A teacher in Lisbon and a nurse in Barcelona have one thing in common: neither can afford to live where they work anymore. Europe’s tourism boom is filling coffers and emptying neighbourhoods, as record visitor numbers collide with a deepening housing crisis. Now Brussels wants a rethink, favouring quality over quantity.
The numbers behind the boom are staggering. Europe welcomed around 758 million international tourist arrivals in 2024, according to the Council of the European Union. That is almost 40 per cent of all tourism worldwide, making Europe the world’s most visited region by far.
According to the European Commission, the sector contributes around 10 per cent of the EU’s GDP and supports roughly one in ten jobs when both its direct and indirect effects are taken into account.
For countries such as Spain, Greece, Croatia, Portugal and Italy, tourism is far more than a seasonal industry. It supports millions of jobs, sustains thousands of small businesses and provides a crucial source of tax revenue. The sector has bounced back strongly since the pandemic, with several Mediterranean destinations now welcoming more visitors than ever before.
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Tourism is changing
Today’s tourists travel differently than they did a decade ago. Low-cost airlines and online booking platforms have made weekend city breaks increasingly affordable. Social media has also turned lesser-known destinations into international hotspots almost overnight.
Cities such as Porto, Kraków, Valencia and Ljubljana were once visited mainly by domestic travellers. Now they are regular stops on the European weekend circuit, spreading tourism to new regions and creating fresh opportunities for local businesses.
Another important shift is the rise of remote working, or the “workation”. Flexible working arrangements have blurred the line between work and holidays. Rather than taking a traditional two-week break, growing numbers of professionals now spend several weeks, or even months, working remotely from abroad.
Countries including Portugal, Spain, Croatia, Greece and Estonia have actively encouraged this trend, introducing digital nomad visas or dedicated residency schemes. For local economies, these longer-term visitors can be particularly valuable.
Unlike traditional tourists, digital nomads often travel outside peak seasons and stay considerably longer. They also spend more in local cafés, restaurants and co-working spaces, helping businesses generate income throughout the year rather than relying solely on summer.
The downside of booming travel
Many remote workers earn salaries in wealthier countries while living somewhere the cost of living is considerably lower. Their greater purchasing power adds to housing pressures in places already struggling with shortages caused by tourism and limited supply.
In parts of Lisbon, Barcelona and Madeira, local authorities and housing groups say the arrival of digital nomads has contributed to rising rents, higher prices and accelerating gentrification. The same trade-off is visible in the debate over overtourism.
According to the European Parliament, around 80 per cent of travellers visit just 10 per cent of tourist destinations worldwide. This concentrates both the economic benefits and the pressures of tourism in a relatively small number of places.
Cities including Barcelona, Venice and Amsterdam have become symbols of that imbalance. Many city centres depend heavily on visitor spending to support shops, restaurants and cultural attractions. Yet residents have increasingly questioned whether tourism has become too successful.
In Barcelona, residents have repeatedly protested against mass tourism, arguing that record visitor numbers are making the city increasingly unaffordable. Venice has introduced an entry fee for day-trippers in an effort to manage visitor flows. Amsterdam, meanwhile, has sought to discourage party tourism and reduce nuisance in its historic centre.
Short-term rental platforms such as Airbnb have also become part of the debate. They provide additional income for thousands of households and expand accommodation options for visitors. But critics argue they have also removed housing from the long-term rental market in some cities.
In Amsterdam, Barcelona and Lisbon, local authorities say this has made it harder for teachers, nurses, police officers and other essential workers to find affordable homes close to where they work. Authorities have responded with a patchwork of measures, ranging from licensing systems and caps on rental nights to outright bans in certain neighbourhoods.
A hotter holiday season
Housing isn’t the only challenge facing Europe’s tourism industry. Climate change is increasingly reshaping where and when Europeans travel.
The recent wildfires in southern France and Spain once again showcased how vulnerable the sector has become to extreme weather. During what should have been the busiest weeks of summer, evacuations forced tourists to leave campsites and holiday resorts. Road closures, poor air quality and transport disruptions affected thousands more. Beyond the immediate disruption, such events threaten billions of euros in seasonal tourism revenue that many regions depend on.
As heatwaves become more frequent and intense, researchers expect travel patterns to shift. More visitors are likely to opt for spring and autumn holidays, or choose cooler destinations in northern Europe instead. The European Travel Commission has already reported growing interest in off-season travel. Meanwhile, destinations across the Mediterranean are increasingly promoting year-round tourism to reduce their dependence on the peak summer months.
What’s Brussels doing?
Tourism policy is largely decided by national governments, but Brussels is playing an increasingly active role in shaping the sector’s future. In recent years, the European Commission has launched a series of initiatives aimed at making tourism more sustainable and better prepared for future challenges.
That includes helping destinations adapt to climate change, encouraging businesses to embrace digital technologies and supporting regions that want to attract visitors beyond the traditional summer season. The Council of the European Union has also urged member states to work more closely on issues such as labour shortages, transport connections and protecting destinations from the impacts of climate change.
Earlier this year, the European Parliament adopted a resolution on the smart management of tourism. It argues that Europe should focus less on maximising visitor numbers and more on improving the quality and sustainability of the sector.
Short-term rentals serve communities, rather than exploiting them.
— Daniel Attard, Rapporteur, European Parliament (S&D/MLT)
Daniel Attard (S&D/MLT), Parliament’s rapporteur on the report, said it was about shaping “Europe’s first sustainable tourism strategy” by improving “connectivity to rebalance flows beyond hotspots”, strengthening culture as “the keystone of quality tourism”, and ensuring “short-term rentals serve communities, rather than exploiting them.”
The report also calls for stronger destination management, better transport links to lesser-known regions and a more even distribution of visitors across Europe. The aim is to ensure tourism continues to generate economic growth without placing unsustainable pressure on local communities.
Tourism remains one of Europe’s greatest economic strengths, generating jobs, investment and income across the continent. But as visitor numbers keep rising, the challenge is to ensure the industry’s benefits do not come at the expense of local communities or the environment.
