Overtourism and employment outcomes for the tourism worker: impacts to labour markets

Abstract

Purpose This paper aims to undertake an ideal-typical analysis of the implications of overtourism on employment at the level of the destination. Design/methodology/approach The paper offers a theoretical analysis that uses as a starting point a traditional labour market model to explore the employment implications of a labour demand shock as a result of overtourism at a destination level. Although a theoretical exploration, examples are provided offering empirical support for the theoretical propositions. Findings Overtourism may lower nominal and real wages, further deepen divisions in an already divided labour market (particularly between local and migrant workers), increase productivity without its benefits accruing to the worker and result in deterioration of working conditions. The study also sets tourism employment within a broader politico-economic framework of neoliberalism. Research limitations/implications This study offers scope for further empirical testing of hypothesized relationships. It also provides a platform to adopt and adapt the theoretical propositions to suit different contexts. Originality/value This study uses overtourism as an ideal-type, combined with an analysis of the labour market to theorise the impacts of a labour demand shock.

Overcoming overtourism: a review of failure

“…The majority of tomorrow's tourists will likely also include yesterday's overtourists, with the same tastes and desires they had in pre-COVID days but even more impatient to travel after the hiatus of the pandemic. Additionally, increased tourism numbers do not necessarily mean increased jobs and wages (Walmsley et al, 2021). In Iceland, increased demand for tourism was instead met by immigration of labour from regions with lower wages (Wendt et al, 2020) as in Spain also (Can ˜ada, 2018).…”

“…argue that "overtourism is driven by both global and domestic policy factors". Although proponents of a smaller and/or greener form of tourism (Everingham and Chassagne, 2020) argue for significant changes in the whole tourism system, including a reduction in tourist numbers, it sometimes appears forgotten or ignored by such commentators that tourism is an economic activity and that while tourists may engage in the activity for pleasure, those in the supply and support sectors participate for economic gain (Walmsley et al, 2021;Ghoochani et al, 2020). It is generally unrealistic and ineffective to expect those agencies to have much regard for anything beyond their own economic benefit, as their survival will depend on how economically successful they are.…”

“…when 35 million day visitors are added to the 10 million overnight visitors to Venice, the total to that location makes the situation becomes unmanageable and unacceptable to many. Day visitors with a short time in a location are inevitably going to congregate at the iconic attractions there (Weidenfeld et al , 2016), to imagine otherwise is unrealistic and expecting day visitors, especially those on a first and possibly only visit a destination to ignore the flagship attractions and sites/sights and visit unheralded and unknown sites is unrealistic. If nothing else, such visitors might face ridicule from friends for having visited Rome but not having seen the Vatican or the Colosseum, a situation noted in the 17th century by Hibbert (1974).…”

Envisioning the futures of cultural tourism

“…The same can be said about tourism employment. While tourism is often hailed as providing "weaker" groups in society with employment opportunities, Walmsley, Koens, and Milano (2021) note that this is not self-evident. They argue that unfettered tourism growth can lead to lower nominal and real wages, deepen divisions in the labour market, also between local and migrant workers, increase work pressure without sufficient remuneration as well as a deterioration of working conditions.…”

The role of tourism in service sector employment: Do market capital, financial development and trade also play a role?

“…They also found that road transportation promoted service sector employment more than railway and inland water transport. Walmsley, Koens and Milano [ 18 ] have found that overtourism, excessive numbers of tourists in a particular tourist spot, has the potential to impact wage and to divide labor market. In the Indian context, R&D, legal, media and broadcasting services have all been identified as potential sectors for future growth [ 19 ].…”