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Tourism Employment During Economic Transition in Albania

Drita KRUJA, MA - Lecturer of Tourism Shkodra University, Economics Faculty, Address: L. “Ahmet Haxhia”, Rr. “Musa Luli”, No. 48, Shkodër, Albania Phone (home): ++3552243450 Mobile: ++355692148272

Edlira GJURAJ, MBA – Lecturer of Organizational Behavior Shkodra University, Economics Faculty, Address: L. “Qemal Stafa”, Rr. “Zogu i I-rë”, No.25, Shkodër, Albania Phone (home): ++3552241378 Mobile: ++355692255151

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Tourism Employment during Economic Transition in Albania Abstract

Since '90 Albania is in transition. Many studies have tried to evaluate the duration of this

period, but, to in some extent, it is going to be unpredictable. Many new phenomena

presented during this period have made it so difficult. According to that, there are many

new industries growing up rapidly, while some of the old ones failed. Tourism industry

is a new one.

This paper consists of the description of tourism employment and labor market behavior

in the special conditions of Albania, passing from communism to capitalism. New

market economy brought many changes in the Albania Economy profile. The study is

concerned with the role of new developments in tourism industry, tourism employment

and the nature of its occupations in these special circumstances. Considering tourism as

refuge industry1 gives the opportunity to identify mobility patterns from other (not

efficient) economic sectors, to asses the impact of the change in labor market and to

measure the motivation of the workforce, which found itself as devalued human capital,

for getting employed into tourism.

Also, as in all East-European countries in transition, the migration phenomenon is present

in Albania. Its social-economic advantages and disadvantages has been object of many

studies.

The aim of our paper is to give response to the question: Is there any correlation between

tourism developments and its employment with migration rate? The attractiveness of

tourism employment for many is due to a number of factors, such as: individual desire for

1 Szivas E, & Riley M, “Tourism employment during economic transition”, 1999.

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being entrepreneur, high level of interpersonal contacts and flexibility in employment,

low skilled job, diversity of jobs, etc..

The study is based on primary and secondary research. National statistics, previous

contributions in this field, internet sources, etc., served as secondary data. Survey

methods served as the source of the primary data, which have been processed by SPSS.

This is a behavioral study in which economics forms the background. Essentially, it is

about the personal experience of economic change in exceptional social circumstances.

I. A few words about Albania?

Albania is a small nation located east across the Adriatic Sea from Italy, bordered with

Montenegro and Kosovo on the north, Macedonia on the east, and Greece on the south.

Albania has a population of 3.3 million, about half of

which live in the countryside and are engaged

primarily in agriculture. The country is blessed with

natural beauty and resources - high majestic

mountains, beautiful lakes and streams, over 200

miles of pristine white sand beaches, and significant

deposits of various minerals (oil, copper, nickel,

chromium, coal, etc.). (Luthans & Lee, 1996).

Its geographical position and so many natural

beauties are not the only things Albania has to be proud of. Having a look at the old

languages map, we see Albanian language as old as the Greek one. So our history starts

too many years B.C... Our castles in the main old centers tell about Albania and

Albanians, many times ago. Passing through many different invasions, destroying battles,

borders’ changes and conversions, Albanians arrived in the years of 20th century, which

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brought First and Second World War and the Hoxha dictatorship, the most wild, long life

regime in the communist campus, for more than 45 years.

At the 21st century, within much developed Europe, we still have lots of problems.

Unemployment and underemployment have been critical problems. In addition Albania

faces the problem of low levels of industrial production …., lack of modern production

facilities (most of the heavy manufacturing facilities are now shut down and contains

cast-off Chinese technology installed in the late 1960s), a chronic negative trade balance,

and mounting foreign debt. (ibid)

Inherited problems both with new unknown phenomena of trade economy put Albania

into a long transition period. It has chosen a liberal economic policy, considering as the

premise for its economic development. Also, in order to attract investments, the principal

condition is to construct the infrastructure, an investment that continues at fast rates and

is a priority also in the midterm program of the Albanian Government. It is a necessity of

developing tourism as well.

Tourism is a major world industry whose importance will grow even more in the coming

years. Albania is one of Central and Eastern European Countries “which has largely

closed to international tourism during the cold-war era and where tourism as a

consequence has suffered somewhat compared to Western Europe. … the countries of

central and eastern Europe – with their rich architectural heritage, natural treasures, pasts

and traditions – are already becoming significant tourism destinations and are doing their

utmost to tackle the new challenges. (Stepova V, 1997).

While Albania would be at the top of the alphabetical tourism "yellow pages," it is not

likely to be the first place to come to mind when planning an eco-get-a-way. The country

is still a virtual unknown on the vacation circuit, but according to the Director for

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Albania's Ministry of Tourism, it is a top priority for the national economic development.

He described Albania's tourism as being in an "embryonic stage," but emphasized that it

has been identified as an area where the country has an international competitive

advantage. "Albania has been isolated in the past and not many people have had the

chance to visit there, so our nature is untouched and our coast is unspoiled." (The

Bulletin 6-1 Ecotourism.htm)

II. New developments in the Albanian economy.

According to Charles Goldfinger, "both general policy and employment regulations have

an impact on tourism services and their costs. Its highly seasonal nature and the great

demand for available, varied supply mean that the tourism industry requires considerable

flexibility and fluidity as regards work. The growth of tourism therefore has to be

supported by sound macro-economic policies, directed at growth and promoting work

flexibility".

The main focus of tourism developments strategy was seeing Albania as destinations for

international out-of-region tourism, rather than an internal or domestic tourism, especially

from the two main reasons: first, population in Albania is poor2, and second, data related

to that is still sparse and inconsistent.

With funding from the European Bank for Reconstruction and Development, this

Ministry outlined a detailed set of guidelines for the tourism industry which includes

long-term plans for environmental protection. Part of the development efforts include the

creation of national parks and protected areas. Some of Albania's most pristine and

ecologically valuable areas, such as the lagoon at Diviaka, the marsh areas of Butrint

2 According to the data from the 2002 Living Standards Measurement Survey, one quarter of the Albanian population lives in poverty.

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Lake, and the inland forests at Lura are slated to receive protected designation. On the

industry side, a PHARE program for tourism in Albania is providing grants and loans to

entrepreneurs who want to develop basic services and lodgings. And potential foreign

investors have been quick to investigate development opportunities, particularly in the

hotel industry in coastal areas. But so far Albania has not lost sight of the need to

safeguard the environment. The ministry is committed to developing tourism in an

environmentally friendly way and avoiding the over development that plagues other

destinations. "We will try to develop a tourism that is different from our Mediterranean

competitors. We want tourists to find in Albania what they have failed to find in other

places," he says. (The Bulletin 6-1 Ecotourism.htm)

III. What is Tourism Industry?

Exploring into the recently research and the different contribution of the tourism field,

there are too many different definitions considering different points of view in favor of

tourism.

“Tourism is neither a phenomenon nor a simple set of industries. It is human activity,

which encompasses human behavior, use of resources, and interaction with other people,

economies and environments.” (Bull, 1995:1)

First of all, we need to recognize that tourism is not a uniform industry or sector. From a

macro-economic point of view, tourism is simply something that is consumed, whether

consumption is final or intermediate. “In the travel and tourism marketplace it follows

that the tourism industry, or industries, consists of any organizations supplying goods

and services to those people now defined as tourists and excursionists, as part of their

tourist requirements.” (Bull, 1995:3)

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In the international tourism research literature, the most commonly used definition is the

following: "Tourism is the temporary movement of persons to destinations outside their

normal home and workplace for leisure, business and other purposes, the activities

undertaken during the stay and the facilities created to cater for the needs of tourists."

(WTO, 1989). For the purpose of investigating the economic impacts of tourism, the

definition of the WTTC seems to be more appropriate, though, in our case, too wide to

apply (due to temporal and financial constraints): "The Travel and Tourism industry is

defined by the economic activities (personal, investment, government, business and net

export) associated with travel as measured by the wide variety of current and capital

expenditures made by or for the benefit of a traveler before, during and after a trip"

(WTTC, 1995).

Though expenditures before and after tourist trips may arise as a consequence of

traveling, most services provided to the tourists have to be delivered at the time and place

at which they are produced (Hansen & Jensen, 1996). Tourism's economic impacts,

according to that, have to be seen as economic benefits and costs which accrue to

destination areas as a consequence of tourism development. Also, tourist expenditures

should be considered from the perspectives of the local, regional and national economies

of tourist destinations. Because of the lack of the appropriate information on it, it is

difficult to go in the stratified classification, so the focus remains on the national

economy as a whole.

Tourism is a field of investment as well as an attractive industry for being employed on

it. Tourism is generally known as one of the sectors where the costs of a new job are

significantly less than in other industries, though some researches have come to a

contrasting conclusion. Obviously, the characteristics of employment and the effects of

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tourism development vary according to the type of tourist activity, some types of tourism

being more labor-intensive than others. Accommodation facilities and the hospitality

sector in general employ a substantial proportion of the tourism labor force, but they also

require relatively large capital investments. The financial resources required to generate

employment also vary with the size of companies, the types of skills needed, the

economic development of the destination area, etc.

IV. Tourism Industry in Albania.

Why studying tourism industry developments?

Let us have a look at the main considerations related to that:

First, tourism economic significance can easily be assessed in terms of:

the contribution it makes, both directly and indirectly, to the total value of goods and

services produced in the economy,

the export dollars it earns through the sale of goods and services to overseas visitors,

and

the jobs it creates.

So by addressing some of aspects of tourism in the economy, its macroeconomic role, its

consequences, and most related topics to our study, we will address its involvement in

policies related to employment levels.

Second, Albania is one of the less-developed countries. "Many less-developed

countries have regarded tourism as an easy industry to develop, because it demands

relatively low technology compared with many other industries, and skills which can be

easily mastered." (Bull, 1995:126). Also compared with heavy industry sectors, which

requires substantial investments of fixed capital formation, tourism traditionally is

characterized by low investments in starting up businesses. It makes it very favorable to

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the existing and new entrepreneur. Their initiative both with their capitals is strongly

supported by some non-economic factors, which ".. particularly cultural and political

ones, have been recognized by economists as vital in determining the capability and

growth of sectors in an economy" (Bull, 1995:126). Added to that, Albania inherited not

modern heavy industry sectors, independently from the strategies during the Hoxha

regime to transform our country from agricultural to an industrial one.

Third, tourism incentives are linked to cultural and traditional values, attitudes,

quality of climate and physical surroundings, except the curiosity of exploring one of the

most isolated socialist countries for more than 45 years. “Indeed the bright Albanian sun

shines on nearly 450 kilometers of relatively pristine coastline. The Albanian Alps,

numerous lakes, vast forests and the rich cultural heritage of one of the oldest

civilizations in Europe, round out the offerings which the Ministry of Tourism hopes will

draw visitors and their much-needed hard currency to the country.” (The Bulletin 6-1

Ecotourism).

Fourth, the tourism is a significant source of employment both in Europe and

throughout the world. With 9 million jobs actually in the tourism industry (excluding

transport), i.e. 6% of employment and 5.5% of the Union's GDP, tourism is already one

of the main sources of employment in the European Union. (Presidency of the council of

the European Union). Albania, as geographically part of Europe, in order to be part of it

in all required standards, must follow up its main streams of the later developments. In

Albania there is an increase in the number of people employed in tourism from 1994 to

2000, except the 1997. For example in 2000, it is approximately twice of the number of

people employed in the extracting industry. (19 thousand compared in tourism to 9

thousand in extracting industry).

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Fifth, Albania is one of things the tourist may very well fail to find, however, it

is an easy way to get there. While directly accessible by ferries from Italy and Corfu,

overland transportation is another story. From the Tirana airport and through main roads,

now no more in the terrible conditions and the rail system (in fact still poor), you can get

into the country.

V. Other Aspects of Tourism in Albania

Rural Tourism

Rural tourism is both an old and a new phenomenon at the same time. Interest in

countryside recreation started to grew already in the 19 Century as a reaction to the stress

of the increasing urbanization and industrialization. Based on the concept of rural

tourism given by Tamara Rátz – László Puczkó, though it seems to be simple to define

rural tourism as "tourism that takes place in the countryside", this definition does not

include the complexity of the activity and the different forms and meanings developed in

different countries. It was Gannon (1988 in the Kloeze, 1994) passing to a broader

definition, "rural tourism includes a range of activities, services and amenities provided

by farmers and rural people to attract tourists to their area in order to generate extra

income for their businesses". And if it is accepted, rural tourism covers not only farm

tourism or agro tourism (which is generally what rural tourism means for most people),

but also special interest nature holidays, touring in rural areas and residential tourism, and

the services include - besides accommodation - events, festivals, outdoor recreation,

production and sale of handicrafts and agricultural products, etc. rural tourism means

different things in different countries. But, in Albania it is something between all of

these, so it is renting out cottages to visitors or providing catering services in the

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countryside, as well as on family farms, where guests stay either with the farmer family,

or in a guest house, but visiting farms to have a meal and explore the farmyard is also

popular (Verbole, 1995 in Tamara Rátz – László Puczkó, 1998).

As long as we know, rural tourism is a segment of the total tourist industry which can be

particularly important in Albania, in a country that are combined spectacular natural

attractions, seaside, high mountains, rainforest or herds of exotic animals, with its

attractive cultural landscapes with small villages, thermal springs, rivers and lakes,

combined with the traditional hospitality, are able to offer pleasant experiences to the

kind of tourist who is looking for relaxation and recreation in a calm setting. On one

hand, rural tourism development can play an important role in the diversification of the

Albanian tourist supply and in the creation of a more complex and colorful country

image. On the other hand, rural tourism is not only the end, but the means to stimulate

economic growth, to increase the viability of underdeveloped regions, and to improve the

living standards of local populations. So, rural tourism developments means:

“…increased number of opportunities for social interaction for local people who often

live relatively isolated lives in agricultural communities” (Swarbrooke, 1996 in Tamara

Rátz – László Puczkó, 1998), more developed infrastructure, safer life, higher number of

visitors, higher income, higher living standards for the population which in turn will

directly reduce the migration rate characterizing these areas, and will attract the refuges

coming and investing in their country.

Sustainable Tourism Development

Tamara Rátz & László Puczkó (1998) include in their study, the concept of sustainable

development which was introduced by the World Commission on Environment and

Development in the Brundtland Report in 1987, defining sustainable development as

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"development that meets the needs of the present without compromising the ability of

future generations to meet their own needs". In respect of sustainability the whole

tourism sector must be developed and managed in a way that it does not damage the

natural and socio-cultural environment and this is the responsibility of the world-wide

tourism industry. In the continuation of their work Tamara Rátz & László Puczkó

(1998), have given some types of sustainability, such as: Ecological sustainability, Social

sustainability, Cultural sustainability (Jafari, 1987) and Economic sustainability.

Economic sustainability refers to a level of economic gain from tourism that is

sufficient to provide an appropriate income for the local community (compared to the any

special measure taken to satisfy the tourists (thus a precondition of economic

sustainability is the attractiveness of an area and the perceived high quality of its tourist

supply: without being in a competitive position in the world market, no destination can be

economically sustainable).

Harmonization of all these aspects is the duty of tourism strategy developments, but it is

not in fact the focus of our study. It is just to remind that the study of the economic

impact of tourism is in course with the sustainability of its developments in order to

realize a long-term prospective.

Academic Field of Tourism

Tourism today is no longer an economic activity based solely on the employment of hotel

and catering staff. It is a major employer which needs to be taken seriously by those

responsible for employment policy. Tourism plays a greater role in bringing people and

countries together. It undoubtedly motivates them to learn foreign languages and

promotes mutual understanding of one another’s situation and thereby contributes to

peace. So, there are many other activities, included in different economy sectors, induced

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by tourism developments. In fact is too hard to evaluate its indirect impact, but it exists

and can not be neglected. For example, there are actually new branches of undergraduate

university studies set up in some of Albanian universities. The educational institutions

are excellent candidates for providing leadership. Their influences are an important

contributory factor in determining the managerial and the policy decision making

framework.

Human resources are important elements in the strengths and weaknesses of tourism

activity. Improvement of the supply conditions for human resources is an effective

measure for strengthening the competitive position of a destination/country. The (labor)

supply conditions are given through factor endowments, prices and characteristics of

factors of production and production efficiency. The human resources endowment of a

country is defined by the skill level of its workforce which, in turn, determines the

country's international competitive position. So, the training is needed not only in

managerial levels, but also in others levels. This is extremely important, since tourism

industry is labor intensive and the tourism experience is a high-contact service. That

means more qualification and specialization of labor forces available for tourism services.

On the other side, it brings the opening of the new work places by reducing a little bit

unemployment of different regions.

VI. Methodology

The study hypothesis is:

Considering tourism as refuge industry3 gives the opportunity to identify mobility

patterns from other (not efficient) economic sectors, to asses the impact of the change in

3 Szivas E, & Riley M, “Tourism employment during economic transition”, 1999.

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market labor and to measure the motivation of the workforce, which found itself as

devalued human capital, for getting employed into tourism.

The main objectives performed during the study are:

representing the role of new developments in tourism industry

analyzing tourism employment and the nature of its occupations in these special

circumstances

viewing tourism as refuge industry

giving tourism role in the economic developments

Methodology consists of the use of the combined primary and secondary research

methods. Exploring the right literature, such as: books, previous studies in the tourism

field; selecting related data to the purpose of the study; arranging them in the most

representative manner; comparing data, from different sources in order to increase their

accuracy were the main jobs performed during the secondary research process. In order to

prove the hypotheses, the study followed up the model of the similar study done by

Szivas & Riley (1999). It served as a guide to all our work for two main reasons: first,

the similar objective of the study, and the second the similar country under focus.

The reason for not having an exact figure for the number of people employed in tourism

in Albania is twofold: first, the accuracy of statistical data collection falls behind the

expectations, but, secondly, it is very difficult to define what proportion of the total final

demand in the economy is due to tourism, i.e. what is the contribution of tourist spending

directly and indirectly to employment creation and what is the effect of the tourism

multiplier. Besides, in Albania is a lack of any tourist job catalogue, which will facilitate

data gathering process for the further analyses.

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It is to be emphasized that some businesses, such as restaurants in tourist areas, are

selling principally to tourists, so are a direct part of the tourism industry, there are some

others supplying a similar physical product, such as restaurant in the center of the capital

city that are not really a part of tourism industry. This immediately creates a problem in

any economic analysis of the field, in that the products felt to be supplied by members of

the industry are not necessarily the same as those products perceived to be a demand by

consumers. (Bull, 1995:4).

All these facts reinforce the existence of any possible errors raised as a result of

unreliability and inaccuracy of the data gathered. The primary data were collected

through a self-completed questionnaire. The sample consists of individuals working in

tourism industry. The research was concentrated on the four main districts of the

country, such as: Tirana, Vlora, Shkodra and Koplik. Tirana is the Capital of Albania and

the most important economic center of the country. Vlora, Shkodra and Koplik were

chosen as different tourism areas. The sample share is represented in the following table:

Table 1. The areas and their share from sample ( n=154) Main Areas

Frequency

Percent Valid Percent Cumulative

Percent Vlora 36 23.4 23.4 23.4 Tirana 71 46.1 46.1 69.5 Shkodra 30 19.5 19.5 89.0 Koplik 17 11.0 11.0 100.0 Total 154 100.0 100.0

The definition of tourism workers was pitched fairly wide and included workers in

restaurants, hotels, travel agents, taxi drivers, etc. 250 questionnaires were randomly

distributed to workers within the sample areas, and the response rate was 62%. The

resulted content of the sample was 72 females (46.8%) and 82 males (53.2%). (As in

fig.1)

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In the sample, 25-35 year old respondents make 31.8% of the total, which is the dominant

part, and until 25 year old represent 26.6%. The main reason is that the younger tend to

be more mobile than older people. The age of sample is represented in fig.2.

As part of the assessment of human capital, the study used education classification based

on four levels. The educational background of the sample is shown in table 4.

Table 2. Educational Background of sample (n=154) Frequency Percent Valid

Percent Cumulative Percent

Primary School 4 2.6 2.6 2.6 Secondary school 47 30.5 30.5 33.1 Higher Education 89 57.8 57.8 90.9

Post-University 14 9.1 9.1 100.0 Total 154 100.0 100.0

It shows that the majority of respondents (57.8%) have higher educational level. This is a

characteristic that comes by high rate of unemployment in Albania, and it is good for the

quality of the tourism development.

The Pattern of Mobility

In the questionnaire subjects are asked to give their employment pattern over the 1991-

2004 periods. The choice of 1991 as a cut-off point is justified by some factors, such as:

Fig. 1: Gender content of the sample

FemaleMale

0

10

20

30

40

50

-25 25-35 35-45 45-55

Fig. 2: Age classification of the respondents

FrequencyPercent

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1. The study was primarily interested in mobility patterns after the collapse of the

communist system.

2. 1991 was the first year when unemployment appeared in the official statistics. Of the

total sample, 92.2% (142 respondents) moved into tourism during last 13 years.

Furthermore, in line with the hypothesis, the role of tourism as a refuge industry for the

victims of transition, it was anticipated that a number of respondents would have

exchanged their unemployed position with a job in this industry. Fig. 4 shows sectors of

the economy the tourism workers came from.

Fig. 4. Industry Prior to Tourism

place employment

unemployment

otherseducation

public administratio

transport

construction

agriculture

Manufacturing

mining, quarrying in

Count

40

30

20

10

0

The mobility into tourism occurred from each sector of the economy. The highest

category is “manufacturing industry” which provides 22.7% of the sample. The decline in

manufacturing industry, with the resulting redundancies, is likely inducement of this

mobility. The education sector, 16.2%, is the second sector indicating that deteriorating

social status and low pay in education make tourism an attractive employment option.

The job status mobility measure used three categories:

(1) Entrepreneur, (2) Manager, and (3) Employee.

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The cross - table 3 summarizes these measures. The first column shows the number of

respondents coming from each industry. The following three columns are concerned

with job status change and show the numbers of those, whose status is improved,

declined, and remained the same, respectively. This table gives out a clear view of the

extent and the character of change. Only a small minority of respondents declined in job

status, and a high proportion of it have an increase in their job status. (For more

information refer to the information of table 3).

Table 3. Place employment and Status change Status change Total Status Improved No Change Status Declined

Heavy Industry 4 4 Manufacturing 20 13 2 35 Agriculture 1 2 3 Construction 5 14 19 Transport 12 1 13 Public Administration 16 6 22 Education 22 3 25 Others 10 6 5 21

Place Employment

Unemployment 6 4 10 Total 92 49 11 152

* Note: the difference between 154 and 152 are missing values not included in the table Motivations to Move into Tourism In the questionnaire there is a table including 24 statements related to the possible

motives for taking up a job in tourism. The respondents were asked to rate, on a 5-point

Likert scale (1–strongly disagree, 2-disagree, 3-neither agree nor disagree, 4-agree, 5-

strongly agree), the degree of their agreement or disagreement for 24 statements. When

interpreting the results, higher means imply agreement whereas lower values indicate

disagreement. The means and standard deviations for 24 statements are shown in Table

4, where it is represented a strong positive attitude towards tourism employment. The

statements with strongest support were the following:

-"I wanted better working conditions",

- “I wanted an interesting job",

-“I wanted to work in a pleasant surrounding",

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-“I saw the tourism as the most profitable industry for a business",

-“I saw good business opportunities in tourism".

-"I was attracted by image of tourism"

-“I wanted a job in which I could deal with people"

The first statement with the lowest mean value was "My family had a business in

tourism", because of the lack of private ownership in the Albanian economy before ’90.

Table 4. Means and Standard for 24 Statements (n=154)

Statement

N

Mean Std.

Deviation Std. Error

Mean I earned too little in my previous industry 148 3.1284 1.62581 .13364It was easy to start a business in tourism 154 2.5519 1.50399 .12120I needed extra income in order to improve my living standard

154 4.0844 1.31830 .10623

I saw the tourism as the most profitable industry for a business

154 4.36364 1.059154 .085349

My family had a business in tourism 154 1.8312 1.56266 .12592I wanted to accumulate capital for establishing my own business

154 3.8506 1.66385 .13408

I was unemployed and needed a job 154 2.1688 1.68347 .13566I saw tourism as a profitable industry 154 4.0909 1.28013 .10316I was attracted by image of tourism 154 4.1169 1.22580 .09878I wanted to use my language skills 154 3.5000 1.41074 .11368I saw good business opportunities in tourism 154 4.2857 .93385 .07525I needed extra money quickly 154 2.9091 1.35937 .10954The industry I was working in before was declining 144 2.5417 1.53684 .12807I wanted a job that suited my education 151 3.3709 1.43581 .11684I did not see prospects in my previous industry 143 3.3776 1.51427 .12663I wanted to leave my previous job 141 3.2340 1.60641 .13528I could not get a job elsewhere 149 2.3221 1.53899 .12608I wanted a job in which I could deal with people 151 4.0132 1.21648 .09900I needed a job which did not require any particularqualification

151 2.6291 1.70339 .13862

I wanted to work in a pleasant surrounding 151 4.4702 1.01855 .08289I like to try different jobs 151 3.2185 1.59120 .12949I wanted to establish my own business 151 3.9536 1.63029 .13267I wanted better working conditions 151 4.7616 .72763 .05921I wanted an interesting job 151 4.6093 .79978 .06509 The data provide an interesting insight into the motives for the mobility into tourism.

It is necessary to have a look at the structure of the motives. Factor analysis was applied

to the data. The approach to factor analysis according to the main study objectives was

based on five hypotheses.

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1. Tourism is more than a simple economic sector; it encompasses a variety of

different activities in which the number of jobs created in spin-off activities is at

least as great as the number directly created in tourism.

2. Tourism offers many job opportunities requiring few qualifications and is

therefore a good source of work for young people and women, with only high

school education level, except others.

3. Tourism is favored for incentive value of the jobs it offers (as, image, the

pleasant surrounding etc..).

4. Tourism for the most part generates jobs which provide a new entry into

economic environment, often in private businesses as entrepreneurship etc.

5. Tourism offers an escape route from declining industry, an unpleasant job or

unemployment.

We make factor analysis using the correlation matrix to try to determine which sets of

variables cluster together in a reasonable manner.

Rotated Component Matrix Component

1 2 3 4 5 6 7 8 9 10 I saw tourism as a profitable industry

.765 .198 -.2472.540E-02 -9.263E-02 -.111 .188 -.1214.301E-02 9.120E-02

I wanted to accumulate capital for establishing my own business

.7203.819E-02 .206 .124-2.649E-02 8.302E-02 .1024.152E-02 -.284-7.431E-02

I wanted better working conditions

.694 .174 .135 -.2283.330E-02 -7.660E-02 -.185 .156 .279 -.197

I did not see prospects in my previous industry

.190 .7918.972E-02 8.289E-02 3.547E-02 .2157.713E-02 -.149-9.822E-02 2.215E-04

I wanted to leave my previous job

-.123 .709-7.417E-02 -.197 .160 -.104 .242 .254 .172 -.101

I needed a .226 .7044.447E-02 .233 -.128 -.154 -.167-1.551E-03 -4.515E-02 8.655E-02

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job which did not require any particular qualification I earned too little in my previous industry

-.1829.714E-02 .830 -.127-9.618E-02 .109 .134-4.529E-02 .129-2.738E-02

I needed extra income in order to improve my living standard

.269-2.508E-02 .769 .3306.012E-02 -3.653E-02 -9.610E-02 .200 -.1098.924E-03

I needed extra money quickly

.146 .192 4.872E-02 .815 .174 -.136 -.209 -7.873E-02 -6.292E-023.783E-02

I was unemployed and needed a job

-.130 1.699E-02 -2.343E-02 .766 -.184 .128 .245 -3.435E-03 3.280E-02-9.705E-02

I wanted to use my language skills

-4.409E-02 -9.190E-02 -1.363E-02 -2.926E-02 .852 9.166E-02 4.791E-02 1.884E-02 8.877E-02 .203

I wanted a job in which I could deal with people

-.224 .255 -2.156E-02 .345 .575 5.510E-02 -4.723E-02 .341 .227-6.199E-02

I could not get a job elsewhere

4.710E-02 -.124 .157 .446 -.536 .133 .165 2.014E-02 .272 .174

I saw the tourism as the most profitable industry for a business

.372 -1.714E-02 .443 -4.247E-02 .510 -2.562E-02 .230 -.314 -7.439E-02 -.121

I like to try different jobs

-.290 -.134 .212 -9.221E-02 .296 .721 -2.111E-02 6.523E-02 2.552E-02 .126

It was easy to start a business in tourism

9.305E-02 -6.161E-02 .392 -.194 9.349E-02 -.679 .153 .114 -.1886.270E-03

I wanted to establish my own business

.303 1.505E-03 .313 -9.385E-02 -1.268E-02 .599 .422 .255 -2.349E-02 -.153

The industry I was working in before was declining

.283 .395 .387 9.090E-02 -.215 .507 -.109 .104 5.695E-02 .109

I saw good business opportunities in tourism

.169 8.881E-02 .102 -4.569E-02 -8.711E-02 -.158 .797 -.113 .245 .114

My family had a business in tourism

-.264 -.174 4.040E-02 .320 .196 .103 .544 .188 -.182 -.337

I was .179 .347 -.132 .162 .294 .266 .497 6.351E-02 -3.488E-02 .388

22

attracted by image of tourism I wanted to work in a pleasant surrounding

1.928E-02 -1.338E-02 .126-8.142E-03 -7.434E-03 2.065E-02 -2.993E-02 .871 .157 .234

Future of employment

.1089.384E-02 -.134 -.219 .264 .304 .135 .415 -.276 -.214

I wanted a job that suited my education

-1.673E-02 -1.305E-02 8.826E-03 8.189E-03 7.398E-02 .117 .133 .119 .8846.016E-02

I wanted an interesting job

-.122-5.054E-03 -1.644E-02 -4.028E-02 8.704E-02 2.680E-02 4.025E-02 .1696.147E-02 .887

Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. a Rotation converged in 22 iterations. Of the bold factor loadings, all except two of them are positive. The variable “I could not

get a job elsewhere” and variable “I saw tourism as the most profitable industry for a

business” are motives, which work in opposite directions. The same phenomenon is for

variables “It was easy to start a business in tourism” and” I wanted to establish my own

business”, which looks unrealistic and one of the reasons may be the sample errors

mentioned before.

The "Total Variance Explained" following table shows the eigenvalues, which are the

proportion of total variance in all the variables, which is accounted for by that factor.

Only ten are extracted for analysis because, under the Extraction options, SPSS was told

to extract only factors with eigenvalues of 1.0 or higher.

The "Rotation Sums of Squared Loadings" give the eigenvalues after rotation improves

the interpretability of the factors (we used Varimax rotation, which minimizes the

number of variables which have high loadings on each given factor). The ten factors

solution satisfies both Kaiser’s criterion of selection. Note that the total percent of

variance explained is 76.328% (see the cumulative value for factor 10). That is, after

rotation each extracted factor counts for a different percentage of variance explained,

23

even though the total variance explained is the same. Also, each factor is named in

accordance with the meaning of the correlated variables as well as in line with the five

hypotheses.

Total Variance Explained

Factor Factor Name Initial Eigenvalues % of Variance

Cumulative %

1 Refugee 3.472 13.887 13.887 2 Desire for Change 2.781 11.125 25.012 3 Total Income 2.215 8.859 33.872 4 Change emergencies 2.136 8.545 42.417 5 Self-actualization 1.823 7.294 49.711 6 Entrepreneurship 1.646 6.582 56.293 7 Attractiveness 1 1.549 6.197 62.490 8 Satisfaction 1.249 4.995 67.484 9 Fulfillment 1.180 4.721 72.206

10 Attractiveness 2 1.031 4.123 76.328 Extraction Method: Principal Component Analysis. The major contribution of the factor analysis to the research is that it supports the

existence of five hypotheses. So, the five hypothesis of the research are true.

V. Conclusions and Recommendations.

It is time now to (re)present the arguments and issues covered in the previews

paragraphs, and advance some conclusions and recommendations related to the topic.

Tourism has become an integral and increasingly important part of the economies of the

countries of central and Eastern Europe, generating employment, revenue and new

businesses. The move from state to private management, from centralization and

monopoly to decentralization and competition, has been as painful and costly as it was

necessary.

Albania is an unexplored very interesting and beautiful country with great potential in

developing different types of tourism.

The tourism industry is considered as refugee industry for employment of employees

from the other closed down or declining industries. Here naturally a question is rising up:

“Are all these employees coming into tourism because of its positive attractiveness or as

24

the only opportunity to get a future job?” Generally respondents see tourism as a good

opportunity to increase their income, to be more satisfied, as well as a good opportunity

to invest their capitals. But, there is a question mark over accuracy of facts gathered from

the questionnaire. It is related to seriousness of the respondents in filling out a

questionnaire.

Except being target of the investments shifting from the other declining industry, tourism

is an attractive industry for the new investments, especially in hotels and restaurants.

Compared to other countries experience, when, even in case of ownership or control not

separated, entrepreneurs are seeking for prestige tourism developments more than big

profits in short term, in Albania they are looking for big profits in shortest time. Also, it

has to be considered that some of these businesses are operating as part of informal

economy.

Tourism has an impact, not significant in absolute value but at increase rate through

years, in the employment phenomena. It is important to emphasize, that, there is not yet

included in the main national statistical sources, the impact of tourism in the GDP, which

is the most representative indicator of the tourism contribution. From the respondents

tourism in Albania is not considered a low-wage industry, and statistically for year 2000

average monthly salary and wage per employee for the service sector (considered only

tourism) are 130124 higher than trade and construction sector.

Sustainable Tourism development has to be taken under consideration from strategy

design to its implementation.

From the facts, in general, tourism in Albania looks like in the other country described in

different studies. But, it is important to say that in case of following up the other models 4 INSTAT –statistical yearbook 1993-2001:119

25

of development it is necessary to adapt with specifics of our country before implementing

them.

A better cooperation between the tourism industry and the universities in order to let

them know what we offer, and for us to know better what the industry really needs. This

would help, firstly, in developing better curricula and syllabus, in a better marketing of

the knowledge’s of our graduates, and secondly, in the quality of the service of this

industry. In line with that our research could be more valuable to the local and national

development of tourism.

The last but not the least is the importance of political stability in Albania as preliminary

condition for a country to be developed and integrated.

Literature 1. Baum, Tom “Human Issues in International Tourism”. Butterworth-

Heinemann: Oxford, 1993. 2. Blanton, David “Tourism Education in developing Countries”. Practicing

Anthropology. Vol. 14, Nr 2, 1992. 3. Chambers, Erve “Social and Cultural Aspects of Tourism in Thailand”,

Kasetsart University: Bangkok, 1997. 4. Chambers, Erve. ( 1997). “Tourism and Culture, an applied perspective”, Kasetsart

University : Bangkok 5. Edith Szivas & Michael Riley “Tourism Employment during Economic Transition”, Annals

of Tourism Research, Vol. 26, No. 4, pp 747-771, Elsevier Science Ltd., 1999.

6. Goeldner, C and Ritchie, J. ‘Tourism. Principles, Practices, Philosophies”, New Jersey,

2003.

7. Kryger, Tony (Statistics Group), “The economic significance of Tourism” research Note 18 1999-2000, 30 November 1999. Taken in http://www.aph.gov.au/library/pubs/rn/1999-2000/200rn18.htm

8. Lee, Sang M. & Luthans, Fredd “Management in Albania”, University of Nebraska. 9. Rátz, Tamara & Puczkó, László “Rural Tourism And Sustainable Development”, Kodolányi

János College - Budapest University of Economic Sciences, Paper presented in the "Rural Tourism Management: Sustainable Options" International Conference, September 1998, SAC, Auchincruive, Scotland Part 1.

10. Rátz, Tamara “Transformation of Hungarian Tourism Education Budapest University of Economic Sciences”, Paper presented in the 2. International Conference on Education and Training in Tourism and Hospitality Studies, Dahab, Egypt, 1997 April.

11. “Ecotourism: Threat or Opportunity?”, The Bulletin Spring 1996, taken in http://www.rec.org/REC/Bulletin/Bull61/interview.html

12. Stepová, Vlasta, “Report of Committee on Economic Affairs and Development”, Czech Republic, Socialist Group, Doc. 7976, 23 December 1997

13. INSTAT –statistical yearbook 1993-2001