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1. Tourism in Italian regions:performance and potentialitiesG. G. Ortolani A. Alivernini L. Buldorini7th INTERNATIONAL FORUM ON TOURISM STATISTICSStockholm 9-11 June 2004 http://www.uic.it

2. Main features of Italy’s internal tourism expenditure patterns Presented by Andrea ALIVERNINI http://www.uic.it

3. Objectives of the paper 1 2 Hints on the potential regional economic development that could be gained through an optimal exploitation of tourism resources Assessment of the potential tourism attractiveness of Italian regions Assessment of regional capability to capture tourism expenditure Contraints of local human resources

4. Data sources (2002) UIC ISTAT Border survey on Italy’s international tourism Household telephone survey on “Trips and vacations” Inbound expenditure, number of travellers and nights spent disaggregated by region number of travellers and nights spent by domestic travellers, disaggregate by region same-day travellers and commuters are excluded An original procedure - based on the merging of the two available sources - has been worked out in order to estimate the domestic expenditure that is not (yet) published by ISTAT

5. Estimation of Italy’s internal tourism expenditure1. The estimation of the domestic expenditure N. of domestic night stays (ISTAT data) average per night expenditure of euro area travellers in Italy (UIC data) Domestic expenditure in Italy = X Assumption: The average per night expenditure of euro area travellers in Italy is equal to that of domestic travellers

6. Internal expenditure = Inbound expenditure Domestic expenditure + Estimation of Italy’s internal tourism expenditure2. The final results EXPENDITURE IN TOP REGIONS (mln. euro) Toscana 6,559 Lazio 6,431 Veneto 6,348 Lombardia 6,197 Emilia-Romagna 4,196 Italy’s total internal tourism expenditure: 55,095 mln. € domestic expenditure: 30,327 mln. € inbound expenditure: 24,768 mln. €

7. Internal tourism night stays Sources UIC (inbound tourism) ISTAT (domestic tourism) Number of night stays (x1000) North-West 169,639 North-East 222,768 Centre 207,464 South and Isles 287,883 Internal tourism - number of night stays: 887,754,000 domestic tourism: 555,798,000 inbound tourism: 331,956,000

8. Purpose of travel Daily per-capita expenditure (euro) Italy’s total internal tourism expenditure: 55,095 mln. € personal reasons: 44,706 “ “ business reasons: 10,389 “ “

9. Accommodation Italy’s overall daily per-capita expenditure: 55 € in hotel: 107 € in other accommodation: 38 €

10. Inbound Business Hotel Higher level of daily per-capita expenditure First considerations Domestic tourism is concentrated in Southern regions, while inbound tourism tends to address Centre and North-East regions. The capability to attract tourism expenditure mainly depends on some fundamental features of the travellers, e.g.:

11. Tourism attractiveness of Italian regions Is the level of tourism expenditure adequate to the attractiveness of the region ? Does the region exploit efficiently its tourist potentiality ? The concept of “attractiveness” in this paper refers to the pure tourist potentialityof the region (intrinsic qualities of the region), without considering the presence of adequate tourism infrastructure or promotion activities.

12. Tourism attractiveness of Italian regions • Measuring tourism attractiveness is somewhat subjective. • However, an attempt has been made analysing the reasons of the trip and using useful indicators developed by Touring Club Italiano. • 2002 UIC data on inbound tourism in Italy indicated that travellers’ expenditure was connected with the following aspects (reasons): • 33% cultural • 27% environmental • 5% social • 15% visits to friends and relatives • 20% business

13. Tourism attractiveness of Italian regions As people travel for different reasons, they are attracted by different features of the destination. Depending on the reasons of the trip different attractiveness indicators have been used. • Cultural. Based on the inventory of art and cultural assets weighted by their importance (TCI). • Environmental. Based on indices assessing the quality of the environment (TCI and UIC). • Social. Based on the offer of social activities and events (TCI). • Regions’ total population. Neutral assumption on visits which are supposed to be in relation with the number of people living in the region. • Regions’ GDP in services. The level of economic activity in services is assumed to be the main trigger of business trips.

14. The overall indicator It is obtained weighting the five attractiveness indicators with the shares of each type of tourism in total inbound expenditure in 2002 Tourism attractiveness of Italian regions Italy = 1000

15. Tourism attractiveness of Italian regions Thedegree of exploitation of tourism potential It is obtained as the ratio between the internal tourism expenditure and the attractiveness of the region

16. Tourism attractiveness of Italian regions Relationship between degree of exploitation of tourism potential and economic development of the regions Regions with a better economic development seem to make a better use of tourism resources

17. Tourism and regional development • Quantification of the impact of tourism expenditure on regional economies based on a work by CISET on regional activation matrices for tourism consumption 1 EUR million of tourism expenditure activates 0.8 EUR millions of value added and 28 employees - direct andindirecteffects are taken into account The work also estimates the regional dispersion of value added activation as tourism consumption can stimulate production also outside the visited region For instance, Italian northern regions typically increase their production through consumption activation in southern regions

18. Tourism and regional development Simulation • Tourism expenditure is increased in those regions with unexploited potential, up to the national average degree of exploitation of tourism potential Constraint Labour force availability in the region (No inter-regional labour mobility is assumed) Tourism expenditure is increased only in regions having both a) some unexploited tourism potential and b) a relatively high unemployment rate

19. Activation of tourism resources Regions having alow degree of exploitationaccompanied by ahigh unemployment rate(inside the ellipse) are the candidates for anincreaseof theirtourism expenditure. They all belong to the South area

20. Activation of tourism resources • Tourism expenditure is activated leading to a decrease of unemployment rate. • Yellow point = current situation Purple point = simulated situation The final impact on employment depends on: potential for tourism expenditure increase and production structure of the region.

21. Conclusions Italian regions appear to be verydifferentiatedas for their puretourist potentialand itsdegree of exploitation. Some regionssucceedin attracting tourism expenditure adequate to their attractiveness, some others fail. A better exploitation of tourist resources could represent an important opportunity of development, in particular for region suffering of a relatively high unemployment rate, as it is the case for several Southern regions of Italy.

22. Future improvements and other considerations Availability of domestic tourism expenditure Consideration of trans-regional effects: • labour force mobility • tourism competition among regions Possibility of negative effects of tourism development • socio-cultural modifications of the destinations (life-styles, traditions, system of values) • crowding out process (tendency towards amono-sectoral economy)

23. Tourism attractiveness and economic development of Italian regions Presented by Luca BULDORINI http://www.uic.it