Which Cities Have The Worst Overtourism Problem?

Tourism is often hailed as a cornerstone of economic growth, bringing jobs, cultural exchange, and global recognition to cities around the world. Yet, when does too much of a good thing become problematic? The phenomenon known as overtourism has emerged as one of the most pressing challenges for urban centers globally. While tourists bring revenue, they also strain infrastructure, disrupt local life, and test the patience of residents. A recent analysis by The Economist sheds light on which cities are grappling with this delicate balancing act—and how some are striving to find solutions.

The Numbers Behind the Crowds

To understand overtourism, it’s essential to look at both raw visitor numbers and their impact relative to population size. London and Tokyo stand out as magnets for international travelers, each attracting 20 million visitors annually. Istanbul follows closely behind with 17 million tourists flocking to its historic landmarks and vibrant bazaars. However, these figures only tell part of the story. When adjusted for population, smaller cities like Amsterdam, Paris, and Milan reveal themselves as true hotspots, with ratios of ten, eight, and six tourists per resident, respectively.

Amsterdam, in particular, exemplifies the complexities of overtourism. Despite efforts to curb overcrowding—such as limiting new hotel developments, banning cruise ships from docking near the city center, and hiking accommodation taxes—the Dutch capital remains irresistible to millions. Its picturesque canals, charming architecture, and culinary delights continue to draw crowds, creating tension between preserving local culture and catering to global demand.

Dollars and Disruption

Tourists don’t just bring foot traffic; they also inject billions into local economies. Dubai leads the pack in total tourist spending, raking in $29 billion last year alone. London and Singapore aren’t far behind, with expenditures reaching $21 billion and $19 billion, respectively. On a per-resident basis, however, Amsterdam, Paris, and Dubai dominate, showcasing how concentrated tourism can drive significant financial gains.

But there’s a catch. High tourist density often correlates with higher spending, but it also exacerbates issues like congestion, pollution, and rising living costs for locals. For instance, visitors in Amsterdam spend four times more per resident than those in Milan, highlighting the disparity in economic benefits versus social costs. Reducing tourist numbers could alleviate pressure on infrastructure, but it might also cut into vital income streams—a trade-off that policymakers must carefully navigate.

Finding Balance: Lessons from Osaka and Madrid

Not all popular destinations suffer from crippling overtourism. Some cities have managed to strike a healthier balance between welcoming visitors and maintaining quality of life for residents. Take Osaka, Japan’s second-largest metropolitan area, where foreign tourists spend an impressive $4,900 per local while keeping tourist density moderate at four visitors per resident. Similarly, Madrid boasts $4,300 in spending per resident with just two tourists per inhabitant.

These examples suggest that achieving high revenues without overwhelming locals is possible—but not without challenges. Even in relatively well-managed cities, signs of discontent are emerging. Osaka officials are contemplating an entry fee for foreign tourists to mitigate the effects of overtourism, while Madrid has seen anti-tourist graffiti appear across its streets, signaling growing frustration among residents.

Toward Sustainable Tourism

The debate over overtourism ultimately boils down to finding an ideal equilibrium: enough tourists to support local businesses and enrich communities, but not so many that daily life becomes untenable for residents. This elusive sweet spot varies depending on factors like city size, infrastructure capacity, and community tolerance.

For now, cities like Amsterdam serve as cautionary tales, illustrating the consequences of unchecked tourism growth. Meanwhile, places like Osaka and Madrid offer hopeful models for sustainable practices—but even they face mounting pressures as global travel continues to rebound post-pandemic.

As governments experiment with measures such as entry fees, stricter regulations, and targeted marketing campaigns aimed at spreading tourists more evenly throughout the year, one thing is clear: solving overtourism requires creativity, compromise, and collaboration between authorities, businesses, and citizens. After all, no city wants to sacrifice its charm—or its livability—for the sake of fleeting economic gains.