Over Tourism

9/30/2025

What overtourism teaches us about markets

I read about Dubrovnik putting limits on how many people can enter the old town and forcing cruise ships to adjust schedules. On the surface it’s about tourism policy. Underneath it’s about markets.

Overtourism happens when demand is high but the system isn’t designed to manage it. The “market” for Dubrovnik as a destination works a little too well — everyone wants in, but the city itself becomes unlivable. It’s the same dynamic you see in housing markets driven by short term rentals or in digital platforms that scale without boundaries. When growth is the only metric, people get squeezed out.

That’s where Sky Island Project comes in. My work is about helping organizations look at the human side of systems — how policies, technologies, and markets actually land in people’s daily lives. Dubrovnik shows what happens when you only optimize for throughput. The next step is designing for balance.

And there are ways to shift markets from the bottom up too. One of my rules when traveling is to shop local. In Mexico City I skipped the chains and went to mercados and corner shops. That choice might seem small, but multiplied by thousands of visitors it shapes an economy. Money stays in the community instead of leaking out to distant headquarters. The same principle applies whether you’re running a civic program, a health app, or a cultural institution. If you don’t build in feedback loops that protect local value, the market hollows out the very thing that drew people in.

Dubrovnik is a case study in why systems and markets need more than volume metrics. They need design that respects the people inside them.

What overtourism teaches us about markets

I read about Dubrovnik putting limits on how many people can enter the old town and forcing cruise ships to adjust schedules. On the surface it is about tourism policy. Underneath it is about markets.

Overtourism happens when demand is high but the system is not designed to manage it. The market for Dubrovnik as a destination works a little too well. Everyone wants in, but the city itself becomes unlivable. You see the same dynamic in housing markets driven by short term rentals or in digital platforms that scale without boundaries. When growth is the only metric, people get squeezed out.

A few things stand out:

Overtourism is not only about numbers. It is about what happens when demand overwhelms the capacity of a place or system.
Markets reward volume unless rules and design reward balance.
The cost is often hidden until people are displaced or the quality of experience collapses.

There are ways to shift markets from the bottom up. One of my rules when traveling is to shop local. In Mexico City I skipped the chains and went to mercados and corner shops. That choice might seem small, but multiplied by thousands of visitors it shapes an economy. Money stays in the community instead of leaking out to distant headquarters.

The same principle applies across sectors. Whether you are building a civic program, a health app, or a cultural institution, the question is the same. Does the design keep value close to the people who create it, or does it drain away?

Dubrovnik is a case study in why systems and markets need more than volume metrics. They need design that respects the people inside them.

Links
https://www.bbc.com/travel/article/20250924-dubrovniks-bold-fight-against-overtourism
https://www.euronews.com/travel/2025/09/08/venices-daytripper-fee-raised-5-million-in-2025-but-did-it-curb-overtourism
https://www.reuters.com/world/protesters-against-overtourism-take-streets-southern-europe-2025-06-15
https://www.euronews.com/travel/2025/09/17/the-city-has-emptied-out-santiago-de-compostela-battles-with-growing-pressure-from-overtou
https://www.travelandtourworld.com/news/article/france-joins-italy-greece-spain-croatia-and-the-netherlands-in-cracking-down-on-overtourism-with-groundbreaking-rules-guidelines-and-more-heres-all-you-need-to-know-before-planning-a-trip

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