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Managing Mass Tourism in Florence 2016-187.1 ANZSOG Case Program Standing room only: managing mass tourism in Florence 2016-187.1 … we residents sometimes pity you poor tourists not a little - handed about like a parcel of goods from Venice to Florence, from Florence to Rome, living herded together in pensions or hotels, quite unconscious of anything that is outside Baedeker, their one anxiety to get 'done' and 'through' and go somewhere else. The result is they mix up towns, rivers, palaces in one inextricable whirl. E.M. Forster, A Room with a View (1908) Though the guidebooks and maps had long been replaced by smartphones and TripAdvisor, novelist E.M. Forster would recognise much about tourism in the Florence of 2015. In fact, ‘fast’ or ‘mass’ tourism had only grown in the Tuscan capital, much like the anacondan queues that coiled their way around museums and monuments, constricting the city’s cobblestone streets. Mayor, Dario Nardella, was a daily witness to the phenomenon. He worked within the Palazzo Vecchio, one of Florence’s key attractions. Outside his office, in the Piazza della Signoria, tour guides held flags aloft and recited historical facts to troops of tourists as they shuffled through the Historic Centre. One fact probably not mentioned was that 2014 had been a record breaking year for tourism in Florence, and that 2015 was en route to exceed those figures. The city’s tourist bureau and industry representatives celebrated another great result, but for certain Florentines the congratulatory prosecco tasted rather flat. Community activists and commentators worried that tourism – Florence’s economic lifeblood – was also making the city sclerotic. Untrammelled visitor numbers were unsustainable, they warned, and were causing perhaps irrevocable damage to sensitive historic sites. Many of these tourists only came to snap a selfie in front of the statue of David, grab a gelato and get back on the bus, contributing little to the local economy. Meanwhile, the city centre was becoming increasingly off limits to long term residents, as well as traditional artisan businesses muscled out by high end retail chains. This case was written by Marinella Padula for Dr Michael Di Francesco, ANZSOG, as a basis for class discussion rather than to illustrate either effective or ineffective handling of a managerial situation. It has been prepared from published materials as a basis for class discussion rather than to illustrate either effective or ineffective handling of a managerial situation. Cases are not necessarily intended as a complete account of the events described. While every reasonable effort has been made to ensure accuracy at the time of publication, subsequent developments may mean that certain details have since changed. This work is licensed under Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Licence, except for logos, trademarks, photographs and other content marked as supplied by third parties. No licence is given in relation to third party material. Version 17052016. Distributed by the Case Program, The Australia and New Zealand School of Government, www.anzsog.edu.au. On the (well) beaten track Florence’s tourist ‘boom’ dates back to at least the 1700s when upper-class Europeans, Britons in particular, embarked upon The Grand Tour. The major drawcard then, as in 2015, was an unrivalled trove of Renaissance art and architecture – much of it commissioned by Florence’s ruling elite who had amassed vast fortunes through banking and other mercantile activities. The advent of rail in the 19th century brought new markets and package holidays, while more recently, the proliferation of low-cost airlines during the 1990s sent visitor numbers soaring to unprecedented levels. Travel to another country – even just for a weekend – was now within reach of more people than ever. In 1982, the United Nations Educational, Scientific and Cultural Organization (UNESCO), granted World Heritage status to the city’s centrally located historic quarter. Florence was just one of 50 World Heritage sites in Italy; the country boasting more than any other single nation. In 2014, UNESCO issued a Statement of Outstanding Universal Value recognising Florence as the wellspring of the Renaissance and its influence on Italy and the rest of Europe. Yet visitors weren’t solely interested in Botticelli and Brunelleschi. They also came in search of the Italian way of life: the cuisine, the fashion, the music and the vivacity that made the country one of the world’s favourite destinations. Florence was the third most visited city in Italy, after Rome and Venice. The Cesifin Foundation (a local economic think-tank) reported that the City of Florence recorded more than 3.5 million visitor arrivals in 2014, totalling close to 8.7 million overnight stays.1 The past decade had seen an overall increase of 30%, despite a dip in numbers during the Global Financial Crisis (Exhibit A). The average length of stay had remained relatively steady at 2.5 days.2 Approximately 75% of visitors to Florence were foreign nationals3; by contrast, they constituted 47% of tourists throughout Italy.4 Other Europeans represented the largest bloc of international travellers; however the US was the largest single source of visitors by quite some margin. Meanwhile, the greatest growth in visitation had come from China, Brazil and Russia, rising between 200%-400% over the last 10 years.5 April to October was the peak tourist period and most official overnight stays occurred in hotels which were particularly concentrated in and around the historic quarter. Room prices in central Florence averaged €85 per person, per night.6 The non-hotel sector had grown considerably over the past decade but so too had demand for 4- and 5-star hotels. In terms of visitor demographics, close to 60% of visitors to Florence were aged 18-347 and approximately 85% were visiting for personal/leisure purposes.8 The city was also a popular destination for art, history and language students, with education attracting almost 10% of visitors. However, the Cesifin report cautioned that it did not encompass all forms of visitation, for example, people renting holiday houses or staying with relatives. Florence’s Chamber of Commerce estimated that ‘unofficial’ travel could account for as many as 9.6 million additional overnight stays in metropolitan Florence during 2013.9 Day-trippers also constituted a sizeable inflow. According to Cesifin, a further 4.6 million excursionists visited Florence in 2014.10 An estimated 1.5 million were 1 Ottonelli, O. and Pavarin, A.’ Caratteri e sostenibilità del turismo nelle città d’arte: il caso di Firenze’ Fondazione CESIFIN Alberto Predieri, February 2016, p.14. 2 ibid, p.18. 3 ibid. 4 ibid, p.79 5 ibid, p.32. 6 Ibid, p.123. 7 ibid, p.51. 8 ibid, pp.52-53. 9 ibid, p.13. 10 ibid, p.50. 2016-187.1 Version 17052016 2 www.anzsog.edu.au cruise ship passengers who had docked in Rome or Livorno (a Tuscan port) and journeyed to the city for the day.11 After Venice, Florence was the most intensively touristed city in Italy, and becoming more so as international visitors with less time to spare increasingly focused their itineraries on the ‘historic cities’ and popular resorts. Though the City of Florence counted just over 380,000 residents, the historic quarter only had a population of 65,000.12 This meant that tourists often equalled or outnumbered locals, especially along the roughly 1.3km route from the Pitti Palace to the Cathedral of Santa Maria del Fiore (Exhibit B). The journey also took in the Uffizi Gallery, Florence’s top attraction, drawing close to 1.9 million visitors annually.13 Tourism was Florence’s biggest industry, generating billions in revenue and employing more than 13% of the workforce in tourism-related enterprises.14 That said, manufacturing, education and commerce were still important sectors. Florence was well known for luxury and artisan-made goods; design houses Gucci and Ferragamo had headquarters in the city. Tourism was also a major industry in Italy, representing more than 10% of GDP.15 Five regions in Central/Northern Italy (Latium, Lombardy, Veneto, Emilia-Romagna, and Tuscany) accounted for 67% of the wealth generated by tourism. By contrast, Southern Italy contributed 18%.16 In terms of tourism policy and governance, the Directorate-General for Tourism, located within Italy’s Ministry of Cultural Heritage, Activities and Tourism (MCHAT), was in charge of setting the nation’s strategic agenda and coordinating national marketing efforts, in consultation with the regions. Regional governments in turn, were responsible for activities including: developing local marketing campaigns, managing European Structural Funds17 and regulating tourism businesses. Large city councils, meanwhile, had their own tourism offices and could devise their own policies and regulations. In 2014, MCHAT set up a Permanent Committee for the Promotion of Tourism in Italy, comprising public and private sector bodies, in order to draft a five-year National Tourism Plan.18 The Prince and the letter Concerns about the impact of tourism on Florence are not new. A 1996 survey of seven European heritage cities, including Florence, found that tourism had caused or aggravated: ‘traffic and parking problems, pollution, crowding out, occasional irritation of the local population and “wear and tear” of heritage.’19 It suggested that ‘the answer to these problems is forsaking the principle of laissez-faire that currently dominates the attitudes of policymakers and entrepreneurs towards tourism development and adopting an explicit tourism management policy that goes much further than promotion alone.’20 Almost 20 years later, Prince Ottaviano de’ Medici di Toscana would argue that things had changed: for the worse. As a direct descendant of the Medici family – Florence’s famed political dynasty – and President of the International Medici Association, he had a special connection to the city.
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