Turmoil in Italy

The working classes have no where to rent as their abodes are being turn into vacation rentals.

Two thirds of hosts have multiple listings –— meaning they’re not just renting out their spare room, or their late nonna’s apartment.

So it likely the professional class is making out well.

“We have nothing against private property, but if you rent 20 houses only to tourists, then you become a problem for your community,” says Dal Carlo, who is one of the tens of thousands of Venetians who have left the city for the mainland, a 10-minute train ride (plus ferry ride to the city center) away.

Gondolas, canals and all those bridges. For many tourists, Venice is all that and only that: the floating city born for Instagram.

For others it’s a symbol of the excesses of the modern world: a city turned into a theme park, trampled by overtourism and hollowed out by vacation rentals. The statistics are stark. Around 30 million tourists visit Venice every year, dwarfing the local population, which has now dwindled to less than 50,000.

Venetians wanting to remain in their city face a lack of housing stock — since homes have been converted into vacation rentals — a lack of shops for day-to-day life, and a lack of jobs for anyone not involved in the tourist industry.

In the meantime, the visitors keep coming, and keep posting those delectable canal shots on Instagram. Around 90% of them are thought to be day-trippers — so although they don’t take up that ever-dwindling housing stock, they use city resources but leave virtually no money behind in the local economy.

Is it not already too late to save Venice? Not according to Fabio Carrera, whose Venice Project Center at the Worcester Polytechnic Institute in Massachusetts has been studying the city’s problems since 1988. Born in Venice, he splits his time between Italy and the US.

“I think enough people realize that the [tourism] card has been overplayed now and there’s going to be some sort of retrenching,” he says, mentioning the recent protests in destinations like Mallorca and the Canary Islands as examples of local communities pushing back.

“I’m oddly optimistic,” he says.

And this not just a Venice Problem.

Via dei Tribunali is one of Naples’ busiest arteries, filled with restaurants and shops. Down one of its side alleys stands a bronze statue of Pulcinella, the trickster who has long symbolized the city. In high season, the queue to rub his nose can stretch half a kilometer as tourists chase an ancient Neapolitan good-luck ritual.

But locals know that tradition is fake.

The statue was erected only in the 2010s, and was largely ignored by Neapolitans. Only in recent years influencers discovered it, fabricated a folkloric backstory, and suddenly no tourist felt their trip to Naples was complete without it. The result is a paradoxical “local” tradition without any locals — and a good example of what overtourism is doing to Italian cities.

“The historic center of Naples is dead,” said sociologist and activist Francesco Calicchia, who lives and works in the working-class Sanità neighborhood. “Those streets aren’t neighborhoods anymore. There are no Neapolitans left, no real life left. They’ve become playgrounds, open-air shopping malls.”

“Short-term rentals have grown exponentially in Naples, just like in other Italian cities,” said Chiara Capretti, a municipal councilor and member of Resta Abitante — an association defending the right to housing — as she hunted for a free table in the tourist-clogged San Domenico Square.

In some working-class districts, there’s one B&B for every three homes.

This is familiar to me. The same has happened to Santa Fe NM. The peons that staff the restaurants and retail store have to live outside Santa Fe.

Meanwhile Prime Minister Meloni has to find money to keep the social welfare programs running in a demographically challenged nation and the increased defense costs also.

She choose to go where the money is:business & stock owning professional class.

In draft documents seen by POLITICO, dated Aug. 28, officials laid out several options to discourage the use of stock buybacks, a process used by companies to return excess cash to shareholders, generally boosting their share price in the process.

the focus on buybacks represents a fresh attempt to raid big business after the banks successfully fought off its attempt to impose a windfall tax on them last year.

The first option raised by officials would be to hike capital gains taxes on all shareholders — without distinguishing between gains from trading and those generated by share buybacks — to 30 percent from 26 percent.

the effect would be “broad and unfocused," punishing equity traders and smaller retail savers as well as those buying back stock.

Another option is a duty applied to the “total value of buyback operations,” meaning the tax would fall both on the issuing company and on shareholders who choose to redeem shares.

The third and most “technically complex” option would be to tax only the profits made by the issuing company should it eventually resell repurchased shares at a higher price.

Going after stock buybacks and rising the capital gains tax rate. That would NEVER fly here in the good old US of A.

But the legislation has not passed thru the Italian parliament. So Meloni may be foiled.

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Locals in Porto have similar problems, housing is getting expensive as tourism flourishes but construction is going gangbusters which creates lots of jobs.

The Captain

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There was a backlash against this is Port Angeles, WA. It’s hardly a tourist mecca but even so the short-term rentals have been reducing scarce housing for locals. By law, there can be only 200 short-term rentals that are not a room in someone’s primary residence due to the backlash from residents.

https://cityofpa.us/DocumentCenter/View/13955/Short-Term-Lodging-Frequently-Asked-Questions-FAQ

Wendy

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Some things I noticed

So, having unusually large amounts of people, spendy touristos who will literally pay to live in your community if only for a few days or weeks, is a bad thing?

Ref the WA State situation: This sounds like the kind of thing people of a certain, shall we say “philosophical” orientation would say is burdunsome local zoning interference that causes housing shortages. You know the type. Do away with all or most encumbering zoning rules and affordable housing with be growing on trees. So, is this sort of interference good or bad?

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Is there a rental level impact? For example, if a house is renting out at $1200/night then it wouldn’t seem to impact the regular rental market much.

DB2

YES, a very very bad and destructive thing if it leaves all but the wealthiest townspeople homeless in their own ancestral home.

I long lived in Sóller, Mallorca, a tiny wonderful town when I first arrived. It is now being trampled to death my idiot “bucket list” tourists.

I have no good simple solution.

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“I have rights!” said the “bucket list” tourist.

$ trump’s all here in the US of A and I guess in the rest of the world too.

Perhaps there are just too many durn people.

https://www.researchgate.net/figure/The-growth-of-the-world-population-since-1900-and-the-uncertain-future-development_fig1_347670190

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Nothing lasts forever and the only constant is: ”change” as the platitudes go. Wouldn’t the thing to do be: move? If Soller was not an attractive place 10 or 20 yrs ago (or however long it’s been) you wouldn’t have moved there. Well, now Soller is has become what you would have avoided. Not trying to be snarky or cause trouble. I don’t have a solution either. I’m just talking about those zoning regulations. As Homer Simpson might say": “The cause of and answer to all our problems.” Everybody hates them until it harshes their mellow then “there oughta be a law.”

I also realize it cannot be simple economics. People live there. Businesses function and need the residents not the tourists. All those people cannot simply say what I just suggested: OK we’ll just all put our houses up for sale and move to Better Place USA.

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Yes, you don’t! When there is huge economic disparity the rich visit the rest of the world while the poor invade the rich economies.

Venezuela tried to tax the rich yachties. They picked up anchor and left for more welcoming Trinidad.

Poderoso Señor es Don Dinero

The Captain

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No. I posted the link to the county’s rules. Regardless of rent there will be maximum 200 units for short-term rental.

There was a lot of debate in the city council with over a year of input from the city residents. Huge pushback against the short-term rentals that displaced local renters.

Wendy

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The struggle is between ancient rich experiences that together, in an ecologically complex way, make a “community” a community, and the power and rationalities of landownership by the rich.

The deeper problem is that tourism has become more and more lemming like, much less pleasant, but with no visible motivations beyond meeting strangely evolved expectations.

I literally have a hard time imagining anything more pathetically idiotic than to use precious vacation time and significant amounts of money to go to a great museum or other locale, but to see almost nothing with actual eyes, which are glued to telephone camera viewfinders creating a tedious documentation of a trip that is commonplace and that no one will review.

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I understand that, but how many local renters are paying $1200 x 30 = $36K per month in rent?

DB2

For locals not profiting from them, yes:

“Not being able to afford the purchase or even just the rent of a decent apartment for oneself is devastating for the dignity of working people,” Madrid resident Enrico Congiu told CNN. The 40-year-old works as a family doctor and shares an apartment with two other people the same age close to the capital’s downtown.

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Why are you wasting my time with this irrelevant question?

The city council passed the law. Period. The end.

It’s not good for landlords but this is a democracy and the voters chose the city council members who protected the local people.

Wendy

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Give it time. Looks like around 2050 we reach “Peak Humans”. As education and prosperity grows, there is a lower birth rate and now every continent except Africa is below the magical 2.2 births/female replacement rate.

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It’s not irrelevant, any more than other halting suggestions in this thread. Obviously your town ordinance is passed, but I was wondering if high-end rentals were considered differently or if they were considered at all.

And too few; remember, the article said Venice (like most of Europe) was losing population.

DB2

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Too many or too few people is not the problem with tourism. The problem is that vacationing is a complex rapidly changing behavior that is actually new to many of the vacationers. Cheap rapid travel has shifted a lot of vacationing to status seeking or herd impulses. I often see tourists treating townspeople as if their town was some sort of Disneyland built for their pleasure, and as if the inhabitants of the town were employees there to serve the tourists….

The world is changing, and we humans have to evolve our cultures more rapidly.

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I wish the US had such a problem.

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Well, our birth rate is below replacement level although not as low as Italy’s.

Italy’s birth rate, the average number of children born to women over their lifetime, dropped to 1.18 in 2024, down from 1.2 in the previous year and the lowest since comparable data began in 1952, the data showed.

DB2

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… more than made up by immigration.

Well, at least until recently.

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