VAT reduction on tourism prompts construction of 20 new hotels at ALL 852 mln

The reduction by 6% of VAT on tourist accommodation sector seems to have given the first effects in terms of investments in this sector.

According to INSTAT data, during July-September 2017, about 20 construction permits for hotels were approved in the country, the highest figure of at least the last three years.

As can be deduced from the chart below, the demand for constructing or reconstructing hotels and other accommodation facilities has been increasing shortly after the introduction of the VAT reduction initiative.

Even though in the last 6 months more building permits have been granted for hotels than in the three last years together, what has to be considered is also the doubling of the permits granted  this year at country level.

This is also reflected in the growing number of permits to build offices, commercial buildings, or industrial buildings.

In total, the value of building these 20 hotels amounts to ALL 852 million for construction and about ALL 37 million for reconstruction.

This figure, involving only the third quarter of the year, exceeds the total investment value for 2012, 2014 and 2015.

The figure is also very close to that of 2013 and 2016, fixed at ALL 1.2 billion.

Along with the second quarter of the year, where the value of the investments reached ALL 639 million, we can say that the reduction of VAT has certainly generated a large drive as far as the increase of investments in the hotel sector is concerned.

SCAN

*Material i përgatitur nga portali SCAN. Ripublikimi mund të bëhet vetëm kundrejt citimit të autorësisë dhe burimit origjinal.