Tourism tensions in Barcelona

At the end of July 2017 several symbolic attacks on tourist buses and graffiti in Barcelona and Palma opened a debate on mass tourism and its coexistence with residents. The actions, symbolic in nature, made the news in many media and put on the table a discontent that, for some residents, had been building for some time. Those who live in the most visited neighbourhoods are the first to perceive the effects of the flow of visitors.

Whatever opinion those actions deserve, the background is a question of coexistence that bears directly on the economy of a city that lives largely from tourism. After a year of record visitor numbers, the question of how to make tourist activity compatible with the quality of life of those who live in the city moved to a central place. Any business in the city, tourist or not, has reason to follow that conversation closely.

A long-running debate

Coexistence between residents and visitors in cities with heavy tourism creates tensions: housing prices, noise, use of public space or pressure on local shops. What happened in July put these concerns at the centre of public debate. It is not a phenomenon exclusive to one city: it occurs in many destinations that have grown a lot in a short time.

The debate has nuances. Many residents depend directly or indirectly on tourism for their living, and acknowledge its contribution to employment and economic activity. At the same time, they perceive costs in their daily lives. Reducing the question to a simple opposition between those for and those against does not help to understand what is being asked: above all, a reasonable balance. That nuance is also useful for companies, which can offer solutions rather than simply defending themselves.

What it means for business

For tourism-related businesses, social acceptance is an asset worth looking after. The city’s perception of the sector influences political decisions, future regulation and, in the long run, the reputation and stability of the activity. A company that ignores the discontent around it runs the risk that, over time, the conditions under which it may operate will tighten.

This applies to hotels, restaurants and shops, but also to those who run tourist accommodation or provide services to visitors. The relationship with neighbours, strict compliance with the rules and sensitivity to complaints are part of running the business, not an add-on. Companies that understand this early are usually better positioned when the rules change. Anticipating regulation is usually cheaper than adapting to it once it is in force.

Towards sustainable tourism

Talking with residents and authorities, caring about the impact on the surroundings and aiming for a higher-value offer are approaches that can help reduce friction. Owners of tourist properties should also keep an eye on changes in local rules. An activity that grows without taking into account the city that hosts it may meet ever stricter limits.

Betting on quality rather than volume, spreading the presence of visitors better through the year and working with neighbourhood organisations are strategies that, besides reducing tension, usually improve long-term profitability. An adviser can help assess each business’s regulatory exposure and prepare scenarios for possible changes in the rules. It is also worth keeping a record of the measures adopted in favour of coexistence, which helps show good faith.

A business that depends on the city also needs a good relationship with the city.

This article is general information. It is not legal, tax or investment advice, and it does not take anyone’s particular circumstances into account.