Optimising social and economic benefits of tourism

Tourism is essential to Europe’s economy, providing jobs and income for local communities, but it also brings challenges like overtourism, environmental damage, and social tensions. This policy brief explores how local and regional authorities can best optimise tourism's social and economic benefits by actively accompanying market actors and regulating the sector to balance growth with sustainability.

Authorities can support tourism by:

• Accompanying market actors: Authorities can foster partnerships with private stakeholders, as seen in projects like Visit Savonlinna (Finland), where digital platforms empower SMEs, or Gastro Local (Romania), which connects local producers with tourism opportunities.
• Regulating tourism: To manage overtourism and mitigate negative externalities, measures such as targeted taxation, limits on visitor numbers, and spatial redistribution of tourism flows (e.g., the Porikuu Festival in Estonia) can balance visitor impacts while promoting less-visited areas.
• Building resilience: Authorities can encourage diversification of tourism offers, integrating local cultural and economic activities to reduce dependency on volatile markets, as exemplified by initiatives like LouléCriativo (Portugal) and East Flanders’ floricultural tourism.

Key strategies for local authorities that this policy brief explores include:

• Co-developing tourism plans with local communities and businesses
• Strengthening public-private partnerships
• Embedding tourism in local economies
• Leveraging EU policies for funding and skills
• Promoting sustainable, inclusive tourism

By combining market support and regulation, local authorities can foster sustainable tourism growth that benefits both visitors and host communities in the short and long term.