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Historic buildings sold off in Venice - 15 June 2010

One of Italy’s most famous cities is being forced to sell off dozens of historical palazzos in a bid to boost the city’s fast diminishing funds - but is this a rather short-sighted solution?

They are as integral to Venice as its gondoliers and canals, but the lagoon city is auctioning off many of its famous palaces, some of which look directly on to the Grand Canal, the historic waterway which winds through the heart of what was once known as La Serenissima (The Most Serene).

In a decision that has been likened to "auctioning off the family silver" by critics, palaces adorned with gothic arches and carved stone balconies are being sold to the highest bidder to bolster the local council’s finances, with most being turned into hotels.

But preservation groups claim that converting so many palaces into tourist accommodation does not make economic sense because Venice’s existing hotels are struggling to fill their rooms. They say the trend further risks turning the city into a tourist ghetto devoid of other economic activity.

Between 2000 and 2007, more than 40 hotels opened in Venice. The number of private homes converted into budget bed and breakfasts rose by more than 1000 per cent, creating a glut of accommodation.

"Selling off the palaces is an ad hoc strategy driven by panic," said Anna Somers Cocks, the chairman of the British-based Venice In Peril Fund.

"It’s like auctioning the family silver instead of sorting out your estate. It’s very recent - it has all happened in the last five years or so. We think it would be much better to offer some of the palazzos to research institutes, for instance. That would bring in a much wider variety of people. Otherwise you end up with a dislocated city, devoted only to tourism."

The city council claims the sale of the palazzos reflects a harsh economic reality as Venice tries to adapt to a sharp fall in public finances. Earnings from the council-owned casino near the famous Rialto Bridge, which provides a quarter of the city’s annual income, are significantly down because high-rollers have been hit by the global economic crisis.

There has also been a decline in the amount of money that Venice receives from the Italian government. Funds have been diverted into the construction of a $5.2 billion flood prevention barrier, designed to protect the city from rising sea levels.

"Maintaining these old buildings, as well as the canal banks on which they sit, is very, very expensive," said a council spokesman. "We don’t have the money to do it."

Source: www.telegraph.co.uk

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