Beyond Boom and Bust: Rethinking Tourism Policy for Sustainable Growth

During the growth phase, marketing campaigns strive for record visitor numbers, infrastructure is rapidly expanded, and local economies anticipate significant financial benefits from increased spending. Unfortunately, this celebratory phase often proves to be short-lived. As visitor numbers increase, destinations face mounting pressures, including overcrowded streets, strained public services, environmental degradation, and local communities being displaced from their neighborhoods. It is only then that policymakers react, implementing restrictions, quotas, or emergency management measures.

This reactive cycle is not only common but also inefficient and often detrimental. What is missing is a focus on the “in-between,” as João Romão highlighted in Episode 22 of the High-Yield Tourism Podcast. This involves the deliberate and strategic management of tourism that balances growth with sustainability. Proactive policies might include setting clear capacity limits, aligning tourism offerings with carefully selected target markets, and ensuring that economic benefits remain rooted in local communities. By adopting such measures, destinations can sidestep the disruptive oscillation between unchecked growth and crisis management.

For high-yield tourism destinations, those aiming to attract not just more visitors but the right kind of visitors, the stakes are even higher. Strategic visitor management is essential, as it facilitates experiences that complement a destination’s carrying capacity. This approach encourages off-peak travel to minimize congestion and develops infrastructure that benefits both residents and tourists. The result is the preservation of the destination’s integrity while enhancing the quality of the tourism experience, leading to a virtuous cycle of satisfaction, loyalty, and repeat visits.

Moreover, careful planning can yield equitable outcomes. When policies recognize local communities as central stakeholders, tourism can provide ongoing economic benefits without displacing residents or eroding cultural heritage. High-yield destinations that implement these strategies are better positioned to maintain long-term profitability, a strong brand reputation, and the social license to operate.