Major challenges

Adequate Housing, Gentrification and Displacement

Increasing numbers of tourists may fuel a boom in the construction sector and play a role in pushing up real estate prices and rents, contributing to gentrification. The economic and social consequences particularly affect vulnerable lower income groups, with the youth, women, elderly people, ethnic minorities and migrants facing additional disadvantages.

Residential properties are seen as commodities to maximise profits, rather than as homes for people in their social and cultural context. Tourist accommodation is usually more profitable than renting out flats to local residents. Residential flats increasingly get converted into hotels, hostels and holiday flats. Tourism can significantly change the character of urban neighbourhoods, turning residential areas into ‘party zones’ and ‘hip’ tour- ism hotspots – which may lead to problems for local residents.

Privatisation of Public Space

Public spaces that are safe and accessible to all support formal and informal cultural, social and economic activities and disproportionately benefit the poor and disadvantaged groups. They may serve as settings for livelihoods, e.g. for people engaged in the informal sector. However, across the world, parks, plazas and promenades which were once in the hands of communities or public authorities are coming under the control of private corporations (Smith, 2016). The tourism industry often plays a major role in the de-facto privatisation of commons and public spaces, e.g. by fencing off beaches or by encroach- ing on public spaces such as side walks or green areas to expand their business opera- tions. The privatisation of public spaces undermines their important role to enhance com- munity cohesion and promote health, happiness, and well-being for all.

The Sharing Economy and other Alternative Models

The tourism industry as a profit-oriented venture is being challenged by alternative models such as cooperatives based on solidarity and collaboration, and in particular by the sharing economy with internet platforms that enable individuals to offer accommodation, guide services, etc. Many of these systems may help enhance sustainability and should be promoted; some may entail conflict potential or risks of infringement of human rights and laws, e.g. with regard to decent work and tax evasion.