The Locals Are Revolting, But Do They Have a Point?

Robert Walters, CIO, Global Asset Solutions, investigates the latest round of anti-tourism protests

Last year saw the emergence of a new spectacle, with local residents in some major European tourist destinations undertaking very vocal protests against tourism, often armed with water pistols, to provide an amusing and newsworthy nuisance to some visitors.

Whilst the sight of people squirting diners on Las Ramblas might have begun as an amusing diversion from the main news of the hour, its return in 2025 heralds a worrying trend but highlights a serious point.

The protests this year in Spain, Portugal and Italy (though notably not France) are larger and better organised and, it is feared, could to act as a deterrent to some travelers.

At their heart, the protests rail against the impact of mass tourism on the day-to-day lives of locals. This could perhaps explain why the strongest feelings are aroused in destinations such as The Canaries, Balearics, Barcelona, Lisbon, Venice and Milan and why the French, who don’t see comparable concentration of visitors, have not seen such protests.

The overall economic benefit of travel and tourism is undoubted; with a global GDP contribution of over 10%, according to the WTTC. In tourist hot-spots this figure can be much higher, such as Spain where it is 15%. Tourism makes a valuable economic contribution to local and national economies and endangering this is something politicians and those who work in the sector would like to avoid – making it an effective target for protests.

Despite the economic advantages, many locals are fed up being overwhelmed by visitors. The multiple images seen of crowds in places such as Santorini, Mykonos and multiple Italian hill towns, so at odds with the social media posts showing beauty and tranquility.

The objections raised do not call for an end to all tourism but are more nuanced. The protestors are seeking curbs on the excesses of mass tourism, typically focusing on issues specific to their locale, such as local economic impact, overcrowding problems, the impact of cruise ships and, most frequently, the impact on local housing markets of sharing platforms such as Airbnb.

These excesses are exemplified by Palma airport, one of the busiest in Europe. The airport handles 243,200 flights, averaging 666 per day, with 33,298,164 passengers passing through in 2024 – that is almost the same as Dublin, which serves a country with a population more than 12 times the size of Mallorca. 

Mallorca has an established heritage as a tourist destination, and local authorities have frequently stated their desire to take tourism more “upmarket”, but the volumes keep increasing. There is also growing rancour amongst residents that there is too much ‘leakage’ in the financial model to overseas tour operators, and that those on package or all-inclusive holidays spend relatively little outside their resorts; and when they do, it is too often to excess in the bars of Magaluf.

Cruises are also an oft-cited cause of concern. The size of modern cruise ships is problematic, with 15-storey behemoths disgorging 5,000 guests at a time. Apart from the environmental impact, there has been the ridiculous scenario (now banned) of such monsters towering over the Venice Lagoon. Popular locations like Palma may see as many as five a day docking and presenting Palma with an additional 25,000 visitors to absorb. Again, the issue is one of financial impact, with day trippers spending relatively little before returning to their cabins, compared to those staying overnight.

Venice has moved to limit or ban larger ships from the Lagoon, though the ban created unforeseen consequences, such as job losses and a lack of replacement facilities. Authorities appear willing to act, but actions need to be carefully considered.

The same is being seen for the sharing platforms such as Airbnb and its rivals, which have come to represent the whipping boy for concerns about soaring rental prices and lack of housing supply.

In 2018, Airbnb offered 5 million properties in 85,000 destinations. By March 2025, that had increased to over 8 million properties in 150,000 destinations (Source: Airbnb).

A Harvard Business Review study of the impact of the sharing economy in key US destinations as far back as 2019 found that – although there was a lack of empirical data and an inability to filter other impacts on housing – in certain “touristy” areas

“the growth in home-sharing through Airbnb contributes to about one-fifth of the average annual increase in US rents and about one-seventh of the average annual increase in US housing prices;”.

A 2020 report by Forbes further highlighted the growing trend for landlords to shift to the short-term hospitality market. Returns from Airbnb can be higher than in the traditional rental market and, for owners and investors, it is tempting to move housing stock into the holiday rental market.

This can mean that where there is a concentration of home-sharing rentals in tourist areas, the commercial activity of owners can skew the rental market for locals. This is contrary to the view that houses are for living and hotels are for visitors.

Many governments are under pressure over housing and the sharing platforms are coming under increasing pressure from different jurisdictions, with growing demands for licensing and registration as governments respond to voters’ concerns. The position of local housing is a perennial problem, and it can be easy to scapegoat Airbnb and its kin, but action is being taken.

In May, the Spanish government demanded that 65,000 short-term rental properties in Madrid, Andalusia, Catalonia, Valencia, the Basque Country, and the Balearic Islands be delisted for failing to meet licensing regulations. Leaders in Barcelona had already announced the decision to remove all 10,000 properties from short-term market by 2028.

The restrictions being placed on Airbnb are likely to be positive for the hotel industry, with some levelling of the playing field in terms of licensing, regulation and therefore cost. Unless demand is significantly dampened, visitor choices will be limited, thus increasing demand for hotels.

Hoteliers can take advantage of that opportunity, but also need to pay attention to the concerns being raised by the protesters. While this plays out, hotels are advised to guide their guests away from the densely-packed areas, particularly at peak times. Hotels can leverage the local knowledge of their teams to recommend out-of-the-way spots which give their guests the thrill of discovering somewhere the masses haven’t found, whilst also helping to spread the economic benefit.

Meanwhile, hotel leaders must work closely with governments and other stakeholders to ensure that a balance is found between supporting the wider tourism industry and supporting local communities, whilst also addressing environmental concerns.

The goal for many popular tourist destinations is to recast themselves as more upscale destinations, reducing visitor volumes and attracting guests for whom budget is no issue and where it is easy for everyone to feel the impact on the local economy.

It is a difficult balance, though, to meet the needs of growing numbers of people seeking travel experiences, from families and travelers on a budget, to those for whom price is not the concern. Upgrading destinations, particularly those which are long established, is challenging, but with the hospitality industry supporting authorities seeking a more strategic approach, they can help protect the goose which lays the golden egg, ensuring it has a long and productive life without so much of the negative impact.

And if that means that fewer locals manning the barricades with their water pistols, then it’s a win-win.

Robert Walters, CIO, Global Asset Solutions. Connect with Robert on LinkedIn.

This article originally appeared on Global Asset Solutions.