1. What critical-thinking issues are raised in the case?

2. Should companies that contribute to historic renovation projects be allowed to place advertising on the buildings?

3. Do you think that Venice’s tourist officials should use marketing communications to provide information that would direct visitors to areas of the city that are “less touristy”?

Tourists also arrive by air, rail, and car; Marco Polo airport is less than 20 kilometers from Venice. In terms of nationality, Americans constitute the largest group of foreign tourists. Overall, tourism is the leading source of income in Venice, with approximately 15 million visitors arriving each year. By comparison, the year-round resident population of Venice is only about 59,000 people; that number has been steadily declining for years. Tourism gets a boost because Venice hosts important cultural events such as the International Film Festival and the Biennale International Art Exposition. Venice also hosted the America’s Cup World Series in 2012.

Concern is growing among the locals about the potentially detrimental effects of the cruise ships—specifically, air, water, and noise pollution—and possible damage to the submerged foundations that support Venice’s famed architectural treasures. Not surprisingly, it is a divisive issue. Says one bar owner, “Everyone in Venice works with the cruise passengers, from taxis to bars to suppliers. The ships bring people, and the cruises can save a season.” Even so, Europe’s recent economic crisis was particularly hard on Italy. Even Harry’s Bar, an iconic Venice fixture since the 1930s, fell on hard times and may close.

For those not in favor of the cruise ships, the potential benefits of tourist money flowing into the Venice economy do not offset the detrimental effects. As one resident complains, “Some days you have 10 ships coming in. It just isn’t safe.” There is even a sense among some locals that many visitors care less about Venice’s cultural life and more about shopping for souvenirs. “And even if they did spend millions, is it worth the risk of destroying the city?” the resident asks.

Cruise ships are not the only marketing-related issue that has ruffled some feathers in Venice and resulted in public debate. Venice’s unique setting results in severe seasonal flooding; in the winter, tide surges known as acqua alta (“high water”) cause severe structural damage to buildings and make it hard for pedestrians to navigate the city’s narrow streets. Water damage is one reason that several of the city’s landmarks are in need of repair, but Italy’s Ministry of Culture allocates roughly $47 million each year for historic renovation in the entire country. With only about $1.8 earmarked for the entire Veneto region, Venice itself receives less than $200,000 in renovation funds. Needless to say, this is far less than the amount needed for upkeep and repair.

In other parts of the country, water damage from flooding is not a problem. Even so, many ancient artifacts are crumbling. In the face of public budget shortfalls, owners of Italy’s most famous fashion brands are footing the bill for historic renovations. For example, Diego Della Valle, the CEO of Tod’s, is contributing about $34 million to the restoration of the Colosseum in Rome. At Tod’s, “Made in Italy” is a core value, and Della Valle believes that he has a responsibility to step up and help preserve a monument that represents Italy in the world. Similarly, Brunello Cucinelli, the “King of Cashmere,” is helping defray the cost of restoring the Arch of Augustus. This Etruscan artifact dates to the third century b.c. in Perugia, the capital of the Umbrian region.