Is NIMBY Hurting Your RevPAR? — Photo by Created by HN with DALL·E

We have all been there. Call it the rise of populism, the growth of grass roots movements, or the increasing recognition of environmental change, NIMBY – Not In My Back Yard – is impacting us in both our personal and “hotel” lives. Take, for example…

  • It is no secret that, in the US, there is a national housing shortage, so the local Zoning Commission wants to rezone a major parcel of land next to an exclusive suburban single-family community to accommodate large multi-unit, multi-storied apartment complexes. We need more housing but NIMBY!
  • While wind energy is said to contribute to the local economy and increase energy independence, let developers or utility companies propose building a wind farm across a vast panoramic vista and watch a multitude of groups rise in opposition – residents, environmentalists, and even those in the hospitality industry fearing that a wind farm will change the area’s lifestyle and deter tourism in their area. We need energy security but NIMBY!
  • And if you need to expand your meeting space and parking lot into an adjoining vacant green space so you can accommodate more group events, watch the locals – residents and businesses – oppose the expansion with arguments of increased traffic, noise, environmental impacts, and change to the “neighborhood’s character.” We need more business (and jobs) but NIMBY!

There is another big NIMBY issue emerging that is impacting the entire hospitality industry, but most of all those of you who are in the lodging sector - hotels, Airbnbs, inns, resorts, hostels, cabins, cottages, guest houses, motels, cruise ships, camping, glamping and even treehouse or igloo rentals. It is simply the call for No More Tourists!

Travel/tourism is one of the world’s largest industries, It can help grow a nation’s GNP as well as its local economies and employment rate. For many popular destinations, tourism is also the lifeblood of the local economy, driving its growth, creating jobs, and even encouraging international exchange. There has been a surge in travel over the past few post-COVID years, particularly in areas that are popular for vacations, family trips, weekend getaways, business meetings along with conferences and conventions.

This wave has been exacerbated by a myriad of factors coming together. First there is the post-COVID demand that exploded after - prolonged lockdowns and travel restrictions. People want to reconnect with friends and family that they had not seen during the pandemic. Businesses want to meet with colleagues and customers in-person again. The rise in remote work enables more flexibility for people to combine work and travel since they can work from virtually anywhere in the world, giving an upsurge to the “Staycation” market. And, of course, the US government provided stimulus packages so savings, accumulated during the pandemic, give people the financial means to travel.

In June of 2024, the International Air Transport Association (IATA) estimated that 2024 would be a record year for air travel, with 4.96 billion in planes, $996 billion in revenue, and sixty-two million tons of air cargo. These numbers can readily translate to high demand for hotel rooms. They can also bring challenges, particularly in popular areas that normally attract a lot of visitors. With these numbers, it is not surprising that destinations around the globe are putting a Full! No More Tourists! sign up. NIMBY is a trend that is not going away in the hotel/tourism world, at least not in the near future.

A notable case in point is Venice, the capital of the Veneto region in northern Italy. It is, of course, famous for its canals and 472 bridges separating the group of 126 islands that comprise the city in the shallow Venetian Lagoon. Being of Italian heritage, I treasure the many memories I have of the time I spent in what, for me, is a magical place. So I was both glad and sad when Venice introduced measures to control the tourist numbers, including banning cruise ships from entering the city center to protect its historic architecture and reduce the strain on its canals. It had to make a tough choice for today to preserve its cultural heritage and architectural treasures for tomorrow.

Santorini, Greece followed suit and has capped the number of cruise ship passengers that can disembark each day to prevent overcrowding in its famed small towns and narrow streets. Since overcrowding popular destinations can also diminish the visitor’s experience with long lines, congestion, and difficulty seeing or visiting attractions, city leaders want to manage visitor numbers to ensure a more memorable experience for everyone.

Excessive visitor numbers can also reduce the quality of life for the residents. It can lead to overcrowding, increased living costs, and disruption of their daily lives, particularly in the “high season.” This was a major factor that led Barcelona, Spain to imposed restrictions on the number of new hotels and short-term rental licenses being allowed. Such restrictions were designed to both curb the influx of visitors and preserve the well-being of the local communities.

Comparable restrictions are being implemented across the globe. Machu Picchu, Peru introduced timed entry tickets limiting the number of daily visitors to protect the UNESCO World Heritage site. The Galapagos Islands have strict visitor limits to protest their unique ecosystems and prevent environmental degradation. And Amsterdam, Netherlands has gone as far as banning new hotels and souvenir shops in the city center to reduce the number of tourists.

The US lodging industry is not immune from the NIMBY effect. From Yosemite National Park and Alcatraz Island in the west to Monticello and Mount Vernon in the East, visitor limitations impact the occupancy, revenues, and profitability of every hotel, restaurant and attraction establishment in their market area. If yours is not yet one of them, chances are it will be down the road.

This, then, is an opportune time for you and your team to channel Mr. Keating in the 1989 blockbuster movie, Dead Poet’s Society.(1)For those who may not remember the film, Mr. John Keating (called “Captain” by his students) portrayed an unconventional teacher who taught English at the fictional secluded, elite, conformist, all-male boarding school in the Vermont hills. While the story is set in the educational world, channeling innovative ideas for a business strategy from a fictional character like Mr. Keating can be an inspiring and creative approach. For me, Mr. Keating’s teaching methods and philosophy offer several valuable lessons for your hotel’s business strategy. My Fav Five are:

  • No matter what anyone tells you, words and ideas can change the world. This emphasizes the transformative power of communication and creativity.
  • I stand upon my desk to remind myself that we must constantly look at things in a different way. This symbolizes the need to challenge conventional thinking and see the world from new angles.
  • You must strive to find your own voice because the longer you wait to begin, the less likely you are going to find it at all. It suggests that discovering and developing your unique perspective and way of communicating is crucial, and the sooner you start, the better.
  • There is a time for daring and there is a time for caution, and a wise man understands the difference. It is a great reminder to balance bold actions with careful consideration.
  • Seize the Day. (With my four years of Latin and two of classical Italian, I prefer Carpe Diem.) It is an encouragement to take advantage of current opportunities rather than postponing actions or decisions for later.

The post-pandemic years have clearly taught every segment in the travel industry that change is not only necessary; it is inevitable and already underway. Two key mega-changes driving this change are the overtourism coming to rural and outdoor destinations [and] communities no longer being spectators in travel.

A destination that took these trends head on was Boston. A major problem was that Boston had a narrow and outdated image. Known as the Cradle of Liberty, visitors overcrowd the 2-1/2 mile The Freedom Trail that winds through the area’s most significant historical sites - Faneuil Hall, Paul Revere’s House and the Old North Church of “One if by land, and two if by sea…” fame. But there is much more to Boston. So Boston developed a campaign to “Spread the Wealth of Tourism.” It was designed to help alleviate congested streets and walkways and reduce long lines and wait times at popular venues by highlighting the area’s many unique and diverse dimensions and by supporting their traditional and new events. A byproduct, of course, would be happier residents.

Jackson Hole also has been overwhelmed by these two megatrends. Theirs, however, is akin to the old saying of Be careful what you ask for. There is no question that the Jackson Hole Valley has burst onto the tourism scene. The area’s picturesque mountains, rivers, and lakes have become central to outdoor recreational activities, drawing visitors year-round. And over the years, it has attracted celebrities and media attention, further boosting its popularity as a visitor’s destination.

According to the Chamber of Commerce, between July1 2022 and June 30, 2023, tourism 89to the area generated $1.7 billion in revenue, $10 million in lodging tax funds, and nearly eight thousand tourism-related jobs (February 1, 2024). But at what cost to residents’ quality of life? Overwhelmingly, residents complain about the traffic problems and that the parks are so overcrowded that residents find it hard to make reservations at “their own” national parks. They are concerned about the impact on and sustainability of their picturesque environment as well.

Add a housing shortage that has caused prices to skyrocket making it hard to retain qualified employees across all sectors and it is easy to understand why NIMBY this destination. These quality-of-life issues have contributed to an anti-growth sentiment. As one resident is quoted as saying, “The overwhelming attitude is that the ‘Hole’ has become a s-hole, and we need to limit visitation lest we become like Venice (Italy or California).

It is easy to see how and why the NIMBY (Not In My Backyard) trend can significantly impact hotels by hindering the development of new attractions, accommodations, and infrastructure essential for a thriving visitor economy. Local opposition to tourism-related projects often stems from concerns about environmental degradation, increased traffic, and disruption of community life. This resistance can lead to fewer investment opportunities and slower growth across the entire tourism spectrum.

When your hotel is faced with NIMBY challenges, engage with your communities, address their concerns, and show them the potential benefits of sustainable tourism development. By fostering a collaborative approach , your hotel can navigate the complexities of NIMBYism and continue to grow.

Your REVPAR will thank you!

Reference: 
(1) To “channel” someone typically means to emulate or embody the characteristics, behaviors, or spirit of that person.