Skip to content
YourNextGuest
Over-Tourism Is a Hotel Problem, Not a Tourist Problem
Sustainability

Over-Tourism Is a Hotel Problem, Not a Tourist Problem

Achilleas Tsoumitas8 min read
Share

Barcelona puts up signs telling tourists to go home. Venice charges an entry fee. Dubrovnik caps cruise ship arrivals. Santorini considers limiting daily visitors. In every case, the narrative is the same: too many tourists are ruining these places. But here is the question nobody in the hospitality industry wants to answer - who sold them the rooms? Who marketed the destinations? Who built 47 new hotels on an island that was already at capacity? Over-tourism is not a tourist problem. It is an industry problem. And until hotels, OTAs, and destination marketers own their role in creating it, every "solution" will be performative.

The tourist who books a trip to Barcelona did not decide unilaterally to overwhelm the city. They responded to marketing. They booked on platforms that showed unlimited availability. They stayed in hotels and short-term rentals that were permitted, built, or converted specifically to capture their spending. Blaming the consumer for a supply-side problem is intellectually dishonest and strategically useless.

The Industry Built This

Let us trace the supply chain of over-tourism.

Destination marketing organizations (DMOs) spent decades - and billions - marketing destinations with a single KPI: arrivals growth. The Greek National Tourism Organization's budget grew by 340% between 2010 and 2023, with the explicit goal of attracting more visitors. Spain's Turespana spent over 400 million euros in 2024 on international tourism promotion. These campaigns were wildly successful. The problem is that success was measured only in volume, never in carrying capacity.

Hotels and developers responded to the marketing signal by building aggressively. Santorini added approximately 2,800 hotel rooms between 2015 and 2025, a 35% increase in capacity on an island of 76 square kilometers. Barcelona's hotel room count grew by 23% in the same period despite the city's own acknowledgment that tourism density was unsustainable. Every new hotel that opened was a structural bet on continued visitor growth - and a vote against any meaningful capacity constraints.

OTAs and platforms amplified the problem by making it frictionless to book accommodation in any destination at any price point. Booking.com and Airbnb did not create demand from nothing, but they removed barriers that previously self-regulated visitor flows. When a family that might have stayed in a hotel in a managed tourism zone can now book an apartment in a residential neighborhood, the geographic distribution of tourism impact expands into areas with zero infrastructure for it.

Short-term rental platforms deserve particular scrutiny. Airbnb's listings in Barcelona grew from roughly 9,000 in 2015 to over 28,000 in 2025 (before regulatory crackdowns). Each listing converted housing supply into tourism supply, simultaneously increasing visitor capacity and reducing livability for residents - the exact combination that produces anti-tourism backlash.

The Convenient Scapegoat

Blaming tourists is convenient for the industry because it redirects accountability away from the businesses and institutions that profit from the status quo.

When a hotel association in Barcelona issues a statement about "responsible tourism" while its members lobby against capacity regulations, the hypocrisy is structural. When an OTA launches a "sustainable travel" campaign while its business model depends on maximizing transaction volume, the contradiction is foundational.

The tourist is the most powerless actor in this system. They:

  • Do not decide how many hotels get built
  • Do not control planning permissions
  • Do not set marketing budgets for destination promotion
  • Do not design the OTA algorithms that concentrate demand on a handful of "trending" destinations
  • Do not determine infrastructure investment priorities

Asking tourists to solve over-tourism is like asking diners to solve restaurant overcrowding. They are responding to invitations. The question is who keeps sending them.

A 2025 survey by the European Tourism Association found that 78% of travelers would choose less-visited destinations if they were effectively marketed and easy to book. The demand for alternatives exists. The supply-side infrastructure to channel that demand does not, because nobody has an economic incentive to build it.

What the Industry Actually Owes

If the hospitality industry is serious about addressing over-tourism - rather than just performing concern while continuing to profit from it - the actions required are specific, uncomfortable, and expensive.

1. Capacity-Linked Development

Hotels and their industry associations need to stop opposing development caps. If an island's water infrastructure can serve 15,000 visitors per day, approving construction for a capacity of 25,000 is not ambitious economic development - it is infrastructure malpractice. Hotel associations should be advocating for capacity constraints that protect the destination's long-term viability, even when it means limiting new competitive supply.

This is not anti-business. It is the same logic that zoning laws apply to every other industry. A city would not approve a factory that exceeds its sewage treatment capacity. Why does it approve hotel developments that exceed its water, waste, and transport capacity?

2. Demand Distribution Investment

The industry spends billions marketing destinations that are already at capacity and almost nothing marketing the alternatives. Portugal's Alentejo region has stunning coastline, excellent food, and a fraction of the Algarve's crowding. Croatia's Slavonia offers cultural tourism experiences that rival Dubrovnik's without the cruise ship chaos. These alternatives are not unknown - they are under-marketed and under-invested.

Hotels in over-touristed destinations should be contributing a percentage of peak-season revenue to funds that develop and market alternative destinations within their country or region. This is not charity - it is long-term market development that protects the brand value of the primary destination.

3. Seasonal Demand Shifting

The hospitality industry has powerful tools for shifting demand to off-peak periods - dynamic pricing, packaging, marketing - and it largely fails to use them for this purpose. Revenue management teams optimize for maximum extraction during peak periods rather than maximum distribution across the calendar.

What if the industry collectively invested in marketing shoulder-season travel with the same intensity it markets peak season? A 10% shift from August to October in Mediterranean destinations would reduce peak-period pressure significantly while potentially increasing annual revenue through better capacity utilization.

4. Infrastructure Contribution

Hotels benefit directly from public infrastructure - roads, airports, water systems, waste management - but frequently resist the taxes and levies designed to fund those systems' expansion. Tourism taxes in European destinations average 1-3 euros per night, a fraction of what is needed to maintain infrastructure under tourism load.

The industry should be proactively proposing higher tourism levies tied to transparent infrastructure investment, rather than fighting them. A 5-euro-per-night levy that visibly funds water treatment, public transport, and waste management is a small cost that directly protects the destination experience you are selling.

5. Honest Marketing

Stop marketing destinations with capacity constraints as infinite playgrounds. If your marketing shows empty beaches that are actually packed in July, you are setting up both the tourist for disappointment and the destination for resentment. Honest marketing that sets accurate expectations and promotes off-peak visiting is not just ethical - it produces better reviews, fewer complaints, and more sustainable demand patterns.

The Self-Interest Argument

Every argument above can be framed as altruistic - protecting communities, preserving culture, environmental sustainability. But the business case is equally compelling.

Over-tourism destroys the product you are selling. The Venetian atmosphere that commands premium hotel rates erodes every time a resident is displaced by a tourist apartment. The charm of a Greek island village disappears when the village becomes a souvenir shop corridor. The Barcelona neighborhood culture that attracts visitors dies when every ground-floor space becomes a tourist restaurant.

Hotels in over-touristed destinations are experiencing this already. Review scores in Barcelona, Venice, and Dubrovnik have been declining for years, with common complaints about crowding, inauthenticity, and aggressive commercialization - all symptoms of over-tourism. Average daily rates may still be rising, but the brand damage is accumulating.

A 2025 McKinsey analysis of Mediterranean tourism found that destinations reaching critical over-tourism thresholds see a 12-18% decline in repeat visitation within five years and a measurable shift in visitor profile toward lower-spending, shorter-stay tourists. The premium traveler - the one spending 200+ euros per night - is the first to leave when a destination becomes overcrowded. The budget traveler replaces them, spending less per night and demanding more infrastructure per euro spent.

Own It

The hospitality industry has spent thirty years building the machine that produces over-tourism: aggressive destination marketing, unrestricted development, platform-enabled distribution, and a relentless focus on arrivals growth as the primary success metric. The machine works brilliantly. The problem is that nobody designed an off switch.

Tourists did not break these destinations. We did. And "we" includes every hotel that lobbied for a building permit on a saturated coastline, every DMO that measured success in passenger arrivals, every OTA that optimized for booking volume, and every industry conference that celebrated growth records without once asking whether the destination could handle them.

The first step toward fixing over-tourism is admitting who caused it. It was not the tourists. It was us.

More in Sustainability