Tourism in Italian regions:Tourism in Italian regions:performance and potentialitiesperformance and potentialities

G. G. Ortolani A. Alivernini L. BuldoriniG. G. Ortolani A. Alivernini L. Buldorini

77th th INTERNATIONAL FORUM ON INTERNATIONAL FORUM ON TOURISM STATISTICSTOURISM STATISTICS

StockholmStockholm 9-11 June 2004 9-11 June 2004

http://www.uic.it

http://www.uic.it

Main features of Italy’s internal Main features of Italy’s internal tourism expenditure patternstourism expenditure patterns

Presented by Andrea ALIVERNINIPresented by Andrea ALIVERNINI

ObjectivesObjectives of the paper of the paper

Assessment of the potential tourism attractiveness of Italian regions

Assessment of regional capability to capture tourism expenditure

Hints on the potential regional economic development that could be gained through an optimal exploitation of tourism resources

Contraints of local human resources

1 2

Data sources (2002) Data sources (2002)

UIC

Border survey on Italy’s Border survey on Italy’s international tourisminternational tourism

Inbound expenditure, number of Inbound expenditure, number of travellers and nights spent travellers and nights spent disaggregated by regiondisaggregated by region

ISTAT

Household telephone survey Household telephone survey on “Trips and vacations”on “Trips and vacations”

number of travellers and nights number of travellers and nights spent by domestic travellers, spent by domestic travellers, disaggregate by regiondisaggregate by region

same-day travellers and commuters are excludedsame-day travellers and commuters are excluded

An An original procedureoriginal procedure - based on the merging of the two - based on the merging of the two available sources - has been worked out in order to estimate available sources - has been worked out in order to estimate

the the domestic expendituredomestic expenditure that is not (yet) published by ISTAT that is not (yet) published by ISTAT

Estimation of Italy’s internal tourism expenditureEstimation of Italy’s internal tourism expenditure1. The estimation of the domestic expenditure1. The estimation of the domestic expenditure

N. of domestic night stays (ISTAT data) X

average per night expenditure of euro euro areaarea travellers in Italy (UIC data)

=Domestic

expenditure

in Italy

Assumption:Assumption:The average per night expenditure of euro area travellers in The average per night expenditure of euro area travellers in Italy is equal to that of domestic travellers Italy is equal to that of domestic travellers

EXPENDITURE IN TOP REGIONS (mln. euro)

ToscanaToscana 6,5596,559Lazio 6,431Veneto 6,348Lombardia 6,197Emilia-Romagna 4,196

Estimation of Italy’s internal tourism expenditureEstimation of Italy’s internal tourism expenditure2. The final results2. The final results

Italy’s total internal tourism Italy’s total internal tourism expenditure:expenditure: 55,095 mln. €55,095 mln. €domestic expenditure:domestic expenditure: 30,327 mln. €30,327 mln. €inbound expenditure:inbound expenditure: 24,768 mln. €24,768 mln. €

Internal expenditure

=Domestic expenditure +

Inbound expenditure

Internal expenditure3,000

DOMESTICINCOMING

Internal tourism night stays Internal tourism night stays

Internal tourism - number of night Internal tourism - number of night stays:stays: 887,754,000 887,754,000 domestic tourism:domestic tourism: 555,798,000555,798,000inbound tourism:inbound tourism: 331,956,000331,956,000

Number of night stays20,000

DOMESTIC

INCOMING

SourcesUIC (inbound tourism)ISTAT (domestic tourism)

Number of night stays (x1000)

North-West 169,639North-East 222,768Centre 207,464South and IslesSouth and Isles 287,883287,883

Purpose of travelPurpose of travel

Italy’s total internal tourism Italy’s total internal tourism expenditure:expenditure: 55,095 mln. €55,095 mln. €personal reasons:personal reasons: 44,706 “ “44,706 “ “business reasons:business reasons: 10,38910,389 “ ““ “

53 56 5343 49

127110

136

108121

59 61 6246

55

0

50

100

150

NO

RTH

-WE

ST

NO

RTH

-EA

ST

CE

NTR

E

SO

UTH

AN

D IS

LES

ITA

LY

personalbusinessglobal

Daily per-capita expenditure (euro)

expenditure (mln. €)4,000

Personal reasonsBusiness reason

AccommodationAccommodation

Italy’s overall daily per-capita Italy’s overall daily per-capita expenditure:expenditure: 55 € 55 €

in hotel:in hotel: 107 €107 €in other accommodation:in other accommodation: 38 € 38 €

Nights stays in hotel

19%20%

23%38%

NORTH-WESTNORTH-EASTCENTRESOUTH AND ISLES

Nights stays in other accommodation 19%

20%

24%

37%

Nights stays - global19%

25%

23%

33%

Daily per-capita expenditure

50

hotelotherglobal

First considerationsFirst considerations

DomesticDomestic tourism is concentrated in tourism is concentrated in SouthernSouthern regions, while regions, while inboundinbound tourism tends to address tourism tends to address CentreCentre and and North-EastNorth-East regions. The capability to attract tourism expenditure regions. The capability to attract tourism expenditure mainly mainly dependsdepends on some on some fundamental featuresfundamental features of the travellers, e.g.: of the travellers, e.g.:

InboundBusiness

Hotel

Higher level of daily per-capita

expenditure

Tourism attractiveness of Italian regionsTourism attractiveness of Italian regions

Is the level of tourism expenditure adequate to the attractiveness of the region ?

Does the region exploit efficiently its tourist potentiality ?

The concept of “attractiveness” in this paper refers to the pure pure tourist potentialitytourist potentiality of the region (intrinsic qualities of the

region), without considering the presence of adequate tourism infrastructure or promotion activities.

Tourism attractiveness of Italian regionsTourism attractiveness of Italian regions

Measuring tourism attractiveness tourism attractiveness is somewhat subjective.

However, an attempt has been made analysing the reasons of the trip and using useful indicators developed by Touring Club Italiano.

2002 UIC data on inbound tourism in Italy indicated that travellers’ expenditure was connected with the following aspects (reasons):

• 33% cultural• 27% environmental• 5% social• 15% visits to friends and relatives• 20% business

• Cultural. Based on the inventory of art and cultural assets weighted by their importance (TCI).• Environmental. Based on indices assessing the quality of the environment (TCI and UIC).• Social. Based on the offer of social activities and events (TCI).• Regions’ total population. Neutral assumption on visits which are supposed to be in relation with the number of people living in the region.• Regions’ GDP in services. The level of economic activity in services is assumed to be the main trigger of business trips.

Tourism attractiveness of Italian regionsTourism attractiveness of Italian regions

As people travel for different reasons, they are attracted by different features of the destination. Depending on the reasons of the trip different attractiveness indicatorsattractiveness indicators have been used.

Tourism attractiveness of Italian regionsTourism attractiveness of Italian regions

The overall indicatorIt is obtained weighting the five attractiveness

indicators with the shares of each type of tourism in total inbound expenditure in 2002

56

14

42

99

26

74

29

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103

2811

7555

1730

70

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20

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120

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CAL

ABR

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SIC

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SAR

DEG

NA

Attr

activ

enes

s po

ints

Italy = 1000

Tourism attractiveness of Italian regionsTourism attractiveness of Italian regions

The degree of exploitation of tourism potential

It is obtained as the ratio between the internal tourism expenditure and the attractiveness of the region

36.5

49

64.962.5

95.4

86.1

47.5

62.7

79.8

19

28.6

62.2

38.2

8.8

39.240.9

16.8

52.448.6

69.2

55.1

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Tourism attractiveness of Italian regionsTourism attractiveness of Italian regions

Relationship between degree of exploitation of tourism potential and economic development of the regions

Campania

Puglia

Sicilia

Calabria

Basilicata

MoliseAbruzzi

Umbria Marche

Piemonte

Friuli V.G.

Valle d'A.

Sardegna

Liguria

Lazio

Lombardia

Emilia R.

Toscana

Veneto

Trentino A.A.

10.000

12.000

14.000

16.000

18.000

20.000

22.000

24.000

26.000

28.000

0 20 40 60 80 100 120

Degree of exploitation of tourism potential - euro millions per attractiveness point

Per-

cap

ita G

DP

- e

uro

Regions with a better economic development Regions with a better economic development seem to make a better use of tourism resources seem to make a better use of tourism resources

Tourism and regional developmentTourism and regional development

Quantification of the impact of tourism expenditure on regional economies based on a work by CISET on regional activation matrices for tourism consumption

1 EUR million of tourism expenditure activatesactivates 0.8 EUR millions of value added and 28 employees - direct anddirect and indirectindirect effects are taken into account

The work also estimates the regional dispersion of value added activation as tourism consumption can stimulate production also outside the visited regionFor instance, Italian northern regions typically increase their production through consumption activation in southern regions

Tourism and regional developmentTourism and regional development

Tourism expenditure is increased in those regions with Tourism expenditure is increased in those regions with unexploited potential, up to the unexploited potential, up to the national average degree national average degree of exploitation of tourism potentialof exploitation of tourism potential

Labour force availability in the regionLabour force availability in the region(No inter-regional labour mobility is assumed)(No inter-regional labour mobility is assumed)

Tourism expenditure is increased only in regions having Tourism expenditure is increased only in regions having both both

a) some a) some unexploited tourism potentialunexploited tourism potential and and

b) a relatively b) a relatively high unemployment ratehigh unemployment rate

SimulationSimulation

ConstraintConstraint

Campania

Puglia

SiciliaCalabria

Basilicata

Molise

AbruzziUmbriaMarchePiemonteFriuli V.G.

Valle d'A.

Sardegna

Liguria

Lazio

LombardiaEmilia R.

ToscanaVeneto

Trentino A.A.0%

5%

10%

15%

20%

25%

0 20 40 60 80 100 120

Degree of exploitation of tourism potential - euro millions per attractiveness point

Une

mpl

oym

ent r

ate

Regions with activationpotential

Activation of tourism resourcesActivation of tourism resources

Regions having aRegions having a low degree of exploitationlow degree of exploitation accompanied by accompanied by aa high unemployment ratehigh unemployment rate (inside the ellipse) are the (inside the ellipse) are the

candidates for ancandidates for an increaseincrease of theirof their tourism expenditure. tourism expenditure.

They all belong to the They all belong to the South areaSouth area

Tourism expenditure is activated leading to a decrease of Tourism expenditure is activated leading to a decrease of unemployment rate.unemployment rate.

Yellow point = current situationYellow point = current situation Purple point = simulated situationPurple point = simulated situation

23.0%

Molise 12.9%

Campania 20.2%

Puglia 13.8%

Basilicata 16.1%

Sicilia 20.1%

Calabria 23.5%

8.1%

18.9%

12.5%13.5%

19.5%

8%

10%

12%

14%

16%

18%

20%

22%

24%

26%

0 10 20 30 40 50 60

Degree of exploitation of tourism potential - euro millions per attractiveness point

Un

emp

loym

ent

rate

55.1

The final impact on employment depends on: The final impact on employment depends on: potential for tourism potential for tourism expenditure increaseexpenditure increase and and production structure production structure of the region.of the region.

Activation of tourism resourcesActivation of tourism resources

ConclusionsConclusions

Italian regions appear to be veryItalian regions appear to be very differentiateddifferentiated as for their as for their purepure tourist potentialtourist potential and itsand its degree of exploitation.degree of exploitation.

Some regionsSome regions succeedsucceed in attracting tourism expenditure in attracting tourism expenditure adequate to their attractiveness, some others adequate to their attractiveness, some others failfail..

A better exploitation of tourist resources could represent an A better exploitation of tourist resources could represent an important important opportunity of developmentopportunity of development, in particular for , in particular for region suffering of a relatively high unemployment rate, as region suffering of a relatively high unemployment rate, as it is the case for several Southern regions of Italy.it is the case for several Southern regions of Italy.

Future improvements and other Future improvements and other considerationsconsiderations

Availability of domestic tourism expenditure Availability of domestic tourism expenditure

Consideration of trans-regional effects: Consideration of trans-regional effects: • labour force mobilitylabour force mobility

• tourism competition among regionstourism competition among regions

Possibility of negative effects of tourism developmentPossibility of negative effects of tourism development• socio-cultural modifications of the destinations (life-styles, socio-cultural modifications of the destinations (life-styles,

traditions, system of values)traditions, system of values)

• crowding out process (tendency towards acrowding out process (tendency towards a mono-sectoral mono-sectoral economy)economy)

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Tourism attractiveness and economic Tourism attractiveness and economic development of Italian regionsdevelopment of Italian regions

Presented by Luca BULDORINIPresented by Luca BULDORINI