I'm not sure it's true. Italy and France don't have royals anymore, but the tourism industry is hardly suffering for that. The trappings of royalty make money for tourism (Buckingham Palace, Crown Jewels, etc), but you don't need an actual royal family for that (and in fact, lots of people visit Versailles and the Reggia of Caserta even tho Italy and France are now republics). Personally, I have nothing against the monarchy myself, and I wouldn't mind if Italy had retained the monarchy after WWII (except that the royals were kinda dumb, but that's a common occurrence with any kind of state representatives, I guess). I think monarchy is silly in this time and age, but I understand the appeal of royals as a connection to a country's past, so if the majority of people like to have it, so be it. Monarchy as a democratic feature, I guess.