Japanese, Spanish cities achieve high tourism revenue without overcrowding

While many cities struggle with the dual challenge of managing tourist crowds and maximizing economic benefits, a few have managed to strike an impressive balance.

Cities around the world are increasingly focused on managing tourism to prevent overcrowding. However, many recognize that tourists bring significant economic benefits, Caliber.Az reports citing the foreign media.

The ideal tourist market would likely consist of fewer, but higher-spending visitors, balancing minimal disruption with maximum revenue. The Economist has compiled data ranking 20 popular destinations based on their attractiveness to international travelers, offering insights into which cities are closest to—and furthest from—this ideal balance.

Let’s examine international arrivals. Last year, London and Tokyo were the top destinations, each attracting 20 million visitors, with Istanbul following at 17 million. While these global cities draw substantial numbers of tourists, a per capita analysis reveals that Amsterdam, Paris, and Milan top the list, with ten, eight, and six visitors per resident, respectively. Amsterdam's high visitor rate may be a challenge for local officials, who have tried to mitigate tourism impacts by limiting hotel accommodations, banning cruise ships, and increasing hotel taxes. Despite these efforts, the city's charming canals and renowned Gouda cheese continue to attract tourists in droves.

Tourist spending on attractions, accommodation, and transport was highest in Dubai last year, reaching $29 billion, followed by London at $21 billion and Singapore at $19 billion. When considering spending per resident, Amsterdam, Paris, and Dubai top the list. The disparity between high-ranking cities is notable; visitors to Amsterdam spent four times as much per resident as those in Milan. This suggests that while excessive tourism can lead to overcrowding, it also significantly boosts local spending. In this context, a reduction in tourist numbers might diminish the economic benefits for a city like Amsterdam, highlighting the paradoxical upsides of tourism-related congestion.

Some cities have achieved an optimal balance: generating significant revenue from tourism without experiencing overcrowding. Visitors to Osaka, Japan’s historic second city, spend $4,900 per resident, while those in Madrid spend $4,300. Both cities are relatively uncrowded, with just four and two visitors per resident per year, respectively. This balance might appeal to residents of more congested cities like Amsterdam. However, even these cities are grappling with tourism challenges. Osaka is considering an entry fee for foreign tourists to address "overtourism," and anti-tourist graffiti has begun appearing in Madrid, reflecting local concerns about the impact of tourism.