What effect has COVID-19 had on Italy's tourism sector?

The COVID-19 pandemic has had a significant effect on many sectors in Italy, with large blows to the economy in the first half of 2020. One of the most affected sectors in Italy is tourism, something shown in recent research by the Confturismo-Confcommercio e Swg Observatory which has analysed the summer 2020 holiday trends with data from July. Here is what is expected from the Italian summer after the health emergency, as well as what problems will need to be faced in the tourism sector.

According to the data released by the Observatory, the average expenditure this summer 2020 is 1,022 euros per family, about 680 euros per person. Italians tend to opt for holidays within Italy, but 20% do not book due economic problems and unavailability of holidays.

The data also highlighted the absence of foreign tourists. In this regard, it is estimated that, between June and September there will be about 25 million less foreign tourists than last year and practically only of European origin. In terms of flows, this is 75% less, "with an even higher loss in terms of expenditure, since the 'rich' intercontinental American and Asian tourists will be missing". 

But what will be done during the summer 2020 holidays? In this regard, data from the Confturismo-Confcommercio e Swg Observatory in July found that it will be a 'do nothing' holiday, with many choosing stays where they will simply be able to rest and be in contact with loved ones. Visits to museums, monuments and exhibitions will drop from 33% last year to 15%, shopping from 21% to 5%, wellness experiences from 12% to 9%.

Seeing an improvement of 3 points compared to June and rising to 65 is the confidence index that measures the willingness of Italians to go on holiday. But if you take the month of June 2019 as a reference, you can see that the index was at 72, 7 points higher than it is today.

Another factor to consider is the high level of uncertainty. According to what emerged from the research, "34% of those interviewed intending to go on holiday by September had not yet booked by the end of July. A further 8% do not even intend to do so and aim to find accommodation once they arrive at their destination". 

The Chairman of Confturismo-Confcommercio, Luca Patanè, said: "In normal times, the 4-month period of June-September would count for 60% of tourist presences and spending of the whole year in Italy. Of all this, summer 2020 will save perhaps 25%. This is while the trend of the epidemiological indexes and the outbreaks identified in the national territory make the news much more than the excellent work that operators in the sector and local communities do every day to ensure tourists enjoy their holidays as much as possible. A series of important measures with strong allocations dedicated to the tourism sector are now underway, but let it be noted, although tourism has long been the backbone of the Italian economy, one million jobs are currently at risk".