When we talk about tourism, we often consider the benefits to the local economy. After all, many countries, like Greece, for example, would not be able to survive without a constant stream of tourists pouring in from all corners of the earth. However, we need to consider the effect tourism has on the life of the locals. In this piece, we are going to examine how tourism changes the real-estate of some of your favorite destinations.
Do you remember the Gold Rush? There are many one-horse towns in the US that bloomed in towns and then big cities, simply because someone made a discovery of one of the most precious metals. Consider tourism to be the same as discovering gold. There are cities that rely strictly on tourists for their income.
That means that towns, villages, and cities that were of no particular importance are able to become something much more. Tourism allows the settlements to expand to account for newcomers, which provides jobs for the local populace.
So, what of the real-estate? Simply put, more tourists means more hotels, houses, and buildings to accommodate weary travelers. It is a great investment opportunity, one that could prove to be profitable several times over, provided all goes well and there are no hiccups. So, one of the benefits is building more buildings that can be bought and sold on the market. Houses are great for acting as hostels and cheap accommodations for those that can’t afford to stay at a hotel.
Consider this scenario: a middle-class foreigner comes to a new country for their vacation. They see the local lifestyle and the living expenses of the locals. They then consider moving, realizing that they can live quite comfortably in this country, especially if they don’t have to work at an office, but remotely.
Ex-pats can provide income to realtors everywhere that don’t focus entirely on the domestic market. Additional business opportunities lie in facilitating the ex-pat in terms of obtaining proper licenses for building and furnishing their new home.
However, it is not all peachy when it comes to tourism and property value. Real-estate is perfect for flipping properties, but that means that everyone expects to turn a profit, which might result in properties no one can afford. Remember that this has happened before, especially in the Western market. While tourism may provide people with new tenants, there will also be a rise in property value, but also the emergence of rising living expenses. One must be careful not to upset the local economy too much with buying and selling property.