The Economist cites a USI study: tourism between hostility and benefits

Recently the British weekly newspaper The Economist leaned into the growing hostility toward tourism in several popular destinations, publishing an in-depth article on its pages. The article cited a study conducted by Giuseppe Di Giacomo (PhD student at USI Institute of Economics - IdEP) and Benjamin Lerch (economist at the Federal Finance Administration), titled "Service Jobs and Education: Evidence from Tourism Shocks in Italy".

The Economist discusses the growing backlash against tourism in various popular destinations, such as Barcelona, the Balearic Islands, and Japan. Residents in these areas are increasingly frustrated by the crowds, noise, and rising prices that mass tourism brings. In response, some regions are implementing measures to curb the influx of tourists, such as imposing taxes, limiting visitor numbers, and restricting short-term rentals.

Despite these concerns, the article argues that tourism remains a significant economic boon. It contributes to global GDP, generates national income, and creates jobs. In emerging markets, tourism is a rapidly growing sector, with countries like Albania, Saudi Arabia, and the Dominican Republic seeing significant increases in tourist arrivals.

However, the article also warns of the potential downsides of an overreliance on tourism, such as "Dutch disease," where the growth of one sector stifles others, leading to long-term economic issues. Specifically, in the study cited in The Economist, according to Giuseppe Di Giacomo and Benjamin Lerch, the growth in Italy's tourism sector has had a negative impact on education. The booming tourism industry reduced demand for education, leading to lower university enrollment and completion rates. This suggests that while tourism provides immediate economic benefits, it may hinder long-term development by diverting attention from higher-value sectors.

The full article is available by clicking here.