3. Setting the Scene: Sustainable tourism and the effects of tourism

As described above, sustainable tourism should balance the environmental, economic, and social dimensions equally. Looking back, Nordic national policy goals regarding tourism have evolved over time, reflecting changing economic, social, and environmental priorities. International tourism was insubstantial during most of last century. Therefore, national policies on tourism tended to focus on promoting the Nordics in an attempt to generate a growth of the industry. Later tourism policies have highlighted the industry’s ability to diversify economies and create jobs particularly in rural and remote areas. 

International organisations, the United Nations World Tourism Organisation (UNWTO) and OECD for example, have also published numerous reports highlighting the economic contributions of tourism on both global and national scales. These reports often emphasise tourism’s role in generating income, economic growth, job creation, boosting GDP, and improving infrastructure (OECD, 2024; UNWTO, 2024a; 2024b). Governments, regional authorities and local communities have in the past often prioritised economic benefits when developing and promoting tourism activities (Diefenbach, 2021; Liu et al, 2023). After the COVID-19 pandemic, which in effect also put international tourism on hold for almost two years, the priority of many tourism operators and authorities was understandably to bounce back as quickly as possible. 

The direct visibility and measurability of economic outcomes, such as employment rates, revenues, and tax contributions associated with tourism, are therefore in many ways still at the forefront when it comes to assessing the effects of tourism. The development of the TSA (Tourism Satellite Account) system, a widely used framework that provides a way for measuring the economic effects of tourism, reflects the sector's recognised importance to the economy. The TSA system provides a framework that allows for the measurement of tourism's economic contribution in a systematic and standardised way which also makes it easier to compare tourism's economic impact across different countries and regions. The system has a strong economic focus, and the importance of TSA lies in its ability to offer a detailed and comprehensive picture of tourism’s economic significance, guiding policymakers, stakeholders, and researchers in decision-making processes. It can aid in formulating strategies that aim to enhance tourism’s economic benefits but can also be a guide to address the need for sustainable and responsible tourism development practices that account for the welfare of local communities and the preservation of natural and cultural assets. These environmental and social effects of tourism activities are however much harder to measure and therefore systematic ways of monitoring them are lacking.

Concepts like sustainable tourism, responsible tourism, and ecotourism are among those that have gained traction in recent years, emphasising the need to balance economic benefits with social equity and environmental protection. This shift is reflected in newer research and policy initiatives on tourism aiming to incorporate these broader considerations into tourism development strategies (OECD, 2024).

From a policy and business standpoint, tourism is a complex and multifaceted industry that intersects with numerous policy fields and subject areas, both influencing and being influenced by a wide range of topics. Tourism contributes to the economy with job creation, foreign exchange earnings, and investment in infrastructure development. It impacts sectors such as hospitality, transportation, retail, and entertainment – to only name a few sectors – while being able to stimulate local economies and drive regional development. 

Tourism also influences urban planning decisions, transportation systems, land use policies, and infrastructure development in destination areas. It can lead to the construction of hotels, resorts, airports, roads, and recreational facilities, shaping the physical environment of cities and regions. Activities related to tourism can have both positive and negative impacts on the environment. It affects natural resources, biodiversity conservation, waste management, water usage, and carbon emissions. It can also play a role in the preservation and promotion of cultural heritage sites, museums, traditions, and intangible heritage. It can contribute to cultural revitalisation, heritage protection, community identity, and the celebration of local arts and traditions.

Tourism can influence public health outcomes, safety standards, emergency preparedness, and healthcare services in destination areas. It impacts issues such as sanitation, disease control, health infrastructure, food safety, and tourism-related health risks. Social inclusivity, community development, cultural diversity, and local livelihoods are also affected by tourism. It can create employment opportunities, enhance social cohesion, foster intercultural exchange, and support marginalised groups through community-based tourism initiatives.

In Europe, some of the effects of tourism are becoming more and more evident. Popular European tourist destinations like The Canary Islands, Venice and Barcelona are grappling with “overtourism”, a situation where tourist numbers overwhelm local capacities. While tourism brings economic benefits, it can also strain local resources, crowd out residents, and even damage cultural landmarks. Local residents have begun to raise concerns and complaints about the impact of tourism on their daily lives and communities (Giuffrida, 2024; BBC, 2024a: 2024b; Visentin & Bertocchi, 2019). Issues like housing affordability and displacement of locals along with cultural preservation have been prominent (Milano et al, 2021; Araya López, 2020). This has led to discussions about better tourism management policies, regulating tourism flows, promoting alternative attractions, and engaging with local communities in decision-making processes to ensure that tourism benefits are shared equitably and that the negative impacts on residents are mitigated. As tourist numbers rebound after the pandemic, some European destinations are grappling with how to manage mass tourism for a more sustainable future.

The diverse topics and policy fields of tourism are interconnected and play a critical role in shaping the tourism phenomenon. They all effect and are affected by tourism. Effective public policies in these areas can therefore support or hinder the development of responsible, inclusive, and resilient tourism practices. By examining how tourism intersects with the different topics, stakeholders can address challenges, leverage opportunities and the competitiveness of the tourism industry while still promoting sustainable and responsible tourism practices that benefit both visitors and destination communities.