It is all about Italy tourism industry. There is also pestle analysis of tourism industry.

1. COUNTRY MARKET
AND INDUSTRY
ANALYSIS OF ITALY
TOURISM
INDUSTRY

2. ITALY
• The birthplace of Western culture.
• Nicknamed the Bel Paese (the Beautiful Country).
• Worldwide famous for its delicious cuisine, its trendy fashion
industry, luxury sports cars and motorcycles, diverse regional
cultures, rich art, priceless ancient monuments, dialects,
beautiful coastlines, beaches, alpine lakes and mountain
ranges.
• The best time to visit this country from March to October
• There are many famous personalities belong from this
country such as Leonardo da Vinci, Galileo, Polo, Columbus
etc

3. Travel & Tourism Industry of Italy
• Revenue in the Travel & Tourism market is projected to reach
US$17,577m in 2022.
• Revenue is expected to show an annual growth rate (CAGR
2022-2026) of 8.84%, resulting in a projected market volume of
US$24,668m by 2026.
• The market's largest segment is Package Holidays with a
projected market volume of US$7,115m in 2022.
• In the Hotels, the number of users is expected to amount to
26.2m users by 2026.
• User penetration is 50.6% in 2022 and is expected to hit 67.9%
by 2026.
• The average revenue per user (ARPU) is expected to amount to
US$589.40.
• In the Travel & Tourism market, 67% of total revenue will be
generated through online sales by 2026.
• In global comparison, most revenue will be generated in the
United States (US$128,425m in 2022).

4. Growth of tourism in Italy
• With more than 46.1 million tourist a year, Italy is the fifth highest tourist earner and most visited country in the
world.
•
• Tourism is one of Italy’s fastest growing and most profitable industrial sectors with estimated revenue of € 136.1
billion.

5. SIZE OF TOURISM INDUSTRY
 Due to the coronavirus (COVID-19) pandemic, the total
contribution of travel and tourism to the Italian gross domestic
product (GDP) fell sharply in 2020 over the previous year.
 In 2020, travel and tourism, one of the most important industries
for the country’s economy, contributed nearly 116 billion euros to
the Italian GDP, decreasing from over 236 billion euros in 2019.
 Overall, the share of GDP generated by travel and tourism in Italy
reached seven percent in 2020, almost halving over 2019.

6. COMPETITION

7. Intensity of rivalry
 Like most of the European Union countries, the hospitality
industry in Italy is largely dominated by domestic and European
Union born brands. Majority of the brands in Italy are owned
by families, which has become a challenge for international
investors.
 The international players are trying to expand their global
footprint in the country yet are facing limitations.
 The stringent policies in the countries are the primary
limitation, followed by the most number of domestic
consumer’s inclination toward preferring domestic brands than
international brands.

8. Bargaining Power of Buyers
 It has become very simple for the consumers to go online and survey
on the best firm that offers great services. They no longer need the
assistance from the travel agents, the corporate travel consultants or
the middle men of any kind to determine where they will get their
services. Porter’s model predicts the ability of the buyers bargaining
power to elimination the intermediaries.
 The Tourists who are the major consumers in the Tourism, Leisure and
Hospitality industry are more and more capable of making use of the
technological advancements in the means of communication such as
the internet to increase their bargaining power thereby creating the
fulfillment of Porter’s model.
 Due to the increased bargaining power of the consumers, they are
finding internet businesses websites which will negotiate or discover
the bargains for them. These processes shifts the bargaining power to
the end user as it had been predicted by the Porter model and these
buyer freedom reduces the cost of switching so that the loyalty to a
single firm is a thing of the past unless the particular firm uses its one
time opportunity when the customer sticks to the firm it deeply
impress other customers with a very unique and valuable
differentiator.

9. Bargaining Power of Suppliers
 Bargaining power of suppliers occurs when an industry has
not many suppliers or if an industry consists of a large
number of smaller buyers, that is, companies.
 However, the bargaining power of suppliers is reduced by
substitute products if they are present in that branch of
industry. The power of suppliers also grows if product of a
supplier is a critical input for the customer. The supplier also
strengthens their bargaining position when their products are
differentiated and when there are replacement costs for
customers.
 In such situation, if the buyer does not accept the terms of
the supplier, supplier could acquire a new competitor in his
branch of industry that would eventually shut him out of
business.

10. INCENTIVE

11. TAX
 In Italy, a tourism tax was introduced in 2011, since then it has
been adopted in most of the Italian provincial capitals and tourist
cities.
 This tax can mitigate the negative externalities caused by
tourists; however, it should be carefully planned both in terms of
the amount of money to be levied and in terms of the uses to be
financed with the tax revenues, it could, otherwise, negatively
impact the tourism sector, decreasing—rather than increasing—
the social welfare

12. From discounted air fares to bonus nights in hotels, regions all over Italy are offering travellers even more reasons
to visit.
Italy's massive tourism industry has taken a hit from two months of total shutdown and an ongoing ban on visitors from
outside Europe.
In a bid to revive the sector, which makes up 13 percent of GDP and 15 percent of
jobs, some parts of the country are offering incentives to holiday in Italy this
summer – and both domestic and overseas visitors can benefit.
On top of a 'holiday bonus' worth up to €500 for lower-income households in Italy
that's funded by the national government, some regions will subsidize your
accommodation, waive museum entry fees or hand out discounts on guided tours.
Here's a guide to what's on offer if you're planning to travel in Italy this summer.

13. INFRASTUCTURE
European marginalised areas are affected by an alarming rate of abandonment and depopulation. Thus, they are
therefore object of specific European policies aiming to their reactivation. Official guidelines, both European and
Italian, indicate sustainable tourism as one of the main triggers able to activate positive processes. This research
experiments a suggestion in a case study, the North of Sardinia. The coastal areas of Sardinia are popular tourist
destinations, particularly in the North with the famous Costa Smeralda. Therefore, it is worthy to imagine a way
to allow them to discover the inner territories of the region too.

14. Government Contacts
 The legislative framework for tourism in Italy involves the Ministry
of Cultural Heritage, Activities and Tourism (“the Ministry”), the
Permanent Conference for Relations between the State, Regions and
Autonomous Provinces of Trento and Bolzano, and the Joint
Conference of Regions and Municipalities.
 While the Directorate-General (DG) for Tourism in the Ministry sets
the strategic policy agenda, the Italian Constitution devolves several
key activities to the regions, including regulating tourism businesses,
developing strategic marketing activities and managing European
Structural Funds. The DG for Tourism, beyond its major task to
develop and launch national tourism policies in coordination with
regions and autonomous provinces, supervises the National Italian
Tourism Agency (ENIT) and the Italian Alpine Club. It provides aid
and incentives to develop tourism demand, it delivers certifications
and authorisations II.
 The role of ENIT is to market and promote Italy as a tourist
destination. A 2015 statute transformed ENIT from a public body into
a public economic entity. The Board of Directors includes two
members appointed by the Minister. ENIT may enter into agreements
with the regions and autonomous provinces, local authorities and
other public bodies.

15. RESOURCES
Italy is the United States’ 12th largest overall inbound market and
Europe’s 4th after the United Kingdom, Germany, and France. The
market has been affected by COVID-19 and the restrictions on
tourism travel from the Schengen Area to the United States. The data
from January to April in 2021 shows a decrease of 88.1% compared to
the same period in 2020. Despite this difficult time, the United States
remains a traditional favorite long-haul destination for Italians.

16. TECHNOLOGY
Purpose: This paper aims at evaluating the online
presence of Italian destination management organizations
(DMOs) by assessing the quality of their websites through
a demand-side heuristic approach. Moreover, given the
importance of a clear strategic vision for an efficient and
effective use of online media, the paper examines the
alignment between tourism development plans and
practical implementation for what regards ICTs.
Design/methodology/approach: A double analysis was
conducted. An assessment of the main quality features of
the official tourism websites and an evaluation of the
statements of Public Authorities concerning strategic
intentions and guidelines for developing ICT instruments.
The two evaluations are compared in order to examine
their relationships.

17. OVERALL ATTRACTIVENESS

18. RISK
POLITICAL RISK
GOVERNMENT SYSTEM
Italy follows the unitary parliamentary democratic system of
government, where the President and the Prime Minister are the
head of the state and government. Three political parties are
dominating the country’s political system. They’re as follows; the
Lega, the Democratic Party, Five Star Movement.
ALLIANCES & RELATIONS
Italy has membership and alliances with the world’s leading
institutions like G7, OSCE, WTO, OECD, UN, EEC, EU, and
NATO. However, the Italian government has established friendly
relations with other world’s countries.
CHALLENGES
Italy has made a lot of progress after WWII. But the country is still
facing some the challenges like a disagreement over election
pledges, conflict among government partners and parties, and
political instability. According to an estimate, Italy falls under the
category of Europe’s most corrupt countries.

19. ECONOMICAL RISK
GDP
Italy is one of the world’s most economically developed countries.
According to an estimate, the annual nominal GDP of Italy in 2020
was 2.001trillion dollars, and it’s the 8th world’s highest. Out of
which, per capita of the country was 33,159 dollars, and it’s
the 25th world’s highest.
IMPORTS & EXPORTS
Italy has established a reputation as the world’s leading exporting
country. The country’s prominent exports are valves, spare parts of
vehicles, refined petroleum, cars, and medical products. She exports
these products to Spain, the UK, the USA, France, and Germany.
Italy’s top imports are spare parts of vehicles, petroleum products,
medicine packaging, crude petroleum, and cars. She imports these
products from Spain, Netherland, China, France, and Germany.

20. SOCIAL RISK
CULTURE & TRENDS
Italian society appreciates the participation of women in politics,
education, and other fields of life. The young people love utilizing the
public spaces up to full extent like parks, streets, discos, pizzerias,
cinemas, café, bars, and markets, where they meet their friends and
loved ones.
DEMOGRAPHY
Approximately more than 60 million people are populating Italy. The
average life of men and women is 81 and 86 years old. The country’s
majority religion is Christianity, Atheism, Islam, and Buddhism some
of the other beliefs.

21. TECHNICAL RISK
TECH GROWTH
Italy falls under the category of Europe’s top four
technologically developed countries. She has achieved
exponential technological progress for the past few years.
According to an estimate, roundabout 105,000 tech companies
in different areas are operating their business in the country.
Cloud computing and robotics are some of the country’s top
experts and growing areas.

22. LEGAL RISK
REGULATIONS
The Italian government has been providing incentives like a tax credit,
cash grant, and subsidies loan to increase the FDI rate and boost
investment. It’s a bit difficult for foreign business to launch their business
in Italy. However, employees have a right to severance pay, maternity
leave, sick leave, holiday, and statutory employment rights.

23. ENVIROMENTAL RISK
CHALLENGES
Italy has progressed economically and technologically to a great extent. But she’s also facing environmental
challenges like flooding, soil erosion, over packaging, depletion of scarce natural resources, water pollution,
climate change, waste management, and air pollution.
TOURISM
Italy is home to the world’s most scenic beautiful places on earth. Milan, Tuscany, Vatican, Venice, Florence,
and Rome have remarkable architectures. Some of the other country’s beautiful sites are the Mediterranean
coast, renaissance building, artistic architectures, world heritage sites, cathedral, and charming landscape. They
promote her tourism industry.

24. BENIFITS
Tourism is an important factor for Italy’s economy because it brings money and trade.
This industry creates a lot of jobs in many different areas: hotels, resturants, car rental
agencies, travel agencies, transport, service stations, souvenir shops, sports Page 3
equipment rentals, and much more.