Tourism has been a significant contributor to the Mediterranean region’s economic development for the last several decades.
This success has come with a cost. The degradation of the natural ecosystems, the leakages of economic benefits, the spread of precarious work conditions for workers in the industry and the increase in climate warming are a constant worry for policymakers.
Still, fierce competition among Mediterranean tourist destinations continues to stall the much-needed restructuring of the industry.
The Mediterranean region has unique natural ecosystems shared by many countries with different cultures and sensitivity to the importance of protecting the natural environment. The competition for growth has created a negative loop between mass tourism and environmental sustainability.
Some countries are beginning to look at their strategies to ensure that the goose that lays the golden eggs is not strangled by overdevelopment and exploitation of limited natural resources.
There is no shortage of Mediterranean organisations promoting ambitious, green and blue recovery plans to achieve “sustainable” tourism. Many policymakers are rightly arguing that the Mediterranean tourism industry has ignored the socio-economic costs of promoting growth for too long.
The importance of tourism in political economics is self-evident. The sector is labour intensive, contributing an average of 11.5 per cent of total employment in the Mediterranean countries. The World Travel and Tourism Council (WTTC) argues that the Mediterranean tourism sector employs a high volume of both low-skilled and higher-skilled workers, with heavy turnover from seasonal, part-time and temporary jobs. Tourism, moreover, provides employment opportunities for people usually disserved by the labour market, including migrants, women, students and older workers.
Tourism work in the Mediterranean is characterised by functional flexibility and low wages that result in structural insecurity for the workers employed in cleaning, retail, transport and leisure and hospitality services. The informal sector with beach and street vendors and the rise of owner-to-visitor platforms for accommodation are also hindering vulnerable, low-paid workers from improving their working conditions.
The quality spectrum of the Mediterranean tourism industry is broad. Most countries attract the lower end of the market as most cost-conscious Europeans have financial affordability as a top priority for their holiday plans.
A few destinations seem to have found the Holy Grail of success in that they appeal to more affluent visitors. Such destinations include the Cote d’Azur and the French Riviera, the Costa Smeralda in Sardinia, the Greek islands of Santorini and Rhodes, Venice and enclaves of excellence such as Portofino, Cinque Terre, Taormina and Capri in Italy. Many holidaymakers could only afford a day tour of these prime tourism resorts.
Many policymakers are rightly arguing that the Mediterranean tourism industry has ignored the socio-economic costs of promoting growth for too long
Discerning policymakers in some Mediterranean countries are challenging the strategic thinking that underpins mass tourism. They avoid the platitudes and wishful thinking rhetoric that characterises the narrative of some tourism conferences. They focus on brutally honest evaluations of the strengths, weaknesses, opportunities and threats of the industry in particular countries.
Guaranteed good weather, a wealth of cultural heritage, safety, high accommodation standards and frequent low-cost connectivity are critical, but not unique, success factors that most Mediterranean destinations can offer to cost-conscious visitors.
Realistically, some destinations have endemic disadvantages that cannot be ignored. These include the risk of terrorism, especially in some southern Mediterranean countries, overcrowded resorts because of limited physical space, and tolerance of unrestrained tourists and business behaviours common in some resorts.
Mediterranean tourism is a fragmented industry that needs to be monitored, managed and regulated at various space, time and geographic scales. Its impact on civil society is beginning to attract the more intense attention of societal leaders.
The transition to a new business model will be painful. Most countries that are overinvested in mature tourism amenities no longer appeal to today’s holidaymakers. High-quality accommodation will not be enough to mitigate the inconvenience caused by overcrowded destinations that willingly or unwillingly charge higher prices for a mediocre holiday experience.
Neither is it realistic to expect governments of Mediterranean countries to underwrite the strategic risks linked to outdated business models. The hidden socio-economic costs of the mass tourism model are ultimately borne by taxpayers and the community.
Cooperation between Mediterranean countries to agree on shared good practices that would promote socio-economic benefits would be ideal. Still, the reality is that today most countries continue to focus on competing on price. Smart policymakers will want to rethink their business models to beat the competition.
Next week’s article will discuss evolving strategies that some Mediterranean tourism experts are proposing for countries wanting to inject new dynamism in the way they manage their tourism.