek).

At the age of 22, she made her debut as Rosina in “Il Barbiere di Siviglia”, at the Albanian State Opera in Tirana. In Israel, Albania and Austria, she appeared also in roles including Cherubino in Mozart’s “Le nozze di Figaro”, Dorabella in “Cosi fan tutte”, Dido in “Dido and Aeneas”, Ida in “Gemma di Vergy” and Die Mutter in “Der Jasager”, K.Weill.

In 2015, her first CD-Project ”Albanian Flowers” with the ensemble “Dielli” (Vienna Philharmonic musicians) was released by Gramola company in Vienna.

In 2016, she gave her debut as Olga in “Eugene Onegin” – Tchaikovsky in Alden Biesen Summer Festival in Belgium.

In 2017 she performed the role of Carmen (adaptation) in Magdeburg Theater, Germany where she also performed the role of Dritte Elfe in Dvorak’s Opera ”Rusalka”.

At Tiroler Festspiele Erl 2018 – 2019 season she is engaged for the first time this year

December 2018

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MILLENNIALS

It's a Wakeup Call!

By Vusal Gambarov, PHD

As a business consultant same time carrying academician title I used to have specific pattern for concluding about topics. The same pattern I apply for my writings. We are educated within the culture of referencing and appreciating words said before us on the issue. I share also with my students 4 sources where you must/may rely while taking decisions: - Own experience - Others experience (Case studies) - Theories (When you are not aware of any case of your own or others) - Logical chain

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MILLENNIALS

Last one is kind of invention of mine as a term. It means when there is no case and theory to rely on, you have to create chain where you put step after step smartly to come to conclusion/decision.

In this article, I want to go a bit against myself and even to be a bit subjective. It`s a summary of my observations for last sufficient period.

Youth Marching for Sustainable Development Goals in Bosnia Hercegovina: AIESEC Organization

I am in education business for 8 years. In my experience I had a chance to lecture/teach people decade older than me and peers. But of course, majority were from younger generation. I have plenty graduate students hired by large multinationals; Azerbaijanis and Albanians.

Among them I have successful entrepreneurs as well. Hundreds of bright people from 18 to 30 years. It is a great opportunity for the person with observing eye to see the differences.

Reyhan Jamalova (left) at her 16 is invited plenty events as speaker after her Rainergy project gets Global recognition

We are Millennials, trending topic of the world. Because by the next 20 years share of Millennials in the consumption and Worldwide policy making will raise.

That`s why just by googling you can find plenty serious resources focused on this generation. Even businesses started to shape themselves to Millennials.

But as a Millennials I am afraid we will get less popular just in few years. Estimation for next 2 decades about consumption probably will be fulfilled, but for policy making and shaping the world, I am a bit suspicious. I had a chance to work with generation below 25, even 23. Maybe within realities of our cultures people we might call kids; 16-23 years old.

If you are within this age areal this wakeup call is for you: You don`t know how special, you are probably. Yes, it is true that â&#x20AC;&#x153;kidsâ&#x20AC;?

December 2018

of this age are arrogantly self-confident.

But, I don`t mean that. You have also enormous set of skills and world vision. You have great pace which makes you to learn 5 times faster than older generations.

This is the only way to cope with the speed outside. Here wakeup call gets a bit local; time spent at coffee shop with friends you are not benefiting at all. Networking means to enlarge your network, not to spend time with same people. There is only one way for you also to keep the pace: experience.

Experience whatever comes.

If you are older than 25 this wakeup call is for you: Business consultant hired by companies in 3 countries may sound great.

But I started to say that soon we will be disposed.

They are coming and will take over us if we do not work as hard as them. Even to work is not enough. We have to focus on understanding the changing world. Because now it is their turn to change the world.

We are really unlucky to pass this pride to next generation without enjoying it long.

But, who guarantees them to have it for long?..

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