Are There Lessons for Leaders in the Overtourism Backlash?
A tourism boom has spawned protests, inflation and other unintended consequences. Leaders—whatever their industry—should take notice.
The World Tourism Council has projected that global tourism will exceed $11 trillion in 2024. In many parts of the world, tourism is not only big business but the engine that drives the national or local economy.
A wide array of companies—hotels, restaurants, transportation providers and more—depend on tourism revenue. Individuals, meanwhile—330 million people worldwide—stake their livelihoods on tourism. For their part, governments rely heavily on taxes generated through tourism.
But increasingly, as the industry has recovered from the lean times of the COVID-19 pandemic, tourism is generating something else—controversy.
While COVID-19 laid bare the importance of tourism to many locales, post-COVID “overtourism” has brought to the forefront multiple concerns including escalated housing prices, strained infrastructure, environmental impact and cultural sensitivities.
Overtourism has also complicated daily life for residents. And the locals are fighting back.
In Spain this summer, protesters attracted headlines when they sprayed tourists with water pistols. In Japan, which has become an attractive tourist destination due to the low valuation of the yen, many restaurateurs have introduced controversial two-tiered menus, charging tourists and locals different prices for the same fare.
Of course, tourism is arguably no different than any other booming industry that is economically important. With success can come unintended consequences
Herein lies a challenge for leaders: Avoiding being caught off guard.
While time will tell if the overtourism backlash will be a lasting phenomenon or a short-term concern, leaders will always need to step up to deal with the unintended consequences of strategic plans.
What happens when success is met with a backlash, especially an unintended one? And what can leaders do to avoid being caught off guard when success elicits unexpected negative reactions?
Anticipating, and managing, negative consequences as a leader
Here are some specific approaches leaders can take.
Proactively engage stakeholders
“You need to have sensitivity to your stakeholders, and that begins with understanding who all your stakeholders are,” says Andrew Calvert, Solutions Lead, Asia, for EZRA, who points out that stakeholders extend beyond direct customers. They can include employees, residents of the communities in which you operate or people who may feel strongly about an issue involving your business.
Stakeholder engagement isn’t a one-time event. It’s a process that requires continually monitoring reactions and opinions to respond appropriately. Andrew says leaders who proactively engage with stakeholders are best able to see around corners and anticipate problems before they arise.
“You need to be willing to listen to the voices included in these stakeholder groups, and really strive to understand their concerns. At the same time, you also need to identify the minor voices who may not share the views of the stakeholder group at large.”
Be prepared for any event
Serene Seng, an EZRA Executive Coach based in Singapore, sees the overtourism backlash as an example of something that no one saw coming, but which, in a general sense, should have been accounted for.
“I genuinely believe that the world is so complicated now that it’s impossible to accurately predict the unintended consequences,” she says. “There are going to be things that are unexpected. It will just be inevitable.”
A best practice she recommends is to set aside resources to address the unpredictable and unknown.
“I advocate that it’s best to make sure you have some resources in reserve, whether they’re manpower, time or budget for dealing with whatever arises.”
Accept that you can’t anticipate everything
“I don’t deny planning is helpful, but the assumption that if we put enough resources into preventing unintended consequences, we’ll be better prepared just isn’t realistic,” Serene says. “There will always be the possibility that something will happen you didn’t anticipate or plan for.”
Serene points to the fact that few organisations anticipated the COVID-19 epidemic as a glaring example of how an unintended consequence can torpedo the best-laid plans.
Employ thick-skinned leadership
Serene believes leaders need to become comfortable with the unknown and guard against overcorrecting when unintended consequences arise.
“One of the greatest risks to leaders facing unforeseen consequences is to overreact or deviate from a strategy or plan.”
Often, she says, the best approach is to endure the criticism or short-term consequences while keeping an eye on long-term objectives.
“Courageous leadership can take the form of thick-skinned leadership. Having the fortitude to continue to focus on the ultimate objectives isn’t always easy. It takes courage.”
Though, while unintended consequences can accompany success, Andrew insists that they should rarely come as a surprise.
“There’s never anything that’s 100 percent perfect,” he says. “There are always pros and cons.”
For more leadership and workplace insights, check out the EZRA Asks podcast on most major podcast platforms.