Italy, a country located in Southern Europe, is renowned for its rich history, culture, and art. It is also famous for its food, wine, fashion, and beautiful landscapes.
All these factors contribute to making Italy one of the top tourist destinations in the world. In this article, we will explore what percentage of the Italian economy is attributed to tourism.
The Importance of Tourism to the Italian Economy
Tourism is one of the most significant contributors to Italy’s economy. The country has a highly developed tourism industry that attracts millions of visitors every year.
According to the World Bank data for 2019, tourism accounted for 13% of Italy’s Gross Domestic Product (GDP). This figure includes both direct and indirect contributions.
Direct Contribution
The direct contribution includes all activities that are directly related to tourism such as accommodation services, food and beverage services, transportation services (airlines, car rentals), and recreational activities (museums, parks). In 2019, direct contribution from tourism was estimated at 5.8% of Italy’s GDP.
Indirect Contribution
The indirect contribution includes all other economic activities that support the tourism industry such as retail sales, construction works (hotels and resorts), banking and financial services (ATMs), and other related businesses. In 2019, indirect contribution from tourism was estimated at 7.2% of Italy’s GDP.
The Impact of COVID-19 on Tourism in Italy
The COVID-19 pandemic has severely affected the global travel industry including Italy’s tourism sector. The country went into lockdown in March 2020 to contain the spread of the virus which led to a sharp decline in tourist arrivals. According to data by Statista.com, international tourist arrivals in Italy decreased by over 62% between January and August 2020 compared to the same period in 2019.
Steps Taken by the Italian Government
To support the tourism industry during these difficult times, the Italian government has taken several measures such as financial aid for companies, tax relief, and incentives for domestic tourism. In July 2020, Italy launched a campaign called “Italia, Amore Mio” (Italy, My Love) to encourage Italians to travel within their own country and support local businesses.
Conclusion
Tourism is a vital sector of Italy’s economy. It contributes significantly to the country’s GDP and provides employment opportunities for millions of people.
Although the COVID-19 pandemic has caused a severe setback to the tourism industry in Italy, the government’s efforts to revive it are encouraging. With time, Italy’s tourism industry is expected to recover and continue its growth trajectory.