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Italian competitiveness: culture, manufacturing, tourism

    • Venice
    • 13 October 2017

          Participants at this Aspen Seminar for Leaders session noted that culture has played, and will definitely continue to play, a key role in Italy’s economic and social development. From a historical standpoint, it has been a strong factor in the formation of identity and in integration, for a country whose unification took shape in literature before doing so on the battlefields of the Risorgimento. Looking to the future, it was felt that culture could serve as a vehicle for growth, capable of stimulating entrepreneurship even in those areas of the country that have struggled to hit upon a development paradigm because they are outliers to the major centers of economic and cultural accretion. These areas could leverage new types of cultural offerings, tapping into changes and emerging trends in tourism demand.

          Tourism was acknowledged as traditionally one of the Italian economy’s key sectors, accounting for close to 10% of GDP and around 2.5 million jobs. Yet, technological changes and their impact on the behavior of tourists call for operators in the sector to alter the paradigm underpinning traditional offerings which still predominantly characterizes Italian tourism.

          It was stressed that the asset to capitalize on is Italy’s vast and highly-variegated cultural heritage. This extraordinary richness has at times acted as a constraint, in a country that seems to have settled into a model which views the world as eager to visit Italy rather than recognizing that Italy needs to attract international tourists. This attitude has led to scant investment and a lack of innovation in the tourism sector, critical failings that combine with the country’s existing governance difficulties. However, market forces and competition from more dynamic tourism-oriented economies, such as France and Spain, are prompting Italy to bring its approach up-to-date.

          Italy’s cultural heritage was viewed as disproportionately sizeable for the country’s economy, which struggles to find ways and means of ensuring the preservation and maintenance of its associated assets. The solution proposed was that of melding the country’s want of resources and its expertise with the great global demand for Italian culture. Moreover, expertise was held up as a key ingredient for a system that – despite lacking in financial resources – still manages to make considerable budgetary allocations available for maintaining cultural institutions.

          It was argued that in order to harness the resources and considerable expertise on hand, strategic planning is required that sets clear timetables and objectives. An approach that is holistic – while at the same time respectful of local uniqueness – needs to be established, which is able to capitalize on the strengths of different localities. 2018, the “European Year of Cultural Heritage”, was seen as representing a great opportunity for Italy, as well as a formal deadline for the various changes taking place.

          Lastly, it was emphasized that the challenge goes far beyond tourism and culture. Indeed, a narrative of the country that showcases its excellence would serve as an effective ambassador to the market. It could also prove a key factor in boosting Italy’s appeal within a global competitive scenario.

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