Italy SWOT Analysis: 3 Major Weaknesses and a Threat

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If you are the kind of person who appreciates art, architecture, history, and food, chances are you will fall madly in love with Italy. It is a foodies dream, from pizza and pasta to delicacies that you might not even be able to pronounce!

If you are crazy about movies, it is quite likely that you may have been enchanted by Russell Crowe in Gladiator or maybe you’re fascinated by Roman mythology and history, either way, it would be nothing less than a dream to visit the Colosseum or the Pantheon.

Wishing you could have been a part of The Roman Holiday? While Gregory Peck and Audrey Hepburn might be of the picture, the classic Vespa is still present for you to live your fantasy. Our Italy SWOT analysis examines more strengths and opportunities, along with weaknesses and threats that Italy is facing nowadays.

Before we begin, make sure you are familiar with the definition of SWOT analysis.



Italy probably has one of the most unique locations, pertaining to the fact that it serves as a coast, has high mountain ranges, and a favorable climate (for tourism) all year round.

Fun fact: did you know that Italy is easy to find on a map because it looks like a high heeled boot? Yes, we checked!   


History and Culture

Italy has had quite an interesting history that has shaped its culture, predominantly the Roman era. and later on the Byzantine Empire, the remnants of which are still present throughout the country.

Over the years Italy has become increasingly modern, especially with regard to the increase in the role of women in the job sector,  due to massive improvements in communication technologies. In addition to that,  Italy being a founding member of the European Union (EU) and NATO plays a major role in its modernization.


Italy’s tourism potential is, perhaps, one of its greatest strengths. With its scenic beauty, art galleries, historic sites, architectural marvels, and culinary delicacies, it has something to offer to everyone.

In fact, Italy has over fifty million tourists in a year and this earns it the position in the top five most visited countries in the world. In addition to that, the country has around forty-seven world heritage sites according to UNESCO.

If Italy wanted to boast about having an interesting historical background, it would not be wrong, owing to the fact that it is the birthplace of one of the most important empires (the Roman Empire) as well as the famous Renaissance period.

If you love history, you might want to start off by visiting the Colosseum and the Pantheon, or maybe you would like to take in what remains of the city of Pompeii which, ironically, was preserved by the same volcanic eruption that wiped out its inhabitants.

If, however, you are more of a fan of scenic beauty that leaves one speechless, the Cinque Terre might just be the place for you, which is made up of beautiful villages and steep hills that give a perfect view of the Mediterranean.

Have a love for hiking? The Amalfi coast with its rock, walking paths may be perfect for you. Or you can opt for a gondola ride through the canals of Venice while taking in the beauty of the city. Make sure not to miss out on the perfectly flawed Leaning Tower of Pisa while you’re at it. 

For those who have a love for the arts, the opera in Verona is the experience of a lifetime. Italy was also home to artists such as Leonardo da Vinci, Michelangelo, etc. whose famous works such as the Mona Lisa, David, Apollo, and Daphne,  still attract art enthusiasts from all around.

The Vineyards in Tuscany and fashion shows in Milan, might also be popular attractions for tourists.


It is a well-known fact that Italians take food very seriously, so much so that it is an essential part of their culture. We’ve all tried or at least heard of dishes such as pizza, pasta, lasagna, prosciutto, etc. but very few people know that these foods originate from Italy.

The pizza was invented in Italy but there are numerous types, the most popular of which is the pizza Napoletana. Pasta too is a famous dish and there are rules associated with making and eating it.

The most interesting though is gelato, which is a kind of ice cream that is lower in fat and has a richer flavor than regular ice cream. Not only is Italian gelato the best in the world, but it can also be studied at university!    



Economic Crisis

Italy was quite slow to recover from the recession and has hence been facing an economic crisis. Around forty-five percent of businesses suffered massive losses. 


Due to the fact that businesses suffered greatly because of the economic crisis, a great number of people either lost their jobs or could not gain employment which led to an increase in the unemployment rate.

In addition to that, the current pandemic further put a strain on resources which led to a further increase in unemployment, despite government efforts to lessen the effect of COVID on employment.


Italy’s public debt is perhaps a great weakness and it is further expected to increase in 2020 to 160 percent of the GDP, while the GDP is expected to fall by 11.9 percent.    


Tourism Exploitation

It has already been established that Italy has a lot to offer in terms of tourism, however, the country has not fully exploited its capabilities especially with regard to art and mountain-related activities.




Considering the fact that Italy is already dealing with an economic crisis, the COVID-19 pandemic is not doing the country any favors especially with regard to its economic condition.

In fact, as of mid-2020, Italy has been ranked seventh in terms of having the deadliest COVID outbreak

The country thrives because of tourism which has taken quite a hit due to the pandemic as people are being warned to stay at home and not leave the country unless absolutely necessary.    

Italy SWOT Analysis: Bottom line

While Italy has a lot to offer in terms of art, architecture, landscapes, food, etc. the fact of the matter is that it is not at the top of its game, concerning its economy. Furthermore, the current pandemic is not helping the situation.

If Italy wants to step out of its economic slump, it needs to identify ways to exploit its tourism capabilities and find new avenues to help its economy.