He is, however, wearing his watch when he first arrives to the town - seen in this picture:
U.S. President George W. Bush and First lady Laura Bush speak during their visit to the small Albanian town of Fushe Kruje June 10, 2007. REUTERS/Arben Celi (ALBANIA)
Bushs wristwatch disappeared while he shakes hands with Albanian citizen
11 June 2007 | 19:22 | FOCUS News Agency
Tirana. US President George Bush lost his wristwatch while he was shaking hands with Albanian citizen yesterday on his visit to Albania, Spanish agency EFE informed according to local TV channels information. Televisions broadcast a video that shows that while Bush greeting Albanian citizens, his watch disappears. Although the White House denies information that US President has lost his watch.
http://youtube.com/watch?v=PKDdF6vfjoo
Watch the video from YouTube. Sure looks like his watch disappeared to me.
Could be editing/combining of several videos over a long period of time, though. Maybe.