The Impact of Overtourism: A Closer Look at the Case of Mallorca

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While overtourism has been an increasingly hot topic in Spain (and elsewhere!), visitors are undeterred and so are expenditures. In the first seven months of 2024, international tourists significantly contributed to the country’s GDP, spending over 71 billion euros (18.6% more than last year) according to the Spanish government. The period of January to July 2024 resulted in a 12% growth in terms of international air passengers, and while in August growth slowed to 9.6%, this still corresponds to 11.1 million airborne arrivals in a single month. Catalonia, the Balearic Islands and the Canary Islands (in that order) received the bulk of these arrivals so far, in keeping with the 2023 trend. 13.8% of international air passengers came from Germany, from which almost half (47.2%) travelled to the Balearic Islands and popular German evergreen Mallorca.

Mallorca, a Mediterranean favourite, is a particularly diverse destination, offering activities all year round. However, below its apparent popularity and picturesque surface lies a complex narrative driven by tourism. Overtly this is caused by a phenomenon many smaller destinations are facing: The tourist to inhabitant ratio. In the case of Mallorca, a population of less than a million inhabitants is faced with more than ten times the number of tourists in the especially popular summer months.

As we delve into the impact of this phenomenon, we will explore how tourism has transformed Mallorca’s economy, the challenges it faces due to housing issues and environmental strain, and the steps being taken towards sustainability.

Mallorca’s pivotal economic transformation and growth

Tourism has been the cornerstone of Mallorca’s economic transformation, transitioning the island from an agrarian society to a thriving service-oriented economy. By 2021, tourism accounted for approximately 45% of Mallorca’s GDP, which amounted to €30.32 billion, positioning it as the twelfth largest economy in Spain. The sector is vital, supporting about 35% of employment on the island with over 200,000 jobs linked directly to tourism.

In 2023, the Balearic Islands experienced significant economic growth of 3.7%, surpassing Spain’s average of 2.5% and the EU’s 0.4%. This boom was largely fueled by the arrival of 22 million passengers, 14.4 million of whom were tourists, contributing a staggering €17.22 billion to the local economy. Projections for 2024 remain optimistic, anticipating a growth rate of 3.5%, emphasizing tourism’s ongoing role as a critical driver of economic prosperity.

However, the economic dependence on tourism has raised concerns about sustainability and resilience. The COVID-19 pandemic served as a stark reminder of this vulnerability, showcasing how quickly the economy could falter when tourism was halted.

Tourism’s Broader Impacts

Tourism growth has spurred the development of infrastructure, hospitality services, and related sectors, contributing to overall economic advancement. However, the impact of tourism extends beyond mere economics; it has enriched Mallorca culturally and gastronomically. The influx of international visitors has introduced diverse influences while promoting the island’s unique heritage.

Nevertheless, the benefits of tourism are not without drawbacks. The rapid increase in tourist numbers has strained local resources and infrastructures, particularly in housing and environmental sustainability. For instance, the reliance on tourism has exacerbated existing social issues, including rising living costs for residents as the demand for tourist accommodations outstrips available housing.

Housing and Overtourism Challenges

One of the most pressing issues arising from overtourism in Mallorca is the housing crisis. The proliferation of tourist flats has become a significant concern, with over 154,000 beds available for tourists. In Pollença, for example, there are 16,865 tourist vacancies in a town with just 17,279 residents. Alarmingly, around 90% of these rentals are illegal, with nearly one-third of residential properties converted for tourist use. This trend severely limits available housing for locals, driving up rents and diminishing the quality of life for residents.

In response to these challenges, the Consell de Mallorca has announced measures to reduce the ceiling of tourist beds from 430,000 to 412,000—representing a decrease of nearly 4.2%. This move aims to stabilize the supply of holiday accommodations, allocating 308,000 beds to hotels and 104,000 to rented properties. Such regulatory efforts are crucial for balancing tourism growth with local needs.

Environmental and Social Strain

The surge in tourism has also led to negative impacts on service quality and environmental sustainability. A study from the University of the Balearic Islands highlights that the island’s ability to cope with millions of visitors – often outnumbering the local population – has been strained. This influx has resulted in environmental challenges, including water shortages, pollution, and increased waste generation.

In 2023 alone, the Balearic Islands welcomed over 2.5 million cruise passengers, a 45% increase from the previous year, though still below pre-pandemic levels. Palma de Mallorca, a key destination for cruise ships, faces additional challenges from this surge. A 2020 study indicated that freshwater withdrawals by cruise ships in the Port of Palma had risen significantly over the past decade, correlating directly with the increase in cruise activities. Each homeport cruise ship, on average, contributes to a mean volume of 628 m³ of freshwater use per mooring, further stressing local resources.

Sustainability and Water Management

The local government recognizes the urgency of addressing these sustainability challenges, particularly regarding water management. Climate change exacerbates water scarcity issues on the island, with rising temperatures and altered precipitation patterns leading to regular water shortages, especially during peak tourist seasons. The increasing demand from both tourism and population growth places further pressure on these limited resources.

To combat these issues, the government is exploring sustainable tourism models, including the implementation of a tourist tax aimed at funding environmental restoration projects. Luxury establishments, which often consume disproportionate amounts of resources, are also under scrutiny as authorities seek to balance tourism development with environmental preservation.

Efforts are being made to promote more sustainable practices, including encouraging responsible tourism behaviors and enhancing infrastructure to support local needs. However, immediate, coordinated responses are necessary to ensure water availability for both residents and visitors alike.

Conclusion

Tourism has undoubtedly played a transformative role in Mallorca’s economy, modernizing the island and creating a wealth of employment opportunities. Yet, this rapid growth has introduced significant sustainability challenges and quality-of-life issues for residents. The delicate balance between economic benefits and the preservation of Mallorca’s natural and cultural heritage is more crucial than ever.

To secure a sustainable future, effective management strategies and a commitment to responsible tourism practices are essential. By prioritizing the well-being of both residents and the environment, Mallorca can continue to thrive as a premier destination while safeguarding its unique character for generations to come.

In summary, the case of Mallorca serves as a vital reminder of the complexities surrounding tourism and the importance of addressing the impacts of overtourism. Through collective efforts and a focus on sustainability, it is possible to create a harmonious coexistence between tourists and local communities, ensuring that Mallorca remains a vibrant and cherished destination for years to come.

 

Sources:

Instituto Nacional de Estadística (INE)

Dataestur 2024

https://www.lamoncloa.gob.es/lang/en/gobierno/news/Paginas/2024/20240902-international-tourists-spending.aspx

https://www.lamoncloa.gob.es/lang/en/gobierno/news/Paginas/2024/20240918-international-air-travellers.aspx

Radiografía de la crisis de la vivienda en Baleares y Canarias (rtve.es)

Mallorca reduce el techo de plazas turísticas a 412.000 (rtve.es)

https://dspace.uib.es/xmlui/handle/11201/152564?show=full