The city of Venice is selling off some of its historic palazzi in order to make ends meet, reports The Telegraph. Several of the palazzi for sale overlook the Grand Canal and are synonymous with our image of the “Serenissima”.

Most of the palazzi are being converted into hotels once they are sold, yet the city’s existing hotels are finding it difficult to fill their rooms in the midst of the economic recession.

Anna Somers Cocks of the UK Venice in Peril Fund says that opening more hotels in this climate makes no sense and could eventually make the situation worse, with the city relying only on tourism for its economy. Ms Cocks suggests that offering some of the palazzi to research institutions would attract a wider variety of people to the city.

Government funding for the city of Venice has been drastically cut in the past five years and much of it has been diverted into the building of the Moses flood barrier. The city’s earnings from its casino are also down and a city spokesperson said that funding for the maintenance of the palazzi is just not available. Offices have moved their premises to other areas of the city where maintenance costs are lower while the palazzi are being left to their fate of becoming half-empty hotels or converted into superstores.