Tourism investment in potential property boost

Italy is to offer extra funding for its tourist industry, something that could benefit those investing in holiday rental property.

Prime minister Silvio Berlusconi announced a plan whereby some of the country's largest banks will offer loans with favourable interest rates to developers of tourism facilities, with the total of funding standing at EUR1.6 billion (GBP1.38 billion).

He said the idea is to double the amount the industry contributes to gross domestic product to 20 per cent, noting that tourism in countries like Spain currently contributes more to national income.

Those buying tourist rental property in Italy may find demand for this is boosted by improvements in the infrastructure and facilities on offer to visitors.

British property buyers in Italy have become increasingly involved in Sicily in the past couple of years, Country Life recently reported.

The magazine noted that the eastern side of the island is the most favoured part for UK investors.