“Kick up the heel”: Exploring Puglia, a rising star in Italy’s tourism market
In this article, Gabriele Capacci, Hotel Consultant at Christie & Co, takes a look at one of the fastest growing tourism regions in Italy.
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The well-known saying in Puglia, "Ciù sacciu, ciù pozzu" ("The more I know, the more I can"), has inspired us to take a look at hotel transaction activity in the Puglia region of Italy, following the launch of our Italian publication in 2024.
Italy’s heel
Puglia is a region in southern Italy, bordered by the Adriatic and Ionian Seas. The region's capital, Bari, is renowned for its historic old town and port facilities, while other noteworthy cities include Lecce, renowned for its Baroque architecture, and Alberobello, celebrated for its Trulli houses.
The Puglia region contributed 4.3% of Italy's total GDP in 2022, through a diverse economy featuring prominent sectors like aerospace, agriculture and tourism. Puglia’s agricultural sector is Italy’s prolific garden, since it concentrates approximately 40% of the national output of olive oil, and large quantities of wine and vegetables.
The region's key attractions including archaeological sites, beaches and cultural festivals, which succeeded in attracting approximately 14 million overnight stays in 2024, supporting a tourism sector delivering approximately 10% to the region's GDP (2022). Puglia's continuous growth as a destination for international and domestic travellers has attracted the attention of investors, leading to a flourishing hotel development sector and a significant presence of brands in the region.
Reputation leads to transformation
Over the past decade, the picturesque region of Puglia has seen a significant rise in tourism as evidenced by the substantial increase in overnight stays from 13.4 million in 2013 to 20.8 million in 2024, or just over 55% in only ten years.
Beyond the magnitude of this rise in popularity, Puglia has operated a transformation from less than one in five overnights being generated by international tourists to just over one in three last year. Visitors from Germany, France, Switzerland, the United Kingdom and the United States have contributed significantly to this expansion, with international overnight stays rising from 2.5 million in 2013 to over 7.1 million in 2024 (CAGR 4.6%), when over the same period the domestically generated overnights grew by only 2.8 million.
The region's tourism sector has been boosted by the popularity of specific destinations, with demand for travel to Puglia concentrated along its coastline, thus leading to the marked seasonality of demand for the region, with over 80% of overnight stays occurring between May and September and only approximately 5% between December and February.
Cities such as Vieste, located on the coast of the Gargano National Park, despite its small population of 13,000, recorded over 2.2 million overnight stays in 2024, concentrating 10.4% of the overall region’s overnights powered by its coastline, rugged cliffs and charming historic centre. While historically a well-known destination in Italy, Vieste has seen a surge in international demand in recent years, further enhancing its popularity. Larger cities such as Bari, the region's capital and largest city, also recorded over 2.1 million nights, followed by Ugento, located on the Gulf of Taranto, Lecce, Fasano, Monopoli, and Ostuni.
This heat map shows the most-visited regions in the last year:
The growth of hotel rooms supply in Puglia has somehow been consistent with the rest of Italy, expanding by 4.9% between 2013 and 2023 through the net addition* of 2,100 rooms. The internationalisation of demand has triggered a noticeable shift in the region's supply make-up: while the supply of 1-to-3-star rooms contracted by c. 2,500 keys, the 4-star and 5* segments experienced a growth of 27.7% and 19.5% respectively against their 2013 levels. This equates to 5,400 rooms for the 4* segment alone, evidencing not only the popularity of the region from a customer perspective but more importantly its professionalisation and heightened investor interest and confidence in the region’s potential.
The well-heeled are heading to Puglia
Puglia's thriving tourism sector has attracted significant investment in the past decade, with major players such as Accor, B&B, and Best Western entering the market, particularly in the luxury sector. With branding levels still below 1 in 5 hotel rooms, the region offers sizeable potential for growth and investment as evidenced by several imminent and exciting openings, including the opening of the Masseria Torre Maizza by Rocco Forte, the planned debut of the 4th Four Seasons hotel in Italy by 2028 and the 17th-century farm Masseria Le Taverne by Belmond, consolidating its presence in the market with this 11th property.
Puglia's tourism sector has shown remarkable growth over the past decade, and we expect both demand and investment trends to be sustained over the medium term. The fly for quality shown by the well-engaged regeneration of the supply at the upper end of the market is likely to trickle down and offer more opportunities across the wider hotel spectrum over the longer term. The evolving demand profile and increasing investor interest will undoubtedly contribute to Puglia's continued success as a premier travel destination in the Mediterranean.
If you are looking at acquiring or repositioning an asset, we can assist clients with commercial due diligence and strategic asset analysis, with the assessment of development options to meet demand and optimise commercial potential. To discuss your requirements, contact:
Gabriele Capacci, Hotel Consultant
P: +44 7736 616 680 or E: gabriele.capacci@christie.com
Pierre Ricord, Head of Consultancy – Hotels