New credit for €10 billion to support the development of the tourism industry

The tourism industry is facing new and important challenges. Geopolitical crises, extreme climate effects, rising costs and a strong focus on sustainability. In the context, therefore, of a "Tourism that Changes and Innovates”, this year the SRM Report highlights how important it is to focus on an offer system based on: diversification, offshoring (or “de-localisation”), deseasonalisation, digitalisation and business size. The 5Ds that can preserve and strengthen the tourism competitiveness of territories.

Below is a snapshot of tourism in Southern Italy: 86.1 million nights spent (19% of Italy), 3.5 days average stay, 76.8% seasonality (presences in the summer months), 38.9% foreign presences (still recovering post-Covid). Hotel beds making up 28.8% of the total Italy (rising to 37.9% for 4- and 5-star hotels) and 23.1% of non-hotel beds. An added value of €24.9 billion (24% of the nationwide total). In 2024, the South is expected to see a full recovery in tourist numbers. Compared to 2019, the figure is estimated to grow by 2.8% to a total of almost 89 million nights spent. International demand will continue to recover robustly, and is estimated to grow by 4.5% on 2023, fully exceeding pre-Covid levels (105.4% of 2019 value).

Tourism in Southern Italy in the European context: strong positioning but ample room for improvement From the analysis of 98 regions in the EU4 area (Italy, Spain, France and Germany), three regions of southern Italy (Sardinia, Campania and Apulia) are among in the top 30 in terms of tourism competitiveness, while Sicily is thirty-first and six are above the European average. There is room for growth in both quantity and quality. There is a need to improve and expand the international connection and accessibility of the area.

In the South, the goal must be tourism that offers increasingly diversified, high-quality destinations to favour deseasonalisation, offshoring and the economic impact on the region. Villages, inland areas, areas close to major tourist attractions can be quality destinations (for their history, traditions and good food) that are also useful in reducing the negative effects and inconveniences of congestion. The tourism offer linked to culture, food and wine, the environment and business tourism can also prove to be a winning combination in the South: the presence multiplier of a thus "integrated" offer is, in fact, higher than for a single-theme attraction, e.g. a seaside resort (€156 compared to €128.2 of added value per night spent).

In this increasingly dynamic and challenging environment, there is a growing awareness among companies that investing is the only way to compete. The SRM survey shows that approximately 77% of tourist businesses in the South have made investments in the last three years (76% in Italy). Great attention was paid in particular to the quality of services and accommodation (56% of the surveyed enterprises had renovated their furnishings and expanded their accommodation services).

There is also a focus on the future. Companies are understanding the challenge of digitisation and sustainability (ESG): in the South, 4 out of every 10 companies (25% in Italy nationwide) have invested in these objectives, which are currently estimated at €300 million in the South alone. Companies indicate further growth in such investments of around 2% over the next three years. Finally, bureaucratic simplification (37%), policies for urban decorum (28%), diversification of supply (27%) and more efficient management of public services (24%) are the main priorities that southern companies place on public governance to foster the competitiveness of the territory.