In response to cities grappling with overtourism, measures ranging from visitor caps to “stay away” campaigns are being deployed, prompting the tourism industry to pivot towards solutions that redirect tourist flows to destinations seeking economic growth and development through tourism. This analytical report by T3, featuring insights from industry leaders examines the impacts of overtourism and explores strategies to foster more equitable tourism distribution, while strongly advocating for partnerships among destinations, travel stakeholders, global and local associations and governments. Some excerpts below.
“Public and private organisations must collaborate through coordinated destination management and infrastructure development in looking at responsible tourism value and not just at tourism volume.”- Noor Ahmad Hamid, CEO, Pacific Asia Travel Association (PATA)
“Encouraging travellers to visit lesser-known tourist destinations not only addresses over-tourism at premier destinations but also drives development opportunities to new destinations which are being explored.”- Neliswa Nkani, South African Tourism’s former Hub Head – MEISEA
“In lesser-known destinations too, it is important that the local governments do not make the blunder that many countries made by promoting just a handful of destinations like India promoted the Golden Triangle only till Rajasthan and Kerala created stronger brands.”- Sanjay Basu, Co-Founder & Chairman, Far Horizon Tours India
“Travel incentives, ease of access, and sometimes tourism subsidies can make these destinations more accessible and appealing.”-Rohit Kohli, Jt. MD, Creative Travel Group
For years, overtourism has been a glaring issue, with no destination capable of endlessly absorbing visitors. Yet, the industry continues to prioritise accommodation, flights, and visitor numbers as metrics of success—despite experts’ warnings against this approach. The global tourism industry, valued at over USD 9 trillion in 2019, has profoundly shaped the world economy, providing jobs, fostering cultural exchange, and driving local economies. However, this rapid expansion has also posed significant challenges in balancing economic gains with environmental sustainability, flaring the fire of overtourism.
A double-edged sword, overtourism has simultaneously eroded the essence of destinations and diminished the local quality of life. Case in point: Dubrovnik, Croatia—a UNESCO World Heritage site besieged by Game of Thrones fans and cruise ship crowds. One of shocking examples shared by Rohit Kohli, Jt. MD, Creative Travel Group, shows that despite Dubrovnik’s population being 35000, almost 40000 ‘day trippers’ are observed off the cruises daily during the season. Similarly, the Venice’s iconic canals, Bali and Goa beaches, mall roads in Indian hill stations, viral Instagram spots across the globe, even Amsterdam facing saturation with “stay away” campaigns, Canary Islands doing mass protests, all these and more destinations globally find themselves teetering on the brink of saturation, their allure tarnished by overcrowding and degradation. Yet, amidst these challenges, there are many lesser known destinations awaiting their turn to harness tourism’s economic potential.
The question remains- How do we balance overtourism by tapping into growth markets? How can we preserve authenticity while promoting progress? This report by T3 delves into overtourism impacts and strategies to distribute tourism more equitably among regions needing the economic push via tourism.
Addressing overtourism not an option but necessity
The COVID-19 pandemic further exposed tourism’s vulnerability, with cities suffering economic damage due to reduced visitors. Post-restrictions, travel surged, causing overcrowded hill stations, high airfares, and littered beaches. This boosted economies like Kashmir, which saw a nearly 300% rise in tourists in 2023. However, it also highlighted the negative impacts of over tourism with recent visuals of long queues lined up to take gondola. Ladakh, on the other hand, faced rapid environmental change from a 3,000% tourism increase in 18 years. While this growth significantly contributed to the economy, accounting for over 50%, it came at a cost—ecological degradation, waste management challenges, and socio-cultural shifts.
The second volume by UN Tourism report on overtourism presents 18 case studies from the Americas, Asia and the Pacific, and Europe, including cities like Amsterdam, Barcelona, Berlin, New York, and Venice. The report cites how these cities, often overwhelmed with tourism, are implementing strategies to manage visitations effectively, such as promoting visitor dispersal within and beyond the city, following demarketing strategies, encouraging time-based visitor dispersal, stimulating new itineraries and attractions, and reviewing regulations. Additionally, to protect the medieval charm of UNESCO heritage sites at a few places, local authorities have imposed visitor caps, launched heritage preservation efforts, and diversified tourism offerings.
“It is not an option for destinations to address overtourism, just like how they face the challenges of climate change. Balancing overtourism is critical and its long-term benefit with growth markets that ensures sustainable economic development, preserving local cultures, human capacity building and environments,” asserted Noor Ahmad Hamid, CEO, Pacific Asia Travel Association (PATA).
“Long-term benefits include diversified revenue streams, reduced environmental degradation, and enhanced quality of life for local community. This approach promotes positive tourist experiences, leading to repeat visits and quality tourism. Economically, it supports a wider range of businesses and job creation, fostering resilience in the tourism sector.”
Sanjay Basu, Co-Founder & Chairman, Far Horizon Tours India, highlighted the importance of evaluating the carrying capacity of destinations to manage overtourism effectively. “Do not let number of rooms to be built that provides accommodation beyond what is the carrying capacity of the destination. This study and creation of law lies in the government’s domain while, keeping destinations operating in a sustainable and responsible manner is in the hands of the industry along with, the government. Ensure garbage and gasses are reduced while, growing the greens and giving back to community needs to be the mantra. Only then will our destinations look like beautiful places to go to and not be over-run places, with piles of garbage and crowds,” he advocated.
He further noted that Europe’s major cities are overwhelmed by tourism partly because they are close to many source markets, making them short-haul destinations for Europeans. “It’s like India, where summer traffic jams stretch for kilometres outside hill stations. The only sustainable solution to reduce overcrowding in popular destinations is to distribute tourist footfalls to regions with fewer visitors.”
Dispersing tourist inflow for good
A report shared by UN Tourism with T3 illustrates how tourism is a significant source of economic value and employment, both directly and indirectly. Its role in the socioeconomic development of cities is undeniable, but it also brings challenges, such as its impact on resources, infrastructure and the social fabric. The sector often heavily relies on local infrastructure like water, waste disposal, and energy, leading to conflicts between residents and visitors. Additionally, issues such as informality and poor working conditions in the tourism labour market persist.
In such cases, it is crucial to disperse tourist inflow to destinations seeking tourism growth. Targeting growth markets needing economic upliftment and local support can ensure a balanced and sustainable tourism landscape but it is important for them to start on a right note. Hamid added that it is important to manage overtourism which will be realised by introducing new destinations to distribute tourist influx. This strategy not only reduces pressure on popular sites but also ensures the preservation of tourism assets, including cultural, heritage, natural, and human resources.
“Public and private organisations must collaborate through coordinated destination management and infrastructure development in looking at responsible tourism value and not just at tourism volume. Hence, tourism stakeholders must come up with long term solutions to address over tourism, as every destination has its own unique challenges and approach to a solution,” he said.
South African Tourism’s former Hub Head – MEISEA, Neliswa Nkani told T3 about South African Tourism’s strategy to address overtourism by showcasing lesser-known destinations and spreading visitor traffic across all provinces. By collaborating closely with hotel partners and tour operators, South African Tourism designs distinctive experiences and promotes them through an extensive trade network. This approach encourages travellers to discover hidden treasures such as Drakensberg, Robertson, and Chintsa, offering authentic experiences while fostering sustainable tourism growth, she said.
Kohli added that tourism and the number of tourists visiting a destination is always a factor of several aspects— how a destination is marketed; accessibility and ease of travel; and infrastructure support. He explained that achieving a balance between overvisited and under visited destinations requires a multidimensional strategy. “Some governments and destinations have a higher appetite for global marketing initiatives; some don’t place as much economic importance as they need to.”
Kohli emphasised the role of significant policy measures in addressing this imbalance. “Travel incentives, ease of access, and sometimes tourism subsidies can make these destinations more accessible and appealing,” he said. However, he was quick to point out that fostering sustainable and responsible tourism practices is critically essential.
“Destinations across the world need to prioritize tourism that’s sustainable and community-based,” he asserted.
Opportunities galore in Asia & Africa
Many lesser-known destinations, especially in Asia and Africa, present untapped potential for sustainable economic development through tourism. Laos, with a population of 7.2 million, features natural beauty and a rich cultural tapestry, yet only hosted 4.79 million international tourists in 2019, significantly fewer than neighbouring Thailand’s nearly 40 million visitors.
In Africa, destinations like Ethiopia, Namibia, Rwanda, and Mozambique possess rich cultural and natural attractions but saw relatively low tourist numbers in 2019 despite their high tourism potential. Even though a few of them picked up in tourism. Spotlighting Africa, the population here is growing by 2.5% annually and is projected to increase by 740 million people by 2050, yet over a third currently live on $2.15 per day or less. The continent faces significant challenges, with a rapidly expanding working-age population competing for a limited number of new formal jobs each year. Despite this, the travel and tourism sector remain a bright spot, adding 1.8 million new jobs in 2023 and expected to contribute $168 billion to Africa’s GDP over the next decade.
Tourism recovery in Africa reached approximately 96% of prepandemic levels by 2023. Approximately 25 million Africans were employed in tourism in the past year, comprising 5.6% of all jobs on the continent. However, certain destinations still require more attention. A report states that numerous countries face obstacles in transforming their cultural and natural heritage into highly desirable attractions. For instance, despite their abundant cultural and natural heritage, many African economies rank below average in relevant categories and have fewer than 10 per cent of UNESCO-designated sites. Political factors and historical deficits in expertise, capacity, and resources for identifying, nominating, and maintaining sites contribute to this disparity, as per the report.
This also presents a distinct opportunity for developing economies to leverage their tourism resources as a driver for comprehensive economic advancement, contingent upon addressing current deficiencies and committing to sustainable tourism initiatives. On a positive front, wildlife tourism, generating $12 billion annually, is a cornerstone of African tourism, particularly in countries like Kenya, Tanzania, and Botswana. Today, Botswana intends to capitalise on its successful wildlife conservation and tourism, seeking local participation in the lucrative high-end safari lodge concession trade. The hope is that locals will have a bigger stake in the industry and develop incentives to protect conservation areas.
In a recent development, UN Tourism is also going to hold the second edition of the Regional Conference on Brand Africa (Livingstone, Zambia, July 22). This initiative aims to position Africa as a top global destination by highlighting the continent’s natural assets and cultural attractions. The conference will also include a session focused on global tourism investment trends, with a particular emphasis on Zambia. This session will provide insights into sustainable development opportunities and strategies to attract and secure tourism investments. Events like these are expected to generate substantial momentum, drawing attention and critical investment to Africa aiming to strengthen their tourism sectors.
“Currently, the tourism sector significantly contributes to South Africa’s GDP and every tourist positively impacts the livelihoods of up to eight citizens, enhancing the country’s economic resilience,” Nkani told T3. “Tourism remains one of the most authentic ways to showcase the diversity of a country. Encouraging travellers to visit lesser-known tourist destinations not only addresses over-tourism at premier destinations but also drives development opportunities to new destinations which are being explored. These come in form of job opportunities for locals, improved connectivity, and easier access to necessities. Further, it also motivates businesses to set their shops at these destinations, expand their footprint while also catering to emerging demand.”
Look Asia, destinations like Azerbaijan which are doing commendable job with the marketing. Its Tourism Board (ATB) welcomed 1,459,000 international visitors from January to November 2022, reflecting 111% growth in comparison to the same period of 2021. In fact, according to the global tourism body WTTC’s latest research, the sector’s contribution to Azerbaijan’s GDP is forecast to grow more than 28% this year to reach ₼8.9BN – 5.3% ahead of 2019 levels. Jobs in Travel & Tourism are predicted to increase more than 12% to reach 437,600, 8.4% more than in 2019.
On a similar growth trajectory are destinations like Uzbekistan which have opened to tourism by easing visa regulations and going all out with promotions in key source markets like India. Places like Cambodia and Vietnam are diversifying beyond their traditional hotspots like Angkor Wat and Hanoi and are making intensive efforts to start more flights, notably from India. In the Middle East, Saudi Arabia, Oman, Bahrain, Ras Al Khaimah and more are upping their tourism infrastructure game to bring in more numbers while also keeping the factor of sustainable growth in mind.
“These less visited destinations must start off on the correct foot with a carrying capacity study for their destinations being done and limiting the accommodation infrastructure quantum accordingly,” asserted Basu.
Learning from model destinations
Markets like Bhutan stand as a testament to the transformative power of sustainable tourism. Through its policy of “High-Value, Low-Impact Tourism,” and higher tourist fees, Bhutan has managed to preserve its pristine environment and rich cultural heritage while reaping the economic benefits of tourism. By placing a premium on authenticity, exclusivity, and environmental stewardship, Bhutan has carved out a niche for itself in the global tourism landscape, proving that quality trumps quantity every time.
Several other destinations around the world have successfully managed overtourism by implementing responsible tourism practices. In India, Kerala’s Responsible Tourism (RT) Mission involves local communities, promotes eco-friendly practices, and supports local crafts and homestays. Sikkim and Meghalaya emphasise eco-tourism, banning plastic bags and encouraging organic farming while promoting community-based tourism. Internationally, Iceland limits access to sensitive areas and promotes offseason travel, while New Zealand’s Tiaki Promise educates visitors on respecting the environment. Costa Rica leads in eco-tourism with conservation programs and eco-lodges, aiming for carbon neutrality. Slovenia promotes “green tourism” with sustainable certifications, and Kyoto in Japan, disperses tourists to less-visited areas to manage crowds.
How can “we” as an industry help
A UN Tourism report accessed by T3 also mentioned that for the long term, to ensure that tourism in cities continues to be a crucial socio-economic driver while benefiting the residents and tourists alike, it is fundamental that the cooperation across sectors grows including considering the wider city policy structure being implemented. To start with, tourism associations can play a crucial role in promoting responsible tourism practices, said Hamid noting that PATA has long been advocating for the responsible development of tourism in the Asia Pacific region.
By lobbying for policy changes and engaging with industry stakeholders, PATA facilitates equitable tourism distribution, creating awareness of lesser-known destinations. “Our members’ involvement are crucial to develop attractive, sustainable tourism offerings that can shift tourist flows and reduce pressure on over-visited destinations such as from Europe to Asia and Africa.”
“The challenges that we are facing today do not lie within tourism players only. We must bring to the table every ministry and private sector, from aviation to investors, from a transport company to local city council and from the consumer to tourism businesses. Collaboration among these groups is essential to diversify tourist destinations. Governments can provide incentives for exploring new areas, while the private sector can invest in developing these destinations. NGOs can offer expertise in sustainable practices, and local communities can ensure tourism development aligns with their needs and preserves cultural heritage,” he further highlighted.
Echoing the thoughts, Kohli shared how the partnerships between governments, tourist boards, and international organisations can allow knowledge transfer, capacity building, and collaborative promotional initiatives. Another key aspect he highlighted was the importance of local involvement. “Training and sensitising local communities in hospitality and tourism ensures they benefit directly from the industry,” he stated.
On the similar lines, Basu suggested that turning the tables needs a global approach led by organisations like UN Tourism, WTTC, Tourism Boards and representation from the global industry. Educating the global community of travellers about lesser-known destinations through campaigns and promoting them as pristine, responsible travel options is crucial, he said. He further added, “In lesser-known destinations too, it is important that the local governments do not make the blunder that many countries made by promoting just a handful of destinations like India promoted the Golden Triangle only till Rajasthan and Kerala created stronger brands. This movement of various states taking the lead to promote themselves led to tourism spreading to other parts of the country, which was good.”
Basu stated that more and more states/provinces within countries must develop a healthy aggressive competitive approach so that a country captures the attention of the potential tourist with multiple attractions leading to repeat visits to that country. “In the Indian context India needs to think of itself like a destination that is as large and diverse like Europe itself where Scandinavia to Spain or, UK to Ukraine is like Kashmir to Kanyakumari or, Gujarat to Guwahati!” he concluded on a positive note.
As global tourism spending approaches USD 2 trillion by 2024, the imperative to balance overtourism with sustainable growth and a peep into the growth markets has never been clearer. By bringing up the lesser-known destinations, tourism can diversify economic benefits while relieving pressure on overcrowded areas.
On a broader scale, global organizations such as WTTC, UN Tourism, and PATA, which have been usually vocal about carrying capacity studies and sustainability, must intensify efforts to engage local travel trade associations. By championing initiatives that highlight tourism’s vital role in economic development, they can drive a real, meaningful change. Global tourism forums like SATTE, WTM, ITB and hundreds of trade conventions talking purely tourism can provide the perfect platforms to discuss and implement these initiatives, ensuring tourism delivers the economic boost that many regions desperately need.
