Here’s Why Italy Tourism Sector Has Slowed Down With Drop In US Arrivals Combined and Venice’s New Entry Fee For Day-trippers to curb overtourism

Published on October 9, 2025

Italy’s tourism sector has slowed down in 2025 due to a significant drop in US arrivals, which traditionally contribute a large portion of high-spending visitors, combined with Venice’s newly introduced entry fee for day-trippers aimed at curbing overtourism. This combination has led to a sharp decline in visitor numbers across major Italian destinations, particularly Venice, Florence, and the Amalfi Coast, forcing the country to reconsider its approach to managing visitor flows and promoting sustainable tourism.

As Italy’s 2025 tourist season draws to a close, the country’s tourism industry is grappling with unexpected challenges. After a promising start to the year, the momentum faltered, particularly in some of Italy’s most iconic destinations. Cities like Venice, Florence, and the Amalfi Coast, which have long been tourism pillars, have experienced notable declines, while other regions like Puglia are seeing unexpected growth. This slowdown is raising critical questions about the future of Italy’s tourism landscape and pushing for a shift toward more sustainable, responsible travel practices. The results of the 2025 season are already sparking conversations about how Italy can reframe its tourism strategies for 2026 and beyond.

Early Optimism and Subsequent Slowdown

Italy entered 2025 with high expectations for a banner year in tourism. In January and February, bookings surged by 30–50% compared to the same months in 2024, with many hotel operators and travel businesses optimistic about what lay ahead. The spike in early-season bookings led to widespread expectations that 2025 would break records in terms of visitor arrivals, spending, and overall tourism revenue. However, the momentum that Italy’s tourism industry enjoyed in the first two months of the year came to an abrupt halt by March. By the summer months, it became apparent that the key tourist cities were struggling to maintain the high levels of footfall seen in previous years. June, July, and August saw a drop in overall performance compared to 2024, with significant underperformance across some major Italian destinations.

Key Destinations Struggle with Declines

• Florence: Visitor numbers fell by approximately 20%.
• Venice: The city saw a sharp decline of around 30%.
• Amalfi Coast: Tourist arrivals decreased by 25%.
• Rome: While many cities saw downturns, Rome benefited from increased visitors, largely due to pilgrims arriving for Jubilee celebrations at the Vatican.

These statistics point to a broader issue affecting Italy’s traditional tourism hotspots, with declining interest and spending from international visitors, particularly from the United States.

Decline in U.S. Visitors: A Major Factor

A significant contributing factor to Italy’s 2025 tourism slowdown was the noticeable decline in U.S. visitors. Historically, American tourists have been one of the highest-spending visitor groups in Italy, often responsible for bolstering the country’s high-end tourism sector. In 2025, however, both the number of U.S. arrivals and the per-capita spending of American visitors dropped significantly. This downturn resulted in emptier hotels, lower revenues for operators, and a ripple effect on destinations that are particularly dependent on the American tourist market.

Impact on Major Cities

• Venice: A primary destination for U.S. travelers, Venice saw a nearly 30% drop in visitor numbers compared to 2024. This decline was amplified by the introduction of a controversial day-tripper tax.
• Florence and Amalfi Coast: Both regions, which traditionally rely on high-spending visitors from the U.S., also experienced slower growth, contributing to a general downturn in Italy’s tourism.

These declines have forced businesses in these regions to reassess their strategies and expectations for future seasons, particularly in light of the ongoing challenges in international travel.

Venice’s Day-Tripper Tax and Its Impact

One of the most notable changes in Venice’s tourism landscape in 2025 was the introduction of a new day-tripper tax, aimed at reducing the number of short-term visitors. The tax was introduced as a measure to combat overtourism, which had severely strained the city’s infrastructure and overwhelmed its narrow streets. This policy, requiring day-trippers to pay an entry fee of €5 to €10, was enforced on 54 select days during the high season, from April to July.

Despite raising over €5 million in revenue, the effectiveness of the tax in reducing visitor numbers has been questionable. On peak days, over 25,000 tourists paid the fee, which accounts for more than half the population of Venice. While the initiative has been part of a long-term strategy to protect the city’s fragile ecosystem, it may have inadvertently deterred potential visitors, particularly those traveling on a budget.

The Future of the Tax

• 2026 Plans: The tax is set to continue in 2026, with plans to extend its application to 60 days, covering weekends and holidays. This extension could further impact visitor behavior, as budget-conscious travelers might decide to visit less expensive regions or opt for off-season trips.
• Long-Term Sustainability: Venice’s tourism board argues that the tax is necessary for the sustainability of the city. However, the policy remains controversial, with local businesses and international tourists divided on its impact.

While the tax aims to alleviate overtourism, its immediate effects have been felt in reduced numbers of visitors, particularly during the high season.

Rise of Secondary Destinations

As iconic cities like Venice and Florence face declining tourism numbers, secondary destinations across Italy have seen a surprising rise in popularity. Lesser-known regions, such as Puglia, have emerged as hotspots for travelers seeking authenticity and a more relaxed experience. With its whitewashed towns, pristine beaches, and trulli houses, Puglia has proven to be a prime example of a region benefiting from this shift toward off-the-beaten-path travel.

The Appeal of Puglia

• Authenticity and Tranquility: Visitors are increasingly drawn to Puglia for its unspoiled landscapes and the opportunity to experience a slower pace of life. The region’s charming towns, such as Alberobello with its iconic trulli buildings, are gaining recognition as ideal destinations for those looking to avoid the crowds in Venice or Florence.
• Booming Tourism Numbers: Puglia’s tourism numbers have skyrocketed in 2025, positioning it as a leading example of a secondary destination experiencing a boom amid Italy’s tourism slowdown.

The shift toward secondary destinations is also prompting the Italian government to reconsider its tourism policies, with a renewed emphasis on promoting lesser-known regions and encouraging more balanced tourist flows.

Overtourism Relief: A Silver Lining for Major Cities

While the downturn in tourism has been challenging for many businesses in Italy’s major cities, there has been an unexpected benefit: overtourism relief. For years, cities like Venice and Florence have been overwhelmed by the sheer volume of visitors, which has led to crowding at popular attractions, long waits, and frustration among locals. The slowdown in 2025 has brought a temporary reprieve.

Benefits of the Slowdown

• Less Crowding: With fewer tourists, key attractions such as the Uffizi Gallery in Florence and the Grand Canal in Venice have seen shorter lines and more relaxed experiences for visitors.
• Improved Visitor Experience: Many tourists have reported enjoying a more peaceful and authentic experience, with quieter streets and fewer crowds.
• Breathing Room for Locals: Residents in heavily visited cities have welcomed the temporary relief from the constant influx of tourists, which has eased daily congestion and stress on local infrastructure.

This unintended slowdown presents a unique opportunity for Italy to reassess its tourism model. It could serve as a crucial moment for the country to focus on sustainability, supporting the development of regions like Puglia while alleviating pressure on overburdened cities.

Looking Ahead to 2026: A Sustainable Future for Italy’s Tourism

As Italy prepares for the 2026 tourist season, the focus is likely to shift toward balancing the number of visitors with sustainable practices. Venice’s day-tripper tax, the rise of secondary destinations like Puglia, and the increased demand for authentic experiences are all part of a broader movement towards more sustainable tourism models.

A Call for Sustainable Growth

• Tourism Diversification: Italy must continue to diversify its tourism offerings, promoting lesser-known regions and reducing the reliance on iconic cities like Venice and Florence.
• Supporting Local Communities: Sustainable tourism involves ensuring that the economic benefits of tourism reach local communities, not just the large operators and international chains.
• Investing in Infrastructure: To support this shift, Italy will need to invest in infrastructure that can accommodate a more balanced distribution of visitors across the country.

Travelers in 2026 can expect to see a tourism landscape that values authenticity, sustainability, and the preservation of Italy’s cultural heritage. While the iconic destinations will always remain central to Italy’s tourism identity, the rise of secondary destinations offers a refreshing alternative for those seeking to avoid the crowds.

Italy’s tourism sector has slowed in 2025 due to a sharp decline in US arrivals, which significantly impacted visitor numbers, along with the introduction of Venice’s entry fee for day-trippers, aimed at managing overtourism and protecting the city’s fragile infrastructure.

Though challenging for many companies, the 2025 slowdown has given Italy a chance to reconsider its tourism strategy. Italy can guarantee that future growth benefits local communities and the economy while preserving the cultural integrity that draws tourists year after year by emphasizing sustainability and diversifying tourism flows. In addition to lessening the effects of overtourism, the move to a more balanced approach to tourism may create the framework for a more resilient and sustainable future.