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How Excess Tourism Is Transforming Housing Markets and Local Economies in Europe

How Excess Tourism Is Transforming Housing Markets and Local Economies in Europe
Credit: Emilio Morenatti/AP

Mallorca (Washington Insider Magazine) – In July, Palma, Mallorca’s capital, saw demonstrators protesting against overwhelming tourist numbers with slogans like “No to mass tourism.” Jaume Fuster, a local hotel worker, supported the call for action against tourism, citing issues of overcrowding and housing shortages. Fuster, who works seasonally and lives with his parents, pointed out the increasing strain on local resources and the economic disparity experienced by many residents.

Mallorca’s escalating visitor numbers—projected to reach 20 million this year—are straining local infrastructure and resources. Restrictions on water use have been implemented, and public transport is struggling to cope with the influx. Fuster noted that while tourism drives the local economy, many residents see little benefit, particularly with the rise of all-inclusive resorts limiting local spending.

Protests Spread Across Southern Europe

Mallorca’s protests are part of a broader European trend. Thousands protested in Málaga, Spain, and similar tensions are emerging across the continent. In Barcelona, local frustration has led to the city’s plan to ban short-term rentals by 2028 to combat the disruption caused by tourist accommodation.

According to theguardian, in Barcelona, longtime resident Alba described how her neighbourhood has changed, with many local businesses being replaced by establishments catering to tourists. She moved to a more tranquil neighborhood since short-term rentals have become more common and upset people’s lives. Lisbon is seeing increasing rents and a homogenized cityscape dominated by tourist-oriented enterprises due to growing tourism and digital nomadism, which have intensified pressure on the housing market.

In Florence, designer Camilla Torna noted that the city is now perpetually filled with tourists, with local shops closing in favor of tourist-oriented businesses. The year-round influx has led to a significant shift in the city’s character, with ongoing short-term rentals causing additional issues for residents.

Seeking a Sustainable Balance

While acknowledging the economic benefits of tourism, locals across these European cities are calling for better management and balance. Fuster from Mallorca stressed the need for scaling tourism to preserve local quality of life and improve housing access, underscoring a shared sentiment across Europe’s tourist hotspots.

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