How Italy`s tourism

survives through

recession of economy

Economics of tourism

Agnese Lubka

Yana Shelkova

Oleksandra Soroka

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Source: http://www.mapsofworld.com/italy/ 2

General info

• Population (January 2011 est.): 60.6 million.

• Annual population growth rate (2010 est.): 0.04%, mostly due to immigration.

• Ethnic groups: Primarily Italian, but there are small groups of German-, French-, Slovene-, and Albanian-Italians.

• Government : Unitary parliamentary constitutional republic

• Prime minister : Mario Monti

• GDP (PPP): $1.8 trillion

• 8th largest economy in the world

Source : http://www.traveldocs.com/index.php?page=about-italy-2 3

Important people

Mario Monti – prime minister

Silvio Berlusconi – ex prime minister

Piero Gundi – minister of tourism and sport

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Source : www.hollywoodreporter.com

I. From economic

power to a country

of problems

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Economic background

• Early Middle Ages - economic boom.

• In 19th century Italian industry was undercut by foreigners.

• Now it is industrialized country that still suffers from the consequences of a highly controlled economy.

• Economic imbalance between North and South Italy and high level of shadow economy leave the country suffering.

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Key indicators

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Source: http://www.zerohedge.com/news/pardonthe-interruption-debt-crisis-resume-shorty-says-deutsche-bank 8

Source : http://www.zerohedge.com/news/2012-12-14/italy-joins-two-trillion-debt-club 9

Why is Italy in trouble?

1. Public Debt: 120.1% of GDP /$2.6 trillion

2. Productivity: low due to high unemployment rate (bad job conditions)

3. Goverment (mafia) – corruption, more than 15% shadow economy

4. The South – Unemployment, crime, black market

Source : http://www.theatlantic.com/business/archive/2011/11/4-reasons-why-italys-economy-is-such-a-disaster/248238/ 10

II. Tourism in Italy –

a long tradition

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• The focus at the 18th century was culture

(Grand Tour, art focus).

• The 1960s - real boom

(German and Austrian tourists).

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Tourism impact on economy

• Tourism in Italy benefits the economy much more than its rich agricultural landscape.

• Generates employment.

• 69 % of Italy's GDP - services sector (tourism).

• The construction sector makes up 29 %, which tourism greatly affects.

13 Source : http://www.ehow.co.uk/list_7452173_effects-tourism-italy.html

Italy - land of art and history

• Italy -the centre of history, culture and art.

• Italy has more cultural 47 UNESCO World Heritage Sites than any other country.

• Rome, Florence, Assisi, Venice, Siena, Pisa, and Naples are its most renowned cities of art, but the whole country can boast towns of breathtaking beauty.

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Tourism negative impact

• Overdevelopment in some cases.

• Lack of authentic construction .

• Displacement of local residents.

• Italian local produce, life-styles and traditions are all affected by mass tourism (Venice, Roma,etc).

15 Source : http://www.ehow.com/list_7452173_effects-tourism-italy.html

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17 Source: http://www.invitalia.it/site/eng/home/investment-opportunities/tourism.html

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International tourism, number of arrivals from 1995 to 2010

International tourism, number of departures from 1995 to 2010

19 Source : World Tourism Organization, Yearbook of Tourism Statistics, Compendium of Tourism Statistics and data files.

III. Conclusion

• Tourism benefits Italy`s economy(69 % of GDP - service sector).

• Tourism survives and has big potenital due to cultural heritage(UNESCO), gastronomy, climate, shopping.

• The recession could bring risk to tourism development (unemployment of residents, etc).

• New corrections from the government – a new tax system that reduces taxes on workers and measures offering better protection to younger workers – in order to boost employment and encourage investment.

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Thank you for your

attention

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