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Tourism Situation Analysis in Italy

Introduction

Tourism is one of the important industries for the modern world. It implies travelling and staying in countries or places outside people’s usual environment (Cook et al., 2017). These activities allow numerous countries to generate income and empower their economies (Bramwell, 2004). Moreover, the existing globalisation trends and the development of different means of transport create the basis for the further improvement of this sphere and its becoming more important. Thus, according to the relevant statistics, in 2019, tourism generated about $1.47 trillion, evidencing the critical importance of global tourism in the modern world (). For this reason, the following paper is devoted to analysing tourism in Italy, its general impacts on society and nature, and recommendations for entering the market because of particular benefits.

This report will revolve around the current situation in Italy, which is one of the popular choices for a family vacation. It includes a detailed PESTLE analysis of the industry in a selected region and the discussion of its impacts on the state, its society, and current trends. Using the acquired data, the paper also gives recommendations about working in the selected country and employing existing opportunities by tour operators. In general, it highlights the importance of tourism globally and in the area.

Introduction to the Selected Country

The offered report focuses on analysing Italy, its tourism industry and opportunities it provides to visitors and companies working in the sphere. The choice of this country is justified by several factors. First of all, it is a country with rich history and numerous famous places and cities that can be interesting for tourists. Second, Italy has a climate making it attractive for individuals looking for different types of vacation, such as rest at the beach or staying at ski resorts. Additionally, it has a unique culture and cuisine, meaning that people can enjoy these factors. Finally, it is a good place for a family vacation as it is safe for children and can offer them numerous entertainments.

The relevant information also proves the popularity of Italy among tourists. The statistics show that about 94 million people visit Italy yearly (Italy tourism revenues, 2021). It means that the country is one of the most attractive destinations and places for vacation globally. Moreover, the Bank of Italy reports that the tourism sector generates about 5% of the national GDP (Banca D’Italia, 2020). Around 6% of the population in Italy works in the given industry, which proves its importance for the country (Banca D’Italia, 2020). The state has about 6,610 places of culture, such as museums, parks, monuments, and historical buildings (Banca D’Italia, 2020). Additionally, its coastal and ski resorts are popular among visitors from different areas. For this reason, Italy has multiple opportunities for developing this area and increasing outcomes.

Italy also has a great diversity of tourist experiences offered to people who visit it. First of all, it has the biggest number of World Heritage Sites globally (Banca D’Italia, 2020). It means that individuals can benefit from visiting historical monuments, areas, parks, or buildings. Second, the country has a rich historical heritage contributing to the diversification of experiences Italy can offer to a tourist. Finally, its climate makes the area attractive for those who look for beach or ski resorts (Bernini and Cracolici, 2016). In such a way, this combination of unique activities and attractions make the country a good choice both for a potential visitor and for a tourist agency. The current trends prove it, as Italy has many hotel searches and bookings globally (Bernini and Cracolici, 2016). It means that Italy is one of the most important tourism centres globally.

PESTLE Analysis

Political
  • Political stability
  • Governmental support of tourism
Economic
  • Economically developed country
  • Investments in the tourism sector
Social
  • Tolerant culture
  • Support to tourism
  • Friendly to visitors
Technological
  • Developing transport and infrastructure
  • Online services
Environmental
  • Diversity of natural environments
  • Safe and positive environment
Legal
  • Legal protection of tourists
  • Laws focused on developing tourism

The presented PESTEL analysis helps to understand the current state of the tourism industry in Italy and the factors affecting it. In general, the table shows the positive environment existing in the state, which is vital for attracting new visitors and further growth of the sector. Thus, the political factors do not introduce any restrictions that might influence tourism in Italy. The political stability and the legitimate government control the situation in the state and ensure its stable development following the existing laws (Mosedale, 2011). Moreover, correctly realising the importance of tourism for the state, the government supports the given industry by creating the legal field for the successful work of agencies.

The economic stability of Italy is another factor promoting the evolution of different types of tourism. It is one of the powerful European states with a diversified and robust economy and low unemployment rates (8%) (Banca D’Italia, 2020). It means the country can devote solid sums from the budget to invest in various incentives and projects aimed at developing the tourism industry and creating beneficial conditions for all people arriving in the country (Biagi et al., 2016). Italy also generates a significant part of GDP due to the activities associated with tourism, meaning it is interested in supporting this sector. For this reason, economic factors can also be viewed as positive ones.

Italy also has a tolerant society consisting of individuals who support tourism and are friendly to foreigners. The significance of this industry is correctly realised by Italians, meaning they welcome people who come to their state and provide assistance (Provenzano and Volo, 2021). At the same time, there are no serious social, cultural, or religious conflicts in the state (Ribaudo and Figini, 2017). It shows that the society is united and individuals can tolerate different values, which is vital for tourists arriving in the state. It guarantees that they will not feel uncomfortable or suffer from a biased attitude.

The technological factors associated with Italy also promote the development of tourism. First, the state invests in developing its infrastructure and means of transport to provide visitors with increased convenience and the chance to reach various destination points with comfort (Provenzano and Volo, 2021). The growing number of trains, bus tours, and car rental services make tourism easier for individuals (Vergori and Arima, 2020). Additionally, Italy integrates technology into the tourism sector, making online bookings and 3D tours available for clients (Vergori and Arima, 2020). It leads to the continuously growing number of arrivals and helps to support the high level of interest in tourism products existing in the area.

As for the environmental factors, they remain one of the greatest attractions of Italy. The geographical location makes the country one of the popular choices for people from regions. Families with children can rest at the beach and enjoy a wide variety of resorts in this climate zone, such as Sardinia, or go to the mountains and have an active rest there. Additionally, Italy has a safe environment with no natural disasters or dangerous diseases threatening visitors. For this reason, this diversity of climate zones and locations for rest promotes the growth of tourism in the area.

Finally, there are no legal restrictions that might limit the future rise of this sector in Italy. It is a country recognised at the global level, meaning there are no sanctions or specific restrictions for visiting it. Additionally, the government of Italy welcomes all visitors who observe the state laws and are not in the international search. The police functions include the protection of tourists and assisting them in feeling safe and protected. Moreover, the county has laws offering support to the industry, as it plays a critical role in the national economy. In such a way, it is possible to conclude that legal factors also promote the future development of the tourist sector in the area. Altogether, the PESTEL analysis shows that Italy has multiple aspects that positively influence its tourism sector. The country has political stability helping it to remain attractive for tourists from different regions. Moreover, the environment, culture, and economics contribute to creating a positive image internationally. It means that Italy will remain a popular choice for numerous tourists.

Tourism Impacts

The importance of the tourism sector for Italy also means that it influences its society and environment. Thus, the focus on this industry helps to generate additional benefits for the community. First of all, it helps to provide employment opportunities for people who need it. Statistics show that about 3,499 thousand jobs were created due to the developed tourism sector (Banca D’Italia (2020). It helps to revitalise the economy and improve the overall quality of people’s lives in the state (Bernini and Cracolici, 2016). Additionally, Italy is one of the most attractive places for vacation, meaning that multiple tourist agencies might struggle to enter the market and provide their services to clients (Wall and Mathieson, 2006). At the same time, tourism leads to increased attention to the natural world as Italy switches to green practices to reduce the harm done to nature by human activities. Additionally, some areas are protected by the law to preserve their current state and biodiversity (Ferrari, Hernández-Maskivker and Nicotera, 2021). For this reason, tourism impacts Italy in multiple ways and contributes to the enhancement of some aspects of its society and the natural world.

At the same time, Italy has several unique peculiarities that might influence the business expansion and companies working here. First, as stated previously, the stable attractiveness of the region for individuals means the severe rivalry between agencies offering services to clients. For this reason, the business expansion activities demand preliminary planning and effective strategy to consider the existing trends and introduce the most suitable offering to ensure clients will select it. Another impact is the inclusion of a significant number of individuals in the work of the sector. It means that periphery and distant regions are also becoming attractive for tourists, and this impact can introduce new opportunities for business expansion (Brown and Hall, 2000). Offering new directions, it is possible to interest a client and ensure his/her increased attention to it.

Italy’s example can also affect the tourism practices and partnership in the UK. First of all, Italy has always been one of the popular vacation choices for the British people. Today, with the focus on the further development of this sphere, this relationship can become more significant. It is possible to increase the number of travellers from the UK visiting Italy every year by adding new options, such as visiting previously unknown areas (Provenzano and Volo, 2021). Furthermore, the shift towards more environmentally friendly practices and protecting the natural world can affect agencies and policymakers in the UK, making them introduce appropriate changes in their approaches and methods. In general, the cooperation between the UK and Italy can have several positive effects on both states.

At the same time, some impacts should be given specific attention because of their mixed aftermath. First, the growing number of tourists annually might cause increased pressure on the state’s infrastructure and affect the lives of communities. The environmental impacts can also be significant because of the air and car traffic, emissions, and litter (Tribe, 2020). In such a way, it becomes vital to avoid such issues and create the basis for successful cooperation and the further development of the sphere. Thus, the strategies to eliminate such impacts include the corresponding development of infrastructure to avoid problems outlined above and promoting eco-friendly tourism, implying a reduction of the harm done to nature (Hall and Lew, 2009). It will help to avoid the possible adverse effects and improve the cooperation between the UK and Italic tourism agencies.

Altogether, the development of the tourist industry has several critical impacts on Italy. It promotes the revitalisation of its economy by creating new jobs and providing populations with a chance to earn. Additionally, it leads to periphery development as the constantly growing demand means the necessity to introduce new directions for travelling. For this reason, distant regions also acquire the chance to benefit from this trend. At the same time, there is a need for additional support of infrastructure and increased attention to the environment to avoid negative effects and create the basis for future improvement.

Conclusion and Recommendation

Altogether, based on the information provided above, it is possible to offer some recommendations. First of all, it is possible to recommend focusing on entering this market because of multiple opportunities existing there at the moment. Italy is one of the popular vacation choices for various types of rest, including family one. There are no restrictions of factors that might limit further business expansion there. The second recommendation is to diversify products offered to clients. Italy has multiple opportunities for recreation, skiing, swimming, visiting historical places, learning ancient cultures, or enjoying its cuisine. For this reason, it is vital to provide clients with different tours to exploit this advantage. Finally, it is possible to discover less known regions of Italy as they might also offer various tourist products. In such a way, Italy remains one of the most popular places and choices for tourists. The analysis proves its attractiveness both for agencies and common people.

Reference List

Banca D’Italia (2020) Survey on international tourism. Web.

Bernini, C. and Cracolici, M. F. (2016) ‘Is participation in the tourism market an opportunity for everyone? Some evidence from Italy’, Tourism Economics, 22(1), pp. 57–79.

Biagi, B. et al. (2016) ‘Tourism and house prices in Italy: a latent class approach’, Tourism Economics, 22(5), pp. 964–978.

Bramwell (2004) Coastal mass tourism: Diversification and sustainable development in Southern Europe. Clevedon: Channel View.

Brown, F. and Hall, D (2000) Tourism in peripheral areas: case studies. Clevedon: Channel View.

Cook, R. et al. (2017) Tourism: the business of hospitality and travel. 6th edn. New York, NY: Pearson.

Ferrari, S., Hernández-Maskivker, G. and Nicotera, T. (2021) ‘Social-cultural sustainability of roots tourism in Calabria, Italy: A tourist perspective’, Journal of Vacation Marketing.

Hall, C.M. and Lew, A.A. (2009) Understanding and managing tourism impacts: An integrated approach. Oxon: Routledge.

Italy tourism revenues (2021) Web.

Mosedale, J. (2011) Political economy of tourism: a critical perspective. Oxon: Routledge

Provenzano, D. and Volo, S. (2021) ‘Tourism recovery amid COVID-19: The case of Lombardy, Italy’, Tourism Economics.

Ribaudo, G. and Figini, P. (2017) ‘The puzzle of tourism demand at destinations hosting UNESCO World Heritage Sites: an analysis of tourism flows for Italy’, Journal of Travel Research, 56(4), pp. 521–542.

Tribe, J. (2020) The economics of recreation, leisure and tourism. 6th edn. London: Routledge.

Vergori, A. S. and Arima, S. (2020) ‘Transport modes and tourism seasonality in Italy: By air or by road?’, Tourism Economics. 

Wall, G. and Mathieson, A. (2006) Tourism: change, impacts, and opportunities. Harlow: Pearson Education.

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