Italian Tourism Shifts: Short-Term Rentals Surge, Hotels Decline

Italian tourism has undergone a significant transformation in the past five years, marked by a decline in traditional hotels and a surge in short-term rental accommodations. The restaurant sector, while adapting, continues to play a vital role. This snapshot comes from a Unioncamere-InfoCamere analysis, highlighting the structural evolution of accommodation and food service activities up to September 30, 2025, particularly during peak tourist seasons like Christmas.

Hotel Industry Faces Contraction

The hotel and similar accommodation sector is experiencing a widespread downsizing. Nationally, businesses have decreased by 5.2% compared to five years ago, with 1,604 fewer units, totaling 29,199. Several regions are significantly affected, with notable declines in Lazio, Marche, and Molise. However, not all areas are declining at the same rate.

Regional Performance

Regions with a strong winter tourism focus, such as Trentino-Alto Adige and Valle d'Aosta, show greater resilience, confirming the strength of mountain and Christmas tourism. Provincially, areas like Bolzano, Rimini, Rome, and Naples remain central to the traditional hotel offer, albeit within an overall context of contraction.

Before we delve deeper into the shifts, let's look at how the hotel industry has changed:

Short-Term Rentals Experience Rapid Growth

In contrast, accommodations for vacations and short stays have grown by 42.1% in five years. An additional 13,000+ businesses bring the national total to 44,801 units, signaling a profound change in hospitality. This surge is particularly evident in major cities and popular destinations. Rome has grown by 33.8%, Naples has almost doubled with +98.1%, Milan marks +75.9%, and Florence advances by 21.3%.

The growth of short-term rentals is significantly changing the landscape. Consider the following statistics:

Driving Factors Behind the Shift

The spread of digital platforms and travelers' pursuit of more flexible solutions are driving a model increasingly oriented towards short stays, exacerbating tensions in areas prone to overtourism.

Restaurant Sector Shows Stability

Amid this polarization, the restaurant sector demonstrates more stability. Restaurants with table service have grown by 2.3% compared to 2021, reaching 159,494 businesses. However, the territorial picture remains uneven. Significant increases are recorded in Sicily, Sardinia, and Calabria, while some regions in Central and Northern Italy show slight declines.

Here's a look at the restaurant sector's growth:

Metropolitan Areas Lead

Major metropolitan areas continue to concentrate the largest number of activities, with Rome in the lead, followed by Milan, Naples, and Turin. Alongside these major hubs, signs of vitality are also emerging in several provinces in the South and the islands, such as Palermo, Cagliari, Trapani, and Syracuse, reinforcing the sector's role as an economic and social anchor, especially during times of heightened conviviality.

Let's further break down the numbers with the following data:

Tourism's Changing Face

The assessment of the last five years paints a picture of a tourism sector undergoing a transformation. The traditional hotel model is declining, while short-term rentals are advancing decisively, profoundly reshaping the structure of Italian hospitality.

The Christmas Effect

This divergence is more pronounced during the Christmas period, when concentrated demand intensifies pressure on the most attractive destinations. In this context, the restaurant sector remains the most consistent element of the system, capable of adapting to ongoing transformations and remaining a pillar of the local economy and national tourism offering.

Key Takeaways from the Tourism Shift

To summarize, here are key observations regarding the evolution of tourism in Italy:

• Decline in traditional hotel businesses
• Growth of short-term vacation rentals
• Restaurant sector showing stability
• Shift influenced by digital platforms and flexible travel solutions
• Major metropolitan areas leading in restaurant activities

Lastly, here is an additional table to highlight the contrast between hotel and short-term rental growth over the five-year period: