The Amazing Growth in Italian Occupancy Rates

Italy has been at the center of attention for tourists from all over the world. This has resulted in a spike in overall occupancy rates in the country. Some famous cities in Italy are reported at an occupancy rate of 85%-90%. This depicts that things are going solid in the real estate market and hotel industry and for that very reason investors are flocking in to get their share of the pie.

The year 2017 proved great for the Italian hotel market as its transaction volume exceeded €2 Billion. From there onwards, things have been great for this industry as well as for real estate.

Looking at the Bigger Picture

According to a recent report by the National Institute of Statistics, Italy, the year 2018 saw a 19.5% increase in the number of trips made to the country.

Similarly, a positive trend of +12.7% was observed in the number of long holidays. This depicts that there are more people coming to Italy for a longer stay for the third consecutive year resulting in an increase in occupancy rates.

Looking at the booking stats tells us something really interesting. There were 56.2% direct bookings made, while the other 6.6% were completed through travel agencies. This also establishes that the hotel industry benefited the most and catered more tourists than the recent lodging platforms.

Factors Driving Change

The factors that are helping the Italian occupancy rates to rise are as follows.

• Great education in Italy is attracting students and professionals from everywhere.
• International students find Italy to be an affordable destination which helps raise the occupancy rates throughout the country.
• The amazing Italian culture attracts people which in turn results in increased tourism.
• Low crime rates.
• Religious tolerance.

These factors are just the tip of the iceberg and the hospitality industry has been benefiting greatly because of the increased tourism. Since things are affordable, people go the luxury options instead of lodging and this helps hotels generate more revenue and attract investments.

What Does This Mean For the Italian Hospitality Industry?

The stats are in favor of hotels and other rental buildings in the country. With a booming economy, Italy is considered to be among the most liked tourist destinations in the EU.

Over the past few years, new online lodging services have been the center of attention. The hotel industry was considered to be under threat because of these online platforms. Thanks to the quick adoption of technology, the hotels have been able to keep up with these revolutions.

Therefore, the future for investing in hotels in Italy is bright as the country is seeing a continuous rise in its occupancy rates and hotel transaction volume.