Palermo, Italy Leads the Way in Sustainable Tourism: A Collaborative Model for Regenerative Travel and Community Impact

Published on December 21, 2025

Sustainable tourism in Palermo is based on smaller, often less visible initiatives, many of which stem from the city’s most symbolic neighbourhoods. These initiatives, led by organisations including Addiopizzo Travel, Palma Nana, Rigenerazioni Onlus, and Capaci No Mafia, are collaborating to reshape the city’s tourism model. Despite their disparate missions and histories, these organisations share a common goal: to create a network that not only adds value to the tourism industry but also influences its growth towards inclusivity, social memory, work, and urban regeneration.

This collaborative effort aims to develop a tourism model that is motivated not only by economic profit but also by social responsibility and long-term community benefits. The NeXt Economia Study and Evaluation Centre commissioned a report on Palermo’s sustainable tourism, which highlights this effort as an example of how tourism can go beyond traditional revenue and return metrics.

The Network Effect and Generativity in Palermo’s Tourism

One of the most significant findings from the research is the concept of “generativity”—the capacity of organizations to generate skills, relationships, participation, and opportunities within the community. The report shows that over two-thirds of the impact on the generativity of these organizations does not stem from individual actions but from the network effect. This means that the cooperation between various actors in the tourism space—ranging from cooperatives to local businesses—creates the most valuable outcomes.

The network effect in Palermo’s sustainable tourism initiatives has proven that the strength lies in collaboration. While each individual organization may have had limited reach on its own, the collective efforts have led to shared planning, training, and communication. These elements, rooted in trust and complementarity, enable these organizations to achieve outcomes that would otherwise have been impossible.

Relational Economies Over Traditional Economies of Scale

Rather than focusing on traditional economies of scale, the Palermo tourism network thrives on what could be described as a “relational economy”. This model does not seek to increase the volume of services but instead nurtures relationships, both within the network and with visitors. Value is generated through collaboration, trust, and shared governance, creating a robust foundation for social and economic change.

Organizations involved in this network also demonstrate strong ESG (Environmental, Social, and Governance) performance, particularly in the social and governance dimensions. The success in these areas is not solely attributable to individual achievements but is largely the result of being part of a larger, cooperative network. This collaborative approach has given the involved organizations a maturity that goes beyond isolated initiatives, showing how collective responsibility can lead to more sustainable outcomes in tourism.

Overcoming the Challenges of Informal Networks

While the Palermo sustainable tourism network has proven effective in many ways, the research also identifies areas for improvement. A key challenge is the informal nature of the network. While strong relationships exist, the lack of a more formal structure has hindered the network’s potential to scale. The adoption of a shared legal form, such as a community cooperative, could significantly enhance governance and strengthen the network’s representative capacity.

Formalizing the network would not only improve its organizational structure but also enhance its capacity to attract and manage financial resources. A more defined structure could lead to better coordination between the participating organizations and increase the impact of their collective efforts.

The Need for Social Finance and Sustainable Funding

Another major challenge lies in the area of social finance. While the value generated by the network is clear, the ability to transform that value into financial leverage remains a significant hurdle. Innovative financing tools, such as social bonds or crowdfunding, could help these organizations access much-needed resources and enable them to scale their impact. At present, despite the measurable social value created, these organizations struggle to translate their work into financial sustainability.

For the sustainable tourism network in Palermo to continue to grow, it will need to leverage social finance to support its long-term viability. By exploring alternative funding mechanisms, these organizations can create a more sustainable model of tourism that benefits both local communities and visitors alike.

The Role of Local Communities in Regenerative Tourism

One of the fundamental principles behind Palermo’s approach to sustainable tourism is the active involvement of local communities. For regenerative tourism to be successful, the local population must be at the heart of the process. In Palermo, this is evident through the work of organizations that focus on civil memory, social inclusion, and urban regeneration. These organizations do not simply cater to tourists but also create experiences that resonate with local cultural values, histories, and social issues.

Palermo’s initiatives seek to ensure that tourism does not merely pass through the city but contributes to the broader social fabric. This approach is particularly important in a city with a complex history, where issues such as organized crime and social exclusion have played a significant role in shaping local identity. The efforts of these organizations are part of a broader movement to transform Palermo into a city where tourism contributes to social healing and collective growth.

Next Steps for Palermo’s Sustainable Tourism Network

While the Palermo sustainable tourism network has made impressive strides, there are still several steps to take to ensure its continued success. The adoption of more formal structures, the exploration of innovative financing tools, and the continued strengthening of collaborative relationships will be crucial in expanding the impact of this initiative.

Furthermore, the network must focus on scaling its impact beyond the local level. Palermo’s sustainable tourism model could serve as a template for other cities in Italy and around the world, where collaborative, community-driven tourism can generate long-term social and economic benefits. By documenting its successes and challenges, Palermo’s network can offer valuable lessons for other regions seeking to integrate sustainability into their tourism models.

A Model for the Future of Tourism

The sustainable tourism network in Palermo demonstrates that tourism, when approached responsibly and collaboratively, can have a significant social impact. Palermo has demonstrated that tourism can play an important role in urban regeneration and social healing by fostering networks that prioritise relationships over profits and inclusion over exclusivity.

As the network grows and evolves, it will serve as a model for other cities to follow. The challenge for Palermo—and other cities—is to ensure that the value created by these efforts is recognised and translated into long-term economic sustainability. With the right tools, partnerships, and community engagement, Palermo’s sustainable tourism network has the potential to become a global beacon for regenerative tourism.