The exhilarating suspense of leisure travels abroad is commonly associated with much expectation and excitement. From the itinerary planning and preparations to looking forward to experiencing different cultures, exotic cuisines, and exquisite scenery, it all forms part of a thrilling experience. This sentiment, however, often rings more true for the wide-eyed traveller than for many permanent inhabitants of the holiday host destination.

The Surge in Opposition to Tourism

A reignited opposition to tourism has again cast its shadow of resistance across some prominent tourist destinations worldwide. Interest groups are increasingly advocating for environmental awareness, cultural heritage protection, and the economic safeguarding of residents. Viewpoints of the perceived absence of governments’ financial protection against rising living costs, driven by over-tourism, are a genuine concern and a common source of resentment. Although concerns may include a rise in foreign property ownership, an increasingly contentious issue revolves around unaffordable levels of rent in popular regions across Europe. As with almost everything in life however, there are widely varying views and opinions along the tourism spectrum of benefits and disadvantages.

Tourism as an Economic Accelerator

The tourism industry generally generates a welcome revenue stream. It produces and sustains jobs across various sectors as visitors spend their money in multiple areas. This revenue stream trickles throughout the hospitality industry, funnelling through accommodation, dining, transport, and entertainment sectors. Furthermore, retail trade, conservation efforts, finance, banking and investment corporations -all benefit from the multiplier effect of tourism. Some countries have started to ease their visa application processes, with major international and domestic air carriers following suit with attractive deals and reduced airfares.

The Hosting of Global Events

Being the host country to world expos, major global gatherings and sports events are undoubtedly costly. Yet, the anticipated future benefits, expected  to outweigh the initial investment, form part of a carefully evaluated strategy. The decision to enter the initial bid submission involves careful consideration of the positive knock-on effects. These resultant positives include fostering the happiness factor through national pride and patriotism, enhancing international brand presence, and creating potential future trade opportunities.

Infrastructure spending toward building new roads, airports and hotels is an investment in the future. It not only promotes the economy’s capacity to deal with an increased tourism influx during a specific event. It also enhances the country’s infrastructure over the longer term, supporting sustainable economic growth ambitions.

Whether or not in a financially favourable position to host international events, many economies today greatly rely on the revenue streams generated through their tourism industry. That said, this remains a tightrope situation that requires great caution.

Overdependence on the Tourism Sector   

The Importance of Sector Diversification

Risk is an unavoidable part of our daily existence. It’s an integral element in almost every activity we engage in, whether in personal capacity, business decisions or government operations. Therefore, a well-distributed economic sector composition is vital to mitigate potential economic shocks – caused by significant events that may adversely affect an entire economy. Sector diversification is therefore an essential shield against market volatility ,promoting overall financial stability.

• Successful Diversification through Foresight

The United Arab Emirates serves as a great success story in this regard. Their successful investment diversification strategy of moving away from its initial substantial oil dependency, created a resilient and stable economy. The UAE’s Travel and Tourism sector grew by 26% in 2023 and contributed 11.7% to their GDP.  Despite its size, this country is well known as a global financial and investment hub, widely acknowledged for its visionary foresight, challenge-driven innovation and sustainability.  Dubai, in particular and regardless of its status as a desert metropolis, attracts millions of tourists annually, offering lasting memories of luxury, entertainment, rich cultural experiences and breathtaking architecture.

• Limited Diversification Opportunities

In contrast to more affluent economies, a great many popular tourist destinations rely heavily on their tourism industries.  Although not an isolated phenomenon, island nations like the Maldives, were severely impacted by the Covid-19 pandemic. Inevitable economic downturns, subsequent job losses and increased debt levels caused prolonged roads of hardship to its people.

Then there are the Caribbean Islands, such as Jamaica and the Bahamas, situated along hurricane paths. Their weather-permitting dependence on tourism, fishing and agriculture sectors creates a problematic environment for economic stability and sustainable growth. Commonly countries with rich historical sites and scenic landscapes rely considerably on their tourism industry.  In other instances, civil unrest and political conflict may lead to dire economic consequences, as diminished safety prospects can strip a holiday destination of its initial allure.

The  Growing Anti-Tourism Sentiment

Technological advancement has gifted the world with almost instantaneous access through digitisation. And while its convenience has brought along countless benefits, they often accompany negative externalities. Many of these unintended consequences relate to extended tourism activities. Let’s explore a few objections that people increasingly refuse to ignore.

• The Effects of Social Media Embellishment

Social sharing platforms considerably contribute toward a rise in tourist activities by popularising local, previously unknown, scenic spots. The potential for unique posts to go viral contributes to overcrowding, waste pollution, and environmental degradation, among other negative impacts.

• Gentrification

Property prices and rent increases in popular neighbourhoods with high tourist demand tend to force locals to relocate due to unaffordability. With the rise in property prices, excessive levels of property taxes commonly follow suit. In addition, local businesses tend to cater to tourists, prepared to pay higher prices. The increasing cost of everyday necessities like groceries and transportation results in eroding the local purchasing power.

• Cultural Commodification

The modification of ethnic and cultural practices, rituals and customs, are often aligned with tourist expectations and entertainment. The commercialising of sacred recipes and healing property knowledge of indigenous herbs and plants, further leads to the erosion of local communities’ authenticity and cultural identity.

• Infrastructure and Public Services Overload

A tourist influx frequently overburdens public resources. The need for increased traffic control, waste management and public safety facilities, often far exceeds surcharges and taxes flowing from the tourism income stream.

The Economic Effects of Tourism Tension

The many reasons posed to governments by their people in support of more balanced tourism policies are undeniably valid and substantiated. There are, however, two sides to this tourism coin. With more questions than answers, some actions often bring forth even more surprising reactions.

Economic growth equates to the amplified output of goods and services. These collective and simultaneous increases in economic activity significantly add to a nation’s financial affluence. The tourism trade often contributes significantly to the GDP, undeniably affecting a nation’s living standards. The tourist industry, therefore, offers significant potential to support and strengthen these ambitions further.

Conclusion:

Many countries, particularly on the European continent and surrounding islands, have already started to take action, including limiting cruise ship visits, increased tourist taxes and short-term rental caps. As always, the tangible effects of these measures will take time – on both sides. Lost tourism revenue would need to be replaced by public funding, with central banks left with few options. The situation may entail raised taxes, increased public debt or less government spending.

Only time will tell, but one thing is certain; if the take on tourism fails to evolve, this still thriving industry risks stumbling, potentially triggering widespread economic turmoil.