A study by consultancy Horwath HTL and analytics platform AllTheRooms reveals that harnessing data can be the key to tackling over-tourism in Europe.
According to the findings, the short-term rental market on the continent has experienced explosive growth since the pandemic, with gross revenues increasing by 72% from €11.8bn in 2019 to €20.3bn in 2023.
France led the rise with an impressive 93% increase in revenues, followed by Italy (87%), Spain (72%) and the UK (56%). Even Germany, where a stricter regulatory framework is in place, recorded an increase of 32%. In total, ten countries account for 90% of revenues in the European market.
France also ranks first in the number of beds available for short-term rental, with 2.67 million beds in 2023 – more than twice as many as Italy and four times as many as Croatia.
Poor planing
The report notes that the explosive growth in tourism has put significant pressure on popular destinations, with many governments implementing bans, caps and licensing schemes. However, the report’s authors warn that fragmented legislation can ultimately have negative effects.
“Overtourism and overcrowding are not only caused by visitors – they are the result of poor planning and institutional inertia,” notes Siniša Topalović, managing partner of Horwath HTL Croatia and author of the study. “The real failure lies not in short-term leases, but in the absence of a strategy for over a decade”.
He calls on national regulators and destination managers to act promptly and professionally: “Delay is no longer a neutral stance – it is a decision against a sustainable future.”
The study underlines that, with the right tools and the necessary political will, policy makers can align tourism development with housing needs, the resilience of local communities and tourism revenues.
Joe Stather, managing director of Crowe UK/Horwath HTL, adds: “Short-term rentals have a place in the market, as long as the model is tailored to the specifics of each destination and the different preferences of travellers.”
