Overtourism: big business as the main culprit

What happened: Overtourism, a growing concern in Europe, is increasingly being attributed to big businesses. Adam Almeida, in "Fight them for the beaches," argues that corporations are the main culprit, driving mass tourism. Meanwhile, a documentary, "A Place in the Sun," highlights the impact of tourism on the Canary Islands, and in Varenna, Italy, locals have imposed fines on tourists in swimwear to combat uncouth behavior, indicating a backlash against unruly visitors.

Market impact: The travel and tourism sector is significantly affected. Companies like TUI, Thomas Cook, and Ryanair, which facilitate mass tourism, may face headwinds. Destinations popular with package holidays, such as the Canary Islands and Italian lakes, could see reduced visitor numbers or increased regulation, impacting local businesses. Valuations of these companies may reprice as investors reassess the sustainability of their business models.

What to watch next: The European Commission's upcoming report on overtourism, scheduled for Q4 2023, will provide insights into the EU's response. Additionally, earnings reports from major travel companies in Q1 2024 will offer concrete data on the impact of overtourism on their financials. Lastly, local elections in popular tourist destinations in 2024 may indicate a shift in policy towards managing tourism more sustainably.