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06 May 2025

Italy Tops Global Luxury Tourism Rankings For 2025

Sirmione faces overcrowding challenges as luxury tourism flourishes across Italy.

Italy is basking in the glow of its thriving luxury tourism sector, recently highlighted at the ILTM Latin America in São Paulo, Brazil. The event, a key fair for luxury travel, showcased Italy as the top global destination for 2025, surpassing competitors like Greece, France, Japan, and Croatia, according to Virtuoso’s Luxe Report 2025.

Rome, the capital, particularly shined, securing its place among the most favored travel spots, outpacing renowned cities such as London and Tokyo. This acclaim is not just limited to general tourism; Italy also tops the charts as the preferred honeymoon destination, outshining exotic locales like Bali and the Maldives.

The allure of shopping tourism has also been instrumental in Italy’s success, with more than 2 million shopping tourists recorded in 2024 alone, marking a 7% increase compared to the pre-COVID era. This segment of tourism is thriving as it intertwines the country's rich cultural heritage with the excellence of its famed "Made in Italy" products.

Italy’s shopping landscape is diverse, featuring 26 outlet villages, prestigious department stores, iconic shopping streets, and over 1,300 historic shops spread across ten cities. These shops not only offer high-quality products but also reflect centuries of craftsmanship and commercial tradition.

The Shopping Tourism Monitor, a partnership involving Enit, the National Agency for Tourism, indicates that the value of shopping tourism is projected to soar to $327.8 billion globally by 2027. In Italy, this sector directly contributes over €2.5 billion to the national GDP.

Shopping is a significant activity for travelers, with 67% of U.S. visitors engaging in it, a figure that rises to 76.3% in Europe and peaks at 77.9% in Italy. In 2024, over 4 million American tourists visited Italy, accounting for 4.6% of all international arrivals, and generating approximately 33.7 million overnight stays with a total expenditure nearing €6.5 billion.

Looking ahead, the trend appears promising. Between April and September 2025, Italian airports are expected to welcome about 1,650,000 passengers from the United States, 94% of whom are traveling for leisure, reflecting a 10.7% increase from 2024. Similarly, the LATAM market anticipates 334,200 airport passengers during the same period, marking a 10.6% rise over the previous year.

Ivana Jelinic, CEO of Enit, emphasized the importance of promoting Italy's tourist offerings in key markets like the U.S. and Latin America. “There is a strong demand for luxury stays and shopping experiences; it is our task to meet these needs of international tourists to create value on the Italian territory,” she stated.

However, Italy’s tourism success is not without its challenges. The picturesque town of Sirmione, located on the southern shores of Lake Garda, recently faced overwhelming crowds during the May Day holiday weekend. Local authorities estimated that around 75,000 visitors flocked to this medieval town, which has a population of just over 8,000, creating a chaotic scene reminiscent of popular tourist spots like Capri and the Cinque Terre.

Visitors found themselves stuck in traffic, with some waiting up to 40 minutes to enter the historic center. Marco Merlo, president of the local hotel and restaurant operators association, expressed concerns about public safety and the quality of life for both tourists and residents. “We’re very worried about public safety and the quality of life for tourists, residents, and workers,” he said, urging local authorities to develop effective strategies to manage the influx.

Local group Siamo Sirmione, which translates to “We are Sirmione,” echoed these concerns, warning that the current management model could harm both the community and the town’s tourism image. They stated, “If this is the council’s management model, the risk is not just hardship for residents but a real and lasting harm for the tourism and image of Sirmione.”

Notable historical figures have long been drawn to Sirmione, including the English poet Alfred Tennyson, who visited in 1880, and literary giants Ezra Pound and James Joyce, who met there in 1920. Even Sigmund Freud, who described Sirmione as a “paradise” in a letter to his wife in 1900, would likely be dismayed by the current overcrowding.

Roberto Salaorni, the councillor responsible for transport, acknowledged the need for better crowd management but ruled out limiting access to the town. He suggested the installation of a barrier at the castle entrance to help regulate the flow during peak times. Salaorni remarked, “This is the first thing to do; controls are absolutely necessary, but I stress that we have never seen so many people before, not just in Sirmione but in the other towns around the lake.”

Given the historical governance of Sirmione by the Venetian Republic from 1405 to 1797, there may be lessons to learn from Venice, which has implemented an access charge to manage tourist numbers during peak periods.

As Italy continues to attract record numbers of tourists, balancing the benefits of tourism with the well-being of local communities will be crucial. The luxury segment, particularly shopping tourism, shows no signs of slowing down, but without effective management, the experience for both visitors and residents could be compromised.