Cities around the world have discovered that tourism is a profitable business; however, when the ratio becomes extreme, it can entirely transform downtowns. The influx of tourists visiting certain cities worldwide has significantly altered the local fabric over the past several decades. The UN World Tourism Organization reports that in 2019, international tourist arrivals amounted to an astonishing 1.4 billion worldwide, up 4% from the previous year.
But along with this boom came an unintended consequence: the over-commercialization of downtown areas. The locals, who were the centre of these districts, have been driven out by development driven by the tourism boom. In other cities, the routine of life has been replaced by gift stores, theme parks, and Airbnb rentals, and residents are unhappy, and the towns have been completely restructured.
The following is an overview of 12 cities that have killed their downtowns in an attempt to build tourism.
Venice, Italy
A UNESCO World Heritage site, Venice has been a key tourist attraction since time immemorial, but the sheer number of cruise ships has dramatically changed the downtown. The city is currently receiving more than 30 million tourists each year, and the legendary canals have now been overrun by cruise liners, leading to environmental degradation.
The report issued by the Venice Tourism Council states that approximately half of the Venice economy relies on the tourism sector, but the local population is still declining.
The age-old centre of the city, once a bustling market for Venetians, is overrun with souvenir vendors and full of day-trippers. As the number of residents decreases, locals cannot afford rising rents, and the city, with its unique characteristics, is lost in the wave of commercialism.
Barcelona, Spain
The legendary Gothic Quarter and Las Ramblas of Barcelona are lovely places that no longer reflect the city’s experience. Tourism has been the primary contributor to the local economy in recent years. One source noted that rent in Barcelona increased by over two-thirds, or 68%, in the ten years leading up to September 2024.
International chain stores and tourist attractions displace people and local businesses. The city’s neighborhoods were turned into playgrounds for visitors, and in 2023, protests broke out across the city as locals grew frustrated with the issue. Barcelona’s culture is watered down, and the city is experiencing an increasing wave of overtourism.
Prague, Czech Republic
This place is the Old Town of Prague, which used to be a vibrant part of local life but has changed dramatically over the last several decades. As the number of visitors to the world city rises, the historic part of Prague has become a tourist trap, with streets crowded with bars, souvenirs, and international fast-food chains.
The Prague Morning revealed that locals are being displaced as property prices begin to skyrocket, with some leaving due to the transition to mass tourism in the city. This is known to critics as the Disneyfication of Prague, in which magic and reality are lost to the needs of tourists. The town announced in 2023 that it would control tourism at the most visited spots to protect local culture from further degradation.
Dubrovski bar, Croatia
Dubrovnik was once a sleepy Adriatic city, but it has become a tourist hotspot thanks to its reputation as a filming location for Game of Thrones. The city’s population has declined significantly because rising property rates and the mass influx of cruise ships have displaced locals. According to Travel and Tour World, Dubrovnik hosts 27.4 tourists per resident, the highest ratio in Europe.
This has over-relied on tourism, and most of the businesses are solely focused on tourists. The city has, in turn, acted by enforcing limits on the number of daily cruise ship arrivals to reduce the damage.
Amsterdam, Netherlands
Amsterdam, known for its beautiful canals, art museums, and the Red Light District, has been flooded with tourists over the years. The central city has been taken over by stag parties, pubs, and tourists seeking to indulge in Amsterdam’s hedonistic nightlife.
A 2023 report by Airbnb reveals that Short-term rentals in Amsterdam generated €1.3 billion in Gross Domestic Product and supported approximately 12,000 jobs.
To counter this, the city has implemented strategies to limit the number of tourist shops and restrict alcohol sales in some areas. However, some locals think the city’s old glory is being lost in the process.
New Orleans, USA
New Orleans, associated with jazz and cultural history, has seen the French Quarter commercialized over the past few years. Although tourism is crucial to the local economy, residents in the historic district are experiencing growing disconnection as the area becomes more oriented towards tourists.
In a 2023 study, the Greater New Orleans Foundation found that the downtown area’s transformation has led to higher rents and pushed local businesses out. Chains and tourist resorts have taken over the city, eroding its culture. New Orleans is losing its authentic feel, and most locals are concerned that the city is losing its authenticity due to an influx of visitors each year.
Honolulu, Hawaii
Honolulu, once a prosperous island community, has become a tourist resort only, and Waikiki is the centre of this change. The high number of tourists has driven up rental rates, making it hard for local families to afford housing in downtown areas.
According to Road Genius, around 9 to 10 million tourists visit Hawaii each year, with about 3 million international visitors, mostly arriving by air.
High-end hotels, luxury shops, and chain restaurants have replaced the local businesses that once defined the region. The culture of Honolulu has been in the background as the city accommodates the tourists.
Las Vegas, USA
Las Vegas offers good entertainment, but downtown has been fully redeveloped, keeping visitors on-site. The fact remains that the once-vibrant community is now mixed with themed casinos, restaurants, and massive entertainment complexes.
The Las Vegas Convention and Visitors Authority (LVCVA) reported that the city attracted over 40 million tourists in both 2023 and 2024, totaling 41.7 million visitors in 2024. Tourism has led to the loss of the city’s original identity, although it has generated significant revenue for the town. The downtown area does not feel like a part of many locals, and slot machines have taken over the community’s vibrancy.
Cancun, Mexico
Cancun was built with tourism in mind, and this has been detrimental to the downtown area. The downtown area of the city is no longer as attractive as it used to be, and locals and visitors alike stick to hotel areas and resort complexes.
The tourism business controls life in Cancun and has no place for businesses or culture. According to a report by the Mexican Institute of Tourism, more than 5 million tourists visit Cancun each year, and the local economy remains heavily reliant on the service sector.
This has led to the marginalization of locals in the city’s peripheries, where they are experiencing rising living costs and limited access to scarce resources.
Reykjavik, Iceland
The capital of Iceland, Reykjavik, has experienced tremendous growth due to the influx of tourists over the last 10 years. Once a calm and beautiful city, Reykjavik has been overrun by a flood of souvenir shops, bars, and hotels eager to take in visitors.
As housing prices have risen, locals have been displaced, and international chains have overtaken the city. The local flavor of downtown Reykjavik is being lost as more visitors are drawn to the city each year.
Florence Italy
Florence, Italy, one of the most beautiful cities in Europe, has not been spared the adverse effects of mass tourism. The old part of the city, which houses some of the most renowned art and architecture, has been so overrun that it is filled with upmarket and chain stores, and with people who have visited the city.
In 2023, a report by the Florence Tourism Observatory found that rental prices have increased by approximately 40% over the last ten years, displacing the locals in the city centre in large numbers. Tourism has become the dominant part of the local economy, which is why people are worried that the original Florence experience is being washed away, replaced by luxury brands and overpriced attractions.
San Francisco, USA
Fisherman’s Wharf and Pier 39 are no longer as lively as they once were, with local seafood markets and businesses now dominated by mass tourism in San Francisco. These neighborhoods are now crowded with souvenirs and chain restaurants and are no longer what they used to be.
A report by the San Francisco Travel Association shows that the city has been experiencing increased tourist spending, yet most local businesses have been unable to keep pace. The business-oriented nature of these neighborhoods has eroded the traditional maritime culture that once characterized them, leaving only a hollowed-out version for visitors to see.
Key Takeaway
Tourism can boost the economy, but it does so at the expense of local lives. Places such as Venice, Barcelona, and New Orleans have turned their central areas into commercialized, unrecognizable spaces in search of tourist dollars.
Some of the adverse effects of this change include increasing rents, congestion, and the disappearance of the genuine culture.
Although tourism could continue to play a vital role in these cities, it is evident that a fine line must be maintained so that local heritage is not lost and the cities do not lose what made them so special in the first place.
Disclosure: This article was developed with the assistance of AI and was subsequently reviewed, revised, and approved by our editorial team.
Disclaimer – This list is solely the author’s opinion based on research and publicly available information. It is not intended to be professional advice.
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