ISSN 2411-9571 (Print) ISSN 2411-4073 (online) European Journal of Economics and Business Studies May-August 2015 Volume 1, Issue 2 77 The Economic Informallity Opposite Fiscal Policy and the Legal Vacuum Issues. the Features of the Tourism Sector Informallity in Albania Teuta Balliu, PhD Cand. Lecturer, Faculty of Economy in University of Elbasan “A.Xhuvani” teuta.balliu@uniel.edu.al Aida Gaçe Llozana, Ph.D. Lecturer, Faculty of Economy in University of Elbasan “A.Xhuvani” aidagacehe@gmail.com Mimoza Kotollaku, PhD Cand. Lecturer, Faculty of Economy in University of Elbasan “A.Xhuvani” mimozakotollaku@yahoo.it Abstract Economists and researchers increasingly debate regarding costs, benefits and even measurements of the informal economy. Such discussions are also indisputable part of our country reality. They evidence more and more the influence that the informal economy occupies in the gross domestic product of a country. Others consider informal economy as lubricating social welfare. Nowadays taking into account the economic situation in Albania, the informal economy is considered blow in the market competition, this competition which in turn is considered of particular importance for the economic development of the country. Throughout the paper we will look at whether the policies and strategies of a state, undertaken in the framework of economic growth, do not bring a reduction in unemployment and efficient distribution of income then there will be no reduction of informality. In terms of tourism sector it will be concluded that it is this informality which deviates the so much required standards in domestic tourism. In the region, the lodging taxes are estimated at 1 euro, while in our country it varies no more than 5% of the price of the room. This is why it remains difficult to calculate costs, which amounts millions of euros just in this part of the tourism sector. Keywords: informal economy, fiscal policy, legal vacuum, tourism. Introduction The informal economy is a hot topic for the Albanian reality. But how is this defined? The informal economy in itself includes all economic and trading activities recorded in fiscal and legal system. It is basically its nature to evade from taxes, fees, social security system and from the legal obligations related with the security and reliability of the services and products offered as well as the social responsibility of business. Experts as well as politicians of different levels, unable to complete its elimination, often debate the findings of the ways and means to put it under control. These debates are not characteristic only for developing countries but also for the developed ones. Statistics from various reports of the European Commission show that the informal economy takes approximately 5-20% of GDP, and the figure is even higher for developing countries (Bank Annual Report, 2013). Its different levels come to the fact that it, the informal economy, in different countries is in different stages of development. The causes of the informal economy generally are considered as identified. Positive results to informalities increasingly emphasize the need for reforms in all those sectors which constitute incitement and contraction at the same time. It is widely accepted that the high fiscal burdens encourage the informality (SANDMO, 1992). Businesses that operate in the informal market claim that they do evade as they can not afford the taxes, fees and insurance. However, operating in this way they receive and create undeserved advantages