10. Align Investment, Regulation and Incentives with Sustainable Outcomes

Sardinia has significant opportunities to finance tourism-related investment, but funding should not reward expansion in isolation. Public finance, planning approvals, tourism incentives and business-support programmes should consistently favour projects that reduce environmental pressure, improve accessibility, create quality employment, protect nature and generate local value.

The Regional ERDF programme for 2021–2027 has a total allocation of approximately €1.58 billion. It includes €44 million for strengthening culture and sustainable tourism in economic development, social inclusion and social innovation, as well as more than €220 million under the priority for integrated urban and territorial development, including culture, natural heritage, sustainable tourism and safety. This provides a substantial basis for strategic alignment.[old.sardegnaprogrammazione]

Problem

Investment decisions can unintentionally deepen existing pressures. For example, new accommodation may increase water demand in already constrained areas; coastal infrastructure may weaken dunes or increase flood exposure; incentives may support seasonal low-wage activity without improving workforce housing or skills; and destination marketing may stimulate demand where infrastructure and ecological capacity are already exceeded.

A sustainable strategy needs a different test for public support: not “Will this attract more visitors?” but “Will this improve destination resilience, resident wellbeing, ecological condition and locally retained value?”

Investment principle

Adopt a Do More Good, Do No Harm framework for tourism-related investment. Every publicly supported project should:

  1. Demonstrate compliance with environmental, planning, accessibility and labour requirements.
  2. Avoid increasing material pressure on water-stressed, climate-exposed or ecologically sensitive locations without credible mitigation.
  3. Deliver measurable public value beyond private commercial gain.
  4. Show how benefits will reach local workers, suppliers, communities, culture or conservation.
  5. Monitor outcomes after completion, with support conditional on transparent reporting.

Proposed direction

Create a Sustainable Tourism Investment Framework that applies consistent eligibility, scoring and monitoring criteria across grants, investment contracts, public-realm projects, marketing support and destination-development programmes.

Priority measures should include:

  • Introduce a sustainability-screening requirement for all material tourism investments, covering water, energy, waste, mobility, climate exposure, biodiversity, accessibility, housing and workforce implications.
  • Make public support conditional on baseline data, measurable targets and post-investment reporting.
  • Prioritise refurbishment, adaptive reuse, energy and water retrofits, heritage restoration and upgrading of existing accommodation before greenfield expansion.
  • Reward projects that reduce per-guest resource use, extend the operating season, create quality employment and purchase from local suppliers.
  • Give additional weighting to projects in under-served areas only where ecological capacity, transport, community support and service readiness have been demonstrated.
  • Use concession, licensing and public-procurement rules to reduce single-use materials, improve accessibility, protect coastlines and require fair labour practices.
  • Support shared infrastructure that benefits multiple businesses and residents: water-reuse systems, low-impact mobility, waste prevention, accessible public spaces, trail maintenance, visitor information and climate adaptation.
  • Establish dedicated finance and technical assistance for small and medium-sized enterprises, which may lack the capacity to prepare complex sustainability investments.
  • Create blended-finance mechanisms, loan guarantees or revolving funds for energy efficiency, renewable generation, water resilience, circular systems and accessible upgrades.
  • Ring-fence a proportion of visitor-derived revenue—where such charges are introduced—for conservation, public services, community projects and destination-management capacity.

Funding routes

The framework should coordinate rather than duplicate existing programmes.

Funding routeStrategic use
PR Sardegna FESR 2021–2027Sustainable tourism, cultural and natural heritage, accessibility, innovation, integrated territorial development and resilience investment
Regional investment contractsLarger tourism-accommodation investments screened against sustainability, employment and local-value criteria
Municipal and destination budgetsPublic realm, visitor management, mobility, maintenance, accessibility and service capacity
National and EU programmesClimate adaptation, biodiversity, rural development, skills, inclusion, digitalisation and circular economy
Private capital and financeAccommodation retrofits, renewable energy, water efficiency, low-impact mobility and business innovation
Visitor-revenue mechanismsConservation, restoration, ranger services, waste management, local transport and site maintenance

The Region’s 2025 investment-call framework already included tourism-accommodation proposals under PR FESR 2021–2027 investment contracts. Future calls should explicitly include the full sustainability and public-value criteria outlined above, rather than treating them as secondary commitments.[regione.sardegna]

Selection criteria

Projects should be assessed using a transparent weighted scorecard.

Assessment areaIllustrative questions
Environmental resilienceDoes the project reduce water, energy, emissions and waste intensity? Is it appropriate for local climate and ecosystem risk?
Nature and landscapeDoes it avoid habitat damage, respect coastal and landscape character, and contribute to restoration where relevant?
Social inclusionIs it accessible, safe and beneficial for residents, workers and diverse visitor groups?
Economic qualityDoes it create year-round value, local procurement, quality work and viable small-business opportunities?
Place fitIs it consistent with local capacity, transport, housing, infrastructure and community priorities?
Delivery credibilityAre the baseline, funding plan, skills, permits, timeline and monitoring arrangements robust?

Relevant stakeholders

Regional Departments of Tourism, Planning, Environment, Economic Development, Labour, Culture and Social Policies; Centro Regionale di Programmazione; municipalities; destination-management organisations; public utilities; banks and ethical-finance providers; tourism businesses; chambers of commerce; universities; worker representatives; community and environmental organisations.

Possible indicators

IndicatorSuggested measurement
Sustainable allocationShare of tourism-related public investment screened and approved under the framework
Resource efficiencyWater, energy, emissions and residual-waste reduction per guest-night from supported projects
Climate and nature resilienceProjects meeting climate-risk, biodiversity and landscape criteria; habitat restored or protected
InclusionAccessible rooms, facilities, routes and services created or upgraded
Local valueLocal procurement, local ownership, quality jobs and year-round employment supported
LeveragePrivate capital mobilised per euro of public funding
ComplianceShare of projects completing post-investment monitoring and meeting agreed targets
Public benefitVisitor-revenue funds reinvested in conservation, community services and destination management

Delivery horizon

Immediate. Apply the framework first to new regional tourism calls and investment contracts, then align municipal grants, public procurement and destination programmes. Within two years, publish a portfolio-level assessment showing not only expenditure and projects funded, but the environmental, social and economic outcomes achieved.