**3. Literature Review**

The scarcity of resources, rapid urbanization, and climate change pose threats to ecosystems and human well-being [1,2]. To address these challenges, sustainable development [3] and the transition to a CE are considered crucial [4,5]. A CE involves production and consumption processes that minimize environmental impacts and waste generation, extending the lifespan of products and materials while reducing consumption and waste [6]. The built environment, which consumes a significant amount of resources and produces carbon dioxide emissions, is a key sector to focus on [4,8].

Cultural heritage, a driving force for sustainable development and urban livability, consists of non-renewable resources that express the values, knowledge, and traditions of people [17,18]. The management of cultural heritage has evolved to be understood as "change management", involving a variety of stakeholders and disciplines [19–23]. The Adaptive Reuse (AR) of cultural heritage, which preserves the heritage by providing a new function to the site/building, extends the life cycle of the heritage and can implement circular models in its management [13,24–29]. This approach contributes to achieving sustainable development and circular cities [8–13,29,30].

AR, a central element of the CE concept which is in line with sustainable architecture [28], has emerged as a rapidly growing practice that promotes the three pillars of sustainability [21]. In fact, it offers numerous social, environmental, and economic benefits.

From a social perspective, the process of conserving and adaptively reusing built heritage requires widespread awareness of its material and immaterial values [21,27,29] within society. Governments, tourism businesses, cultural associations, and individuals must be actively involved in this process, and informative campaigns can increase the social awareness necessary for a transition towards a CE model [31,32]. Additionally, it is essential for decision-makers to invest more in education about heritage management and the values of historic buildings for younger generations [33]. The knowledge and collaboration of all stakeholders are crucial for the application of a CE to build heritage. Only through the engagement and cooperation of all parties involved will it be possible to successfully implement adaptive reuse projects in the tourism sector.

The restoration of cultural and historical heritage (such as ancient buildings, historic villages, industrial complexes, etc.) is not only a crucial model for envisioning tourism development within a circular economic framework, but it also holds significant value for the local community. It becomes a source of pride that effectively protects the heritage. As a result, the local community benefits from an improved living environment, the quality of life in a particular area is enhanced, and regional development is facilitated. Furthermore, Foster and Saleh (2021) [34] state that "culture and buildings of cultural heritage are established drivers of socioeconomic development, urban landscape, and identity strategies". In this regard, positive mutual cooperation and communication among stakeholders involved in restoration are necessary, as development objectives can only be achieved through the engagement and cooperation of all stakeholders. The recovery of cultural and historical heritage, including ancient buildings, historic villages, and industrial complexes, is not only a crucial model for tourism development but also holds value for the local community. The community itself protects the heritage it takes pride in, resulting in an improved living environment and a better quality of life in the surrounding area, thereby promoting regional development. According to Foster and Saleh (2021) [34], "culture and cultural heritage are established drivers of socioeconomic development, urban landscape, and identity strategies". In this perspective, mutual cooperation and positive communication among stakeholders involved in restoration are necessary, as development objectives can only be achieved through the engagement and cooperation of all stakeholders.

Regarding environmental sustainability, reuse primarily results in lower consumption of energy and new materials, thus reducing emissions and land sealing [35–37]. Finally, from an economic perspective, two main advantages are evident: the cost-effectiveness of reuse compared to the demolition and construction of a new building [38–42], and the positive impact it has on the property value of the building itself and surrounding properties, generating social and economic flows [43]. The development of heritage tourism involves not only identifying, managing, and protecting the value of the heritage itself but also engaging local communities through economic and social benefits, ensuring the security of financial resources and promoting the marketing and promotion of the tourism destination [44]. Heritage tourism contributes to the economic sustainability of the tourism sector by increasing visitor numbers and the income generated by tourists as well as stimulating positive effects across various sectors and creating employment opportunities. In this perspective, cultural heritage must be considered as a resource for present and

future generations, to be utilized in accordance with the principles of the CE to achieve sustainable development goals [44].

New or underutilized existing buildings, if kept efficient, can be reused for over a century, adapted, and reconfigured for new purposes and functions, contributing to the development of a prosperous and resilient built environment. Therefore, the importance of the AR approach for economic growth, social well-being, and environmental conservation is widely recognized. The reuse of underutilized or abandoned heritage provides new opportunities for these assets, decoupling growth from resource consumption [45,46].

Similar to new buildings, AR projects have a lifecycle consisting of various stages, including planning, design, construction, management, and maintenance [13,38,45,46]. These projects involve different public and private stakeholders. Therefore, a standardized methodology is necessary that considers all perspectives and helps "speak the same language" [47]. Scientific studies demonstrate that assessment tools such as sustainability protocols are relevant for this analysis, considering the importance of responsible approaches in the built environment to develop sustainability assessment tools [6,17,19,21,24,25,27,28,38,42,45,48].

In this context, research in the field of decision-making assessments has increasingly highlighted the importance of adopting and promoting responsible practices that carefully consider the implications of cultural heritage reuse. The crucial challenge lies in finding suitable evaluation methodologies that ensure feasibility and sustainability while preserving the integrity of the heritage [49–51] without compromising its authenticity and value while also enabling effective and mindful management. Achieving an appropriate balance between development and conservation is a complex challenge, especially in a country like Italy, which is characterized by the highest density and distribution of cultural heritage in the world.

In this perspective, it becomes crucial to promote a culture of assessment that carefully considers all aspects, including financial considerations, while placing special emphasis on conservation. Cultural heritage is a valuable asset that needs to be safeguarded for future generations, and this requires a responsible and mindful approach to the implications of the decisions made.

There is an increasing need for tools and methodologies that can assess the financial impact of reuse in the preliminary stages while also considering the importance of preserving the historical and cultural integrity of the heritage. This delicate balance requires a continuous commitment to improving evaluation practices and promoting awareness of the importance of a responsible approach to cultural heritage.

#### **4. Projects and Specific Actions for a "Circular" Urban–Rural Development**

#### *Recovery and Redevelopment of Historic Villages and Promotion of 'Rifugio Diffuso'*

In line with recent research on the role of the AR and regeneration of cultural and landscape heritage in the transition towards a CE [14,17], the existence of integrated projects for the recovery and re-functionalization of historic centers can become a catalyst for private investments and contribute to the AR of resources that today represent a waste because they are unused.

In line with the principles of a circular perspective, the revitalization of historic centers in small municipalities aligns with a "systemic" and synergistic approach inherent to the CE. These centers are valuable economic, social, cultural, and environmental resources that can be leveraged, for instance, as hubs for new social entrepreneurship and as "Rifugio Diffuso" (RD) for promoting sustainable and slow-paced tourism. Embracing such initiatives is entirely consistent with circular development principles, as it emphasizes the utilization and regeneration of existing resources within a circular framework.

The RD is a model of innovative hospitality structure ('network') capable of generating cultural and economic wealth at the same time. As is known, it is a business for hospitality purposes located in the historic center of a single urban center that is made up of several properties close to each other and is able to provide hotel services.

The RD model aligns seamlessly with the principles of sustainable tourism by prioritizing the recovery, preservation, and promotion of an area's distinct traditions and peculiarities. It stands out by avoiding additional environmental impacts, as it revitalizes and repurposes existing historic buildings without requiring further land usage. Unlike traditional hotels, the RD model fosters a stronger sense of community and a deeper immersion of tourists in the local environment, enhancing the unique characteristics of the area. The RD model emphasizes the enrichment of the territory and the promotion of locally sourced products, making it a hallmark of sustainable tourism.

The promotion and enhancement of the short agri-food chain and of so-called "zero kilometer" products represent an effective "circular" territorial development strategy, especially if combined with forms of traditional multifunctional agriculture and "circular" agriculture [8–10]. Several recent studies have confirmed the data on Italy's attractiveness for food and wine resources. In addition to being the first country in Europe for the number of Protected Designation of Origin (PDO), Protected Geographical Indication (PGI), and GGS (Guaranteed Geographical Specialty) awards, "food and wine tourism, in 2017 counted 110 million presences in accommodation facilities (double compared to 2016), 43% of which due to Italian tourism (47 million visitors), while 57% to international tourism (63 million visitors)" [18]. It is therefore evident that the short supply chain can be identified as a strategic element for a "circular" territorial development, building both productive and tourist relations between the entire territory of the park and the surrounding historic centers and rural villages.

Considering the multifaceted value of cultural landscape assets and their potential integration into the local economic system, this contribution suggests a comprehensive multi-methodological framework. The framework aims to evaluate the technical, managerial, and economic–financial feasibility of integrated AR projects. Such projects have the capacity to attract private investments and stimulate local economic development by leveraging underutilized resources.

The proposed framework acknowledges the need to assess the viability of these projects from various angles, encompassing technical aspects, management strategies, and economic–financial considerations. By doing so, it provides a robust evaluation process that can effectively identify and capitalize on opportunities for AR. The ultimate goal is to incentivize the efficient utilization of resources that may not yet be adequately valued. By catalyzing private investments and promoting the integration of cultural landscape assets into the local economy, these projects can unlock their potential and contribute to sustainable and inclusive economic development.

Therefore, the aim of this pilot project is to foster the integration of the plurality of policies to respect and enhance the complex local reality and to seize the set of economic, social, and cultural opportunities that the dynamics of this context can trigger. This multimethodological framework is discussed using a pilot project, represented by a project for the renovation and AR of a group of chalets inserted in the landscape context of Sila National Park (SNP) registered as the 10th Italian Biosphere reserve in the World Network of Sites of Excellence by UNESCO [7].
