Revitalization of urban areas through business and tourism improvement districts (BIDs/TIDs) in Albania

Abstract

The spreading of business improvement districts (BIDs) and similar forms of a public-private partnership, as a new mechanism of urban revitalization and economic development, have emerged in Canada five decades ago and quickly adopted to many cities in countries such as the USA, Germany, UK, South Africa and lately Denmark and Sweden. This form of a public-private partnership with local authorities is created when a significant number of businesses or business property owners agree through a democratic process ballot to manage a delimited area and offer additional public services such as security, maintenance, infrastructure improvement, and marketing, to improve decaying commercial and residential areas. Since 2011, the model has been applied in 8 districts in Albania, contributing to improved business life, infrastructure improvement, and enhanced general public services. The period is long enough to offer insights regarding their evolution and transformative effect in the areas where it has been applied. This paper aims to explore the adaptation of the business improvement district (BID) model in urban areas in Albania and, at the same time, point out its characteristics, activities, and contribution to the area development. The methodology used includes a qualitative research design, including primary and secondary data sources. Primary data sources include interviews with BID association members, administrators, and consultants in Albania, businesses, local government officials, and lawyers. Secondary sources include different research papers on BID functionality and BID legislation, conference proceedings, project reports, entrepreneurship magazines. By identifying the effects of the model in area transformation, this study results have important implications for Albania's public and development policies and extracts practical lessons from its introduction in this local context. The findings presented demonstrate BID's transformative role for area renewal, economic and social development of the areas where it has been applied.