This thesis provides an analysis of the development of sustainable tourism in Albania, highlighting the challenges for the local governments and stakeholders. It adopts a mixed-methods design that pairs narrative analysis with chain index calculations. The study outlines key challenges, such as high seasonality, environmental degradation, and poor labor conditions, while proposing solutions through a Caribbean Sustainable Tourism Policy Framework adapted to the Albanian environment. The study highlights the untapped potential of agri-tourism as a sustainable development option and emphasizes the need for more effective governance approaches marked by clearer authority structures and stronger regulatory frameworks. It constitutes a useful contribution to the knowledge of how Albania can reconcile tourism development with environmental and cultural conservation.