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• In 2023, the Travel & Tourism sector contributed 9.1% to the global GDP; an increase of 23.2% from 2022 and only 4.1% below the 2019 level.
• In 2023, there were 27 million new jobs, representing a 9.1% increase compared to 2022, and only 1.4% below the 2019 level.
• Domestic visitor spending rose by 18.1% in 2023, surpassing the 2019 level.
• International visitor spending registered a 33.1% jump in 2023 but remained 14.4% below the 2019 total.

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Each year, WTTC and Oxford Economics produce reports covering the economic contribution of our sector in 185 countries, for 26 economic and geographic regions, and for more than 70 cities. We also benchmark Travel & Tourism against other economic sectors and analyse the impact of government policies affecting the sector such as jobs and visa facilitation.

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Tourism Economics

Impact Analysis

• © 2011
• Álvaro Matias 0 ,
• Peter Nijkamp 1 ,
• Manuela Sarmento 2

School of Economics and Business, Universidade Lusíada de Lisboa, Lisboa, Portugal

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Faculty of Economics, and Business Administration, Free University, Amsterdam, Netherlands

School of economics and business, head of the tourism department, universidade lusíada de lisboa, lisboa, portugal.

• Provides an in depth oversight on the latest research contributions by high academic scholars on the impacts of tourism activities
• Includes theoretical and applied original studies on tourism impact analysis
• Includes a final chapter on local impact analysis

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About this book

The assessment of local, regional or national impacts of an influx of tourists – of different kind and origin – has in recent years become a new challenge for economics research in the tourism sector. There is a clear need to develop solid methodologies through which the socio-economic impacts of tourism can be assessed. Tourism impact assessment – as a systematic approach to the estimation of socio-economic effects of tourism on relevant parts of the economy – has become a timely response to the need for appropriate information for stakeholders, both public and private. The present volume brings together a set of recent impact studies – of both a theoretical-methodological and an applied policy-oriented nature – , which have been selected on the basis of their originality or novel contribution to the research in this field.

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Growth impact analysis, migration and tourist flows.

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Local Impact Analysis

Editors and affiliations.

Álvaro Matias

Peter Nijkamp

Manuela Sarmento

Bibliographic Information

Book Title : Tourism Economics

Book Subtitle : Impact Analysis

Editors : Álvaro Matias, Peter Nijkamp, Manuela Sarmento

DOI : https://doi.org/10.1007/978-3-7908-2725-5

Publisher : Physica Heidelberg

eBook Packages : Business and Economics , Economics and Finance (R0)

Copyright Information : Springer-Verlag Berlin Heidelberg 2011

Hardcover ISBN : 978-3-7908-2724-8 Published: 28 July 2011

Softcover ISBN : 978-3-7908-2903-7 Published: 12 October 2014

eBook ISBN : 978-3-7908-2725-5 Published: 28 July 2011

Edition Number : 1

Number of Pages : VIII, 293

Topics : Regional/Spatial Science , Economic Geography , Human Geography

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Reimagining the $9 trillion tourism economy—what will it take?

Tourism made up 10 percent of global GDP in 2019 and was worth almost $9 trillion, 1 See “Economic impact reports,” World Travel & Tourism Council (WTTC), wttc.org. making the sector nearly three times larger than agriculture. However, the tourism value chain of suppliers and intermediaries has always been fragmented, with limited coordination among the small and medium-size enterprises (SMEs) that make up a large portion of the sector. Governments have generally played a limited role in the industry, with partial oversight and light-touch management.

COVID-19 has caused an unprecedented crisis for the tourism industry. International tourist arrivals are projected to plunge by 60 to 80 percent in 2020, and tourism spending is not likely to return to precrisis levels until 2024. This puts as many as 120 million jobs at risk. 2 “International tourist numbers could fall 60-80% in 2020, UNWTO reports,” World Tourism Organization, May 7, 2020, unwto.org.

Reopening tourism-related businesses and managing their recovery in a way that is safe, attractive for tourists, and economically viable will require coordination at a level not seen before. The public sector may be best placed to oversee this process in the context of the fragmented SME ecosystem, large state-owned enterprises controlling entry points, and the increasing impact of health-related agencies. As borders start reopening and interest in leisure rebounds in some regions , governments could take the opportunity to rethink their role within tourism, thereby potentially both assisting in the sector’s recovery and strengthening it in the long term.

In this article, we suggest four ways in which governments can reimagine their role in the tourism sector in the context of COVID-19.

1. Streamlining public–private interfaces through a tourism nerve center

Before COVID-19, most tourism ministries and authorities focused on destination marketing, industry promotions, and research. Many are now dealing with a raft of new regulations, stimulus programs, and protocols. They are also dealing with uncertainty around demand forecasting, and the decisions they make around which assets—such as airports—to reopen will have a major impact on the safety of tourists and sector employees.

Coordination between the public and private sectors in tourism was already complex prior to COVID-19. In the United Kingdom, for example, tourism falls within the remit of two departments—the Department for Business, Energy, and Industrial Strategy (BEIS) and the Department for Digital, Culture, Media & Sport (DCMS)—which interact with other government agencies and the private sector at several points. Complex coordination structures often make clarity and consistency difficult. These issues are exacerbated by the degree of coordination that will be required by the tourism sector in the aftermath of the crisis, both across government agencies (for example, between the ministries responsible for transport, tourism, and health), and between the government and private-sector players (such as for implementing protocols, syncing financial aid, and reopening assets).

Concentrating crucial leadership into a central nerve center  is a crisis management response many organizations have deployed in similar situations. Tourism nerve centers, which bring together public, private, and semi-private players into project teams to address five themes, could provide an active collaboration framework that is particularly suited to the diverse stakeholders within the tourism sector (Exhibit 1).

We analyzed stimulus packages across 24 economies, 3 Australia, Bahrain, Belgium, Canada, Egypt, Finland, France, Germany, Hong Kong, Indonesia, Israel, Italy, Kenya, Malaysia, New Zealand, Peru, Philippines, Singapore, South Africa, South Korea, Spain, Switzerland, Thailand, and the United Kingdom. which totaled nearly $100 billion in funds dedicated directly to the tourism sector, and close to $300 billion including cross-sector packages with a heavy tourism footprint. This stimulus was generally provided by multiple entities and government departments, and few countries had a single integrated view on beneficiaries and losers. We conducted surveys on how effective the public-sector response has been and found that two-thirds of tourism players were either unaware of the measures taken by government or felt they did not have sufficient impact. Given uncertainty about the timing and speed of the tourism recovery, obtaining quick feedback and redeploying funds will be critical to ensuring that stimulus packages have maximum impact.

2. Experimenting with new financing mechanisms

Most of the $100 billion stimulus that we analyzed was structured as grants, debt relief, and aid to SMEs and airlines. New Zealand has offered an NZ $15,000 (US $10,000) grant per SME to cover wages, for example, while Singapore has instituted an 8 percent cash grant on the gross monthly wages of local employees. Japan has waived the debt of small companies where income dropped more than 20 percent. In Germany, companies can use state-sponsored work-sharing schemes for up to six months, and the government provides an income replacement rate of 60 percent.

Our forecasts indicate that it will take four to seven years for tourism demand to return to 2019 levels, which means that overcapacity will be the new normal in the medium term. This prolonged period of low demand means that the way tourism is financed needs to change. The aforementioned types of policies are expensive and will be difficult for governments to sustain over multiple years. They also might not go far enough. A recent Organisation for Economic Co-operation and Development (OECD) survey of SMEs in the tourism sector suggested more than half would not survive the next few months, and the failure of businesses on anything like this scale would put the recovery far behind even the most conservative forecasts. 4 See Tourism policy responses to the coronavirus (COVID-19), OECD, June 2020, oecd.org. Governments and the private sector should be investigating new, innovative financing measures.

Revenue-pooling structures for hotels

One option would be the creation of revenue-pooling structures, which could help asset owners and operators, especially SMEs, to manage variable costs and losses moving forward. Hotels competing for the same segment in the same district, such as a beach strip, could have an incentive to pool revenues and losses while operating at reduced capacity. Instead of having all hotels operating at 20 to 40 percent occupancy, a subset of hotels could operate at a higher occupancy rate and share the revenue with the remainder. This would allow hotels to optimize variable costs and reduce the need for government stimulus. Non-operating hotels could channel stimulus funds into refurbishments or other investment, which would boost the destination’s attractiveness. Governments will need to be the intermediary between businesses through auditing or escrow accounts in this model.

Joint equity funds for small and medium-size enterprises

Government-backed equity funds could also be used to deploy private capital to help ensure that tourism-related SMEs survive the crisis (Exhibit 2). This principle underpins the European Commission’s temporary framework for recapitalization of state-aided enterprises, which provided an estimated €1.9 trillion in aid to the EU economy between March and May 2020. 5 See “State aid: Commission expands temporary framework to recapitalisation and subordinated debt measures to further support the economy in the context of the coronavirus outbreak,” European Commission, May 8, 2020, ec.europa.eu. Applying such a mechanism to SMEs would require creating an appropriate equity-holding structure, or securitizing equity stakes in multiple SMEs at once, reducing the overall risk profile for the investor. In addition, developing a standardized valuation methodology would avoid lengthy due diligence processes on each asset. Governments that do not have the resources to co-invest could limit their role to setting up those structures and opening them to potential private investors.

3. Ensuring transparent, consistent communication on protocols

The return of tourism demand requires that travelers and tourism-sector employees feel—and are—safe. Although international organizations such as the International Air Transport Association (IATA), and the World Travel & Tourism Council (WTTC) have developed a set of guidelines to serve as a baseline, local regulators are layering additional measures on top. This leads to low levels of harmonization regarding regulations imposed by local governments.

Our surveys of traveler confidence in the United States  suggests anxiety remains high, and authorities and destination managers must work to ensure travelers know about, and feel reassured by, protocols put in place for their protection. Our latest survey of traveler sentiment in China  suggests a significant gap between how confident travelers would like to feel and how confident they actually feel; actual confidence in safety is much lower than the expected level asked a month before.

One reason for this low level of confidence is confusion over the safety measures that are currently in place. Communication is therefore key to bolstering demand. Experience in Europe indicates that prompt, transparent, consistent communications from public agencies have had a similar impact on traveler demand as CEO announcements have on stock prices. Clear, credible announcements regarding the removal of travel restrictions have already led to increased air-travel searches and bookings. In the week that governments announced the removal of travel bans to a number of European summer destinations, for example, outbound air travel web search volumes recently exceeded precrisis levels by more than 20 percent in some countries.

The case of Greece helps illustrate the importance of clear and consistent communication. Greece was one of the first EU countries to announce the date of, and conditions and protocols for, border reopening. Since that announcement, Greece’s disease incidence has remained steady and there have been no changes to the announced protocols. The result: our joint research with trivago shows that Greece is now among the top five summer destinations for German travelers for the first time. In July and August, Greece will reach inbound airline ticketing levels that are approximately 50 percent of that achieved in the same period last year. This exceeds the rate in most other European summer destinations, including Croatia (35 percent), Portugal (around 30 percent), and Spain (around 40 percent). 6 Based on IATA Air Travel Pulse by McKinsey. In contrast, some destinations that have had inconsistent communications around the time frame of reopening have shown net cancellations of flights for June and July. Even for the high seasons toward the end of the year, inbound air travel ticketing barely reaches 30 percent of 2019 volumes.

Digital solutions can be an effective tool to bridge communication and to create consistency on protocols between governments and the private sector. In China, the health QR code system, which reflects past travel history and contact with infected people, is being widely used during the reopening stage. Travelers have to show their green, government-issued QR code before entering airports, hotels, and attractions. The code is also required for preflight check-in and, at certain destination airports, after landing.

4. Enabling a digital and analytics transformation within the tourism sector

Data sources and forecasts have shifted, and proliferated, in the crisis. Last year’s demand prediction models are no longer relevant, leaving many destinations struggling to understand how demand will evolve, and therefore how to manage supply. Uncertainty over the speed and shape of the recovery means that segmentation and marketing budgets, historically reassessed every few years, now need to be updated every few months. The tourism sector needs to undergo an analytics transformation to enable the coordination of marketing budgets, sector promotions, and calendars of events, and to ensure that products are marketed to the right population segment at the right time.

Governments have an opportunity to reimagine their roles in providing data infrastructure and capabilities to the tourism sector, and to investigate new and innovative operating models. This was already underway in some destinations before COVID-19. Singapore, for example, made heavy investments in its data and analytics stack over the past decade through the Singapore Tourism Analytics Network (STAN), which provided tourism players with visitor arrival statistics, passenger profiling, spending data, revenue data, and extensive customer-experience surveys. During the COVID-19 pandemic, real-time data on leading travel indicators and “nowcasts” (forecasts for the coming weeks and months) could be invaluable to inform the decisions of both public-sector and private-sector entities.

This analytics transformation will also help to address the digital gap that was evident in tourism even before the crisis. Digital services are vital for travelers: in 2019, more than 40 percent of US travelers used mobile devices to book their trips. 7 Global Digital Traveler Research 2019, Travelport, marketing.cloud.travelport.com; “Mobile travel trends 2019 in the words of industry experts,” blog entry by David MacHale, December 11, 2018, blog.digital.travelport.com. In Europe and the United States, as many as 60 percent of travel bookings are digital, and online travel agents can have a market share as high as 50 percent, particularly for smaller independent hotels. 8 Sean O’Neill, “Coronavirus upheaval prompts independent hotels to look at management company startups,” Skift, May 11, 2020, skift.com. COVID-19 is likely to accelerate the shift to digital as travelers look for flexibility and booking lead times shorten: more than 90 percent of recent trips in China  were booked within seven days of the trip itself. Many tourism businesses have struggled to keep pace with changing consumer preferences around digital. In particular, many tourism SMEs have not been fully able to integrate new digital capabilities in the way that larger businesses have, with barriers including language issues, and low levels of digital fluency. The commission rates on existing platforms, which range from 10 percent for larger hotel brands to 25 percent for independent hotels, also make it difficult for SMEs to compete in the digital space.

Governments are well-positioned to overcome the digital gap within the sector and to level the playing field for SMEs. The Tourism Exchange Australia (TXA) platform, which was created by the Australian government, is an example of enabling at scale. It acts as a matchmaker, connecting suppliers with distributors and intermediaries to create packages attractive to a specific segment of tourists, then uses tourist engagement to provide further analytical insights to travel intermediaries (Exhibit 3). This mechanism allows online travel agents to diversify their offerings by providing more experiences away from the beaten track, which both adds to Australia’s destination attractiveness, and gives small suppliers better access to customers.

Governments that seize the opportunity to reimagine tourism operations and oversight will be well positioned to steer their national tourism industries safely into—and set them up to thrive within—the next normal.

Download the article in Arabic  (513KB)

Margaux Constantin is an associate partner in McKinsey’s Dubai office, Steve Saxon is a partner in the Shanghai office, and Jackey Yu  is an associate partner in the Hong Kong office.

The authors wish to thank Hugo Espirito Santo, Urs Binggeli, Jonathan Steinbach, Yassir Zouaoui, Rebecca Stone, and Ninan Chacko for their contributions to this article.

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Tourism’s Importance for Growth Highlighted in World Economic Outlook Report

• All Regions
• 10 Nov 2023

Tourism has again been identified as a key driver of economic recovery and growth in a new report by the International Monetary Fund (IMF). With UNWTO data pointing to a return to 95% of pre-pandemic tourist numbers by the end of the year in the best case scenario, the IMF report outlines the positive impact the sector’s rapid recovery will have on certain economies worldwide.

According to the World Economic Outlook (WEO) Report , the global economy will grow an estimated 3.0% in 2023 and 2.9% in 2024. While this is higher than previous forecasts, it is nevertheless below the 3.5% rate of growth recorded in 2022, pointing to the continued impacts of the pandemic and Russia's invasion of Ukraine, and from the cost-of-living crisis.

Tourism key sector for growth

The WEO report analyses economic growth in every global region, connecting performance with key sectors, including tourism. Notably, those economies with "large travel and tourism sectors" show strong economic resilience and robust levels of economic activity. More specifically, countries where tourism represents a high percentage of GDP   have recorded faster recovery from the impacts of the pandemic in comparison to economies where tourism is not a significant sector.

As the report Foreword notes: "Strong demand for services has supported service-oriented economies—including important tourism destinations such as France and Spain".

Looking Ahead

The latest outlook from the IMF comes on the back of UNWTO's most recent analysis of the prospects for tourism, at the global and regional levels. Pending the release of the November 2023 World Tourism Barometer , international tourism is on track to reach 80% to 95% of pre-pandemic levels in 2023. Prospects for September-December 2023 point to continued recovery, driven by the still pent-up demand and increased air connectivity particularly in Asia and the Pacific where recovery is still subdued.

Related links

• Download the News Release on PDF
• UNWTO World Tourism Barometer
• IMF World Economic Outlook

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Dubai: The New Playground For The World’s Superyachts

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Its 22 marinas and top-notch maritime services support a thriving yachting ecosystem.

Dubai is attracting some of the world's most impressive superyachts.

Dubai’s marinas have hosted some of the world’s most impressive superyachts, owned by tycoons, royal families and celebrities. Notable superyachts spotted in U.A.E. waters over the past season (October 2023 to June 2024) include the 141-meter Nord , estimated to be worth US$500 million, and the 136-meter Flying Fox , featuring two helipads and the first cryosauna ever installed on a yacht.

The annual Dubai International Boat Show, which has been pivotal in shaping the emirate’s maritime ambitions for the last 30 years, continues to showcase the finest fleet of superyachts, attracting fans, manufacturers and industry experts from around the globe. This year, the show recorded a 30% jump in visiting superyachts and significant high-value sales, cementing its position as a global yachting hub.

With its strategic location, world-class yachting infrastructure and seamless entry procedures, as well as comprehensive commercial and private aviation connectivity, Dubai is rapidly gaining popularity as an ideal yachting destination for the luxury traveler.

Rich Maritime Heritage

The U.A.E.’s maritime heritage dates back thousands of years, long before the discovery of oil. From pearling and fishing to shipbuilding and trading, the maritime industry served as a lifeline for the community and contributed significantly to the local economy. From a small trading port, Dubai has transformed into a global city with top-notch infrastructure, a vibrant economy and a high standard of living. In fact, the “Pearl of the Gulf” emerged as the leading city in the Middle East in the Global Power City Index 2023, securing a place in the top 10, along the likes of London, New York, Tokyo, Paris, Singapore, Amsterdam and Seoul.

The traditional dhow offers tourists a glimpse of Dubai's rich maritime history.

Today, while traditional dhows (wooden sailing boats) still ply the Dubai Creek, offering tourists a glimpse of Dubai’s rich maritime history, a growing number of superyachts are docking at Dubai’s luxury marinas, positioning the emirate as a premier yacht tourism destination.

Yachting Crucial To Tourism Economy

Under the visionary leadership of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the U.A.E. and Ruler of Dubai, the emirate has unveiled a comprehensive 10-year economic framework, referred to as D33, which aims to double its economy by 2033 and secure its position as one of the top three global cities for business and leisure, and the best city to visit, live and work in.

The tourism sector plays a crucial role in this economic expansion. In 2023, Dubai welcomed a record 17.5 million international visitors, representing a 19.4% increase from 2022. This growth trend has persisted into 2024, with 9.31 million visitors recorded from January to June, up 9% from the same period in 2023. Dubai has bagged several accolades along the way, including the No. 1 global destination ranking in Tripadvisor’s Travelers’ Choice Awards 2024 for the third consecutive year, making it the only city to achieve this milestone.

All this bodes well for the yachting industry, a key pillar of Dubai’s tourism economy and central to the diversification of the tourism sector. “Yachting contributes to Dubai’s economic growth not only via direct expenditure from docking vessels, but also through attracting new audiences to the city, including investors and high net worth individuals,” says Issam Kazim, CEO of Dubai Corporation for Tourism and Commerce Marketing, part of Dubai Department of Economy and Tourism.

The yachting industry is central to the diversification of the tourism sector, contributing to Dubai’s economic expansion.

The yachting industry in the U.A.E. continues to enjoy remarkable growth. From October 2023 to June 2024, 64 yachts over 28 meters visited the U.A.E., the highest number ever recorded, showing a 12% increase over the previous season, according to the U.A.E Yachting Market Insights 2024 published by IR Yachts. The report also found that larger yachts are visiting the U.A.E.

To support the growth of the industry, the government has continued to invest significantly in developing its maritime infrastructure. For example, a road infrastructure project to improve access to Dubai Harbour is in the works. This AED431 million (US$117 million) project will see the construction of a two-lane bridge spanning 1.5 kilometers, extending from Sheikh Zayed Road to Dubai Harbour. When completed, it will improve the flow of traffic and reduce travel time from 12 minutes to three.

World-Class Infrastructure And Services

Dubai’s world-class maritime infrastructure, including 5,000 berths across 22 marinas, supports a thriving yachting ecosystem, and significant investment has led to the development of luxury services such as waterfront entertainment and state-of-the-art maintenance and repair facilities, ensuring a seamless experience for yachting enthusiasts. Popular marinas include Mina Rashid Marina , Dubai Harbour Marinas , Bulgari Marina and Nakheel Marinas . Well-placed fueling stations are available across the city’s marinas, allowing for convenient refueling for longer voyages. All this is complemented by the city’s abundance of attractions, cosmopolitan atmosphere, diverse gastronomy, privacy and unique lifestyle experiences. Additionally, yacht owners have greater peace of mind knowing that they can safely navigate around Dubai and the Gulf region, as the U.A.E was named the second safest country in the world in 2023 with a safety index of 84.9.

“The outlook for Dubai’s yachting industry is increasingly optimistic, and significant investments are being made to enhance maritime infrastructure and facilities, in addition to streamlining industry regulations,” says Kazim.

Key developments include the expansion of Nakheel Marinas Dubai Islands, which will accommodate 13 superyachts and house 248 wet berths for vessels up to 47 meters and 40 dry berths for trailers up to 20 meters. Mina Rashid will be transformed into a luxurious waterfront residential community , and anchorage points will be expanded across the emirate.

He adds: “Partnerships and collaborations between key stakeholders, a seamless arrival experience for foreign-flagged vessels, and visa options to simplify entry procedures are being prioritized to appeal to yacht owners from a diverse range of markets. Dubai is also positioning itself as a leading hub for the superyacht industry, with a focus on attracting key international players to establish offices, branches and manufacturing facilities here, further boosting our local economy.”

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• Was this the summer European tourism reached a breaking point?

Protesters staging hunger strikes against tourism developments. Local officials threatening to cut off water to illegal vacation rentals. Residents spraying tourists with water pistols.

With Labor Day, the unofficial end of summer, upon us, European hot spots like Barcelona, Spain; Athens, Greece; and the Greek island of Santorini have reached a breaking point, making tourists the targets of a major backlash. While final visitor numbers for this summer aren’t in, they are expected to surpass 2019 levels; in the second quarter alone, international arrivals exceeded 2019 by 6%, according to the European Travel Commission.

Climate change has also put tremendous pressure on popular destinations. July was the planet’s 14th consecutive month of record heat, according to the National Oceanic and Atmospheric Administration, and Spain and Greece experienced some of their hottest days on record, with temperatures higher than 114 degrees Fahrenheit.

While tourism is a critical economic driver for many European destinations, some residents argue that more tourism revenue needs to be invested in communities and infrastructure.

“We have been invaded by tourists; the situation is out of control,” said Camila Guzman, 32, a resident of Palma, on the Spanish island of Majorca. Guzman participated in the July protests that drew more than 50,000 people. Prices have been pushed up so much, she said, that “we cannot afford to live here anymore.”

Elsewhere, locals have rallied against disrespectful tourist behavior and new hotel and villa construction. Some places are imposing visitor caps. For example, Île-de-Bréhat, a French island off the coast of Brittany with just 400 residents, recently imposed a limit of 4,700 visitors per day.

The pandemic, too, exacerbated local grievances after residents got a taste of life without tourists. When travel restrictions were lifted, the crowds came back in droves.

“This summer is the perfect storm, with a combination of issues, including excessive numbers, bad behavior and climate change,” said Richard Butler, professor emeritus in hospitality and tourism management at the University of Strathclyde in Glasgow, and the author of several books on overtourism.

At the end of a frenzied summer, we look at some of the breaking points.

Athens, Greece

The influx of tourists this summer put Athens under tremendous strain as it grappled with excessive heat, as well as water shortages. Wildfires, which broke out across Greece, have engulfed the forests in the Attica region, even spreading to the suburbs of Athens.

As temperatures soared above 107 in July, authorities shut down the Acropolis during the hottest hours. Last year, the ancient site introduced a ticketing system to manage visitor numbers, with a cap of 20,000 per day.

Protests against overtourism flared in Athens in July, with “No tourists” graffiti emblazoned on buildings and residents calling for measures against vacation rentals, which they say are taking over entire neighborhoods.

Santorini, Greece

Santorini, famous for its whitewashed buildings and sunsets, was one of the most overtouristed destinations in Europe last year, drawing nearly 3.5 million visitors to an island of 15,500. Cruise ships — 800 vessels brought in 1.3 million visitors — were a major source of foot traffic, according to the Hellenic Ports Association.

More recently, residents were outraged when Panagiotis Kavallaris, president of the island’s municipal community, posted on social media, urging locals to limit their movements to accommodate more than 11,000 cruise passengers who were expected to arrive July 24. The post was later deleted, the Greek newspaper Kathimerini reported, and the mayor, Nikolaos Zorzos, said the island would reinstate a cap of 8,000 passengers per day, down from what would have been 17,000 starting in 2025.

Elsewhere in Greece, at least six foreign tourists, including BBC television journalist Michael Mosley, were believed to have died from heat exhaustion. The dry conditions and pressure put on water supplies by tourism developments also led to water shortages across the country, causing islands like Sifnos and Crete to declare a state of emergency.

In the first six months of this year, the number of tourists visiting Spain increased by 13.3% and exceeded 42.5 million, according to the Ministry of Tourism.

Many cities are taking action. For example, Seville is cracking down on vacation rentals, after a court ruling cleared the mayor’s office to conduct a review and cut off the water supply to illegal vacation rentals. And in Barcelona, the Neighborhood Assembly for Tourism Degrowth organization called for an overhaul of the city’s tourism model, including restricting the number of cruise ships and regulating short-term rentals. The city government said it would eliminate such rentals by the end of 2028 and announced a tourism tax increase that will go into effect in October.

In many places, residents staged protests and collected signatures to pressure government officials to take action.

Demonstrations have been held in Majorca, Málaga, the Canary Islands and Barcelona. In April, activists in Tenerife staged a hunger strike to protest two major tourism developments.

“Residents are living in makeshift shacks because they can’t afford their homes while millions of euros are being invested into megatourism projects,” said Javier Toro, a 23-year-old Tenerife resident who participated in the protests.

Venice, Italy

In April, Venice, a city of 50,000 that received 20 million travelers last year, introduced a 5 euro entrance fee (about $5.60) aimed at dissuading day-trippers from visiting at peak times.

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The pilot program, which ended in July, was declared a success by the city’s mayor, Luigi Brugnaro, who said it generated 2.43 million euros, but critics said the fee did little to curb numbers. Local officials said that funds from the fee would help them plan for next year.

Many residents said the city should focus on more pressing issues like regulating short-term rentals and improving local services.

“The 5 euro fee is a joke for tourists; they will spend more money on a beer,” said Lorenzo Cataldi, a tour guide. He also criticized the city’s new 25-person cap on tour groups, saying it did little to prevent overcrowding: It just meant groups were split between two guides but still stayed close together.

Lisbon, Portugal

The narrow streets of Portugal’s capital became so congested with tuk-tuks and tourists that some residents said they were reluctant to leave their homes this summer.

“It’s like walking outside of a football stadium after a match — complete chaos and I don’t recognize my neighbors anymore,” said Ann Cal, 68, a resident of the Alfama neighborhood, which she said has been overrun with vacation rentals. “Some days I do not want to leave my apartment.”

A housing group in Lisbon has started a campaign to hold a referendum that would ban vacation rentals in residential buildings. The group said it has collected enough signatures to present the project to the local council.

Last month, the Lisbon City Council announced that it would limit the number of licenses and parking spaces issued to tuk-tuk drivers to help ease congestion.

Amsterdam, one of the most heavily touristed cities in the world, drew a record 23 million visitors last year. After the pandemic, it introduced a series of stringent measures, including a 20 million cap on annual visitors.

Over the past year, tourism taxes have been raised; the number of cruise ships, which are now barred from docking in the city center, has been limited; new hotel construction has been outlawed; and vacation rentals have been restricted.

The city is also cracking down on bad behavior with a “Stay away” campaign, primarily aimed at unruly British male tourists between the ages of 18 and 35, who have developed a reputation for drinking too much and harassing residents.

The online campaign targets potential offenders with videos showing the consequences of anti-social behavior, including arrests and fines. The city has also banned the use of marijuana on the street and is taking steps to discourage alcohol sales in the red-light district.

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Niagara Region and surrounding areas tourism organizations offer expanded experiences

From: Federal Economic Development Agency for Southern Ontario

Backgrounder

Today, on behalf of the Honourable Filomena Tassi, Minister responsible for the Federal Economic Development Agency for Southern Ontario (FedDev Ontario), Vance Badawey, Parliamentary Secretary to the Minister of Transport and Member of Parliament for Niagara Centre; and Chris Bittle, Parliamentary Secretary to the Minister of Housing, Infrastructure and Communities, and Member of Parliament for St. Catharines, announced an investment of over $1.3 million for 11 tourism organizations across the Niagara Region and surrounding areas that are diversifying their offerings and contributing to attracting new visitors to the region. This includes four projects that support Indigenous tourism.

September 3, 2024

Today, on behalf of the Honourable Filomena Tassi, Minister responsible for the Federal Economic Development Agency for Southern Ontario ( FedDev Ontario ), Vance Badawey, Parliamentary Secretary to the Minister of Transport and Member of Parliament for Niagara Centre; and Chris Bittle, Parliamentary Secretary to the Minister of Housing, Infrastructure and Communities, and Member of Parliament for St. Catharines, announced an investment of over $1.3 million for 11 tourism organizations across the Niagara Region and surrounding areas that are diversifying their offerings and contributing to attracting new visitors to the region. This includes four projects that support Indigenous tourism.

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News Release: Government of Canada enhances tourism experiences in Niagara Region and surrounding areas

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