Amid the rolling hills of Tuscany, a family-run agriturismo business welcomes guests with warm smiles and traditional food. Yet behind the scenes, its AI-powered chatbots are busily making bookings in 5 languages.
Meanwhile, as the gondolas drift by a boutique hotel in Venice, the scene, and its rooms, are replicated in virtual reality to entice new guests from thousands of miles away. This isn’t a glimpse into some distant future – it’s here and now in Italy, where digital tools are quietly transforming centuries-old hospitality into a smarter, more connected experience.
From spreadsheets to smart tech: the sector’s digital leap
In Italy tourism isn’t just economically vital, it’s a cornerstone of the country’s culture. Yet with over 85% of tourism businesses classified as small and medium enterprises (SMEs), the sector faces a unique challenge: how do you modernise an industry built on tradition without losing its authentic soul?
The answer lies in strategic digital transformation, and Italy has been rewriting the playbook.
Progress has been rapid: an increasing number of Italian accommodation providers now generate revenue online – a dramatic shift that would have seemed impossible just a decade ago.
Social media engagement has exploded, cloud services are gaining ground, and the newly launched Tourism Digital Hub (TDH) under Italy’s National Recovery and Resilience Plan (PNRR) is creating a unified digital ecosystem connecting public and private tourism actors. Moreover, it integrates AI for machine learning and predictive analytics and supports immersive technologies such as virtual and augmented reality.
Currently, more than 33,000 enterprises have joined the TDH, highlighting the broad adoption and impact of this initiative.
Italy is also nurturing an AI-driven innovation ecosystem by funding startups such as:
- Brandplane – for market trend analysis,
- Cora Hospitality – a digital assistant for hospitality operations,
- Mountain Maps – a real-time mapping app for mountain routes,
- Weforguest – software for hospitality service management.
Our Italia Destination Management System (DMS) offers a cloud platform for integrated management of tourism-related information, services, and promotion.
We are investing in digital infrastructure with projects like “Wi-Fi by Italia.it” and smart signage along walking trails. These provide broadband access, smartphone interactivity, and device charging to support immersive and connected tourism experiences.
But here’s what makes Italy’s approach particularly fascinating: it’s not top-down technological imposition. Instead, SMEs are organically adopting digital tools with growing confidence, creating a grassroots digital revolution that’s as authentic as the destinations they represent.
Rules or results? The sustainability debate
Sustainability remains at the heart of our digital vision. A dedicated €42 million fund supports green tourism initiatives, including intelligent visitor flow management, off-season travel promotion, and technology integration.
Regulating online reviews is also key to ensuring fairness and trust in the digital tourism marketplace. Italy is moving towards pioneering legislation to ensure transparency: under the proposed law, anonymous reviews would be banned, guaranteeing that reviewers have actually used the services they rate.
The reality behind the headlines
Of course, transformation isn’t without its growing pains. A recent survey revealed the persistent challenges facing Italy’s tourism SMEs: outdated IT infrastructure, insufficient staff training, and strategic planning gaps that prevent many businesses from fully capitalising on digital opportunities.
Regional disparities add another layer of complexity. While urban centres race ahead with advanced technologies, rural tourism businesses – often the guardians of Italy’s most authentic experiences – struggle with basic connectivity issues. It’s a digital divide that threatens to leave behind the very businesses that make Italian tourism so distinctive.
The financial reality is equally stark. While large hospitality chains can easily invest in artificial intelligence and business intelligence systems, micro and small enterprises often lack both the financial resources and human capital to implement advanced digital solutions.
Building bridges, not barriers
Italy’s response to these challenges demonstrates sophisticated policy thinking. Rather than pursuing one-size-fits-all solutions, the OECD-Italy collaboration has identified strategic enablers that address SMEs’ specific needs.
Innovation acceleration
Programmes like the ARGO Accelerator and the TDH don’t just provide technology – they offer mentorship, funding, and technical guidance that lower entry barriers and support genuine business model innovation. In its first two editions, Argo accelerated 12 startups, while the programme’s network facilitated over 30 industrial collaboration projects. In its third edition, Argo aims to launch new startups leveraging technology to innovate the tourism and hospitality sectors, accelerating their digital transformation with a focus on sustainability. Selected startups participating in the Argo programme receive a pre-seed investment of up to €75,000, with the possibility of obtaining an additional non-repayable grant of €25,000 provided by the Ministry of Tourism.
- Knowledge networks: Digital Innovation Hubs (DIHs) and competence centres are fostering cross-sector collaboration, enabling SMEs to access cutting-edge knowledge and best practices without requiring massive individual investments.
- Skills development: Comprehensive workforce upskilling initiatives, from vocational training to university curricula, are being tailored to tourism sub-sectors’ specific needs. This isn’t generic digital literacy – it’s targeted capability building.
- Financial support: Tourism-specific funds and investment programmes are helping SMEs take their first steps toward digital maturity, recognising that transformation requires both vision and capital.
A model worth watching
Italy’s approach offers valuable insights for other nations, showing that by focusing on SMEs – the backbone of its tourism economy – Italy is proving that digital transformation can enhance rather than replace human connection in its tourism sector.
As this digital revolution unfolds across Italy’s landscapes, from Alpine peaks to Mediterranean shores, it’s creating not just more efficient businesses, but more resilient communities ready to welcome the world while staying true to themselves.
OECD supporting tourism reforms in Italy
In response to a request from the Ministry of Tourism in Italy, the OECD has recently undertaken work to support the design, development, and implementation of reforms in tourism data and statistics, governance and digitalisation. This work has culminated in the publication of three OECD Tourism Papers on Promoting the digitalisation of the tourism ecosystem in Italy: A focus on SMEs, Guidance to design and implement an enhanced governance model for tourism in Italy and Strengthening the tourism statistics and data system in Italy. This work was funded by the European Union via the Technical Support Instrument and undertaken in co-operation with the European Commission.
The Ministry is responsible for the planning, coordination, and promotion of national tourism policies, within the scope of the State’s competences, in relation to the Regions and Local Authorities, in collaboration with the Ministry of Foreign Affairs and International Cooperation (MAECI), with European Institutions and supranational Organizations, as well as with trade associations and businesses.