Inflation in the tourism sector in July rose by 0.8% on a monthly basis and 4.1% on an annual basis a Demoskopika survey revealed.
On Tuesday, the results of a Demoskopika survey showed the average inflation rate went up in the tourism sector for July. According to Demoskopika’s estimates, in July 2024, the National Index of Consumer Prices for Tourism for the entire population (NICT) increased by 0.8% on a monthly basis (compared to the previous month) and by 4.1% on an annual basis (compared to the same month of the previous year).
Analysing the breakdown of the National Index of Consumer Prices for Tourism by spending categories, driving inflation are: Accommodation and Food Services (+3.257 percentage points), Recreational and Cultural Services (+0.644), and Vacation Packages (+0.451). Conversely, a negative contribution is noted from the prices related to Transportation Services (-0.248).
In other words, Accommodation and Food Services account for 79.2% of the overall growth, followed by Recreational and Cultural Services (15.8%) and Vacation Packages (10.9%). Conversely, Transportation Services exhibit a deflationary trend, contributing -5.9 percentage points to the overall change in tourism inflation during the observed period.
For package holidays the increase was from 13.8% to 19.5%. Hotels and restaurants showed an increase of 4.2% to 4.3%, whilst recreational and cultural services rose from 2.4% to 3.8%. Conversely, inflation decreased in transport services down from -1.4% to -2.2%.
The acquired inflation in the tourism sector for 2024 stood at 4.5% said the study.
Overall, the dynamic of the harmonised index of consumer prices (HICP) for Italy registered in June a 4.0% increase on an annual basis (stable compared to May 2024, +3,9%) compared to the EU average of 4.9%. This price trend in the “tourism basket” places Italy in fourth place, behind only Sweden (3.9%), France (3.3%), and Portugal (3.1%).
On the other hand, the remaining observed destinations show higher tourism inflation rates than Italy: Poland (6.7%), the Netherlands (6.6%), Austria (6.4%), Greece (6.1%), Germany (5.4%), and Spain (5.3%).
Details of the survey
Shifting the analysis to the detailed components of the “tourism basket,” vacation packages stand out for their significance, showing a 19.5% annual increase, with domestic packages leading the way at +29.9%.
Within the broader category of transportation services, which overall shows a deflationary trend (-2.2%), rail passenger transport registers the most notable price increase (+8.1%), while air transport sees a decrease (-12.6%).
The growth in accommodation service prices is more moderate but still significant (+4.8%), with vacation villages, campsites (+8.2%), and accommodation services in other types of facilities (+7.2%) showing the highest increases.
