Residential Tourism: A Double Edged Sword
By Lesly Diaz Guerrero, Northeastern University
Residential tourism refers to foreign individuals moving to popular tourist destinations by purchasing or renting property for long-term stays. What differentiates residential tourism from other forms of tourism or migration is the act of engaging in the private housing market. Unlike traditional forms of tourism centered around temporary leisure trips, residential tourism represents prolonged stays at a destination with the goal of increasing quality of life. Resident tourists may be intertwined in local economies through property purchasing, however, they do not fully integrate socially and culturally into the local community. A salient example: residential tourists not attaining proficiency in the language of the destination to which they relocate. Residential tourism is a relatively new phenomenon, especially when compared to the rise of modern tourism, which emerged in the 19th century following the Industrial Revolution. The prominence of residential tourism in Latin America began in the 2000s, fueled by globalization and greater interconnectedness. Furthermore the advancement of social media, public infrastructure, and transportation methods allow for easier mobility among residential tourists. In the pursuit of an alternative lifestyle at lower living costs, typically in developing or emerging countries, the destinations are severely impacted economically and socially.
Impacts on Tourist Destinations
Economic Growth, But At What Cost: Costa Rica
After the 1980s debt crisis in Latin America, Costa Rica’s recovery strategy involved investing in ecotourism. This strategy resulted in Costa Rica becoming one of the first countries in Latin America to experience a residential tourism boom in the 1990s-2000s. The boom was caused by the flow of foreign direct investment that depended on the economic performance of developed nations such as the United States. But after the 2008 recession, tourism popularity abruptly diminished, leaving the newly tourism-dependent coastal areas riddled with unemployment. Despite the economic risks associated with dependency on tourism—a phenomenon shaped by the ebbs of the global market—countries still have strong incentives to develop their tourism industry to promote growth and increase revenue.
However, residential tourism in developing countries can be difficult to regulate due to a lack of state capacity in policy formulation and enforcement. In the case of Costa Rica, previous attempts to formulate and coordinate multilateral regulation procedures in the tourism sector proved to be extremely difficult and ultimately unsuccessful. After regulations were created, a lack of enforcement caused corruption, environmental degradation, and alienation of civil society in decision-making by silencing the local population’s protests. Sustainable tourism can only be executed if the state has the capacity and willingness to do so.
Loss of Livelihoods: Ecuador & Brazil
Another facet of residential tourism is characterized by the movement from urban to rural areas due to people seeking pristine land at a low cost. Residential tourism brings about urbanization that directly impacts the economic activity of the local people, especially surrounding agriculture. The large-scale purchase of land by companies or individuals disrupts locals in agricultural areas, who are then forced to pursue an alternative livelihood, a process known as depeasantization.
In Ilha Grande of Santa Isabel, Brazil, the government, with the incentive to capitalize on ecotourism interest, began accepting proposals from foreign developers in the early 2000s. Rather than allocating a zone for development, a variety of proposals were accepted all over the island, causing fragmentation. Resources key to locals for activities such as farming or fishing were fragmented as developers began owning pockets of the island, which people could no longer access. Additionally, developments impacted the quality of the land that locals depended on for agricultural activity.
In Cotacachi, Ecuador, residential tourism developed unintentionally due to municipal policy aimed at showcasing natural attractions and leathercraft to draw temporary visitors. Demand for land for residential tourism quickly increased land prices in an area where the main source of income for locals was agriculture. The table below demonstrates price inflation that led to the marginalization of local citizen land in their own country.
Figure 1: Table detailing land plot valuation discrepancies.
Similar to Costa Rica, corruption plagued municipalities where residential tourism took root. Lack of interest to restrict developments for profit allowed for illegal construction to be the norm, further devastating the land market. With reduced purchasing power and inflation on goods and services, local citizens working in agriculture were unable to afford the rising costs of living. This left them with a difficult choice: relocate to a new area or transition to jobs in hospitality.
Environmental Degradation & Land Privatization: Puerto Rico
Piñones, Puerto Rico is one of the oldest cases of short-term and residential tourism. The area developed after industrialization efforts to foster tourism. One notable development was Luis Muñoz Airport in the 50s in order to support the influx of tourists. While this development may initially seem beneficial, the project required the extraction of sand from dunes to fill in wetlands, resulting in permanent erosion and flooding issues in Piñones. In addition to the irreversible environmental damage caused by residential tourism development, public access to the coast became limited. When developers buy coastal land, it is not always clear where the property ends and where a beach begins. This issue still persists today, with beach privatization a salient issue in Puerto Rican politics.
Hurricane Maria caused a significant amount of destruction in 2017. Property destruction coupled with beach erosion created conditions where owners were rebuilding in a way that occupies the entire beach. This privatization strategy of developers has been ongoing since 2017, and has been legally challenged since. Additionally, Puerto Rico, similar to other countries examined, struggles with gentrification and the pricing out of locals.
Benefits of Residential Tourism
Before residential tourism is established in an area, there must be traditional tourism in order to draw those seeking an investment or change in lifestyle. In the case of Latin America and the Caribbean, the main appeal of tourist destinations is the natural landscape that is frequently found in rural communities. These rural communities are often challenged by issues such as migration to urban areas, few employment opportunities, and low quality of life. To policy makers, tourism is a tool to combat rural community decline with the goal of regenerating the area in a way that is balanced. The economic benefit is the most immediate, with tourists stimulating the local economy and creating employment opportunities. With increased opportunities, there is a decreased likelihood of depopulation, preservation of customs and traditions, and an increase in quality of life.
Solutions
To alleviate the negative pressures of residential tourism on local communities, tourism policies should shift towards more sustainable practices that prioritize local residents as beneficiaries rather than those bearing the adverse effects. In Yucatán, Mexico, the government has created an initiative in which an indigenous group, the Maya, are able to manage their own community-based tourism model while being protected by the federal government. The Yucatán Peninsula is the most visited region in Mexico due to its scenic coast, cenotes (caves/sinkholes), and ancient archeological sites. With such attractive tourist activities, residential tourism has developed in popular towns and cities like Tulum and/or Cancún. With government promotion of tourism focused on cultural heritage, the Maya are able to spearhead community-led tourism efforts showcasing their traditions. Offering activities such as Maya cooking technique workshops, touring traditional housing, and other immersion activities have shown success in putting local communities at the forefront of benefiting from tourism while preserving their land, identity, and culture.
Another example is in Colombia with the Comuna 13 Tour. Couma 13 has transformed from one of the most dangerous neighborhoods in all of Colombia to an art district. With government investment in infrastructure and community lead initiatives, locals are at the forefront of showcasing art. By involving local communities in tourism efforts, rather than marginalizing them, tourism is significantly more sustainable while still generating profit.
The primary commonality between both successful cases of sustainable tourism models is government involvement. Policymakers should prioritize direct investment in a community rather than contracting out to foreign entities. Travelers can contribute to sustainability efforts by opting for more locally owned accommodations and services, ensuring that spending directly benefits the community. Additionally, opting for more community managed tourism initiatives, such as those on the Yucatán Peninsula, allows for cultural preservation and enhancing awareness of customs and traditions. Ultimately, traveling ethically plays a crucial role in supporting sustainability in tourist destinations.
Cover photo courtesy of Freep!k.