Worldwide: A new report from hospitality consultancy Horwath HTL and short-term rental analytics platform AllTheRooms has found that data-led planning could help destinations prevent overtourism.
The research showed that the European short-term rental market has grown rapidly in the wake of the pandemic, with gross revenue increasing 72 per cent from €11.8 billion (£10.1 billion) in 2019 to €20.3 billion (£17.5 billion) in 2023.
France led the growth, with a 93 per cent rise in revenue over the five-year period, followed by Italy at 87 per cent, Spain at 72 per cent, and the UK at 56 per cent.
Even Germany, which has some of the strictest short-term rental rules in Europe, saw a 32 per cent increase. Ten countries accounted for 90 per cent of all revenue across the continent.
France also recorded the highest number of short-term rental beds in 2023, with 2.67 million, more than double the supply in Italy and four times that of Croatia.
The study said the growth in travel had placed new pressure on popular destinations, with many governments responding through blanket bans, caps or licensing schemes. But the authors warned that fragmented legislation risked doing more harm than good.
Siniša Topalović, managing partner at Horwath HTL Croatia and co-author of the report, said: “Overtourism and overcrowding are not caused by visitors alone – they’re also the result of poor planning and institutional inertia. The real failure lies not in short-term rentals, but in more than a decade of strategic inaction.”
“National tourism regulators and destination managers must act urgently and professionally. Delay is no longer neutral – it’s a decision against a sustainable future,” he added.
The report argued that with the right tools and political will, policymakers could align accommodation growth with affordable housing needs, community resilience, and tourism revenues.
Joe Stather, managing director UK at Crowe UK/Horwath HTL, said: “There is a place for short-term rental products in the market, but a successful model looks not only at the different requirements of each destination, but at the different appetites of each consumer.”
Highlights:
- A report by Horwath HTL and AllTheRooms found that data-led planning could prevent over-tourism
- Short-term rental revenue in Europe rose 72 per cent from 2019 to 2023
- France leads the market with 2.67 million short-term rental beds
- Report calls for data-led strategies over blanket restrictions
- Study suggests poor planning fuels over-tourism
