How Italy`s tourism
survives through
recession of economy
Economics of tourism
Agnese Lubka
Yana Shelkova
Oleksandra Soroka
1
Source: http://www.mapsofworld.com/italy/ 2
General info
• Population (January 2011 est.): 60.6 million.
• Annual population growth rate (2010 est.): 0.04%, mostly due to immigration.
• Ethnic groups: Primarily Italian, but there are small groups of German-, French-, Slovene-, and Albanian-Italians.
• Government : Unitary parliamentary constitutional republic
• Prime minister : Mario Monti
• GDP (PPP): $1.8 trillion
• 8th largest economy in the world
Source : http://www.traveldocs.com/index.php?page=about-italy-2 3
Important people
Mario Monti – prime minister
Silvio Berlusconi – ex prime minister
Piero Gundi – minister of tourism and sport
4
Source : www.hollywoodreporter.com
I. From economic
power to a country
of problems
5
Economic background
• Early Middle Ages - economic boom.
• In 19th century Italian industry was undercut by foreigners.
• Now it is industrialized country that still suffers from the consequences of a highly controlled economy.
• Economic imbalance between North and South Italy and high level of shadow economy leave the country suffering.
6
Key indicators
7
Source: http://www.zerohedge.com/news/pardonthe-interruption-debt-crisis-resume-shorty-says-deutsche-bank 8
Source : http://www.zerohedge.com/news/2012-12-14/italy-joins-two-trillion-debt-club 9
Why is Italy in trouble?
1. Public Debt: 120.1% of GDP /$2.6 trillion
2. Productivity: low due to high unemployment rate (bad job conditions)
3. Goverment (mafia) – corruption, more than 15% shadow economy
4. The South – Unemployment, crime, black market
Source : http://www.theatlantic.com/business/archive/2011/11/4-reasons-why-italys-economy-is-such-a-disaster/248238/ 10
II. Tourism in Italy –
a long tradition
11
• The focus at the 18th century was culture
(Grand Tour, art focus).
• The 1960s - real boom
(German and Austrian tourists).
12
Tourism impact on economy
• Tourism in Italy benefits the economy much more than its rich agricultural landscape.
• Generates employment.
• 69 % of Italy's GDP - services sector (tourism).
• The construction sector makes up 29 %, which tourism greatly affects.
13 Source : http://www.ehow.co.uk/list_7452173_effects-tourism-italy.html
Italy - land of art and history
• Italy -the centre of history, culture and art.
• Italy has more cultural 47 UNESCO World Heritage Sites than any other country.
• Rome, Florence, Assisi, Venice, Siena, Pisa, and Naples are its most renowned cities of art, but the whole country can boast towns of breathtaking beauty.
14
Tourism negative impact
• Overdevelopment in some cases.
• Lack of authentic construction .
• Displacement of local residents.
• Italian local produce, life-styles and traditions are all affected by mass tourism (Venice, Roma,etc).
15 Source : http://www.ehow.com/list_7452173_effects-tourism-italy.html
16
17 Source: http://www.invitalia.it/site/eng/home/investment-opportunities/tourism.html
18
International tourism, number of arrivals from 1995 to 2010
International tourism, number of departures from 1995 to 2010
19 Source : World Tourism Organization, Yearbook of Tourism Statistics, Compendium of Tourism Statistics and data files.
III. Conclusion
• Tourism benefits Italy`s economy(69 % of GDP - service sector).
• Tourism survives and has big potenital due to cultural heritage(UNESCO), gastronomy, climate, shopping.
• The recession could bring risk to tourism development (unemployment of residents, etc).
• New corrections from the government – a new tax system that reduces taxes on workers and measures offering better protection to younger workers – in order to boost employment and encourage investment.
20
Thank you for your
attention
21
Top Related