An Albanian-Spanish joint venture has begun construction of a major tourist resort at Gjiri i Lalzit Bay, about 30 km from Tirana, with an expected investment of €90 million and the creation of some 500 jobs.
The project is a partnership between Albania’s Edilal and Spain’s Melia Hotels International. The development, named San Pietro, will cover 35 hectares and be designed as a five-star resort comprising a hotel, a tourist village, villas and three-storey buildings.
Speaking at the groundbreaking ceremony this week, Prime Minister Edi Rama described the investment as a breakthrough for Albania’s emerging tourism industry. “The arrival of Melia Hotels International is more than welcome news, as it breaks the ice after many years and paves the way for high quality tourism and other 5-star accommodation units to be built in Albania,” Rama said.
The resort is one of several luxury tourism projects along Albania’s Adriatic and Ionian coastline, driven by a government programme that offers state property in priority areas for a symbolic €1 for up to 99 years, in exchange for investment and job creation.
However, unclear property rights have historically deterred foreign investors. In September 2016, violence against an American executive linked to a land dispute led a Dubai-based company to withdraw from a $450 million resort project at the same bay, which had been expected to create 1,200 jobs by 2018.
Albania’s tourism sector has grown rapidly in recent years, attracting more than 4 million tourists and generating about €1.5 billion, or 8.4% of GDP. The World Travel & Tourism Council reported that the travel and tourism industry directly supported 85,000 jobs in 2016, with a total contribution of 267,000 jobs (24% of total employment) when including wider effects.
Closed to tourists for nearly five decades until the early 1990s, Albania has been positioning itself as a Mediterranean destination, often described as “Europe’s last secret.”
Why it matters
The San Pietro project signals growing international confidence in Albania’s tourism potential, particularly from a major global hotel brand like Melia. The €90 million investment and 500 jobs represent a tangible step toward upgrading the country’s accommodation stock to five-star standards. However, the history of property-rights disputes at the same location serves as a reminder that legal clarity remains critical for sustaining foreign investor interest. If successful, the resort could catalyse further high-end development and help Albania capture a larger share of Mediterranean tourism demand.
