The 10-15% increase in prices in bars and restaurants in the south reduces consumption/ Business uncertainty increases

2024-07-26 08:13:00, Ekonomi CNA

The 10-15% increase in prices in bars and restaurants in the south reduces

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In the coastal areas of the south this tourist season, in addition to the increase in prices of accommodation structures (including hotels, apartments and villas) up to 30% compared to last year, there was also an increase of up to 15% in prices in bars and restaurants.

The chairman of the Association of Bars and Restaurants, Enri Jahja, told Monitor that the prices of bars and restaurants on the south coast have increased by 10 to 15% compared to years. While there was no change in prices on the coast of Durrës or in the lake area of ??Pogradec, quite frequented this season by the residents of the cities of Tirana and Elbasan.

According to Jahje, one of the main reasons for the increase in prices remains the increase in costs for staff salaries, including for waiters, assistant waiters or chefs, which range from 1,000 to 3,500 euros. Based on the positive progress of tourism last year, thanks to the promotions of many foreign influencers, Albania was visited by 10 million tourists. Consequently, due to positive expectations, many service businesses have doubled the number of employees.

But the increase in prices has affected the decline of consumption in bars and restaurants of the coastal areas of the south.

"In bars and restaurants there has been a drop in attendance. Last week, the area of ??Vlora was empty, while in Dhërmi the attendance was high. This situation was first influenced by the holding of the European football championship and the increase in prices, being unaffordable for the locals. There has also been an increase in prices and an increase in the supply of accommodation structures. But I think the market will self-regulate.

Since last weekend, there has been an increase in attendance at bars and restaurants, especially by foreign tourists. Overcrowding has started everywhere this week, a trend we expect to continue until the end of the season. This is a very positive signal".

There was also a decrease in consumption in restaurants compared to years in the tourist areas of Tushemishti and Lini. Managers of restaurants in Pogradec that serve the traditional food of the area claim that the main reason for the decline in consumption is the increase in family immigration, mainly to Germany.

But the sleepy start of the tourist season has "scared" the businesses of bars and restaurants, where according to Jahje, due to positive expectations for an increase in the number of tourists, they increased the number of employees.

"This situation has created uncertainty among businesses that have increased investments. Businesses supplying goods to bars and restaurants have doubled their staff, as they anticipated an increase in the number of tourists. While this year there was no work. But this week there have been some positive signals. Let's wait how the progress will be, since this year I see the businesses of bars and restaurants scared".

In the summer months of 2023, consumption in bars and restaurants increased by 20% compared to 2022 due to the high influx of tourists according to the Bar and Restaurant Association. The downward trend of consumption returned after the end of the tourist season. Among the internal factors that influenced the decline in consumption after the departure of tourists were the consumer's uncertainty about spending due to economic difficulties, as well as the "fear" of being exposed in restaurants of individuals who own dirty money, from the investigations of launched by SPAK.

Last year, spending per person in restaurants increased by 13 to 17% due to price increases.

There are a total of 15.5 thousand bars in the country, from 22 thousand in 2015, being the second most preferred activity in the country, after the minority business. According to the data of the INSTAT business register, in 2021, 854 activities of food and beverage services were closed, with a decrease of 5.2%. Referring to INSTAT data, until 2019, 45,000 people were employed in this sector. The number of employees is considered higher, due to informality./Monitor