Building strong and resilient tourism destinations

Tourism is an important driver of economic development and can deliver significant benefits to local communities. While some destinations strive to manage unbalanced tourism growth and development, others seek to attract more visitors to reap the economic and social benefits of tourism. Redistributing tourist flows in time and space and avoiding over-reliance on tourism are top priorities for many destinations, both at sub-national and national levels.

Challenges for tourism destinations

Addressing the challenges facing tourism worldwide requires careful planning, stakeholder engagement, investment by public and private parties, and compliance with environmental standards. Balancing economic growth with environmental and social considerations can be complex and requires collaboration, particularly at the destination level, with a wide range of stakeholders to better distribute the benefits (and impacts) of tourism and create a more sustainable and inclusive tourism for destinations. The OECD-experts see four major challenges. 

1. Overtourism and uneven growth: The strong return of tourism following the COVID-19 pandemic has led to renewed pressure on popular destinations. Overcrowding is straining local infrastructure, natural resources and the quality of life for residents. Examples such as the Canary Islands and Barcelona illustrate how mass tourism can affect the quality of life and reduce the social acceptance of tourism.
2. Seasonality: Many destinations are highly dependent on peak seasons, leading to economic instability and challenges to labour market continuity. For example, mountain regions that rely on winter sports are under pressure from climate change and declining snow levels. Other less popular destinations could benefit significantly from increased visitor flows and tourism investment, which in turn could help to reduce pressure on more congested hotspots.
3. Climate change and geopolitical instability: Extreme weather events, such as floods and heat waves, are a growing threat to tourism destinations. These crises can disrupt visitor numbers and damage infrastructure, leading to long-term disruption. In addition, geopolitical tensions, health crises, or economic headwinds can abruptly disrupt the sector.
4. Changing tourist expectations: Tourists are increasingly seeking authentic, culturally immersive experiences, such as local food, traditions, and interactions with residents. This shift presents opportunities for community-led tourism and authentic, off-the-beaten-path, and slow tourism experiences that support local communities and promote sustainable practices. Destinations must capitalize on these trends to remain competitive. 

Strong tourism destinations

According to OECD, strong, resilient destinations are the answer to the many challenges and threats to the tourism sector. Strong tourism destinations are equipped to thrive in times of change and contribute to a resilient tourism sector. This can improve the stability of local economies, enhance the livability of places and create opportunities for socio-economic development for people. Strong tourism destinations can promote sustainable development, well-being, inclusive growth and contribute to the resilience of the destination. At the same time, over-reliance on tourism, or a limited number of key attractions or types of tourism, can increase vulnerability and make destinations more susceptible to disruption. The report identifies several priority challenges for tourism destinations:

• Develop tourism as part of diverse and stable economies in destinations and seek to diversify the tourism economy, especially where other economic opportunities are limited.
• Promote the development of tourism development and management plans that reflect the unique characteristics of destinations and are integrated with national strategies and local action plans.
• Improve coordination structures between government agencies and clarify the roles and responsibilities of different stakeholders to strengthen tourism development and crisis management in destinations.
• Strengthen the capacity of local and regional governments and management structures through training, resources and financial support to help manage tourism effectively.
• Collect and share more timely and detailed data by using new technologies and promoting open data initiatives and data sharing frameworks to support decision-making.

Conclusion

The OECD-report “Building strong and resilient tourism destinations” concludes that strengthening tourism destinations requires making them resilient and sustainable through diversification of the economy, strategic planning, and collaboration between different stakeholders. Destinations need to adapt to changing tourism trends, integrate environmentally friendly practices, and be prepared for future crises. This requires robust data for decision-making, strong infrastructure, and involvement of local communities to share the benefits of tourism broadly and minimise negative impacts. These approaches can not only help destinations cope better with unexpected shocks but also contribute to a more sustainable and inclusive tourism model.