Abstract
This research paper analyses and compares the demand and supply of real estate properties and traditional lodging establishment in a seaside destination – Cefalù, Italy – with the aim of exploring and contrasting the characteristics of real estate. Secondary data from a structured questionnaire, and primary data from semi-structured, face-to-face interviews conducted with key informants and an investigation of intermediaries’ website offering second houses rental constituted the method of research for this paper. The findings should help tourism destinations to (a) evaluate the impact of the new real estate development on residents, local tourism entrepreneurs, and services and utilities providers, and (b) understand the conditions necessary for effective capacity management and thereby contribute to destinations’ endogenous growth and welfare. Guidelines for further study and recommendations to local operators and managers are provided.