Anti-tourism in Europe

Europe
India
finance
Published

July 23, 2024

Anti-Tourism in (Southern) Europe

“The cost of Europe’s backlash against tourists”

  • “European countries hosted 709mn international visitors last year, with rising numbers coming from North America but the vast majority travelling within Europe.”

    • Spain’s “tourist promotion agency predicts that visitor numbers from June to September will be up 13 per cent from a year ago.”

    • The growth in the number of tourists has been so dramatic that the locals have “snapped.”

    • snapshot: “Spaniards remain agog at drunk Britons engaged in “balconing”, the life-threatening activity of clambering between balconies or leaping from them into a pool.”

  • Mass protests in sizes like 10,000 or 5,000 took place recently. Things are gentrified, prices hiked, and local expelled.

  • However, “rejecting a sector that is the economic lifeblood of many places is dangerous.”

  • The sequence:

    1. Fueled by influencers, tourists swarming for ‘authenticity’ reaching deep local areas. Tourism income dominates the local economy.
    2. Due to Covid-19, local authorities racked up a lot of debts.
    3. When tourists came back in the post-pandemic, authorities were desperate to welcome them back, which led to lax regulations.
  • While governments are employing many measures to suppress over-tourism, one thing that locals are most interested is housing. Lisbon and Barcelona are restricting commercial renting, against which property owners made legal challenges.

2-year Treasury bond in the record demand

“Auction of 2-year Treasury notes shows record demand levels”

  • short story: traders expect an interest cut soon and want to lock in a high-rate bond before it.

Modi plans a spending plan for his allies

“India unveils spending binge to boost Narendra Modi’s allies”

  • After the shocking electoral setback (losing the absolute majority), Modi “has announced a spending splurge for its new coalition partners.”

    • spending packages for regional coalition partners: “This included a Rs260bn industrial corridor running through Bihar, Rs150bn for a new “high-tech” capital in Andhra Pradesh called Amaravati and funds for flood reconstruction and developing local temples.”
  • The plan also entails keeping capital investment high while cutting fiscal deficits. Youth joblessness is considered one of the reasons for the electoral setback.