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A significant and surprising victory for Italian tourism! The country has just achieved a remarkable milestone: it has secured a spot in the top 10 of the Travel & Tourism Development Index 2024, published by the World Economic Forum, ranking ninth.
What does this promising signal mean in Italy, and what still needs to be improved? Let’s take a closer look.
What does Italy's ninth place in the Travel & Tourism Development Index 2024 mean?
This ranking evaluates the sustainable and resilient development of the global travel and tourism sector. Italy’s tourism contribution to the global GDP is significant, amounting to 3% of the total, over $3.3 trillion. This figure provides a clear basis for further consideration. But in what context should this be placed?
The lifting of COVID restrictions had already brought tourism levels back to pre-pandemic numbers in 2023, and forecasts for 2024 have always predicted continuous growth. However, Italy faces several challenges; global (such as inflation and conflicts in East Europe and the Middle East) and local (including interest rates and the quality of tourism infrastructure and services). Which of these factors has been most influential in its ranking?
What is the Travel & Tourism Development Index?
The Travel & Tourism Development Index 2024, as the name suggests, is an index that evaluates the impact and quality of a nation’s tourism sector based on 102 indicators grouped into five main criteria: enabling environment, sector policies, infrastructure and services, resources, and sustainability. By analyzing these criteria, we can identify Italy’s strengths and weaknesses in the travel and hospitality sector.
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Italy's strengths in tourism
1. Cultural resources: This criterion evaluates the availability of archaeological sites and historical structures and their promotion and development. Undoubtedly this category is Italy’s crown jewel and its unshakeable stronghold, demonstrated by its world-leading score of 6.74, supported only by Japan (6.71) and Spain (6.64).
2. Healthcare and hygiene: Italy scored a solid 5.88 in this category. This reflects an efficient healthcare system and high standards of hygiene, which are crucial for attracting and retaining tourists.
3. Information & technology readiness: With a score of 5.85, the country has shown excellent technological preparedness, essential for the modern tourism sector. This means that increasingly more digital solutions are being sought and employed to enhance visitors’ experiences.
Italy's weaknesses
1. Price competitiveness: Italy has shown significant weakness in this area with a score of 3.15. High and non-competitive costs compared to other countries lead tourists to choose different destinations, thus diminishing Italy’s potential attractiveness. This certainly opens a point for future action.
2. Socioeconomic impact of tourism: The contribution of tourism to the economy, wages, and gender wage equality has been scored at 3.46. This is a sore point that should lead to reflection on how to expand the sector’s impact.
3. Sustainability of demand: With a score of 3.53, Italy needs to address the risk of tourist overcrowding and other sustainability issues. Although this score is above the Southern Europe average (3.26), there is still room to improve the sustainable management of tourist flows.