How Touristification Transforms Retail Diversity

Tourism transforms vibrant retail streets, but at what cost? My research reveals how touristification displaces local businesses, eroding neighbourhood character and resilience. As COVID-19 exposed these vulnerabilities, this study highlights the need to balance tourism with local identity.
How Touristification Transforms Retail Diversity
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Retail streets are alive with activity, local shops are filled with character, and neighbourhoods reflect the unique stories of their communities—these are the hallmarks of urban retail diversity. But what happens when waves of tourists begin to reshape this intricate balance? This question drove the research that culminated in my recent publication, “Touristification and Retail Diversity: Theory and Evidence” .

A Personal Observation Turned Academic Inquiry
Growing up in Hong Kong, a city renowned as a global tourist hub, I observed the rapid transformation of its high streets. Once a rich tapestry of local grocers, family-run eateries, and quirky boutiques, these streets gradually gave way to luxury brands, chain stores, and tourist-centric pharmacies. The result was a striking homogenisation of retail spaces that raised pressing concerns about the erosion of local identity and the weakening of community resilience.


This personal observation sparked a quest to understand the underlying mechanisms driving these changes. I began to draw parallels between urban retail environments and ecological systems, considering whether concepts from ecology could shed light on the phenomenon of touristification (e.g. Unfolding touristification in retail landscapes: Evidence from rent gaps on high street retail). This transdisciplinary approach became the cornerstone of my research.


Bridging Ecology and Urban Analytics
Drawing inspiration from the ecological species-area relationship—which examines how habitat area affects biodiversity—I applied this framework to urban retail diversity. I asked: Could the influx of tourist-oriented businesses function like invasive species in an ecosystem, upsetting the balance of resources and displacing native “species”?


To investigate, my co-author and I adopted advanced urban analytics methods. Using techniques like k-means clustering and machine learning algorithms, we analysed patterns of retail diversity alongside variables such as tourist footfall, local consumer behaviour, and retail turnover rates. This approach allowed us to identify retail clusters and uncover the subtle but profound effects of tourism on local retail ecosystems.


Unveiling the Impact of Touristification
The findings revealed a worrying trend: as tourist-oriented businesses proliferated, retail diversity often declined. Local businesses that catered to residents were displaced, reshaping neighbourhoods and reducing their adaptability to economic shocks.


The COVID-19 pandemic starkly highlighted these vulnerabilities. In areas heavily reliant on tourist spending, the sudden halt in international travel led to widespread economic downturns and vacant storefronts. These outcomes mirrored insights from my earlier research on the fragile relationship between visitors and residents in overtourism contexts (see “Understanding the Irreversible Visitor–Resident Relations in Overtourism”).


Implications for Urban Planning and Policy

The study underscores the need for urban planners and policymakers to proactively manage the impacts of tourism on local retail ecosystems. Strategies might include promoting mixed-use developments that balance tourist attractions with amenities for residents, offering incentives to preserve local businesses, and implementing measures to regulate tourist flows in sensitive areas.


By maintaining a diverse retail environment, tourism cities can enhance their resilience against economic shocks and preserve the unique cultural identities that make them attractive destinations in the first place. It’s a delicate balance between embracing the benefits of tourism and safeguarding the interests of local communities.


Reflections on a Transdisciplinary Approach
This research reinforced the importance of crossing disciplinary boundaries to tackle complex urban issues. By blending ecological concepts with urban analytics, we gained unique insights into the socio-economic transformations driven by tourism. This transdisciplinary perspective not only deepened our analysis but also opened new pathways for addressing urban challenges.

Looking ahead, I am focused on developing practical strategies to enhance the resilience of tourist destinations. Key questions include: How can cities balance the economic benefits of tourism with the need to protect retail diversity? What policies can mitigate the adverse effects of touristification while ensuring sustainable growth?


I hope this research sparks conversations among scholars, policymakers, and community stakeholders about the importance of preserving retail diversity. By embracing innovative approaches and fostering collaboration, we can create urban environments that are both economically vibrant and socially inclusive.

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Tourism Management
Humanities and Social Sciences > Business and Management > Industries > Tourism Management
Trade and Retail
Humanities and Social Sciences > Business and Management > Industries > Trade and Retail
Biodiversity
Humanities and Social Sciences > Society > Anthropology > Environmental Anthropology > Biodiversity
Sustainable Growth
Humanities and Social Sciences > Economics > Economic Development, Innovation and Growth > Economic Growth > Sustainable Growth
Urban Geography and Urbanism
Humanities and Social Sciences > Society > Sociology > Urban Sociology > Urban Geography and Urbanism
Business Analytics
Humanities and Social Sciences > Society > Science and Technology Studies > Information and Communication Technologies (ICT) > Data Science > Business Analytics

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