Beyond the Crowds: Embracing Circular Economy to Address Overtourism

Across the globe, tourism's success is frequently endangering the treasures it celebrates.

Venice exemplifies the urgent challenges of overtourism from infrastructures under constant pressure to environmental and social stress. With around 25 million annual visitors, the city faces rising costs and daily life challenges for residents as the local population decline by roughly 48% since 1977 demonstrates.

This crisis is not unique to Venice but serves as a global warning for urban destinations.

BCG proposes solutions rooted in circular economy principles, transforming tourism into a more sustainable, value-driven model.

Policy interventions, such as visitor caps, zoning regulations, and housing initiatives ensure cities can thrive without compromising their cultural and environmental assets.

Complementing these policies, circular services and infrastructure to extend the life of locally produced goods and reduce waste, AI-enabled visitor flow management and blockchain based incentives for residents and tourists to embrace considerate behaviors are among the measures for a comprehensive and effective roadmap, balancing economic vitality with sustainability.

The moment and the solutions for change are here. Stakeholders must collaborate to shift tourism from a threat to a force for preservation and value tourism.