Overtourism Can Negatively Affect Hotels in so Many Aspects

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“Overtourism” is a phenomenon that is currently happening in certain islands of the Philippines. This is when too many tourists are in one destination that there are no adequate hospitality tools to accommodate them. This affects the environment negatively, that it slowly becomes uninhabitable. For example, the recent closure of Boracay Island in 2018 is caused by overtourism.

Here’s a summary of what happened in Boracay:

A lot of tourists were initially attracted by the island because of the famous “LaBoracay” party during labor day (May 1). A lot of businesses saw this as an opportunity to expand on the island. However, some businesses did not follow the Boracay government’s rules and regulations.

Boracay Island was then closed to tourists for 6 months, starting April 26, 2018. President Rodrigo Duterte ordered this closure after seeing that the sewage problems are worsening which affects the clear waters of the island. It was seen that sewage problems are caused by illegal structures, improper waste disposal by businesses, and overtourism. According to Trip Savvy, a travel tip website, almost 71,000 tourists gave Boracay a temporary population density matching New York’s, when the LaBoracay party season was nearing in 2018. Because of this closure, almost 30,000 people lost their jobs, including employees in hotels and other accommodations.

As a hotel owner, how can overtourism directly affect your hotel if you are located in highly populated areas?

1.  You will have more competition.

Lots of developers and business owners will surely build their hotels in your area. Time will come that there are too many hotels and your accommodation might be ignored by guests. Though there are a lot of tourists coming in the area, there will still be low seasons. It will be difficult for your hotel to maximize its occupancy rate, especially if there are a lot of hotels for guests to choose from.

2. You might slowly lose control of your prices.

Since there are a lot of players in the market, you have to be able to match the prices of your competition, or even lower your prices. You might have to hire a revenue manager to help you adjust your prices accordingly, but additional staff means additional cost.

3. You might have a high staff turnover rate.

You might have enough staff in your property, but having them handle too many guests at a time will surely make them weary and stressed. High-stress levels in the workplace can urge even your best and trusted staff to leave. If this happens, you will have trouble managing your existing staff’s workload, and even exert extra effort on hiring new ones.

4. Time will come that the government might ask you to close down, just like what happened in Boracay.

Since too many tourists have already damaged the area, the government might need to ask all establishments to close down and rehabilitate the area. They might also do a thorough check of all of your systems, that even the smallest flaw can cause you to pay a big fine. Unnecessary expenses might be imposed on your hotel as well, since laws will surely be made more solid.

What can ZEN Rooms do to help you with this?

ZEN Rooms shares its professional revenue managers with exclusive hotel and accommodation partners. With that, it is ensured that you will have maximum occupancy in your rooms during peak seasons, and even low seasons. Let’s talk about how you can have guaranteed income in your hotel year-round.

 Send us an email at [email protected] to inquire.

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