Italy promises stimulus package to help tourism

Italy’s latest stimulus package, aimed at helping the economy overcome the coronavirus pandemic, will offer help to the tourism and auto sectors, Reuters reports. Economy Minister Roberto Gualtieri told a parliamentary committee on Tuesday that such a move was much needed and urgent.

The government has said it will present the measures in an emergency decree in early August.

A source told Reuters this month that slightly less than 1 billion euros ($1.17 billion) would be put forward to strengthen current incentives to encourage sales of state-of-the-art combustion engine cars as well as electric and hybrid vehicles.

Gualtieri did not provide any details on Tuesday.

As coronavirus fears continue to ravage Italy’s tourism industry – despite the country’s extraordinary cultural heritage – the government is subsidising some of its citizens to go on holiday in their home country. After becoming the first European country COVID-19 hit hard in early spring, Italy reopened its borders to EU tourists in June. Nevertheless, tourism is still suffering, with revenue shortfall this summer predicted to top 3 billion euros. 

In this context, the government is trying to prop up its tourism industry – which represents 13% of the national GDP – sending money to households earning less than 40,000 euros a year as an incentive for them to go on holiday within Italy.