Hospitality Italy: record visitor numbers, growth in the luxury and upscale segments, and new market dynamics

Tourism in Italy in 2025 and the first half of 2026

Following the decline recorded during the pandemic, Italy’s tourism sector quickly recovered to pre-Covid levels, surpassing them as early as 2024. In 2025, the country reached a new all-time high with more than 160 million arrivals, while visitor flows remained strong throughout the first half of 2026, confirming the resilience of demand.

Growth continues to be driven primarily by international visitors, who now represent the majority of arrivals and are expected to remain the sector’s main growth engine in the years ahead. At the same time, travel patterns are evolving, with a steady increase in arrivals by air and rail, reinforcing the strategic role of transport infrastructure.

The sea remains Italians top destination, while major cities attract international visitors

Seaside destinations remain the preferred choice for domestic travellers, while international visitors are increasingly drawn to Italy’s major cities. Compared with 2019, however, international demand has grown across all major destination types, confirming the broad-based expansion of inbound tourism.

Italy continues to be a leading summer destination, driven by its seaside resorts (29% of arrivals and 37% of overnight stays). Major cities follow (27% of arrivals and 22% of overnight stays), along with destinations known for their cultural heritage and scenic landscapes (17% of arrivals and 14% of overnight stays).

Major cities are the top choice for international visitors, while seaside destinations remain Italians’ preferred holiday destination.

Compared with 2019, major cities recorded the strongest growth in arrivals (+28%), followed by lake destinations (+25%).
This trend has been driven primarily by international demand, which has increased across all major destination types in Italy: +39% in major cities, +36% in cultural and seaside destinations, and +33% in lake and mountain destinations.
These figures highlight Italy’s growing appeal among international visitors and its ability to attract an increasingly diverse range of tourist flows.

Rome and Milan remain the leading tourist destinations among Italy’s major cities. Southern Italy has also recorded strong growth, with Bari and Palermo standing out among major cities and Salento emerging as one of the country’s fastest-growing holiday destinations. 

Travel preferences of Italians and international visitors

The analysis highlights an increasing divergence in travel preferences.
International demand is growing across all major Italian destinations, with the strongest momentum in major cities, cultural destinations, and lake resorts. Domestic demand, meanwhile, continues to be driven primarily by seaside destinations and traditional holiday locations.
At the same time, Italian travellers are showing growing interest in niche experiences that offer a more authentic connection with local destinations, reflecting a broader shift towards higher-quality travel experiences.

Hotels: the premium segment continues to grow

The hotel sector is undergoing a clear shift towards the premium segment compared with the pre-pandemic period.

Since 2019, the number of five-star hotels has increased by 46% (further strengthened by an additional 5% growth over the past year), marking the strongest performance across all hotel categories. At the same time, the number of four-star hotels has grown by 13%, accounting for the largest share of national bed capacity (38% of the total). By contrast, the lower-end segment continues to decline. The number of one- and two-star hotels has fallen by 10% and 9%, respectively. Three-star hotels remain the largest category by number of establishments (45%), although the segment has remained largely unchanged and shows a slight long-term decline.

Compared with 2019:

• 5-star hotels: +46%
• 4-star hotels: +13%
• 1- and 2-star hotels: -10% / -9%
• 3-star hotels: -0.4%

The outlook reinforces this trend: around 270 new hotel openings are expected by 2029, with a strong focus on the luxury segment. Rome and Milan continue to stand out as Italy’s most dynamic hotel markets.

Growth is being driven by the alternative accommodation sector

Alongside the transformation of the hotel industry, the alternative accommodation sector continues to expand, driven by rental accommodations (+33% since 2019, largely fuelled by the growth of short-term rentals), which now account for 89% of all accommodation establishments.

Rental accommodations make up the vast majority of Italy’s alternative accommodation sector and represent 61% of total bed capacity, reinforcing their central role in the country’s evolving tourism offering. Growth is also supported by the expansion of the short-stay market and the rise of online bookings, with Italy ranking as the third-largest market in Europe by the number of overnight stays booked through digital platforms, confirming the increasing importance of digital channels in the tourism industry.

Overall, a transformation in tourism demand is emerging, increasingly oriented towards flexible and independent solutions.

Investment: Milan and Rome lead the market, while emerging destinations continue to grow

The hospitality sector continues to demonstrate strong investment appeal.

After reaching €2.2 billion in investment volume in 2025, making Italy the fourth-largest hospitality investment market in Europe, the sector recorded approximately €1.2 billion in investments during the first half of 2026, confirming its position as one of the most dynamic asset classes in the Italian real estate market.

Milan accounts for around 30% of total investment volumes, followed by Rome with more than 20%. At the same time, investor interest is expanding towards emerging destinations such as Lake Como, Sicily, and the luxury alpine destinations of Trentino-Alto Adige and Valle d’Aosta, which are playing an increasingly important role in investment strategies.

Italy continues to stand out as one of the most attractive markets in Europe.

Italian hospitality: an evolving market

The analysis highlights a sector undergoing profound transformation, with changing seasonality patterns and evolving destination dynamics.
The trends outlined above point to a phase of sustained growth, driven by rising international demand, the expansion of the luxury segment, and an investment market that continues to favour high-quality assets.
In the years ahead, competitiveness, sustainability, and the ability to attract new tourism flows will be the key factors reshaping Italy’s hospitality landscape.

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