“Refugees welcome, tourists go home!” is an increasingly common piece of graffiti in some favourite tourist destinations. Hair-raising stories abound of angry locals taking to the streets in protest, spray painting rental cars, attacking tourist buses and even squirting guests who are enjoying a quiet morning coffee, with water-pistols. It’s clear that the post pandemic recovery has brought with it a renewed wave of activist anti-tourist sentiment. This dramatically risks the guest experience. Yet why should this be? With 10.5% of all jobs globally supported by travel & tourism, why aren’t destinations rejoicing at the rebound?  Undoubtedly, this very growth is one upsetting factor. The World Travel & Tourism Council (WTTC) projects that the tourism industry will contribute .1 trillion to global GDP in 2024, this marks a 7.5% increase on 2019, (itself a record year). However, by 2033 GDP volume is forecast to grow to an astonishing trillion, a stunning 44% more in less than a decade. Happy days for us in the tourism sector, but for embattled local communities, already feeling overrun with visitors, the prospect is chilling.

What’s driving the backlash?

The negative impacts on the ground are complex and often interrelated, namely:

1. Overburdened infrastructure & resources

Popular tourist destinations see their infrastructure pushed to its limits, with roads, public transportation, and healthcare systems overwhelmed by the influx of visitors, leaving locals feeling like their basic needs are threatened. If water runs out (as indeed it has in Cape Town and Barcelona) yet locals see tourists in pools and lush green golf courses, then how would you react if you were in their shoes?

2. Housing shortages

In cities like Barcelona and Venice, short-term rentals drive up housing costs, forcing locals out of their neighbourhoods. A recent study found that the cost of renting a single room in Barcelona now exceeds what it took to rent an entire apartment in 2019.

3. Cultural erosion

Disrespectful behaviours, such as overcrowding sacred sites or ignoring local customs, leave communities feeling their heritage is commodified for profit. Viral trends, like racing through Angkor Wat to mimic a video game, have caused significant damage to fragile historical sites.

4. Environmental degradation

In destinations that are ecologically fragile, environmental degradation is a critical concern; the mass influx of visitors brings pollution causing the destruction of natural habitats. This threatens the sustainability of tourism itself, as the very attractions drawing visitors are damaged or destroyed.

Behind all these factors, sits the uncomfortable reality of massive inequality in the distribution of economic benefits. Tourism generates significant revenue, but consistently profits are captured and siphoned back to the wealthy world. The result is a “thing” known as “economic leakage”. The Charles Darwin Foundation found that in the Galapagos, only 15.5% of tourism’s value ended up with residents. UN studies put leakage rates from Thailand’s tourism at 70% and Mauritius’ at 80%. One consequence is that local workers are left with low wages and unstable jobs, fuelling resentment as communities see little benefit. Meanwhile the tourist industry becomes stigmatised as a sector catering for a tiny minority, the lucky, wealthy few. A paper from Gossling and Humpe discovered that only 4% of the global population flew internationally in 2018. As a result the development of tourism’s infrastructure is dominated by the richer world. Drivers at the foundation of this typically include:

• Foreign-owned tour operators, airlines, and hotels often pay minimal tax in the destination. Sadly, many companies engage in aggressive tax planning!
• Imported food, drink and merchandise
• Foreign staff in international hotel chains
• Shortage of local capital for investment in tourism infrastructure

To rub salt into the wounds, the price hikes driven by tourism frequently make it more difficult for residents to afford basic goods and services, further exacerbating economic inequality and frustration. Even the Western world is not immune. A Eurofound study in Austria showed that tourism salaries languished 32% below the median monthly income for the rest of the economy.  Despite recent increases, tourism salaries lag the wider economy in hotspots such as Spain, Turkey and Greece. Consider that host communities might be more tolerant of tourism’s negative impacts, if they were also taking a fairer share of the upside profits. Empower the locals with finance and they can “self-serve” many of the other problems arising.

Reclaiming paradise

Away from the crowded plazas of Venice, let’s picture the allure of a secluded, all-inclusive Caribbean resort. The brochure promises a secluded villa with large picture windows perfectly framing the white sands, turquoise seas, and swaying palms of a private beach. It’s the dream holiday gracing a thousand Instagram feeds and luxury travel magazines. Promises of world-class fine dining, captivating evening shows, tennis courts, kayaks, SCUBA diving, reveal a self-contained paradise!  Yet beneath the surface, a troubling reality emerges – while tourists enjoy the “paradise,” local communities suffer.

The Caribbean depends on tourism more than any other region, with the industry supporting over 2.5 million jobs and comprising more than 50% of GDP in some islands. However, up to 80% of tourism spending leaks out of the local economy. This is largely due to foreign-owned resorts and cruise lines who dominate the market. Moreover, it is worth remembering that with the industry employing a higher proportion of women, migrants, and low-skilled workers; it is groups who are already disadvantaged, who face further wage discrimination.

Part of the problem…?

So how should the trade respond, given the growing profile of this problem? The bad news is that intermediary operators are increasingly being viewed as part of the problem. Recent advice to consumers looking to travel ethically urged travellers to; “consider booking directly with local suppliers and consume local products and services.”  This inevitably leads to severe reputational risk for the international travel trade, with a shift in public perception from being “purveyors of unforgettable experiences,” to “exploiters of the disadvantaged.”

An additional risk comes from the tightening of regional regulation. The European Union’s Corporate Sustainability Reporting Directive (CSRD) mandates that businesses disclose on their impact not only on direct employees, but also employees within their wider supply chain, as well as local communities affected by their operations. Results must be independently audited. This will force companies to take a new level of responsibility across their value chain.

A further clampdown is underway in Thailand. Here, The Department of Business Development (DBD) recently announced plans to investigate over 27,000 companies in 2025 as part of an intensified effort to crack down on Thai “nominee shareholders” used by foreign businesses. In essence this tackles the practice of overseas entities concealing their foreign ownership and avoiding local taxes, via the use of local nominee shareholders. Though in place for decades, historically rules were not enforced. Consequently, international travel companies trading in Thailand, used the loophole to escape taxation. This avoidance has meant that essential income has been diverted from the local economy; leaving destinations bearing the full brunt of tourism’s negative impacts, whilst receiving very few of the positives in return.

… or part of the solution.

So how is the tourist to know whether that restaurant or hotel they visit on their holiday is locally owned or not? As so often, transparency is the best disinfectant, and this is where tour operators and OTA’s can play a positive role. Enter local Thai DMC Tripseed with the “Economic Distribution Disclosure Initiative!” Tripseed, an award-winning leader in sustainable tourism, have developed a project to transparently disclose the positive impact of their tours on the local economy. Mapping and labelling over 80 day and half-day sightseeing tours across Thailand, the geographical areas benefitting are clearly indicated. This project gives travel trade partners and clients clear insights into who genuinely benefits financially from Tripseed’s tours.

Founder Director at Tripseed, Ewan Cluckie says,

“we must discern where beneficial investment ends and greed and exploitation begins.”

This blazes a trail, which the rest of the travel trade can emulate. Naturally Tripseed are not alone and other pioneers such as WithLocals, TravelLocal or NotintheGuidebooks take a similarly ethical approach. So as unchecked growth continues, it steers leaders across the travel sector to ask tough questions:

• How can we balance the needs of locals with tourists’ expectations?
• How can wealth be distributed more fairly?
• How do we protect heritage, culture, and ecosystems for future generations?

Tripseed’s initiative should be only the start in a shift to a more transparent industry, where suppliers such as hotels, restaurants and DMC’s are more upfront around financial flows and support the data by using robust, consistent methodologies. Then tour operators can add a further layer of value by bringing the data to the attention of their consumers, helping them to make truly responsible travel choices. By adopting these strategies, tour operators can drive a more balanced, sustainable, and enriching approach to tourism.

Overtourism and economic leakage may seem like distinct problems, but at their core, both reflect the need for better management and more equitable distribution of tourism’s benefits. Addressing these challenges requires collaboration among travellers, tour operators, and policymakers.  Augmenting the battle against economic leakage, the future “playbook” for responsible tourism should see tour operators taking a key role in the transformation by:

Encouraging off-peak travel

Highlight shoulder seasons and lesser-known destinations to alleviate overcrowding

Collaborating with local stakeholders

Partnering both with local businesses as well as DMO’s supporting tourist management.

Enhancing sustainability skills

By offering up-skilling training and workshops to equip suppliers with the tools to develop eco-conscious offerings.

Reimagining travel narratives

Shifting focus from over-promoted landmarks to uncover hidden gems, providing travellers with diverse and meaningful experiences while easing pressure on well-known sites.

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