Europe, the most visited continent globally, is grappling with escalating concerns about overtourism as record numbers of holiday bookings flood the region. The surge in reservations through online platforms such as Airbnb and Booking.com is exacerbating issues related to local housing markets and contributing to increased property prices.
Recent data from Eurostat reveals a dramatic rise in short-term rental bookings. In the first quarter of 2024, online platforms recorded 123.7 million nights booked—a substantial 28.3% increase compared to the same period in 2023. This surge underscores a broader trend toward “platform tourism,” driven by both a rebound in global travel post-COVID-19 and a shift towards online booking methods.
Tourism expert Bart Neuts of KU Leuven highlights that while Airbnb initially disrupted traditional lodging markets by enabling individuals to rent out rooms, it has now evolved into a major player in real estate speculation. “The platform’s initial role has shifted; real estate is increasingly being acquired and rented out year-round, impacting the local housing market significantly,” Neuts explained.
The impact is particularly pronounced in major Mediterranean cities like Barcelona, Malaga, and Lisbon, where short-term rentals are linked to rising local rents and housing shortages. Southern European countries—Spain, France, Italy, Portugal, and Croatia—are notably affected, with professional operators increasingly dominating the market.
Hotels, regulated by urban planning laws, are traditionally situated in designated areas to mitigate negative effects on local communities. In contrast, Airbnb listings bypass such regulations, allowing for easier creation of lower-priced listings and intensifying competition with traditional hotels. This dynamic has led to significant financial penalties, such as the €413.2 million fine imposed on Booking.com in Spain for “abusing its dominant position” and unfair trading practices.
In response to these challenges, the EU has enacted the “Airbnb” law aimed at preserving affordable housing. Various cities are also implementing stricter regulations on short-term rentals. Neuts notes that while Amsterdam and Barcelona have seen improvements due to rigorous enforcement, other cities like Lisbon struggle due to inadequate monitoring.
Addressing overtourism requires a multi-faceted approach. Measures must encompass both preventive and corrective actions, including managing tourist flows and regulating accommodation availability. Venice, for instance, is experimenting with a tourist tax, though Neuts argues that such measures alone are insufficient to combat the problem once it has reached critical levels.
Effective solutions involve collaboration between transport companies, local governments, and tourism operators to determine the optimal number of visitors and the capacity for growth. Additionally, the institutionalized nature of holiday seasons poses further challenges, necessitating comprehensive strategies to manage tourist numbers effectively.
Ultimately, tackling overtourism requires a balanced approach, addressing issues at both the origin and destination to ensure sustainable tourism practices.