Global travel is expected to return to pre-pandemic levels this year, unleashing a wave of eager tourists. However, this resurgence in travel has been a double-edged sword for many destinations, as they find themselves grappling with the challenges of “overtourism”.

On the one hand, countries are eagerly welcoming the return of visitors to revive their battered tourism industries. Economies heavily reliant on travel and hospitality have been desperate for a revival in foot traffic and spending. Governments are rolling out the red carpet, investing in infrastructure, and launching promotional campaigns to lure tourists back, hoping their return will bring jobs, income, and a return to normalcy.

Take the case of Thailand. Before the pandemic, tourism accounted for nearly 20% of its GDP, with millions of visitors flocking to destinations like Bangkok, Phuket, and Chiang Mai each year. The sudden drop in arrivals during the COVID-19 crisis dealt a devastating blow to the Thai economy, prompting the government to prioritize the swift return of international travelers. Now, Thailand is aggressively marketing itself as a premier vacation destination, offering incentives and streamlining entry requirements to attract tourists.

On the other hand, a growing number of destinations are pushing back against the overwhelming tide of visitors. Scenic locales, once cherished for their tranquility and natural beauty, are now struggling to cope with the sheer number of tourists. Overcrowded streets, strained resources, and environmental degradation have led many communities to protest and impose restrictions on tourism, unwilling to be treated like they live in an amusement park.

The Balearic Islands, a popular Spanish archipelago in the Mediterranean, exemplify this backlash. Faced with an influx of partying tourists who have overwhelmed the islands’ infrastructure and disrupted the quality of life for residents, the regional government has enacted a series of measures including banning alcohol sales in certain areas and restricting the number of tourist beds. They are also considering raising “tourist tax” to fund mitigation efforts.

In Venice, Italy, the challenges of overtourism have become so severe that the city has taken drastic action, banning large cruise ships from entering the historic center and introducing a €5 euro fee to day trippers who want to access the city. The fragile city, built on a network of canals, has struggled to accommodate the millions of tourists who descend upon it each year, leading to concerns about the long-term preservation of its unique architecture and way of life.

This tension highlights a fundamental contradiction: while tourism provides a vital economic boost—contributing over $9.2 trillion to the world’s GDP in 2019—the concentration of tourism activity in certain hotspots has also led to significant challenges, including gentrification, environmental degradation, and the marginalization of local communities.

The stark reality is that, on average, only about 20-30% of tourism expenditure (according to a study by the OECD) stays within the local economy, with the majority flowing to large multinational corporations. This underscores the urgent need for cities and countries to empower local stakeholders in the tourism planning process to ensure that the benefits of tourism reach the communities that need them most.

One approach to addressing this issue is through community-based tourism (CBT). In China, the government has implemented various strategies to ensure that tourism benefits local communities while avoiding the negative impacts of gentrification. In Anhui Province, ancient villages like Xidi and Hongcun are preserved with strict controls on tourism development to maintain their cultural heritage and traditional lifestyles. Revenue from tourism, including entrance fees, guided tours, and locally operated guesthouses, directly supports the local population. This approach prevents the displacement of residents and ensures that tourism contributes meaningfully to the community.

Similarly, in Chengdu’s Pingle Ancient Town in Sichuan Province, rural tourism is promoted by encouraging tourists to participate in agricultural activities like tea-picking and farming. Local farmers benefit directly from tourism through homestays, workshops, and the sale of agricultural products, fostering economic resilience and reducing the risk of gentrification.

Iceland offers another case study in proactive tourism management. After a surge in visitors following the 2010 eruption of the Eyjafjallajökull volcano, the Icelandic government implemented measures to protect the country’s fragile landscapes. These included restricting access to sensitive areas, promoting sustainable transportation options, and launching educational campaigns to encourage eco-conscious travel.

These examples illustrate the delicate balance that must be struck in the tourism industry. While tourism is an essential economic driver, it must be managed in a way that prioritizes local communities, preserves cultural and environmental integrity, and prevents the negative impacts of overtourism. Only then can tourism be a sustainable force for good, enriching both travelers and the places they visit.

Travelers too face a dilemma in this evolving landscape. They must be willing to adjust their expectations and patterns, seeking out lesser-known gems and embracing a more mindful, low-impact approach to exploration. This may mean forgoing the most popular (and overcrowded) destinations in favor of quieter, less-discovered locations, supporting local businesses, using public transportation, and being conscious of their environmental impact.

As travelers diversify their destinations, countries recognize the need to support this trend through improved infrastructure and transportation. A 2023 study by the World Tourism Organization found that over 60% of destinations worldwide have implemented policies or programs to encourage sustainable tourism, particularly in emerging and less-traveled locations.

The Chinese tourism market is a prime example of this evolving landscape. Data from China’s largest travel platform, Ctrip, shows that searches for destinations like Xinjiang, Gansu, and Inner Mongolia have increased by over 80% in the past year, as Chinese tourists seek to explore the country’s lesser-known regions.

However, infrastructure in these emerging destinations often lags behind, with limited public transportation, signage, and tourism services catered to independent travelers. To address these gaps, governments are investing in sustainable tourism development to accommodate the diversification of destinations and the evolving needs of travelers, including those from the Chinese market.

Indonesia, for example, is pouring $34 billion into the development of 10 “new Balis”—lesser-known destinations like Lake Toba and the Thousand Islands—complete with upgraded roads, airports, and public transit.

By supporting the diffusion of travel to a wider range of destinations through targeted infrastructure and transportation improvements, countries can foster more responsible, transformative, and fulfilling travel experiences. This not only benefits travelers, but also promotes the long-term sustainability of local communities and environments.

The challenge lies in striking a careful balance—satisfying the wanderlust of global travelers while preserving the characteristics that make destinations so appealing in the first place. It’s a high-wire act, where missteps could lead to irreversible damage to once-vibrant communities and natural wonders. The future of tourism hangs in the balance, and the stakes have never been higher.