Italy’s tourism sector is dodging around €13.5 billion in taxes this year by not declaring revenues, a study into the grey economy by the Cescat research group has showed.

The study estimated that bars, restaurants, hotels and beach resorts had failed to declare around €36 billion in revenues so far in 2011.

The unpaid taxes from this undeclared revenue represent around a third of the €45.5 billion draft austerity Budget adopted by the government earlier this month.

Cescat found the biggest tax evaders were small hotels, bed and breakfasts, beach resorts, bars and restaurants. It found tax evasion was highest in the south and on Italy’s picturesque islands – reaching levels of around 35 per cent. The official turnover generated by Italian and foreign tourists in 2011 is put at €185 billion – equivalent to 12 per cent of gross domestic product.

Tax evasion is estimated at around eight per cent of output every year.

The government has promised to crack down on tax evaders in a bid to reduce Italy’s soaring public debt but campaigners are sceptical on implementation.