The tourists are leaving Italy. Now catastrophe looms

For all too brief a time, the Italian summer offered a glimmer of hope. After emerging from what was in early 2020, one of the world’s harshest coronavirus lockdowns, Italy managed to dust itself down in time to welcome visitors.

But as the sun begins to cool, so do hopes of a full recovery for Italy’s decimated 2020 tourism season. Winter is coming, and with it what is expected to be a full-blown economic catastrophe.

The Italian government, like many across the world, has been doling out cash to help support many ailing businesses and individuals, but with many global travel restrictions still in place, lost revenues from the country’s faltering travel industry leaves a gaping financial hole that must now be filled.

“Tourists are what we need to keep going,” says Cassandra Santoro CEO and founder of travel planning service, Travel Italian Style. “Our guides, drivers and workers from Piedmont to Sicily who thought they would be out of work for a season, are now exploring other jobs and income sources.”

Anyone visiting Italy in August could’ve been forgiven for thinking almost everything was back to normal, bar the facemasks and social distancing. Culturally set in stone as a holiday month for Italians, it saw many locals enjoying a hard-earned break as best they could.

But even with 60% of Italians managing a break – almost all of them in Italy – and the influx of some northern European visitors, the forecast is abysmal.

“The projected 2020 loss from overseas visitors to Italy is €24.6 billion and even domestic traveler spending is down €43.6 billion,” says Giorgio Palmucci, president of the Italian national tourist board, ENIT.

Even with hopes of growth and recovery two years down the line, the pain, he adds, is likely to be widespread.

“All Italian cities are expected to be significantly impacted, particularly those more dependent on international visitors like Venice, Florence and Rome.”

An industry on the brink

Many foreign tourists have stayed away from Italy this year.

Adding to the problems is a rise in Covid-19 cases blamed on the movement of young Italians, both over the borders into countries like Croatia, Greece and Malta and to summer nightlife hotspots at home. Daily increases are lower than France and Spain, but Italians are nervous about the approaching winter.

Fears of a second wave appear to have dashed earlier projections of a September and October tourism revival, with Italians and overseas visitors canceling plans and sitting tight.

Business owners now feel that government talk of the Italian summer as a domestic boost to tourism was just rhetoric. Unbridled optimism coupled with images of packed Italian beaches for the popular August 15 ferragosto holiday were, they say, just a smokescreen for an industry on the verge of collapse.

The statistics certainly paint an uglier picture. The Italian Confederation of Business has reported that 70% of hotels in cities like Rome and Florence and 20% in coastal areas never even reopened after the lockdown. The Italian National Institute of Statistics projects that 60% of businesses in the industry fear imminent collapse.

The ongoing travel ban that prevents Americans – one of Italy’s biggest sources of tourism – from entering is also having a particularly brutal impact.

Strength and courage

Italy enjoyed a revival in domestic tourism this year, but not enough to counter the drop in overseas travelers.

Cassandra Santoro of Travel Italian Style says at least 85% of her clients are American. As of September her company has registered 100% of holiday cancellations for 2020. She says it’s the first year she has seen zero profits from Italy vacation planning.

“In December 2019, I had more than 100 clients booked to travel between March – September of 2020. I have refunded about 50% of the guests in full, and 50% have postponed to 2021, some even to 2023 and 2024.”

Like so many, she has had to reinvent her business. Together with locals on the Amalfi Coast where she is currently based, Santoro launched a digital story series #LifeBeyondTourism #AmalfiCoastLocals showcasing businesses that usually rely solely on tourism.

She says that during interviews, “We have heard more than once, ‘If the borders remain closed for the remainder of 2020, we will not have money to buy food for our family by January.’ Yet, the Italians are still optimistic and deep down, they know that this won’t last forever. Forza and coraggio (strength and courage) are what Italy knows best.”

Food tour company Casa Mia usually schedules bespoke food and wine activities across Italy non-stop from March to October. Not this year. Cancellations from US clients started coming through in February, an early sign of the catastrophic summer season.

“We lost 100% of our 2020 bookings in a matter of days,” says co-owner Eleonora Baldwin. “Over summer there has been a moderate influx of European travelers, but a recent uptick in cases could potentially trigger another lockdown, so the coming months are one big question mark.”

Hotels are facing the same uncertainty.

Operations director for luxury chain Rocco Forte Hotels Maurizio Saccani says Rome was deserted through July and August and occupancy at the famed Hotel de Russie hovered at around 15%, compared to 87% for the same period last year. The June unveiling of its new Hotel Villa Igiea in Palermo (a multi-million euro restoration project) has been moved to May 2021.

Too little too late

33 BEAUTIFUL PLACES IN ITALY: Civita di Bagnoregio, Viterbo: Civita was founded by the Etruscans more than 2,500 years ago and sits atop a rocky plateau overlooking the Tiber river valley in central Italy. The town is in constant danger of destruction by erosion and was placed on the World Monuments Watch list in 2006.

Colosseum, Rome: The awe-inspiring amphitheater echoes with ghosts of gladiators past, the roar of wild animals and the swash of sea battles, cheered on by up to 80,000 baying spectators. The arena, partly ruined by earthquake and robbers, is an enduring symbol of the Roman empire.

Florence: Captivating Florence is the capital of Tuscany and considered the birthplace of the Renaissance. The Duomo cathedral, dating back to the 13th century, is one of the highlights along with the ancient shop-clad Ponte Vecchio and the Uffizi Gallery.

Ponte Vecchio, Florence: The Ponte Vecchio, or Old Bridge, is a Florence landmark, the only Arno River crossing to survive the retreating German army at the end of World War II. It's famous for the shops which line its span -- once butchers and fishmongers, now jewelers, art dealers and souvenir-sellers.

Duomo, Milan: The Duomo is Milan's gothic cathedral dedicated to St. Mary of the Nativity, which took nearly six centuries to build. It's the largest church in Italy (excluding St. Peter's Basilica in Vatican City) and the fifth-biggest Christian church in the world.

Palermo: Ancient Palermo is the capital of Sicily and is noted for its culture, architecture and gastronomy. The port city, on Sicily's northwest coast, sits in a bowl surrounded by mountains and has long been a mix of European and Arab cultures.

Positano, Amalfi coastline: The Amalfi Coast is a sparkling jewel of Mediterranean beauty on a stretch of dramatic south-facing coastline between Salerno and Sorrento south of Naples. The gems of bougainvillea-clad Positano, Amalfi and Ravello, with vistas plunging into the deep blue of the Tyrrhenian Sea, earned the area UNESCO protection in 1997.

Trevi fountain, Rome: Legend has it that a coin thrown over the shoulder into Trevi fountain will ensure the visitor's return to Rome. Around 3,000 euros a day are tossed into the Baroque baths, retrieved nightly for charity. The travertine fountain, finished in 1762, stands at the end of the ancient Aqua Virgo aqueduct at the junction of three streets ("tre vie"), hence the name.

Tuscany: The region of Tuscany in central Italy evokes myriad images: of rolling hills, sleepy villages and dreamy vistas; earthy cooking and regional wines; Renaissance treasures such as the cities of Florence, and Pisa with its leaning tower. There's coastline and islands, too. Tuscany has its own riviera and hip beach resort of Tirrenia.

Venice: Iconic Venice in northeast Italy is one of the world's most picturesque towns, built over the shallow Venetian Lagoon on more than 100 islands separated by canals and joined by bridges. Known among other things as La Serenissima, which roughly means "most serene," Venice is a treasure trove for architecture buffs, gourmets, strolling lovers and gondola fans.

Matera, Basilicata: Matera is an ancient town in southern Italy known as the Subterannean City for the cave dwellings of its original inhabitants. Its historical center is the Sassi -- once an area of poverty but now rejuvenated to cash in on tourism.

Panarea, Aeolian Islands: Tiny Panarea is the jet-set favorite of the Aeolian Islands off the northeast coast of Sicily. Car-free whitewashed streets attract day-trippers, while yachts bob in the tiny harbor. It is a dreamy summer scene -- much is closed in winter.

Archaeological Park Neapolis, Syracuse: The park holds the most important ruins of the ancient Greek Roman city of Syracuse, with highlights including the Latomia del Paradiso (Paradise Quarry), the fifth century BC Greek Theater hewn into the rockside, and the Roman amphitheater.

Salina, Aeolian Islands, Sicily: Salina is the second-largest and the greenest island of the Aeolian archipelago off northeast Sicily. It's made up of two principal volcanoes Monte dei Porri (860 meters) and Monte Fossa delle Felci (962 meters), both long since extinct. Its steep verdant slopes are famous for grapes, olives and capers, while the port of Santa Marina Salina offers a focal spot for tourists.

The Faraglioni of Capri, Napoli: The island of Capri off the end of the Sorrento peninsula south of Naples conjures images of the perfect Mediterranean idyll, of plunging sea views, picturesque piazzas and spilling bougainvilleas. It has been a jet-set and Hollywood favorite for decades and designer boutiques and chi-chi cafes hide more unspoilt charms. The faraglioni are three rock formations created by erosion off the coast.

Blue Grotto, Capri: The Blue Grotto is a sea cave off the northwest coast of Capri, where sunlight illuminates the space with an azure hue. The entrance is less than a meter high, just enough for a small rowboat and its prone passengers to glide through.

Cala Sabina, Asinara: Asinara is a virtually uninhabited island off the northwest tip of Sardinia measuring 52 square kilometers. It's hilly, rocky and barren, and designated a nature reserve, inhabited by wild albino donkeys. In the past it has been a leper colony and a high-security prison, but is now open to tourists attracted by its unique setting and coves of azure water such as Cala Sabina.

Lake Iseo, Lombardy: Smaller, quieter and arguably more charming than its more famous cousins Lake Como and Lake Garda -- and sandwiched between them -- Lake Iseo is a unsung gem of northern Italy.

The Langhe, Piedmont: The Langhe is a rolling region in the Piedmont region in the far northwest of Italy. It is famous for its wines, cheeses and truffles, especially the famous winter white truffles from the hills around Alba, southeast of Turin. The region's wine-making culture led to it joining UNESCO's World Heritage list in 2014.

Cascata delle Marmore, Terni: The Cascata delle Marmore is a man-made waterfall created by the Romans near the town of Terni in Umbria, central Italy. It's 165 meters high with three separate falls, the biggest of which is 83 meters. The water, which originally comes from the River Velino, normally flows into a hydroelectric power plant, but at certain times every day it is diverted down the falls, to the delight of paying tourists.

Val d'Orcia, Tuscany: This enchanting area of Tuscany is a UNESCO-protected World Heritage site for its rolling hills, vineyards, the lush valley of the Orcia River, and picturesque towns like Pienza and Castiglione d'Orcia with its hilltop fortress.

Ponza isle, Pontine Islands archipelago: The Pontine Islands lie in the Tyrrhenian Sea to the west of Naples. They comprise Ponza, the main island, along with Palmarola, Zannone and Gavi, plus Ventotene and Santo Stefano to the southeast, closer to the mainland. Stunning natural scenery, secluded beaches and island chic make these popular but unspoilt tourist spots.

Treviso, Veneto: Canals, cobbled streets, medieval city walls, frescoed churches -- it could be Venice just down the road, but Treviso is more than just a gateway to La Serenissima. This hidden gem makes it worth resisting Venice's siren call for a day or two.

Mount Etna, Sicily: Mount Etna towers over the cities of Messina and Catania in the far east of Sicily and is the highest active volcano in Europe. At 3,329 meters it is also the tallest peak in Italy south of the Alps. Because Etna is in an almost constant state of activity its fertile volcanic soils support abundant agriculture and viticulture on its lower flanks.

Circeo National Park, Latina: The limestone massif of Mount Circeo (541 meters) sits on a promontory about 100 kilometers southeast of Rome. It gives its name to the National Park which takes in the coastal strip from Anzio to Terracina and includes the "orgy" island of Zannone.

Cetona, Siena, Tuscany: Cetona is a beautiful ancient hilltop town in southern Tuscany featuring narrow paved streets, a splendid square in Piazza Garibaldi and a slower pace of life. The surrounding countryside is known for its high-quality extra virgin olive oil.

Mount Soratte and Tiber Valley, Rome: Monte Soratte is a soaring limestone ridge north of Rome dominating the Tiber River valley. It's 5.5 kilometers long with six main peaks, reaching 691 meters at its high point. The Tiber is the third-longest river in Italy, rising on Monte Fumaiolo in the Apennines and flowing southeast to reach the sea at Ostia. Rome was founded on its banks.

Vulcano, Aeolian Islands: Vulcano Island is the southernmost island of the Aeolian chain in the Tyrrhenian Sea off the northeast coast of Sicily. The most recent volcanic activity came from its central Fossa cone in 1890. The eight Aeolian Islands -- Lipari, Vulcano, Salina, Stromboli, Filicudi, Alicudi, Panarea and Basiluzzo -- are named after a mythological figure, Aeolus.

Bolzano, South Tyrol: Bolzano is the capital city of the Alto Adige (Italian for South Tyrol) in northern Italy. It sits in a broad valley surrounded by hills and vineyards and is the gateway to the Dolomites. Near the German border and once part of the Austrian-Hungarian Empire, Bolzano is a blend of northern and southern European cultures.

Selinunte Archaeological Park, Sicily: A stroll down through the ancient Greek city of Selinunte on the southwest coast of Sicily gives a vivid impression of a mighty former civilization with five temples, including the impressive Temple of Hera, strung down a rocky ridge overlooking the sea.

The Dolomites: The Dolomites is a dramatic mountain range in northeast Italy popular for snow sports in the winter and climbing and hiking in the summer. The highest peak is the 3,343-meter Marmolada. The range was on the front line between the Italian and Austro-Hungarian forces in World War I and witnessed brutal fighting.

Grotta Gigante, Trieste: Grotta Gigante is a huge cave open to tourists just north of Trieste in northeast Italy near the Slovenia border. Its central chamber measures 107 meters high, 130 meters long and 65 meters wide and is thick with stalactites and stalagmites. The cave was first explored in 1840 and first opened to the public in 1908.

Greek Theater of Taormina, Sicily: Taormina is a tourist hotspot on Sicily's east coast, famed for its mountainside setting in the shadow of Mount Etna, breathtaking sea views, Greek and Roman history, plus top-notch beaches, wining and dining.

33 beautiful photos of Italy

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Giorgia Tozzi, general manager of Rome’s five-star Hotel Vilon, says 2020 was to be the property’s third and most promising year of business. With record high bookings for April onwards, they were gearing up for their best summer to date.

Instead, by mid-February cancellations started coming through, forcing the hotel to close. Things picked up slowly after they ambitiously reopened on June 3, initially with Italian business travelers and then from mid-June through to September, travelers from France, Spain and Northern Europe.

“This helped us achieve occupancy of around 37%, compared to over 80% for the same period last year – disappointing but given the current climate, a miracle. The next few months are uncertain but we hope to see some improvement from Spring 2021.”

Tozzi remains positive.

“Rome as they say is the Eternal City and will survive. Perhaps her resilience and beauty will give us the strength to start again and find a new tourism normal.”

But while there’s much talk of billions of EU stimulus and domestic initiatives, many business owners say it’s a case of too little too late.

Natalino Gisonna, the owner of Rome’s Corso 281 Luxury Suites, has been vocal in calling for further support from the Italian Government.

“Covid-19 has been an economic disaster for our hotel,” he says. “Between June and September, we welcomed just six guests, mainly from France and the UK. For the same period last year, we were at 95% occupancy. I don’t believe there will be any improvement until spring 2021 and that’s only if international borders reopen.”

Gisonna says that government measures to support the tourism sector to date, including a so-called “holiday bonus,” have been ineffective because they have failed to provide desperately needed funds to businesses.

“Of the €2.4 billion allocated economy stimulus, to date only 200 million has been spent and only 8% has reached hotels and beach clubs. Unallocated resources should directly go to those businesses in need, in the form of tax relief and grants or many won’t survive.”

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A drop in travel helps the planet. But there's a catch

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It’s not just city hotels suffering. On islands like Ischia and Capri, mass tourism is seasonal and businesses here work hard to ensure summer earnings sustain them for the year.

Together with husband Gianluca D’esposito, Holly Star owns Ristorante Michel’angelo and a popular cooking school on Capri, an island that usually welcomes over two million travelers annually. “To say this summer has been a challenge is an understatement, especially for small family-run businesses like ours,” she says.

With a vacation season reduced seven months to just two and a half and 80% of their international clientele absent, Star has had to rethink her operation.

“Our cooking school remains closed and we have transformed our business to offer international shipping of our food product line and can only hope the current situation improves for our new garden venture launching next year.”

Sustainable tourism

ITALY'S PRETTIEST HOTELS: Le Sirenuse (Positano, Amalfi): A classic piece of the Amalfi Coast, Le Sirenuse has guest rooms with private patios overlooking the sea.

Borgo Egnazia (Puglia): Blending traditional style with a more modern setting, the Borgo Egnazia is a contemporary castle set among olive groves.

The Gritti Palace (Venice): This 15th-century palace occupies one of the best positions on the Grand Canal, across the water from Santa Maria della Salute and the Palazzo Venier dei Leoni aka the Peggy Guggenheim Collection.

Aman Venice: The home of the Arrivabene family, who still live on the top floor, the Aman Venice is a true palazzo hotel.

J.K. Place (Capri): More minimal than other high-end Amalfi coast hotels, J.K. Place has the contemporary feel of an intimate but high-end guest house.

Villa la Massa (Florence): Built in the 16th century for a member of the Medici family, Villa la Massa stands on the banks of the Arno River, surrounded by lemon trees and olive groves.

Grand Hotel Excelsior Vittoria: With views that soar over the Gulf of Naples, the Vittoria's 19th-century buildings sit in an expansive Mediterranean garden.

Il Sereno (Como): A striking piece of modern architecture cut into a cliff face and perched over the water, Il Sereno is the newest addition to the Como scene.

Villa D'Este (Como): This 16th-century villa on the shores of Lake Como is set among acres of immaculate gardens.

Il Pellicano (Porto Ercole / Tuscan Coast): The rooms at the mountainside Il Pellicano, are found in cottages and villas, each with their own style.

Il San Pietro di Positano (Amalfi): The only hotel in Positano with direct access to a private beach, this hotel also has a solarium, bar and restaurant.

Four Seasons Hotel Florence: The Four Seasons Hotel offers a city resort experience in the fabulous 15th-century Palazzo della Gherardesca.

Palazzo Seneca (Umbria): Located in the Sibylline Mountain National Park, famous for black truffles and charcuterie, Palazzo Seneca has its own Micheln-starred restaurant.

Belmond Castello di Casole (Tuscany): Built from the ruins of a 10th-cenury castle and garden, this hotel has a vast estate with an ancient amphitheater, wine cellar and chapel.

J.K. Place Roma (Rome): A traditional exterior belies a more contemporary interior at this central Rome hotel. The lobby sets the tone, featuring both classical Roman sculptures and modern art.

Palazzo Margharita (Bernalda): Located in southern Italy, this palatial 19th-century estate is owned by movie director Francis Ford Coppola.

Hotel Savoy (Florence): This city center hotel overlooks the cafes of Piazza della Repubblica and is walking distance from the Duomo, Palazzo Strozzi, the boutiques of Via Tornabuoni and the San Lorenzo market.

Mandarin Oriental (Milan): The black and white marble mosaics of the bar at the Mandarin Oriental Milan are among the highlights of this chic urban hotel housed in four 18th-century palazzos.

Hotel Eden (Rome): Located in a prime spot between the Spanish Steps and the Villa Borghese, the Hotel Eden is one of Rome's most stylish properties.

Rosa Alpina Hotel & Spa (The Dolomites): This ski resort in the Italian Alps offers year-round activities and relaxation breaks.

Belmond Grand Timeo (Taormina, Sicily): Set atop Mount Tauro, this grand Sicilian hotel has 71 rooms, most of which have news over medieval rooftops, the sea or neighboring Mount Etna.

Belmond Hotel Caruso (Ravello, Amalfi Coast): Terraced gardens of olive trees, lemon groves and rose bushes, frescoed ceilings, ancient stone vaults, and airy, elegant rooms with four-poster beds are among the seductive attractions at Hotel Caruso.

Buglari Hotel Milan: House in a 1950s building in Milan's Brera artists' quarter, the exquisitely designed Bulgari comes with a large private garden.

Belmond Hotel Cipriani: Ninety-six elegant rooms and suites, complete with marble bathrooms, offer the choice of views over Venice's lagoon or the 15th-century Palazzo Vendramin.

A photo tour of Italy's prettiest hotels

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Michael Sambaldi, managing director of Pellicano Hotels, says while summer revenue on the island of Ischia, in the Gulf of Naples, dropped by up to 50%, his group’s Mezzatorre Hotel and Spa was able to capitalize on the Italian tourist market, with locals increasingly appreciating the beauty within their homeland.

He believes the situation has forced businesses to become savvier in terms of financial and even marketing resources, which is the reason the hotel is participating in a new global campaign, Ischia is More.

Created by a consortium of passionate local entrepreneurs, it aims to position the island as a dynamic year-round destination initially through showcasing its history, culture and beauty via a dedicated Instagram channel. It will eventually encompass a reboot of the spa sector and sustainable tourism projects.

Luxury Regina Isabella is another founding member of the Ischia initiative. CEO Giancarlo Carriero says that while the island’s 2020 season was predominantly for Italians, he is hopeful international tourism will recover by 2022. He says the pandemic has changed people and that meaningful and wellness travel will become the priority for many. Ischia, with its healing thermal waters and striking natural landscapes, can provide that and more.

And so while the current outlook doesn’t bode well, these businesses on Ischia – together with many others across the country – are determined to keep up the fight. Perhaps their example is the beacon Italy needs for what will be a long and painful road out.

Maria Pasquale is an Italian-Australian food and travel writer based in Rome. Author of I Heart Rome and founder of the award-winning blog HeartRome, her adventures can be followed on Instagram @heartrome.