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Tourism Boom, Housing Doom: Excessive Tourism And International Emigration

Josip Mikulic, Vanja Vitezić, Stjepan Srhoj and Zvonimir Kuliš

No 1501, GLO Discussion Paper Series from Global Labor Organization (GLO)

Abstract: Existing literature has largely overlooked the relationship between excessive tourism growth and international emigration. This study addresses this gap by analyzing Croatia, a country that experienced a significant population decline-losing 10% of its inhabitants between the 2011 and 2021 censuses-amid rapid and highly seasonal tourism growth. Coastal Croatia, in the later stage of the Tourism Area Life Cycle (TALC), contrasts with Continental Croatia, in its early stage. We first establish a positive association between rising housing prices and emigration across both regions. More critically, we demonstrate that tourism activity correlates with increased emigration in areas experiencing excessive tourism (late TALC stage), while it is negatively associated with emigration in regions with lower tourism levels (early TALC stage). Our findings shed light on the overlooked adverse effects of tourism growth in the later stages of the TALC, emphasizing the need for nuanced approaches to tourism development and public policy.

Keywords: overtourism; housing prices; emigration; brain drain (search for similar items in EconPapers)
JEL-codes: L83 O15 R21 R23 (search for similar items in EconPapers)
Date: 2024
New Economics Papers: this item is included in nep-tra, nep-tur and nep-ure
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Journal Article: Tourism boom, housing doom: Excessive tourism and international emigration (2024) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:glodps:1501

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