Europe May Risk $245 Billion Loss And 3 Million Jobs In Tourism

Forbes

a day ago

The World Travel & Tourism Council (WTTC)'s latest report has revealed that capping tourism in Europe's most visited cities to the European average could result in a $245 billion loss in GDP and nearly 3 million job losses over just three years.
The report analyzes the potential fallout of placing limits on tourism in 11 major European city destinations, including Venice, Amsterdam, Barcelona and Paris, where the number of overnight stays per resident significantly exceeds the European average.
The Price of Capping Tourism
According to WTTC's analysis, enforcing a cap on both international and domestic tourism in these cities would lead to $245 billion in lost Travel & Tourism GDP, $122 billion in tax revenue losses and 2.9 million jobs lost between 2025 and 2027. It would be equivalent to the entire tourism GDP of Italy.
The financial hit would not be confined to cities alone. WTTC says the ripple effects of reduced visitor spending would extend well beyond city borders, damaging national economies and regional supply chains.
Venice could be among the hardest hit. The Italian lagoon city, already experimenting with tourist entry fees to manage footfall, stands to lose $14.1 billion in direct GDP and $18.4 billion in indirect and induced economic activity.
That's not just gondoliers and hoteliers at risk. It could impact the broader Veneto region's economy and push Italy to forfeit $15.2 billion in tax revenue, roughly the cost of building 260 new hospitals, according to WTTC.
Amsterdam's potential losses are even more staggering: $12.4 billion in direct GDP and $23.6 billion in indirect impacts, with 364,000 jobs in the Netherlands hanging in the balance.
Barcelona and Paris, if international tourism alone were capped, could lose $29 billion and $30 billion in total GDP respectively.
France, in particular, would risk losing 284,000 jobs and $16.2 billion in taxes.
What Is Happening In Europe?
In June 2025, widespread protests against overtourism erupted across southern Europe, particularly in Spain, Italy, and Portugal, highlighting the growing frustration of local residents when it comes to the negative impacts of tourism on their cities.
Taking Barcelona for example, a city that is home to 1.6 million residents, but welcomed 26 million tourists last year. In June thousands gathered with water guns to spray water at hotels and tourists, release colored smoke, or display banners, reported by many media outlets including Reuters.
In Paris, France the Louvre Museum temporarily closed for four hours on June 16, 2025, due to a spontaneous staff strike protesting overcrowding, chronic understaffing and deteriorating working conditions caused by overtourism.
The Louvre was originally designed to accommodate for 4 million annual visitors, but last year the museum welcomed almost 9 million visitors.
Even with a daily visitor cap of 30,000, staff told CNN the experience has become a relentless test of endurance. They point to a lack of shaded rest areas, limited access to bathrooms and stifling summer heat intensified by the glass pyramid's greenhouse effect. All of which make crowd control a daily struggle.
Rethinking Overcrowding
How can Europe's top tourism hubs tackle overcrowding without sacrificing jobs, tax revenue and strain on the local economy?
The WTTC is calling for a more balanced approach to managing tourism in crowded cities, for example, by using real-time data to track visitor flows and spot problems early.
Instead of simply cutting visitor numbers, WTTC recommends bringing together governments, businesses, and residents to make joint plans for the future that would support both local quality of life and long-term tourism growth. When people feel included and see how tourism helps their community, they are more likely to support it.
Clare Tobin, CEO at Wild Frontiers, a B-Corp tour operator specialising in adventure holidays and responsible travel, highlighted one more way to fight overtourism in an email interview: "Encouraging travellers to visit alternative destinations is also important. There are so many cities and towns across Europe's most popular countries that are still largely undiscovered. Staying in less busy areas offers the best opportunity to immerse yourself in the culture of the destination and learn about the local communities."
Tobin mentioned Amsterdam as a great example where the tourist board encourages travellers to explore the broader region by highlighting attractions and experiences outside the city and working with nearby towns to develop transport routes.