Italian state bank Cassa Depositi e Prestiti (CDP) announced the creation of a national tourism fund, aiming to invest €2 billion in the hotel sector, which has been heavily impacted by the coronavirus (COVID-19) pandemic.
According to United Nations data, Italy is one of the most visited countries in the world, and tourism accounts for approximately 13% of its Gross Domestic Product. The World Travel & Tourism Council recently estimated that the Italian tourism industry could record losses of €36.7 billion this year.
CDP will invest €750 million in hotels considered to be of historical interest, while the Italian Ministry of Tourism will contribute an additional €150 million, with other investors covering the remainder of the amount.
Revenues in the tourism sector fell by nearly 90% in the second quarter of 2020, according to official data.
According to studies published this month by tourism groups Confiturismo and Assoturismo, the impact of the pandemic on the Italian tourism industry could reach €100 billion this year, representing over 6% of Italy’s GDP at the end of last year.
Representatives of Confiturismo and Assoturismo argue that without government aid, the tourism sector could suffer irreparable damage, given that domestic tourism grew by 1.1% this summer, but foreign tourist arrivals fell by 66%.
Frequently Asked Questions
What is the total value of Italy’s new tourism fund?The fund aims to invest €2 billion in the hotel sector to mitigate the impact of the pandemic.
Which hotels will benefit from the CDP investment?CDP will specifically invest €750 million in hotels of historical interest.
How much did foreign tourism decline in Italy during the summer?While domestic tourism saw a slight increase of 1.1%, foreign tourist arrivals dropped by 66%.