This study examines the ability of Italian regions to attract foreign tourists and the factors influencing the choice of regional destinations using a novel Stochastic Frontier Demand Model. The results show that several factors including climate, seasonality, cultural heritage and infrastructures influence tourism performance. Easy accessibility to World Heritage Sites drives international tourism demand too. On average, Southern regions lie below the stochastic frontier and are inefficient, while Northern regions tend to be efficient. Calabria, Sardinia and Molise have a low ability to entice foreign tourists, while Veneto maximizes the number of tourist arrivals, overnight stays and expenditures.
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