The Overtourism Crisis in Europe – Challenges and Prospective Legal Remedies

Europe’s tourism sector is soaring past pre-pandemic levels, with the first half of 2024 seeing a 7% increase in overnight visitors relative to 2019.[1] Compared to 2023, overnight stays this year increased 10%.[2] It is calculated that tourists will spend around €800 billion this year as part of their travels, an average 13.7% increase from 2023, with several Southern European countries observing average spending increase by 20-25%.[3]

Yet, despite a thriving tourism sector and associated surge of income for some European countries, the detrimental effects of overtourism continue to loom over the heads of locals and their environments. Overtourism – when “too many” people visit somewhere on vacation and life for locals is made difficult[4] – has several consequences, including: unaffordable rent prices due to a market oversaturated with short-term rentals;[5] pollution and the destruction of local environments, particularly with cruise ships and local sea life;[6] water shortages in countries already suffering from a lack of water due climate change;[7] and rising dissatisfaction and even animosity of locals against tourists.[8]

European countries have opted for various legal measures to combat overtourism. A common solution is to impose a “tourism tax,” a small fee of usually a few Euro per night added to a hotel or short-term rental bill.[9] While such a tax will not apply to non-overnight visitors, Venice has chosen to impose an “access” tax on anyone entering the city.[10] Similarly, Barcelona and Lisbon have a “visitor” tax on cruise ship passengers stopping in port.[11] The European Union (EU) itself in 2025 will also begin subjecting certain non-EU travelers to a long delayed fee of €7.70 for a visa waiver program that was originally planned for 2023.[12] The revenue from a tourism tax can be used to improve the quality of life of visitors and locals alike in tourist destinations, and combat the detrimental effects of overtourism.[13]

Aside from taxes, Athens has imposed a quota limiting the number of visitors to the Acropolis to 20,000 visitors a day.[14] Venice has also limited travel groups to a maximum of 25 people.[15] Valencia, Spain, is cutting the water and electricity to the apartments of non-compliant landlords of short-term rental laws and regulations, and even imposing €600,000 fines.[16] Budapest, on the other hand, has outright banned all short-term rentals.[17]

EU citizens have the fundamental right of the freedom of movement under Article 21 of the Treaty on the Functioning of the European Union (TFEU).[18] Tourism regulations which impose fees and housing restrictions implicate the freedom of movement. However, these regulations are likely exempt from Article 21 as per EU Directive 2004/38/EC – on the implementation of Article 21 – on the basis of either public security or public policy, as long as they are not purposed to serve economic ends.[19] “Public security” pertains to internal and external security, while “public policy” involves measures that seek to prevent disturbances to social order.[20] The detrimental social and environmental effects of overtourism easily fit under the umbrella of both these phrases.

While regulators may justify tourism regulations through public security or public policy arguments, measures must comply with non-discrimination requirements of Article 21, as per Directive 2004/38/EC.[21] Similar to TFEU Article 18, which centrally focuses on non-discrimination requirements of laws and regulation on subjects governed by EU treaties, Article 21 requires justifiable measures implicating the freedom of movement to apply equally to all EU-citizens, including nationals of the regulating country.[22] This protection does not apply to nationals of non-EU countries,[23] theoretically making the EU visa waiver program permissible. Thus, if Venice has a visit tax, it must apply to every EU citizen, including Italians. If Venice’s tax makes an exception for locals and homeowners, then the exception cannot benefit solely national Italian locals, but any EU-citizen that is a Venetian homeowner. Doing otherwise is an impermissible form of indirect discrimination.[24] If Valencia’s short-term rental regulations include potential fines upwards of €600,000, fines cannot be imposed discriminatorily based on nationality of the rental homeowners.[25]

Tourism taxes are not an effective means of deterring tourism.[26] A small extra fee added onto a tourist’s total travel bill may be negligible. Conversely, non-tax regulations on overtourism may be too effective at deterring tourists if they actively restrict where visitors may stay and congregate, especially when coupled with the rising animosity of some locals against tourists.[27] If tourists are excessively deterred, businesses that rely on tourism, and subsequent tax revenue, will potentially be devastated.

While specialized taxes and local restrictions struggle to combat overtourism,[28] a comprehensive EU-wide approach could provide a more sustainable management of tourism. A centralized EU tourism information network, for example, can provide real time monitoring and estimates of tourist populations in various tourist destinations by tracking data such as hotel occupancy, incoming tax revenue from tourist accommodations, and EU visa waiver program statistics.[29] This approach may potentially guide tourists to visit less crowded destinations, lifting pressure from overburdened cities, while promoting environmental sustainability, balanced economic growth, and harmony between locals and visitors.

Panayotis G. (Baki) Agelarakis is a staff member of Fordham International Law Journal Volume XLVIII.

[1] European Tourism 2024: Trends & Prospects Quarterly Report Q2/2024, Eur. Travel Comm’n 6 (July, 2024), https://etc-corporate.org/uploads/2024/07/ETC-Quarterly-Report-Q2-2024_Public.pdf.

[2] Id.

[3] Id.; See also European Tourism Soars in 2024 with Strong Revenues, Eur. Travel Info. and Authorisation Sys. (July 17, 2024), https://etias.com/articles/european-tourism-soars-in-2024-with-strong-revenues.

[4] Overtourism, Cambridge Dictionary, https://dictionary.cambridge.org/us/dictionary/english/overtourism (last visited Sept. 24, 2024).

[5] See Josip Mikulić et al., The effect of tourism activity on housing affordability, 90 Annals of Tourism Rsch, Sept. 2021, at 1, 9; Cristina Giner & Rory Armstrong, The end of Airbnb in Barcelona: What does the tourism industry think of the apartment ban, Euronews (July 22, 2024), https://www.euronews.com/travel/2024/07/22/the-end-of-airbnb-in-barcelona-what-does-the-tourism-industry-have-to-say; But see D.J. Catron, Short-Term Rentals Feeling Pinch of Overtourism Backlash, Phocus Wire (Aug. 15, 2024), https://www.phocuswire.com/Short-term-rentals-feeling-pinch-of-overtourism-backlash (describing studies where short-term rentals were shown to not have significant impacts on housing and rental prices in some cities).

[6] See Silvia Ombellini, How do cruise ships impact on the environment, Ecobnb (July 19, 2013),  https://ecobnb.com/blog/2013/07/how-does-cruise-ships-impact-on-the-environment/.

[7] See Angeliki Koutantou & Stelios Misinas, Greek islands face water crisis as tourist season peaks, Reuters (July 9, 2024), https://www.reuters.com/world/europe/greek-islands-face-water-crisis-tourist-season-peaks-2024-07-09/; Water crisis hits Greek islands amid tourist boom, Smart Water Magazine (July 29, 2024),  https://smartwatermagazine.com/news/smart-water-magazine/water-crisis-hits-greek-islands-amid-tourist-boom.

[8] See Alessia Framba, Overtourism: Causes, Consequences and Solutions, Ecobnb (Feb. 14, 2020), https://ecobnb.com/blog/2020/02/overtourism-causes-consequences-solutions/; Rebecca A. Hughes, Barcelona protesters spray visitors with water: Why has Europe fallen out of love with tourism?, Euronews (July 8, 2024), https://www.euronews.com/travel/2024/07/08/fake-signs-and-hunger-strikes-whats-behind-europes-backlash-against-overtourism.

[9] See Tourist taxes in Europe, Authentic Eur., https://www.authentic-europe.com/travel-info/during-your-tour/tourist-taxes (last visited Sept. 27, 2024).

[10] See Paid Access Fee Tax in Venice for Tourists in 2025: Regulations, Paiement, Prices and Exemptions, Visit-Venice-It., https://www.visit-venice-italy.com/venice-paid-access-tax-for-tourists-regulations-terms-price-exemptions.html (last visited Sept. 27, 2024).

[11] See Lisbon Imposes Tourist Tax on Cruise Ship Passengers, Eur. Travel Info. and Authorisation Sys. (Dec. 19, 2023), https://etias.com/articles/lisbon-cruise-tax-2024; Barcelona will raise tourist tax for cruise passengers, mayor says, Reuters (July 21, 2024), https://www.reuters.com/world/europe/barcelona-will-raise-tourist-tax-cruise-passengers-mayor-says-2024-07-21/.

[12] See Julia Buckley, Europe delays travel entry charges until 2025, CNN (Oct. 19, 2023), https://www.cnn.com/travel/article/etias-europe-tourist-taxes-explained/index.html.

[13] See generally Ronan O’Connell, A look at Europe’s tourist taxes – have they helped curb overcrowding, Nat’l Geographic (Aug. 2, 2024), https://www.nationalgeographic.com/travel/article/europe-tourist-tax-impact.

[14] See Karen K. Ho, Greece Will Implement a Daily Limit of 20,000 Visitors to the Acropolis Sarting September, ARTnews (Aug. 3, 2023), https://www.artnews.com/art-news/news/greece-limits-attendance-acropolis-visitor-quotas-1234676198/.

[15] See Ruth Wright & Angela Symons, Venice limits tour groups to 25 people and bans megaphones in latest tourism crackdown, Euronews (Aug. 1, 2024), https://www.euronews.com/travel/2024/08/01/venice-puts-further-limits-on-tourists-to-protect-the-city.

[16] See Saskia O’Donoghue, Cruise caps and cutting off power: European cities get serious on overtourism, Euronews (Sept. 18, 2024), https://www.euronews.com/travel/2024/09/18/cruise-caps-and-cutting-off-power-european-cities-get-serious-on-overtourism.

[17] See id.

[18] See Consolidated Version of the Treaty on the Functioning of the European Union art. 21, May 9, 2008, 2008 O.J. (C 115) 47 [hereinafter TFEU].  Articles 45 and 49 of the TFEU also provide the freedom of movement of EU citizens, but these focus on workers and the establishment of businesses. See TFEU art. 45, 49.

[19] See Council Directive 2004/38/EC, art. 27, 2004 O.J. (L 158) 113–14; Commission Guidance on the right of free movement of EU citizens and their families, §13.1.1, 2023 O.J. (C 1392) 58 [hereinafter Commission Guidance].

[20] Commission Guidance, §13.1.1.

[21] See Directive 2004/38/EC, supra note 19, ¶ 20, at 83.

[22] See id.  Article 18 applies where other provisions of EU law do not have their own specific rules on discrimination; See Denis Martin, The EU Treaties and the Charter of Fundamental Rights: A Commentary 415–16 (Manuel Kellerbauer et al., 2019). Therefore, Article 21 predominates as it has its own non-discrimination rules through Directive 2004/38/EC.

[23] See Directive 2004/38/EC, supra note 21, ¶ 20, at 83.  This is also the case for the non-discrimination rules of Article 18; See Martin, supra note 22, at 415–16.

[24] See Commission Guidance, §5.5.  Some forms of indirect discrimination can be justified so long as they are proportional to what is necessary to achieve stated objectives;  See TFEU art. 5(4); See e.g., Commission Guidance, §13.1.3 (detailing permissible indirect discrimination for individual security threat assessments).

[25] If measures restricting short-term rentals are not considered to be implicating the freedom of movement, non-discrimination requirements under Article 18 would apply instead of Article 21. See Martin, supra note 22, at 415, 418.

[26] See e.g., Venice Tourist Tax Trial Ends with Failure to End Overtourism, Eur. Travel Info. and Authorisation Sys. (July 24, 2024), https://etias.com/articles/venice-tourist-tax-trial-ends-with-failure-to-end-overtourism.

[27] See Hughes, supra note 8.

[28] See Venice Tourist Tax Trial Ends with Failure to End Overtourism, supra note 26.

[29] The EU already has in place the European Green Pioneer of Smart Tourism competition, succeeding the previous European Destinations of Excellence competition, “aim[ing] to recognise and award smaller destinations that have implemented successful strategies to boost sustainable tourism through green transition practices.” However, this competition is limited to several smaller EU nations, and does not act as an information network. Nevertheless, it encourages sustainable practices in tourism.  European Green Pioneer of Smart Tourism, Eur. Comm’n, https://smart-tourism-capital.ec.europa.eu/about/european-green-pioneer-smart-tourism_en (last visited Sept. 27, 2024).

 This is a student blog post and in no way represents the views of the Fordham International Law Journal.