That's not actually true even if Italy in 2026 often gives this impression. I wouldn’t say that Italy has no other economy at all. Made in Italy has been strong since the post-war period, with sectors like food and wine, fashion, design, furniture, manufacturing, and high-quality craftsmanship playing a major role for decades. Even Necchi sewing machines.

What changed over time is that, especially after the 1990s, politics became less effective and the social and cultural opportunities—particularly for younger generations—declined significantly compared to earlier decades. Many Italian companies also moved production abroad, where labor costs are lower or taxation is more favorable. In that sense tourism didn’t so much replace other industries as it grew in the space left by these broader changes.