Italy’s hotel industry is seeing a surge in interest from international travelers and industry professionals, and leaders believe the country is just scratching the surface of its full potential. Speaking at the Italian Hotel Investment Conference, Elisabetta Fabri, CEO of Starhotels Group, noted that while iconic cities like Rome, Milan, and Venice continue to draw heavy tourist traffic, much of the country remains overlooked.
New opportunities in untapped destinations
“Half of Italy is totally unknown,” Fabri said, pointing to places like Assisi, Bologna, Lecce, Palermo, Pisa, and Siena as destinations that could anchor growth. Despite this, only about 20% of tourists venture beyond the main hotspots. Fabri called on the industry to start serious planning and investment, particularly in these secondary cities, but emphasized the need for government support—not for financial bailouts, but to modernize infrastructure and streamline permitting processes.
Others echoed the need for a broader strategic approach. Raffaella Peloso of CBRE said the country must refine its hospitality goals. While Italy remains one of the most aspirational travel destinations globally, there’s an opportunity to better define what the guest experience should be across different regions. She cited a projected 4% annual growth in tourist arrivals through 2029, with Rome ranking high on traveler itineraries just behind London and Madrid.
Addressing infrastructure and seasonality
Despite healthy demand, infrastructure remains a critical bottleneck. Fabri expressed interest in expanding into areas like Calabria and Sicily but said the lack of accessibility and lengthy bureaucratic delays are obstacles. “I would rather take a hotel that is old and needs to be renovated, as for a new build it is a four-year nightmare to get permits,” she said.
Giorgio Marchegiani, CEO of UNA Italian Hospitality, said his firm is making progress extending the season at resorts in Sicily. “We are extending the season 15 days earlier and 15 days later,” he said, but added that to operate year-round, properties need amenities like spas and a coordinated effort with airlines to ensure access for international travelers.
Sara Digiesi of BWH Hotels Italia suggested targeting growth through better analysis of school breaks, international holidays, and the MICE (meetings, incentives, conferences, and exhibitions) sector. She also highlighted the potential of “soft branding” to bring new regions online without massive capital requirements.
Labor, lodging, and long-term thinking
Panelists agreed that expanding into secondary markets requires long-term planning and higher returns to justify the risks. Fabri pointed to Starhotels’ success with serviced apartments in Milan and Florence, which compete with platforms like Airbnb.
Connectivity improvements are making a difference. “Calabria has been connected for the first time, and we are already seeing results,” said Digiesi, with Veneto, Puglia, and Sicily also showing strong international demand.
Labor remains a focus, with Fabri noting 30,000 hours of staff training last year and new international career opportunities. Marchegiani added efforts to improve compensation, work-life balance, and performance-based pay in the hotel industry.
What does this mean in the long run? With growing international demand, Italy’s hotel sector is positioned for sustainable growth—if the right investments and reforms follow.
Source: tophotel.news
