Managing Crowded Tourism Economies

Many popular destinations face a dilemma: tourism brings income, but too much visitor demand can strain housing markets, public services, and neighborhood life. Analyze the policy tools a municipality can use to manage overtourism, including restrictions on short-term rentals, visitor caps, permits, taxes, and zoning rules. Compare the effects of each tool on residents, businesses, and travelers, and suggest a framework for deciding when tourism has shifted from an asset to a burden.