This is Where Horwath HTL Albania Could Make a Difference

INTERVIEW WITH MAJLIND LAZIMI

MANAGING DIRECTOR HORWATH HTL ALBANIA

By Rudina Hoxha & Jose Pinto

Just for the first 6-month period of 2022, the Bank of Albania confirms that foreign residents have invested more than 140 million Euro in real estate acquisitions in the country, ranked as the 1st contributor to FDIs in Albanian economy.

“Considering the positive development dynamics and potential in tourism industry in Albania, it was the right time and the unique opportunity for Horwath HTL to open the office in Tirana,” tells Majlind Lazimi, who took the position of Managing Director - Horwath HTL Albania last September.

He reveals what strongly stirred the opening of Horwath HTL Albania. “Being an emerging economy that on the one hand has great touristic resources and on the other hand has still untapped tourism potential with an uprising appetite by international brands to penetrate the market – all this was a strong case in favor of our decision to open the office in Tirana.”

Talking about the current projects, Lazimi, a senior economic adviser and business consultant for the last 13 years, said that the Office is working on the several large mix-used development projects – including hotels, residentials and commercials.

“In our portfolio of clients, we have from big holding companies to banks and international donors such as World Bank,” he said.

Full interview below:

1. Horwath HTL, recently has opened its Office in Albania, becoming the 19th office in Europe while you are heading this office. What is your vision and your primary objectives in this posting?

As you know, Horwath HTL is the world’s largest and most experienced tourism and hospitality consulting brand, with 52 offices around the globe. The Albania office is launched by Horwath HTL Croatia, which is also the Global Centre of Excellence for tourism advisory within Horwath HTL internationally. We are a strong international team that is at the same time extremely well aware of the local context.

Considering the positive development dynamics and potential in tourism industry in Albania, it was the right time and the unique opportunity for Horwath HTL to open the office in Tirana.

We are global leader in tourism, hotel real estate and leisure advisory, and our vision for Albania is the same. Our single goal is to establish a local office and the team that will cater for all local needs of the market, providing globally state of the art professional strategic and operational advisory to the country, the investors and the international brands.

Also, Horwath HTL as a strategic advisor for more than 80 Governments globally, is very much looking forward towards supporting public sector in creating more competitive environment for overall tourism development, policy and strategic planning, tourism marketing and branding, digital transformation of tourism sector and many more challenges that are ahead of the Ministry of Tourism and Environment, relevant Agencies and the Government as such.

2. How healthy would you say the Albanian real estate and development market is heading through 2022 and on? What are the factors that are considerably influencing in this regard? To what extent did the market impact the opening of this Office?

Based on all domestic and international reports, the real estate development is the driving force for the economic growth in Albania. When it comes to touristic regions the real estate market is still bullish and we believe that this trend will be strengthened in the next few years, not just from the domestic demand but also from the generated demand by international clients for property acquisition in Albania.

Just for the first 6-month period of 2022, the Bank of Albania confirms that foreign residents have invested more than 140 million Euro in real estate acquisitions in the country, ranked as the 1st contributor to FDIs in Albanian economy.

Being an emerging economy that on the one hand has great touristic resources and on the other hand has still untapped tourism potential with an uprising appetite by international brands to penetrate the market – all this was a strong case in favor of our decision to open the office in Tirana.

I believe that the high competitiveness of the regional market, insufficient local tourism management capacities and the increasing market attractiveness for private investments in tourism sector in Albania – all these indispensably require the professional expertise to advise policy-making and the development strategy of the public sector and the private investors on how to learn from past and others’ mistakes and to contextualize the successful business models from around the world. This is where Horwath HTL Albania could make a difference as our strategic intention is to make a long-lasting impact for the investors and the country as whole.

3. What are some significant tourism development trends in Albania people should be aware of?

I think that we shall aim for a sustainable tourism development model. In practice it means that while hospitality and real estate projects are developing, the people are caring much more for the combined economic, social and environmental impacts of these projects.

Overall, tourism is about both content and narrative. Content-wise, we need to preserve and best-us our natural resources (seas, lakes, mountains ect). Narrativewise, we shall be smarter in promoting these resources and our touristic offer throughout Albania and around the year.

I think Albania has a unique opportunity for targeting and attracting different market segments, by striking the right balance between developing an environmentallyfriendly massive tourism with affordable prices and high-end or luxury tourism with premium prices. In today’s Instagrammable world, the tourists are looking for exclusive experience and are requiring the highquality service for which they are willing to pay a premium price. It is the guest experience and quality of services that brings the economic and financial dividends to tourism sector.

4. Can you mention some of the main projects of Horwath HTL Office Albania?

Currently we are working on the several large mix-used development projects – including hotels, residentials and commercials. In our portfolio of clients, we have from big holding companies to banks and international donors such as World Bank.

5. What are the main regions in Albania with major development investment and why.

Most of the tourism projects are concentrated in the costal areas, starting from Velipoja, Shengjin, Lalzi Bay and all the way to the southern riviera, where the developments are more intense. The simple reason for new investments is the insufficient and relatively poor quality of existing tourism accommodation structures. For example, Montenegro with a population of at least 4 times less than Albania has 3 times more the accommodation capacity.

Also, when it comes to international branded hotels and seasonality, Albania lags quite behind Montenegro. Considering the medium to long term trend of inbound tourism in Albania, the supply of accommodation structures is still falling behind the demand. That is why there is a need to invest in new accommodation structures, some of which will be affiliated with international brands that will enhance the marketing of the destination and the quality of services, by bringing more added value to our economy and satisfying the expectations of both local and international guests.

6- What would be your recommendations for future investors: invest in single use units or multi-use hotels?

As I mentioned, most of the projects we are currently engaged as consultant to the investors are mix-used investments, which combines hotels, residentials and commercial properties. Having in particular development area a mix of property types, it diversifies the risks and increases the potential returns for the investors. Based on our international benchmark analysis, we always recommend a balanced development of mix-used properties keeping in mind sustainable tourism goals.

Majlind Lazimi

However, one should be aware of the power of differentiation. In previous investment waves we have seen number of investments that are very similar to each other and they had success due to the lack of proper supply. In the future, new projects will have to focus on creation of added value to guests and property buyers, by highlighting services, distinction and creation of experiences. This is what will differentiate developments among themselves and bring premium market value to the investors.

7- Within the scope of action of Howarth HTL Albania, what are the most demanded areas?

Currently, the southern coastline has attracted more investors due to its beautiful nature, crystal-clear sea water, new public infrastructure investment (e.g., new airport and Llogara tunnel), real estate market potential, and still more virgin areas compared with the northern coastline.

8- How much is your background as a seasoned economist helping in this challenging post? What is motivating you most?

I think my professional background as economist gives me a broader perspective when it comes to tourism development.

In my previous positions I was looking at tourism sector only from policy-making angle and now I am also engaged with “hands on” as consultant looking from the perspective of private investor as well.

At Horwath HTL, we are strategic advisers for both public sector (including international donors) and private investors.

The biggest motivation for doing my job with passion is to marry both the interest of public sector and private investors in developing the tourism sector, as I believe it is the driving for sustainable economic development, employment and prosperity of Albania.

At Horwath HTL Albania, our team has the ambition and motivation to build our legacy as an active player in supporting tourism transformation of the country towards sustainable, resilient and more competitive future.

Majlind Lazimi speaking at the Ohrid Blue Economy Summit

Photo credit: Horwath HTL Albania