by InTrieste
The regional government of Friuli Venezia Giulia has approved guidelines for a new financial instrument aimed at attracting investment in the hospitality sector, setting aside €50 million to support hotel development and renewal across the region.
The measure, approved this week by the regional executive, follows provisions introduced in the most recent budget adjustment law, which allows the region to participate in closed-end real estate investment funds focused on strengthening the local hotel industry. Regional officials describe the initiative as part of a broader effort to modernize tourism infrastructure and expand accommodation options beyond the region’s most established destinations.
“This is the next step in the modernization of the regional tourism and hospitality system,” Sergio Emidio Bini, the regional councillor for productive activities and tourism, said in a statement. He noted that the funding has now been allocated and that the focus will shift to implementation.
Under the plan, the regional government will launch a public tender to select a financial services company authorized to identify an appropriate real estate fund and appoint its manager. The process will be overseen by the regional Department of Productive Activities and Tourism, which will also define the operational framework for investments.
The guidelines approved by the executive set out the fund’s strategic priorities. Investments may be directed toward the construction of new hotels, the renovation of existing properties or the conversion of underused buildings into hospitality facilities. Projects will be expected to meet standards of quality and to place particular emphasis on environmental sustainability, energy efficiency, digital services and technological innovation.
Regional officials say the initiative is designed not only to improve the overall standard of accommodation, but also to address imbalances in tourism development. While cities like Trieste and well-known seaside destinations already attract steady flows of visitors, other areas remain comparatively overlooked.
For that reason, the geographic focus of the fund will include rural and peripheral areas, mountain communities and locations with tourism potential that has not yet been fully realized. Properties with underutilized hotel infrastructure will also be eligible, provided projects align with regional planning objectives and with municipal strategies for sustainable tourism development.
The €50 million allocation will be drawn from the Regional Fund for Economic Initiatives in Friuli Venezia Giulia, known by its Italian acronym, Freie. According to the regional government, these resources are intended to serve as a catalyst rather than a standalone solution. Once operational, the fund is expected to generate a leverage effect by attracting additional capital from professional investors, both public and private.
Officials argue that this blended approach could significantly increase the overall volume of investment, enabling larger or more complex projects than public funding alone would allow. The participation of institutional investors, they say, may also bring greater managerial expertise and long-term financial stability to the sector.
The hospitality industry has been a focal point of regional economic policy in recent years, as Friuli Venezia Giulia seeks to position itself as a year-round destination rather than a seasonal one. Beyond its Adriatic coastline, the region encompasses alpine landscapes, wine-producing areas and historic towns, as well as a cross-border cultural identity shaped by its proximity to Austria and Slovenia.
Despite these assets, local authorities acknowledge that parts of the region lack modern accommodation capable of meeting the expectations of international travelers, particularly in terms of sustainability and digital services. The new fund is intended to address those gaps while encouraging redevelopment that respects environmental and territorial constraints.
With the approval of the guidelines, the Department of Productive Activities and Tourism will now begin preparatory work, including the drafting and publication of the public call for tenders to select the fund manager. Once that process is complete, the initiative will enter its operational phase.
Regional officials have not yet provided a timeline for when the first investments might be finalized, but they have emphasized that the fund is conceived as a medium- to long-term tool. Its success, they say, will be measured not only by the number of projects financed, but also by its ability to reshape the regional hospitality landscape and to stimulate broader economic activity.
As tourism continues to be seen as a key driver of growth in Friuli Venezia Giulia, the new fund represents an attempt to combine public oversight with market-based mechanisms — a model increasingly adopted by regional governments seeking to attract private capital while pursuing strategic development goals.
