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All of the Vatican mail is sent directly to Switzerland to be routed worldwide. I'm sure that everything is billed at the international rate. I mean there can't be that much internal mail when the country is only 0.2 square miles.
Not all of the mail is from tourists. Italian mail is notoriously slow. Lots of Romans make weekly trips to the Vatican to send important letters and packages.
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More letters are sent each year, per inhabitant, from Vatican City than from anywhere else. Not too bad for the world's smallest country.
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