Tourism is one of the most important and vital sectors in Italy. Italy is probably one of the first countries that made tourism what it is today. International travel first became important under the Roman Empire. Latin was the common language day. The word feria first appeared in the ancient Rome, which means festival and it took the meaning of vacation. The Latin festival was the first mobile holiday, far from one’s residence. Domestic tourism flourished within the Roman Empire’s heartland, it attracted thousands to the city and country all over the empire which included most if the Mediterranean, North Africa, mainland Great Britain and the parts of the Middle East. Traders and merchants came to Italy from several parts of the world.
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However tourism in Italy could have started from as way back as the gladiator fights in ancient Rome. As years passed the ceremonies were promoted and thousands of people flocked to Italy to see these bloody warfares. These events were always held in the Colosseum, which was also a major attraction. The people came from all over the Roman Empire and regions of Africa, Italy, and Rome. The games were a way of entertaining the wealthy as well as the common people. When the Empire fell, Rome governed the governed the growing Christianity and it remained one of European greatest religious centers and places of pilgrimage. These pilgrimages started the early forms of religious tourism. Renaissance became very popular in the 16th and early 17th century and many students came to Italy to study Italian architecture.
The beginning of the Grant Tour was the peak of real tourism in Italy in the second half of the 17th century. Italy was considered the most popular destination. British travelled most parts of Europe, most famously, Italy to study architecture and culture of those places. These students were accompanied by a tutor and this trip often lasted 3 years or more. Travel for the reasons of education was encouraged but the fact that under Elizabeth I a special license had to be obtained in order to travel abroad. While the Grand tour was educational, as with the spas, the appeal soon became social, and pleasure-seeking young men of leisure travelled, to enjoy the rival cultures and social life of Europe. Every city in Italy was a sight to see and was the major attraction in the 17th century.
However, by 1840, when rail transport was introduced and visiting Italy was no longer considered something for the elite, the first form of mass-tourism was introduced. Places such as Venice and Sicily still remained the top attraction. The first sea side resorts, such as those in the Ligurian coast. Those around Venice, coastal Tuscany and the Amalfi coast became popular. Grand Hotels and holiday resorts began to be built and islands such as Capri, Ischia, Procida and Elba became more popular and were mostly visited by wealthy foreigners and academics. By 1913, tourism had become an opportunity, and there was about 90,000 British visitors, this is because of natural and historical characteristics of the country. The Italian State Tourist Office was created in 1919, and was given a mandate to gather different data and information in order to make a legislative proposal that will help to promote the country’s domestic tourism, thus focusing on the international tourism, as well as to facilitate different bank credit for the hotels. Tourism in Italy remained very popular until the late 1920- early 1930s, when, with the Great Depression and the economic crisis, several could no longer visit the country and the increasing political instability in the country meant that less and less tourist came. With the impact of the Great Depression during 1929, the economic and political uncertainty between the two worlds was the primary reason of the first intervention of the national government of Italy to get involved in the tourism industry. After a big slump in the number of tourist, tourism became popular again in Italy with the Italian economic miracle raised living standards and also the popularity of the Italian films brought back tourism to the country. The country had completed its postwar economic reconstruction during 1958 that helps to restructure the country from an agriculture-based to an industry-centered economy. It had helped to maintain the stability of the tourism industry. During the said year, the international tourism industry of the country increased to $8.7 billion. Cheap Hotels were built in 1960s, and anyone could afford a holiday somewhere along the Italian coast. Mountain Holidays and skiing had a mass-popularity in the late 1960s. Despite the significant slump of tourist in the late 1970s and early 1980s because of the economic crises and political instability, by the late 1980 and early 1990s, the tourism regained in popularity. Now at the beginning of the 21st century tourism in Italy faced a number of challenges, the September 11 attacks in the US, made many tourists scared to travel and the economic meltdown in 2008 caused a significant drop in Tourism worldwide and Italy is now in state of recovery.
Life Cycle Analysis
Launch/Discovery
Many tourist visited Italy for centuries, but the first actual tourist was said to have visited during the Grand Tour in the 17th and 18th century. Roman Empire was also a major pull factor that attracted thousands of people from around the world. People also came to Italy to witness the bloody warfare which was held in the Colosseum and this attracted many people also. When the Empire fell, many pilgrims would come to Italy and this could have been the early form of religious tourism. Italy, at this time was said to be a favorite destination by many. However, about 90,000 visited the country because of its natural and historical characteristics. In 1919, tourism had become an opportunity and the Italian State Office was created to promote international tourism and assist with different bank credits.
Growth
During 1958, Italy had finished its postwar economic reconstruction and the country moved from agriculture based to an industry- centered economy. Tourism became popular again, with the Italian economic miracle and raised living standard, and the popularity of Italian Films such as La Dolce Vita abroad and this brought back tourism in the country tremendously. In the late 1960s there was a mass influx of tourist, who came to the island because of the popularity of mountain holidays and skiing, which was offered for the elite in the 1930s. Many hotel chains became interested in the economy as a result of the management of government regarding the tourism industry. During the years of 1985 until 1995 the revenue for the industry increased extensively from 8.7 billion to 27.4billion. Moreover the country was ranked as top 4 country destinations from 1980 to 1996. By this time the annual growth rate for each year was 2.5% and the country enjoyed a considerable market share at this time. The development helped Italy to move from third to second rank for tourism receipts among the global top tourism earners, having an outstanding growth rate of 8.4%.
Maturity
From the period of 1996 – 2006 Italy saw a 10 year maturity growth rate in the tourism sector. Slight Progress has been made in 2006 and 2007 and there was a 3% increase in visitors after several years of maturity.
Saturation
In the years of 2007- 2008 was a steady rate of tourist coming to the country.
Year
Arrivals of tourist
2007
43.7 million
2008
42.7 million
2009
43.2 million
Although the figure shows a fluctuation of the arrivals of tourists, on average it is a steady flow of tourist arriving in Italy at that time period, therefore showing the relative stagnation of the destination.
Decline/Rejuvenation
Decline
Due to the economic global crisis, different visitors and foreigners are looking for countries to visit that are reasonable in cheap prices, However Italy is one of the most expensive destinations in Europe which have resulted in a 25% decline in British visitors coming to the country during 2008. The fall has been worst for local business owners in the tourism industry, who watched business falter by 50% over the past year. Also hotel owners said that visitors are now shortening their stays which would result in a decline in revenue.
Venice was a major attraction, but due to the sinking ground level, rising sea level, pollution in the lagoon in which it is located, atmospheric pollution, congestion on the main canals from motorized traffic and increase flooding, there was a huge decline in tourist arrivals presently.
Rejuvenation
Italy has made a number of efforts to rejuvenate its tourism industry. Earlier this year Italy created a new marketing brand with a new logo and slogan.
http://www.italymag.co.uk/images/italy-logo.jpg
.”Italy leaves its mark”
Italy’s local economy is now trying keeping their prices competitive for many and they hope that the bargains would attract more tourists to the country. Also since Italy won the 2006 FIFA world cup tourist regained a new interest in coming to the country once gain.
Italy also brought back a reintroduction of films in the year 2008 to regain popularity.
Present Situation
Italy is the fifth most visited country in the world and the country receives approximately 43.7 million tourists a year. These tourists visit mainly for Italy’s prosperous culture, history, art, cuisine and fashion. After the recession affected tourism and Italy’s economy greatly in 2008, the tourism industry in Italy today is beginning to flourish again. Cities like Milan which have become popular tourist destinations saw a rise in tourists since it became known as the business and fashion capital of Italy. Rome which is one of the most important tourist destinations in the world and is third most visited city in the European Union also saw a rise. While the world economic crisis forces many consumers to change spending habits, at least the religious tourism in Rome is left unchanged, the Vatican City, the spiritual home to the world’s 1.1 billion Catholics, boasts more than 30,000 churches and sanctuaries according to the country’s Ministry of Culture. According to United Nations’ World Tourism Organization statistics, seven of the world’s 10 most visited Christian sanctuaries are in Rome. Other regions which generate masses of tourists include: the romantic city of Venice, Tuscany, Naples and the popular tourist island of Sicily. The Italian Government Tourist Board (ENIT) has made efforts to promote all year round tourism with the country’s many equipped beaches, sport and ski facilities, 65 percent of the world’s artworks and historical monuments, and agri-tourism farms where tourists enjoy the land production, like wine, and olive oil and fruits. There are approximately 40,000 hotels in order to cater to Italy high influx of tourists coming to Italy daily. Italian tourism operators are increasingly engaged in improving the quality of their product and in promoting Italy as a destination. Italy may not take up much space geographically on the globe, but it consistently ranks among the top vacation destinations on the planet.
Tourism is considered as one of the most important and vital industries in Italy. It is one of Italy’s most developing and most profitable industrial sectors, with estimated revenue of $42.7 billion. Tourism is one of the fastest growing and profitable sectors of the Italy’s economy. The industry plays a strategic role and has a major impact on Italy’s economy because of this constant influx of tourists. Tourism in Italy is one of the country’s biggest income sources. Italy’s Gross Domestic Product in 2009 reached $1.8 trillion, 69% is represented by the services sector, whose strong point is tourism, approximately 29% is owing to the automobile industry, engineering industry, apparel/textiles industry and the construction industry and the remaining 2% is derived from agriculture.
The geographical distribution of the nation’s wealth is as follows: approximately 31.8% of Italy’s Gross Domestic Product is produced in the Northwest regions of the country, 22.3% in the Northeast regions, 21% in the regions of Central Italy, and finally, approximately 24.8% can be attributed to the regions of Southern Italy.
In 2009 the expenditures by international inbound visitors (tourist receipts) made Italy the fourth highest tourism earner. The everyday tourists in Italy spends varying amounts daily and the average daily spend will vary widely based on seasonal variations and desired destinations. The fact is that some tourists may enjoy a great two-week adventure in Italy and spend less than $4,000, while others may let a commercial tour company make the decisions for them and end up spending $15,000. Italy isn’t cheap, although however compared with the UK and northern Europe the situation is not so bad. What you spend on accommodation will depend on various factors, such as location, season (August which is the peak), the degree of comfort you want. The cheapest pensione (small hotel) is unlikely to cost less than €25 for a basic single or €40 for a double room. You can stumble across comfortable rooms with their own bathroom from €50 to €80. Midrange hotels in the more expensive places such as Rome, Florence and Venice can easily cost from €80 to €150 for singles or €120 to €200 for doubles. Eating out is just as varied in Venice and Milan , while tourist magnets such as Florence and Rome offer surprisingly affordable options. On average you should reckon on at least €20 to €50 for a meal (two courses, dessert and house wine). Backpackers usually stick religiously to youth hostels, they snacking at midday and travelling slowly, spending approximately €40 to €50 per day. Your average midrange daily budget, including a sandwich for lunch and a simple dinner, as well as budgeting for a couple of sights and travel, might come to anything from €100 to €150 a day.
Many tourists come to Italy for many different reasons whether it is for leisure or business the average length of stay according to the UNCTAD Handbook of Statistics is 3.81 days. Tourism represents an opportunity but also a fascinating challenge for the country in terms of economic growth, international image and improvement of relations with other nations. However, tourism is important because of its economic and employment potential, it is a sector that employs nearly three million persons which is equal to approximately 12 percent of the total work force and is expected to increase in many years to come. Italy is also the ideal tourist job destination. There are ski resort jobs in the Alps in the North part of the country in the winter, beach resort jobs in the summer, and restaurant and hotel jobs all year long. There is also a huge demand for city guides in Rome, Venice, Pompeii, and many others during the summer. Tourism also contributes to the prospect of wealth and opportunities to the less developed minor regions in Italy in order for them to progress economically. With the expansion of international tourism, along with the country’s enormous potential, Italy has to maintain and upgrade its tourism industry over the next years to maintain and expand its market share and provide economic growth.
Market Analysis of Tourism in Italy
With more than 43.7 million tourists a year, Italy is the fourth highest tourist earner, and fifth most visited country in the world behind France, Spain, United States and China. . Domestic tourism, or the travel of Italians within their own country, is the market’s largest sector. The majority of foreign tourists coming into Italy originate in Europe. Germany in particular is a major source market for tourism in Italy. Figure 3 gives a fairly good idea of how big the German market is in Italy. According to UNWTO World Tourism Barometer for January 2010, Italy was one of the very few countries that maintained their market share in terms of foreign tourist arrivals, remaining firmly among the top five most successful destinations worldwide.
Figure 3 shows a Pie chart representing 10 major source markets of tourist and their respective percentages.
Source: Invitalia elaboration of Istat data, Capacity of accommodation facilities , March 2010
Figure one further re-iterates the largest percentage of tourists coming into Italy are in fact Europeans. Italy has always been one of the most desired and visited travel destinations worldwide. In relation to the age group of the Italian tourist market, Italy attracts many young people between 20-30 years old. ADDD INFO ON THE YOUTH MARKET However, 55% of the Italian tourist market is over 55 years old.
The summer of 2010 has shown that Italy is definitely recovering from the worldwide economic crisis and is enjoying an increase of visitors from many of its major source markets in comparison to the previous year. According to ENIT , there is an upturn in international markets in relation to Italy, opting for shorter holidays, favoring of all inclusive formulas that make it possible to better evaluate the prices in relation to the product purchased, and increased interest in holidays in contact with nature. Arrivals from the USA are showing a favoring index of about 25%, to art cities, lakes and mountains. South American countries such as Brazil and Argentina also show a rise of at least 20%. As far as the Asian and Oceania markets are concerned, Japan shows a growth trend towards Italy as a destination. The art cities and best known seaside resorts are confirmed as the favoring destinations. In India, on the tourist front, the height of the season ended in April and was without a doubt marked by an excellent increase in tourist demand for the Europe product in general, and specifically for what Italy has to offer (+20%).
In terms of the European market, there are also positive signs for the car travel segment to neighboring destinations, while there is a downturn in air travel. As previously stated, Italy enjoys a leadership position on the German market. Summer of 2010 has shown an increase of 5% of German arrivals when compared to 2009. Italy also saw a slight increase in sales among Austrian tourists (+5%). The positive trend for Italy on the markets in Belgium (+10%) and Holland(+3%) continues while Spanish tourism outlets have seen a drop in bookings. Italy’s Unites Kingdom market is showing a growth in demand for lesser known destinations in rural areas of Italy while the French market is favoring sea and beach offers like Sicily and other areas such as Tuscany and Lazio, for its cultural attractions. Charter flights to Italy have also increased for Russia, coming from Moscow. According to ENIT, the packages sold have shown an increase of more than 30%, while tourists coming from the Czech Republic favor coach tours to seaside centers and big art cities.
People mainly come to Italy for its rich art, cuisine, history, fashion and culture, its beautiful coastline and beaches, its mountains and priceless ancient monuments, especially those from the Greek and Roman civilizations. UIC data on inbound tourism in Italy indicated that travellers’ expenditure was connected with the following reasons; cultural, environmental, social and visits to family and friends
Figure 4
Figure 4 shows a pie chart indicating various reasons travellers’ expenditure in Italy and their respective percentages
This information gives us an idea of Italy’s target markets and how they would choose to proportionately allocate funds aiming at these markets. Although the information in figure 2 gives us a good idea of the reasons people go to Italy, it isn’t as detailed as it could be. *Add some info different markets such as wine and food tourist, cultural etc*
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The sports tourism market in Italy is a growing one. Football fans in particular venture into Italy to watch the seasonal Italian Serie A football matches. Occasionally , Italy is blessed with UEFA champions league football matches .The UEFA champions league has one of the biggest followings in football. In addition to this, Italy were the winners of the 2006 FIFA world cup finals. That in itself draws sports fans to the country of Italy.
Italy also caters to huge fashion tourist market. Milan is seen as the fashion capital of the world. Fashion designers and fashion followers alike flock to Milan in numbers for the various fashion shows and exhibits.
Religious Tourism is one of the major market segments of tourism in Italy. While the world economic crisis forces many consumers to change spending habits, this economic sector has so far been barely touched. Official figures are hard to come by because visitors to Italy are not required to indicate whether or not their vacation is religious in nature. However, tour operators and travel agents say that the number of religious tourists in Italy hasn’t changed much. Michael Patano, the director of Aurea , a 6-year-old trade fair for agencies that market religious tours, said “Religious pilgrims still want to have the same experiences.” The high point for religious tourism in Rome is Easter, which takes place on Sunday. The Vatican says that if the weather is good, attendance at the Easter Mass in St. Peter’s Square usually surpasses 100,000 people. Although there are few official figures indicating the importance of religious tourists to the tourism market, it can be assumed that religious tourism has a significant market share of tourism in Italy.
All in all, Italy’s market has been relatively constant over the years and there are areas where Italy can try to diversify their appeal and also penetrate further into existing markets. After all, Italy has a wide range of fascinating attractions that can appeal to a cross section of tourist markets.
Product Analysis
A product can be defined as a good or service offered with the purpose of satisfying a want or need. Italy itself, so rich in history, art, architecture, religion, fashion, cuisine, music and landscape, is a very diverse product since it has so much to offer, to many different markets with its many amenities and attractions. Here, we will identify and examine just what Italy has to offer. An attraction refers to one thing being drawn or enticed to another. In Italy, there are many, many lures that draw foreigners and even locals to the many parts of the country. One of these attractions is the Colesseum, which is located in Rome. The ruins of what once was a great amphitheatre used to host gladiator duels and public spectacles still remains very popular today. This mammoth of a structure sees an estimated 4 million visitors yearly, many of whom come to sight-see, learn about its history and study its marvelous architecture.
800px-The_Colosseum_during_Christmas.jpg
Photo Of The Colloseum In Rome
Also located in Rome, is the Vatican City which is actually considered a separate state within Rome. This city is ruled by The Pope, who is the Bishop of Rome and leader of The Roman Catholic Church worldwide. Catholicism is the largest denomination of Christianity and has the largest religious following in the world with approximately 1.1 billion persons. However many Christians and Non-Christians visit the Vatican City yearly touring its museums and hoping to see The Pope. Still in Rome we find Pompeii, a unique attraction in a partially buried town. Pompeii was destroyed and buried by a volcanic eruption and was rediscovered in 1599, but with the excavation of the ash, we see preserved parts of a city in the pinnacle of the Roman Empire. Rome is additionally known for the Spanish Steps or Scalinata Spagna; the longest and widest staircase in Europe, which links The Spanish Embassy located in the piazza below to the French church; Trinità dei Monti, above. Also popular is the Trevi Fountain, the largest Baroque fountain in the city which is well known and often featured in movies. Rome also boasts of popular restaurants such as the Antica Pesa & La Pergola and hotels such as the Bernini Bristol and the Westin Excelsior.
Another popular Region in Italy is Tuscany which is renowned for its heartwarming landscapes, brilliant wine and art, and its luxurious villas. In Tuscany we can find the City of Pisa which is the home of The Leaning Tower of Pisa. The tower is actually the bell tower to the city’s cathedral and began construction in 1173, taking nearly 200 years to complete. Shortly after construction began, the tower started to lean to the right due to the poor construction of the foundation. Today, millions of visitors come to Pisa to see the tower’s distinct architecture and signature lean. Tuscany is also where we find the province of Florence, home of many elegant squares, renaissance palaces, cathedrals, museums and galleries. Most popular of these galleries is the Uffizi Gallery, where the works of popular artists such as Michelangelo, Botticelli and Leonardo da Vinci can all be found. One of da Vinci’s most popular works, The Last Supper can be found in the monastery of Santa Maria delle Grazie in Milan. This is world renowned painting of Jesus and his disciples before he was betrayed and is frequented by visitors of the region. Milan is also popular for its magnificent football stadium, the San Siro. This stadium is home to A.C Milan and F.C Internazionale Milan which are two the biggest football clubs in Europe with millions of fans worldwide. Moreover, Milan is best known for fashion and design, and is regarded as one of the fashion capitals of the world. Major Italian brands such as Valentino, Gucci, Armani, Prada and D&G all now have headquarters in Milan making their selves more accessible to the city’s high end fashion market.
The City of Venice is known for its gothic architecture, tourism and romantic lure, and is also known as “The Floating City”, “The City of Bridges” or “The City of Canals”. The city has been given these names since it is comprised of 117 islands joined together by 409 bridges, and the main mode of transport is by boat. It’s common in Venice to see couples being rowed along in a gondola; classical Venetian boat. Travel by waterways is the most popular method of travel in Venice since there are no real roads but only walkways and bridges. In regions near the Mediterranean, the country is very popular for its waters. However, not only does Italy have white sandy beaches as we can find on the Amalfi Coast, but also thermal waters with healing properties. This has led to the development of thermal spas and even resorts around the country which are encouraging for medicinal tourism. Italy also has a rich history in classical and symphonic music and stemming from this come their love for operatic singing and ballet dancing. Many shows and recitals are held annually all over Italy by the opera houses which have seasons for both symphonic singing and ballet. Furthermore, the Vatican is not the only place which has a religious pull but rather it’s a nationwide affair with visitors coming from far and near to explore Italy’s many cathedrals. Other notable attractions in Italy are its mountainous snow covered regions with perfect conditions for camping and alpine skiing, its many nature parks and reserves and the unique experiences offered on the islands on Sardinia and Sicily.
italy-ski-resorts.jpg
Photo Of a The Alps
Millions of tourists visit Italy yearly and due to the course of recovery the country is currently on, millions more could be added to the total, but Italy can be said to be prepared now having over 40 000 hotels. These hotels vary in standard from 1 star to 5 star deluxe, and in Milan, Italy has set the benchmark being the first country in the world to have a 7 star hotel; Town House Galleria. Additionally, Italy has its own distinct cuisine and beverages, and has a holistic cooking style combining healthy with delicious. Their love for pasta, cheeses, sauces, meats, vegetables, fish, pizza, gelato, coffee and wine has set them apart. This love has spread worldwide with Italian cafes and restaurants being found in most countries, however, this hasn’t stopped visitors from coming to Italy to have a firsthand taste of their cuisine. Present day Italy has hundreds of thousands of eating facilities ranging from cafes to pizzerias to fine dining restaurants. Moreover, with this cuisine a good wine can always be expected, and why not since Italy is one of the foremost wine producers in the world with its signature Rosso (red) and Bianco (white) wine. This extensive high level production can be attributed to Italy’s rich soil and climate. Vineyards can be found all around the nation in regions such as Aosta Valley, Lombardy, Tuscany, Sicily and Venito. The wine industry is a massive contributor to the Italian economy both on its own and through tourism.
Italy has made itself very accessible having 30 major airports and 43 major seaports; 2004. Additionally, Italy has an extensive and highly maintained road network making transport between cities easy, which encourages local travel. Italians also have large bus fleets to service the public from town to town, and city to city; SITA, but in Venice there is a waterbus fleet. Visitors crossing the borders are also accommodated with the border crossings connecting to France, Austria, Switzerland and Slovenia being opened 24 hours daily. Furthermore, Italy has an established railway system comprising of both electric trains and locomotives which run through the country and connect with bordering countries, and a water fleet of ferries to service the inland rivers and canals.
Promotional Strategies
The objects of the promotion and communication activities are Italy’s image and its overall tourism product. ENIT is the institution in charge of promoting Italy’s tourism product. ENIT pursues its institutional goals through activities such as studying international markets and in particular the connotations and trends in demand for individual and organized tourism. ENIT is also constantly monitoring the development of tourism demand. Italy’s tourism board is constantly involved in planning designed operating strategies in agreement with Italian tourism’s public and private players. This includes the Ministry of Production Activities, Regions, central public administrations boards, professional associations, and producers of services for tourism i.e. transport, hospitality, food service, public businesses, and so on. One of the most important aspects of promoting tourism in Italy is developing planning objectives employing, for each market or homogenous consumption area, just the right combination of a number of operating tools. These tools could be in the form of;
Multimedia communication
Mass media advertising
Print, multimedia, and audiovisual production
Creating and managing data and image banks
Traditional and telematic information distribution
Material distribution
Press relations in Italy and overseas
Sectoral analysis and business strategy consulting service for the Regions and private Italian operators
Organizing marketing meetings between Italian supply and foreign demand
Organizing seminars for professional users
Providing assistance to visits by Italian economic operators abroad ,and by foreign economic operators in Italy
Meetings with administrative authorities, opinion makers, personalities, and representatives of cultural and artistic areas in the various foreign nations where ENIT offices are located
Organizing and taking part in fairs, expositions, exhibitions, and large-scale events in Italy and abroad.
Providing assistance and operative cons
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