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14 October 2025 |News
New ILO Publication Maps Tourism Formalization Measures Across Europe, Inspiring Ongoing Action in the Western Balkans
©ILO Formalization activities in the Western Balkans
October 2025 — A new International Labour Organization (ILO) publication, Mapping Enterprise Formalization Measures in Tourism in the European Union, co-funded by the European Union through the Employment and Social Affairs Platform (ESAP 3) project, sheds light on how European countries are tackling informality in tourism, one of their most dynamic sectors.
The study maps out a wide range of measures adopted across the EU to promote the formalization of tourism enterprises, highlighting approaches that can inform ongoing policy discussions within and beyond the region. Importantly, this publication has already served as the analytical foundation for the ongoing work of the ILO and ESAP 3 in Albania and Montenegro, where national stakeholders are translating its lessons into practical, context-specific solutions.
A European evidence base for regional action
The report maps 24 enterprise formalization measures implemented across 11 European countries, grouped under three pillars: simplification, incentives, and deterrence. It highlights examples such as Portugal’s National Tourism Register, Greece’s One-Stop-Shop digital registration system, France’s micro-enterprise tax regime, and Italy’s fiscal controls for short-term rentals.
Tourism contributes over 10 percent of the EU’s GDP and supports 26 million jobs, yet informality continues to undermine fair competition, decent work, and sustainable growth. The study stresses that formalization is an enabling condition for achieving the EU’s tourism transformation agenda, including its green, digital, and inclusive objectives, and not an end in itself.
By combining administrative simplification, financial incentives, and proportionate enforcement, governments can create business environments that reward compliance and encourage investment in innovation, skills, and sustainability.
From Europe to the Western Balkans: Translating lessons into action
Building on these insights, the ILO, through ESAP 3, is supporting national partners in the Western Balkans to apply European lessons to local realities.
In Montenegro, national stakeholders convened on 12–13 May 2025 in Podgorica to discuss how to address informality in tourism and develop a roadmap for action. Participants identified key barriers, including complex registration, seasonal employment, and limited data exchange, and discussed targeted reforms such as simplified registration for family accommodation, improved inspection capacity, and inter-agency coordination. The consultation, organized by the ILO-implemented ESAP 3 project, demonstrated strong government and social partner commitment to “advance plans to formalize the tourism sector with ILO support,” as reported on the ESAP article.
In Albania, a subsequent workshop held in 2025 brought together representatives of the Parliamentary Commission of Economy and Finance, the Ministry of Tourism and Environment, the Ministry of Economy and Finance, the Association of Tourism, State Inspectorate of Labour and Social Services, Trade Unions, Employers’ Organization and other partners. Discussions focused on designing effective incentive schemes for small tourism enterprises, strengthening licensing and inspection systems, and improving data interoperability across institutions. As highlighted in the ESAP article, the event marked a major step toward a national roadmap to support the transition of tourism enterprises to formality.
Both workshops were directly informed by the findings and framework of the Mapping Enterprise Formalization Measures report, confirming its practical value as a policy reference and capacity-building tool.
A Shared framework for sustainable tourism
Formalization is not just a regulatory exercise; it is about innovation, sustainability, and decent work. By understanding what has worked across Europe, countries in the Western Balkans can design reforms that make it easier and more rewarding for enterprises to operate formally.
The publication’s three-pronged analytical framework, focusing on simplification, incentives, and deterrence, now underpins technical assistance provided through ESAP 3 in several Western Balkan economies. It guides national discussions on business registration, taxation, skills upgrading, and sustainable destination management.
As tourism continues to recover and transform, the ILO’s work through ESAP 3 reaffirms that formalization is essential for ensuring fair competition, quality employment, and long-term sectoral resilience.
The Mapping Enterprise Formalization Measures in Tourism in the European Union publication provides the evidence base and inspiration for governments, employers, and workers across the Western Balkans to shape a more inclusive and sustainable tourism economy.
The Employment and Social Affairs Platform (ESAP 3), funded by the European Union and implemented by the International Labour Organization, supports Western Balkan economies in advancing labour market governance, formalization, and social dialogue.
