This study investigates the relationship between EU Cohesion Policy-funded tourism investments and the attractiveness of Italian municipalities. Utilizing data from OpenCoesione, the research classifies tourism projects to differentiate between various investment types and estimates their association with alternative tourism outcomes through spatial panel models. The findings reveal that Cohesion Policy funds are generally linked to higher tourism attractiveness, although the relationship varies depending on the type of investment. Investments for businesses demonstrate synergies with investments for transportation, while all categories show non-linear dynamics, with diminishing marginal returns at higher expenditure levels. These results underscore the intricate nature of tourism funding, providing valuable insights for policymakers aiming to optimize investment strategies.
Arena et al. (Sun,) studied this question.