Towards Circular Tourism in an Emerging Balkan Destination: Evidence from Tourism SMEs in Shkodra, Albania

Abstract

Abstract The transition towards a circular economy (CE) is increasingly recognized as a pathway to sustainable tourism development. However, empirical evidence from emerging destinations remains limited, particularly in the Western Balkans. This study investigates the adoption of CE practices among tourism SMEs in the Shkodra region of Albania, focusing on awareness, implementation, perceived benefits, barriers, institutional support, and tourist demand. A quantitative approach was employed using a structured questionnaire administered to 54 tourism businesses. Data were analyzed through descriptive statistics, reliability testing, Spearman correlation, and regression analysis. The findings indicate that although only 29.6% of respondents were familiar with the CE concept, many businesses had already implemented practices such as waste reduction, recycling, energy conservation, and local sourcing. CE adoption was positively associated with competitive advantage, while tourist demand emerged as a significant driver. Financial constraints, limited knowledge, and shortages of skilled personnel were identified as the main barriers. The study highlights the importance of financial support, capacity building, and market demand in advancing circular tourism transitions.