The ‘Hidden’ Italian El Dorado? #ItalyFinance

Andrea Pietrini | Chairman, YOURgroup | Author of “Fractional Manager”

When my daughter graduated this summer, I thought it would be great for her to explore the world. She visited one of her friends in the United States, spending a few weeks in Georgia and touring the southeastern coast with her friends. But when she landed, one of the first things her host asked was, “Why Georgia? You’re from Rome, the city of The great beauty.”

Now my daughter is back in Rome, showing her friend from Georgia the city where they’ll be attending university together.

Italy is no secret when it comes to being a must-visit destination—once in a lifetime, or even twice. But tourism here is still an untapped gold mine in many locations, one that should be further explored and maximized by both Italians and foreign investors.

Over-Tourism: A Blessed Opportunity

Recently, Italian media has been buzzing about a new term: over-tourism. All summer long, TV broadcasters discussed the crowds flocking to Sardinia’s stunning coastlines, the historic streets of Rome and the breathtaking views of the Amalfi Coast. Even Lake Como, with its glamour boosted by George Clooney’s villa, has been in the spotlight.

While tourism is booming in certain areas, bouncing back from the dark days of the Covid era, it still remains a largely untapped opportunity for much of the country.

Take the hospitality industry, for example. As Maria Carmela Colaiacovo of the Associazione Italiana Confindustria Alberghi recently explained:

“New travelers—who are increasingly international (+11% foreign overnight stays in 2023 compared to 2022, +17% spending in Italy)—define the post-pandemic market. This trend is set to grow further in the coming years. While domestic tourism has stabilized and may only decline slightly, the foreign segment is expected to expand significantly. The industry has a positive outlook and must adapt its offerings to meet travelers’ increasing demand for experiences. Hotels are transforming, becoming more identity-driven. The development of branded hotel chains—whether directly operated or franchised—has brought incredible diversification to the market. From lifestyle to ultra-luxury, these products are shaping the hospitality landscape. For Italian operators, this is an opportunity to enhance their offerings and collaborate with local communities to create unique and unforgettable experiences for travelers worldwide.”

The outlook for investors seeking to expand their portfolios in this industry is bright. According to the Horwath HTL 2023 report, chain hotel keys have increased at a CAGR of 3.6% over the last five years, growing from 179,000 to 207,000 keys. The Upper Upscale and Luxury segment saw the strongest growth, with a 5.3% increase (+4,800 keys since 2019). The Economy segment grew by 4.2%, Upscale by 3.5% and Midscale by 3.1%.

As reported by The sun 24 hoursthe hospitality sector closed in 2023 with 12 deals worth approximately $1.6 billion. Sardinia, Sicily and Lake Como were the hot spots. The trend has continued into 2024, with Rome preparing for new luxury developments. Even independent investors like Bill Gates and Robert De Niro are getting involved, launching luxury hotel projects in the Eternal City.

At my company, we’re actively managing dossiers related to financial funds investing in Italy’s domestic market.

Travel Tech And Sunscreen

While Italy’s luxury hospitality sector is thriving, other tourism-related industries are also experiencing growth. Travel tech startups and their associated venture capital investments are expanding rapidly. In 2024 the Italian government sponsored road shows to build networks and attract funding for domestic travel tech startups.

According to Seedtable’s rankings, there are currently 22 travel tech startups in Italy, collectively raising $33.8 million in funding, with an average of $1.5 million per startup. Although these numbers pale in comparison to the U.S. travel tech ecosystem, they represent an opportunity for foreign investors.

Shopping Tourism: Fire-Sale Frenzy

Lastly, shopping tourism deserves a spotlight. While Italy’s food, landscapes and cultural experiences are worth every penny, shopping is also a growing trend among foreign tourists.

Milan is already known as a global capital of fashion, but fire-sale shopping is gaining traction. From December 2024 to January 2025, 55.6% of tourists purchased high-end luxury items such as bags, jewelry and complete outfits; another 25.1% was spent on local food and wine.

This trend highlights a broader opportunity. Imagine a tourist from Los Angeles visiting Milan during a fire sale. She purchases a discounted luxury bag, flies home and becomes a repeat customer thanks to digital engagement from the retailer. This connection—fostered by pervasive social media and digital marketing—creates a loyal international client base.

How Investors Can Access The Untapped Mine

Today’s tourism, powered by digital media, is still a largely untapped gold mine for Italy. Hotels, restaurants, fashion and travel tech are thriving, attracting foreign investors eager to amplify the Italian Great beauty with fresh capital and global vision. Foreign investors can access this mine in several ways.

First of all, they can do this by participating or merging with local luxury hotel and travel chains. Several luxury hotels are still owned by family offices or important families. Banding with them could offer a great opportunity for foreign tourist hotel operators to expand their market in Italy.

Small hotel and resort portfolios are another way to get inside the financial side of Italian tourism. In the food and wine sector, strictly tied with “Italian food experiences,” there are several local producers of food, wine and oil who lack exposure to foreign markets, including the ones tourists come from.

Another option, perhaps more accessible for those in Big Tech, is to invest in travel tech startups that can offer access to existing consumer bases.

Considering how much Italy is growing in terms of national branding, accessing the mother lode of tourism could be a great opportunity for foreign investors interested in Italy.

The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.

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