Tourist market in Italy: investments in hotels

Tourism in Italy is one of the most profitable sectors of the country’s economy, based mainly on rich recreational resources, whose share of GDP is about 12%.

Italian cities have a long history and distinctive architecture that combines different eras and cultures, from the Roman Empire to the modern period. It is no coincidence that Italian tourism was born with the Grand Tour, when young European aristocrats came to explore the beauties of the past and enjoy the richness of its history. Italy has a variety of tourist destinations to offer visitors, making it an undisputed world leader in the number of historical monuments and works of art. 55 assets of the cultural and natural heritage of Italy are included in the Unesco List – the highest figure for a single country. Millions of tourists come here every year, which is why Italy is the fifth most visited country in the world, according to the UNWTO World Tourism Organization.

Ranking of the most visited cities in Italy

According to Wikipedia, Italy has the fourth largest number of tourists in the world. The most popular destinations, according to data for 2018, are:

  • Rome 28,992,098 tourists
  • Venice 12,118,298 tourists
  • Milan 12,058,835 tourists
  • Florence 10,592,202 tourists

The following lines of the ranking are occupied by the famous tourist resorts of the Italian Adriatic coast – Rimini (Emilia-Romagna region), Qualino-Treporti and Jesolo (Veneto region).

Investments in the hotel

According to Colliers, hotel investments in Italy grew steadily in 2019, especially compared to previous years, reaching € 2.9 billion. This sector of investment has become the largest in Italy after offices, accounting for 25%.

Despite the current crisis linked to the pandemic, which has undoubtedly caused serious damage to the entire Italian tourist market, this country continues to arouse considerable interest from investors, mainly foreign. They see Italy as an important tourist destination, where the existing infrastructures are not sufficient to satisfy the growing demand, especially from Russia and Asia. As a result, many of the hotels purchased have been renovated, modernized and adapted to the needs of new clientele. Projects are being launched for the opening of new hotels, especially in the five-star segment.

Today the situation in the Italian hotel market is as follows: the volume of investments in 2020 fell to 1 billion euros, with 31 sales and purchases, 68% less than the record year for investments in 2019.

International Forum for Investments in Italy

This current crisis generates changes in international investments in the real estate market and, at the same time, there is an interest in real estate investments by Italian public investors + 10%. This data was disseminated during the 9th COIMA Real Estate Forum “The territory of Italy as the main resource for the relaunch”, which took place in Rome this autumn.

The global experience gained during the pandemic is historic and dramatic, never seen before, said Manfredo Catella, founder of COIMA. However, Italy has unique resources in its territory, which today can make a decisive contribution to the development of the economy.

The Reconstruction Fund can accelerate the revitalization and redevelopment of cities and regions in Italy according to three priority areas:

  • Increasing the level of ecology
  • Reducing social and territorial barriers
  • Modernizing the country

Five main objectives are outlined:

  • Green revolution and sustainability
  • Social equity
  • Accessibility of education
  • Availability of medical and health services
  • Introduction of digital technologies, modernization and competitiveness

The forum was held at a distance and brought together with more than 500 representatives of the largest investment funds from around the world, mainly from Asia, Canada, America, the Middle East and Europe, whose total capital is around € 2 trillion.