Overtourism Backlash: How Tourism Businesses Can Adapt

Residents in some of Europe's most visited cities are pushing back against crowds, short-term rentals and rising rents. For tour operators, hosts, guides, cafes and travel sellers, that backlash is no longer background noise: it shapes rules, reviews and how welcome visitors feel. Here is how to adapt your business so it keeps growing without fighting the places it depends on.

"Overtourism" describes what happens when visitor numbers in a place grow faster than its streets, housing and services can handle. Residents feel it as packed buses, noisy nights, shops that only sell souvenirs and rents that climb as apartments turn into holiday lets. In October 2026, protests in Madrid and Barcelona focused on overtourism and soaring rents, as part of a wider wave of cost-of-living protests across several European countries.

None of this means tourism is going away. Travel remains a major source of jobs and income for these cities, and many residents work in it. What is changing is the terms on which visitors, and the businesses serving them, are welcome. The tips below are written for small tourism businesses in Europe and for sellers elsewhere who market European trips. Rules mentioned here are general information, not legal advice: check current local regulations and speak to a qualified adviser before making decisions.

What the backlash is really about

It is easy to read protest headlines as anti-tourist. Look closer and the complaints are usually more specific, which is useful, because specific problems have specific fixes.

• Housing. When apartments in central neighborhoods become short-term rentals, fewer homes are available for residents, and rents can rise. This is the strongest driver in cities such as Barcelona and Lisbon.
• Crowding. Narrow old streets, viewpoints and famous squares can become hard to move through at peak times.
• Noise and behavior. Late-night parties, large groups and disrespect for local customs create friction.
• Changing neighborhoods. Everyday shops give way to businesses aimed only at visitors, which residents experience as losing their neighborhood.
• Who benefits. Residents question whether tourism income stays local or flows to large platforms and outside investors.

As a tourism business, you can do little about the first point on your own, but you can influence almost all of the others through how you design, price and promote what you sell.

How the rules are changing: Spain as an example

Spain shows how quickly local frustration can turn into regulation, and why every tourism business should treat compliance as part of its marketing plan rather than an afterthought.

• National registration. Since 1 July 2025, Spain has required a national registration number for short-term and seasonal rentals, shown on platform listings. Listings without a valid number can be removed.
• Enforcement. In 2025 the government ordered Airbnb to remove almost 66,000 listings it said broke the rules.
• Barcelona's license plan. Barcelona plans to end all 10,101 licenses for tourist apartments by November 2028 and to issue no new ones. Owners' groups have challenged the plan in court, so its final form may change.

Portugal is moving in a similar direction, with a 2026 housing tax package that includes incentives for long-term rentals over short-term tourist lets. Other destinations across Europe have tried visitor fees, limits on group sizes, restrictions on new hotels or cruise arrivals, and rules on where tour groups can stop. The details differ widely from city to city and change often, so check the official rules for each place you operate in.

Tip 1: Spread demand across time and place

Crowding is a timing and location problem as much as a numbers problem. A city can feel overwhelmed at 11 a.m. in August in three famous streets, and half empty at the same time elsewhere. Businesses that move demand away from the peak help residents and often make more money, because off-peak capacity is otherwise wasted.

1. Map your peaks. Look at your bookings by month, day of the week and hour. Identify the slots where you are full and where you have spare capacity.
2. Price for the shape you want. Use lower off-peak prices or added value (a free extra, a smaller group, a longer visit) rather than heavy discounts at peak.
3. Create early and late options. Sunrise walks, evening food tours that end at a sensible hour and weekday workshops can reach visitors who would otherwise join the midday crush.
4. Promote less visited areas. Build products around neighborhoods, towns and trails outside the main hotspots, and explain clearly why they are worth the trip.
5. Sell the shoulder season. Spring and autumn often bring better weather for walking, lower prices and fewer crowds. Make that case in your listings and emails.

Tip 2: Make residents part of your product

Tourism businesses that are seen as good neighbors face less hostility and often have better stories to tell. Being local is a marketing asset, but only if it is real.

• Buy locally. Use local suppliers, guides, artisans and food producers, and say so specifically in your listings.
• Pay fairly. If you rely on local guides and staff, fair pay and stable work reduce the sense that tourism benefits outsiders.
• Brief your guests. Send a short note before arrival about local customs, quiet hours, dress codes for religious sites and how to behave in residential streets.
• Keep groups small and quiet. Use headsets or small groups so guides do not need to shout, and avoid stopping in doorways or narrow lanes.
• Talk to neighbors. If you run a rental or a shop, give neighbors a direct phone number and act quickly on complaints.
• Join local networks. Neighborhood associations and tourism boards are where rules get discussed. Being in the room gives you early warning and a voice.

Tip 3: Rethink your marketing message

Marketing that celebrates "hidden gems" and "secret spots" can backfire if it sends crowds into quiet residential areas without preparation. At the same time, the backlash has made many travelers more thoughtful. A growing group wants to travel in a way that feels respectful, and they reward businesses that help them do it.

What to emphasize

• Quality over quantity: fewer stops, more depth, smaller groups, more time with local people.
• Off-peak value: better light for photos, shorter lines, easier restaurant bookings and a calmer experience.
• Local benefit: who you work with, where the money goes and how you support the community, stated with facts rather than slogans.
• Practical respect: clear guidance on how to visit well, framed as insider knowledge rather than rules.

What to avoid

• Vague "sustainable" or "eco" claims you cannot back up. Consumer protection rules in Europe increasingly target misleading green claims, so keep statements specific and true.
• Images and copy that encourage behavior residents object to, such as late-night party marketing in residential neighborhoods.
• Promoting fragile or small places to large audiences without considering whether they can absorb the visitors.

Tip 4: Protect your business against rule changes

Regulation is the part of the backlash with the most direct financial impact. A short-term rental host who loses a license, or a tour operator whose favorite route gets group restrictions, can lose a large share of income overnight. Diversification and paperwork are your best defense.

Owners of rental property should also look at the wider housing changes in Spain and Portugal, such as rent controls in "stressed" areas and new taxes on some buyers, before buying with tourist income in mind. Rules differ by region, and some measures are still proposals or face court challenges, so check official sources and get local legal advice.

Tip 5: Watch the signals and adjust early

Overtourism disputes rarely appear from nowhere. Residents usually complain for months before rules change. Businesses that watch the signals can adapt before they are forced to.

• Local news and council agendas: proposals on licenses, visitor fees or zoning are usually discussed publicly first.
• Protest themes: when housing or crowding becomes a protest slogan, regulation often follows.
• Platform emails: booking platforms often notify hosts and operators about new local requirements.
• Your own reviews: comments about crowds or unfriendly locals are early warnings about guest experience.
• Neighbor feedback: complaints are cheaper to fix early than after they reach a council meeting.

Frequently asked questions

The bottom line

The overtourism backlash is a signal that the old model of more visitors, more listings and more volume is running into limits in Europe's busiest cities. Tourism businesses that spread demand, work with residents, market honestly and keep their paperwork in order can still grow, often with better margins and better reviews.

Start with the checklist above, pick two or three changes you can make this season and keep a close eye on local rules in every destination you serve.