The international tourism demand is constantly on the increase: according to the latest UNWTO figures, in 2017 international tourist arrivals to Italy increased by 7% compared to 2016, thus reaching a total of 1.32 billion.

In Italy, Eurostat figures confirm this growing trend: in the first 10 months of 2017 international arrivals recorded a +4.7% compared to the same period in 2016. The role of tourism as a key sector of our economy is consolidating: if in 2011 the sector contributed to 8.6% of the Italian GDP and 9.7% of employment, by 2027 these figures will rise to 11.9% of GDP and 14.5% of employed people, according to WTTC estimates. Also, tourism export is bound to increase from the current EUR 37.2 bn to EUR 47.8 bn in 2027.

These results are determining an increase in the interest of international operators and real estate fund managers towards the Country and in particular the hospitality sector.

What is the consequence of this? Firstly, the process of repositioning the offer towards more qualified segments continues: already in 2016 there was an increase in the capacity of 4 and 5-star hotels that now account for 37% of the rooms, while in 2007 they accounted for 29% of the total Italian hotels. The average size of the hotels is steady at about 33 rooms, a figure below the European average of 36 rooms, but not too much. 

The chained-brand hotels are growing but with different business models and brands compared to the past: the development model based on the purchase of buildings continues to be the prevailing model, but in 2017 there was a strong surge in leasing.

The other management models - contract management and franchising - are also growing, but at lower rates than the others, probably because they are typical models for the development of international chains which, compared to domestic ones, are still a minority. On the other hand, the increase in the number of brands is a sign of greater specialization on well-identified client targets or of the desire to diversify the business also in favour of forms of hospitality other than hotels.

In addition to these changes, today clients have different needs and look for something new - experience has become the key word in these latest years. Indeed, there are an increase in competitors from different sectors - and this proves the ‘profitability’ of the industry in Italy - various distribution channels, and last but not least, the impact of digitalization that unstoppably accelerated these transformations.

Two are the keywords: innovate and reinvent, as quickly as possible. We live in a very hectic world, where emerging trends can rapidly spread and become a consolidated expectation of an ever-growing group of clients. Those who, chains or independent hotels, will be able to anticipate the new trends, will succeed.

The full report, over 70 pages, is available to purchase from the Italian office, but we are able to offer a free summary here.