Italy’s luxury tourism sector generated an estimated €10.4 billion in direct tourist spending in 2025, highlighting the growing economic importance of high-end travel. However, the benefits remain concentrated in a relatively small number of destinations, with 25 Italian provinces still having no five-star hotels.
According to a study by the Demoskopika research institute, five-star and five-star luxury hotels accounted for 17.3 per cent of Italy’s hotel industry turnover in 2025, which was estimated at just over €60 billion. The figures also reveal how much more visitors spend when staying in luxury accommodation. Each overnight stay in a five-star hotel generated an average of €702 in tourist spending, compared with €209 across the hotel sector as a whole.
The high-end accommodation market has also expanded considerably faster than the wider hospitality industry. Between 2008 and 2025, overnight stays in Italy’s five-star hotels increased by 111.1 per cent. Across all hotel categories, the increase was just 14.5 per cent.
In 2025, five-star establishments recorded almost 14.9 million overnight stays and more than 4.9 million arrivals. Compared with 2024, arrivals increased by 5 per cent, while overnight stays rose by 5.7 per cent. The figures point to continued demand for premium accommodation, particularly among international visitors with greater spending power.
However, the expansion has not been evenly distributed across the country. A small number of regions and cities account for most of Italy’s luxury hotel activity and the spending it generates.
Rome is the country’s leading luxury tourism destination. According to Demoskopika’s Elite Index (Exclusive Luxury & International Tourism Evaluation), which assesses Italy’s high-end tourism market, Lazio ranks first among the regions for direct spending generated by luxury visitors. The region recorded an estimated €2.3 billion in luxury tourist spending in 2025, representing 21.7 per cent of the national total.
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Trentino-Alto Adige followed with €1.7 billion, ahead of Veneto at €1.4 billion, Lombardy at €1.3 billion and Tuscany at €1 billion. The figures underline the importance of both Italy’s major urban destinations and its established mountain and leisure tourism markets.
At provincial level, Rome accounted for 19.7 per cent of all overnight stays in high-end hotels. The concentration becomes even more pronounced when other leading destinations are included. Rome, Bolzano, Venice, Florence and Milan together represented 53.4 per cent of luxury hotel overnight stays nationwide. Across the 17 main luxury tourism hubs identified by the Demoskopika study, the share reached 79.2 per cent.
The limited geographical spread of five-star accommodation is another defining feature of the market. Italy had 809 five-star hotels in 2025, an increase of 38 establishments compared with 2024. Together, they offered almost 110,000 beds, representing just 4.8 per cent of the country’s total hotel capacity. Despite the growth, 25 provinces still had no five-star hotel at all.
Italy’s position in the European tourism market is considerably stronger when measured by overall visitor numbers. Eurostat figures cited in the study show that the country recorded approximately 535 million overnight stays across all types of accommodation in 2025. This placed Italy ahead of Spain, with 513 million, France, with 472 million, and Germany, with 440 million. Together, these four countries accounted for more than 60 per cent of all overnight stays in the European Union.
The picture changes when tourism activity is measured against population. Spain recorded 10.4 overnight stays per resident in 2025, compared with 9.1 in Italy and 6.9 in France. This suggests that although Italy attracts more overnight stays in total than its major European competitors, Spain generates a higher level of tourism activity relative to its population.
Hotel investment figures also show the scale of competition. A 2025 European hotel market report by BNP Paribas Real Estate found that Spain, the United Kingdom, France and Italy together accounted for more than half of hotel investment across Europe. The United Kingdom attracted approximately €4 billion, followed by Spain with €3.3 billion. Italy recorded around €1.8 billion, representing 9 per cent of European hotel investment, compared with 16.4 per cent for Spain and 14.9 per cent for France.
Performance across hotel categories offers another indication of the strength of the luxury market. In 2025, revenue per available room (RevPAR), a key measure of hotel performance, increased by 3.8 per cent in Europe’s upscale hotel segment. In contrast, budget hotels recorded a 1.9 per cent decline. The difference points to stronger revenue performance among higher-end establishments, although it does not mean that all luxury hotels are experiencing the same level of demand.
International visitors remain central to Italy’s hotel economy. Demoskopika identifies 11 major foreign markets that account for 62.2 per cent of international overnight stays in Italian hotels. These include Germany, the United States, the United Kingdom, France, Switzerland, Austria, Spain, the Netherlands, Canada, Australia and Japan.
Across all hotel categories, visitors from these markets generated an estimated €21.4 billion in turnover in 2025 when the different components of tourist spending are considered. Germany was the largest market, contributing approximately €6.39 billion, followed by the United States at €4.69 billion.
For Italy, however, expanding luxury tourism will require more than attracting additional international visitors or opening new five-star properties. The Demoskopika study points to the need to make better use of existing hotel capacity and extend operating periods beyond the busiest travel seasons.
Occupancy remains a concern. According to the research, bed occupancy in high-end establishments is still below the national hotel average of 37.1 per cent. The problem is particularly evident in southern Italy, where some luxury accommodation has a more recent market presence or operates mainly during specific seasons.
Transport connections, the availability of services and the ability to attract visitors throughout the year will therefore influence how successfully luxury tourism expands beyond established destinations. Better connections and a longer operating season could help more provinces benefit from visitors who currently concentrate their spending in a relatively small group of cities and resorts.
Italy has already established itself as one of Europe’s largest tourism markets, and its luxury hotel sector has grown substantially over the past two decades. The figures from 2025, however, reveal a difference between the economic value of the market and the geographical reach of its benefits. With almost four-fifths of luxury hotel overnight stays concentrated in 17 provinces, the challenge is to extend that demand to more parts of the country without leaving existing hotel capacity underused.
