Holiday protesters miss the bigger picture: there are ways to make tourism work for everyone

As tourists sip drinks on sunny terraces this summer, they may feel a little uneasy that their presence may not be entirely welcome. This season has seen a renewed wave of large anti-tourism protests that are displacing residents and homogenizing culture in popular destinations.

Anti-tourism posters and rallies have appeared in Portugal, Athens, Mallorca and Tenerife. Tourists have even been sprayed with water pistols by angry residents in Barcelona.

Anti-tourism protests are not new, and they do not always share the same motivations. But a common complaint is that local economies are not improved by tourism, while the social costs of hosting increase.

But are these anti-tourism sentiments justified? Tourism contributes around 5% of economic activity in the EU, supporting jobs and businesses both directly and indirectly. Without tourism, many places would be economically poorer. But protesters in Mallorca have argued that tourists are taking up space on beaches, putting pressure on public services and driving up the cost of housing beyond what residents can afford.

The economic pros and cons of tourism suggest the protesters have a point. But they also miss the bigger picture.

An estimated 1.3 billion international tourist trips took place in 2023. These tourists spent more than US$1.5 trillion (£1.2 trillion) on their trips. For reference, that’s about the size of the Spanish economy. If tourism were a country, it would be a G20 member.

Furthermore, international tourism is considered an export, as international travellers earn money in their home country and spend it in another country. For example, in 2022, international tourists spent almost €370bn (£312bn) in the EU-27. This export income helps to offset the cost of imports and pay for things like food and fuel that are not available locally.

Nevertheless, there remains a concern that such economic inputs come at too high a cost. In January, the then-director of Florence’s Galleria dell’Accademia controversially criticized how the city had sold its soul to tourists.

But tourism revenues help generate foreign exchange earnings, create jobs, stimulate infrastructure investment, and increase tax revenues. In turn, these inputs promote economic development and increase well-being, and reduce income inequality.

Globally, the tourism sector is a major source of employment. In 2019, before the pandemic, travel and tourism accounted for 10.5% of all jobs. In some Caribbean islands, more than 90% of all jobs are in the tourism sector.

Crossover benefits from hosting tourists are also felt in other sectors. For example, food and beverage producers sell their products to tourists, and farmers can diversify their income by offering tourism experiences, such as wine tastings.

Tourism therefore generates a large amount of economic activity. However, research shows that the income that remains in a destination is often limited by leakage rates. It is estimated that for every US$1 million spent by tourists in Seychelles, less than half of this remains in the local economy. This income can leak out of the destination due to imports such as food and fuel that are not locally available. Leakage also occurs when tourist facilities are foreign-owned.

There are undoubtedly downsides to tourism development. The influx of people to popular destinations can contribute to problems with crowding in public services and shared spaces.

Tourism is also often accused of causing pressing economic problems, such as driving up the cost of housing for local people. But these are often driven by more complex and alternative factors.

Research in London, a city facing extreme supply shortages and growing numbers of “generational renters,” found that Airbnb plays a relatively insignificant role in rising housing costs. Meanwhile, a study in South Carolina in the US found that short-term vacation rentals can boost micro-entrepreneurs in the hospitality industry and help residents maximize the economic potential of their homes by renting out spare rooms.

What can tourists do?

Ultimately, what unites many anti-tourism protesters is a demand for respect. Research has shown that overtourism is not just a matter of overcrowding, but a long-term problem that stems from the inappropriate treatment of residents in the process of tourism development.

Tourists can demonstrate respect for their hosts and help reduce anti-tourism sentiment by finding ways to ensure their vacation is as economically beneficial to the destination as possible.

• Spending money on smaller, locally owned companies brings more money into the local economy. Large multinationals can outcompete local companies and exacerbate economic inequality. Foreign companies typically increase leakage rates because they send profits back to their headquarters.

• Choosing more sustainable operators, services and destinations usually brings economic benefits. In Mauritius, for example, the government has invested in sustainable tourism planning, which has boosted economic growth and brought benefits to residents.

• Visiting places that are less typically touristy spreads economic benefits. In Scotland, nature tourism supports around 39,000 full-time jobs.

Tourists and tourism can easily be scapegoated for deeper economic problems. Tourists are a highly visible and often very annoying presence. But without them, destinations would be poorer, while persistent economic problems would likely persist. Challenging governments, policymakers, companies or institutions would be a better way to harness the energy of protesters.