Economics of Travel

Balancing tourism and local communities: Role of policy and planning

November 28, 2024

As global tourism continues to grow, cities worldwide face the challenge of balancing tourism growth with the well-being of local communities. Effective policy and strategic planning are essential in achieving this balance, ensuring that tourism benefits the economy without compromising the quality of life for residents.

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  • Collaborate with local artisans and performers: Work with local artists and cultural institutions to provide tourists with authentic cultural experiences.
  • Support cultural heritage: Enhance the visitor experience while preserving local traditions and cultural heritage.
  • Hire and train local staff: Create job opportunities and build skills within the community by employing and training local residents.
  • Partner with local governments and businesses: Join forces with local authorities and larger businesses to broaden the impact and amplify benefits.
  • Foster positive community relationships: Engage with the local community to ensure that tourism benefits are shared and contribute to overall community well-being.

Climate resilience directly contributes to the stability of tourism destinations. By implementing measures to mitigate and adapt to climate change, destinations can protect their natural resources, which are often the primary attractions for tourists. For instance, destinations like Puerto Rico and the Philippines have developed sophisticated resilience strategies that include climate risk assessments, biodiversity conservation plans, and hazard mapping.1,2 These measures help preserve beaches, forests, and other natural assets that are crucial for tourism.

As global tourism continues to grow, cities worldwide face the challenge of balancing tourism growth with the well-being of local communities. Effective policy and strategic planning are essential in achieving this balance, ensuring that tourism benefits the economy without compromising the quality of life for residents.

The Destination 2030 report categorises cities into five typologies based on their tourism infrastructure and readiness:

  • Dawning developers: Cities with emerging tourism infrastructure and gradual tourism growth, such as Delhi and Riyadh.
  • Emerging performers: Cities experiencing rapid tourism growth but on a smaller scale, facing challenges like overcrowding. Examples include Dubrovnik and Buenos Aires.
  • Balanced dynamics: Cities with established tourism infrastructure capable of further growth while balancing scale and concentration, such as Auckland and Vancouver.
  • Mature performers: Cities with strong tourism infrastructure facing potential pressures from high visitor volumes, like Berlin, Miami, and Hong Kong.
  • Managing momentum: Cities with historical high growth momentum dealing with the pressures of scale and concentration, such as Amsterdam, London, and Las Vegas.

Each typology presents unique challenges and opportunities, requiring tailored strategies to manage tourism flows, ensure safety and security, and integrate tourism into broader policy agendas.

Managing tourism flows

Effective management of tourism flows is crucial for preventing overcrowding and ensuring a positive experience for both tourists and residents. Berlin has implemented a sustainable tourism plan focusing on dispersing tourists across the city's outer districts. By promoting attractions outside the city centre and enhancing cooperation with district-specific projects, Berlin aims to reduce the concentration of tourists in popular areas.

Dubrovnik, a city characterized by seasonal overcrowding, has initiated campaigns to encourage off-season visits. The "A City for All Seasons" marketing campaign promotes events and festivals during the off-peak months, helping to distribute tourist numbers more evenly throughout the year. Additionally, Dubrovnik has implemented a visitor prediction tool to help tourists plan visits on less busy days.

Ensuring safety and security

Safety and security are paramount in maintaining a city's attractiveness. Seville, responding to health concerns linked to COVID-19, offered free COVID-19 insurance to all international visitors staying in regulated accommodations. This policy helped restore traveller confidence and ensured that tourists felt safe and protected during their stay.

Cape Town has actively positioned itself as a welcoming destination for the LGBTQ+ community, enhancing safety and inclusivity. By promoting diversity and implementing targeted marketing campaigns, Cape Town has successfully attracted a significant number of LGBTQ+ travellers, contributing to its tourism growth.

Integrating tourism into broader policy agendas is essential for sustainable growth. Cities must involve all relevant stakeholders, including small and medium-sized enterprises (SMEs) and local communities, in the planning and decision-making processes. Tokyo's comprehensive strategy, "New Tokyo. New Tomorrow. The Action Plan for 2020," aimed to develop the city as a safe, diverse, and sustainable tourism destination. This strategy included multilingual signage, collaboration with international destinations, and the promotion of cultural exchanges.

Balancing tourism growth with the well-being of local communities requires a multifaceted approach involving effective policy and strategic planning. Cities like Berlin, Dubrovnik, and Seville provide valuable lessons in managing tourism flows, ensuring safety and security, and prioritizing tourism in their policy agendas. By adopting tailored strategies based on their unique typologies and challenges, cities can achieve sustainable tourism growth that benefits both the economy and local businesses.  

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