Once known for its hippie roots and serene beaches, Ibiza has transformed into a hotspot for the rich, leaving workers to bear the brunt of this change. What was once a paradise of quiet coves and stunning sunsets is now overcrowded, with local residents and workers feeling the pressure of rising costs and unsustainable tourism.
Experts, residents, and unions alike are calling for urgent action. They believe limiting tourist numbers and introducing stricter controls is the only way to restore balance to the island, which has seen a surge in luxury tourism over the past decades.
A history of economic shift
Ibiza’s population relied heavily on agriculture until the 1960s when the island opened to international tourism. Since then, the local population has quintupled. Farming now employs only 1% of the residents. The Matutes family, who have controlled much of the island’s tourism sector for decades, capitalised on the hippie image, evolving it into a luxury tourism destination.
Tourism, however, has come at a high cost. The island’s economy may have flourished, but inequality has worsened. Housing has become unaffordable. Skyrocketing rental prices are forcing many workers into precarious living conditions, such as caravans or shared spaces, mirroring the scenes from the film Nomadland.
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The cost of mass tourism
In 2023, Ibiza and Formentera welcomed 3.7 million tourists—over 21 visitors for every resident. Despite the influx of wealth, poverty remains rampant, particularly among young people. The cost of living in Ibiza is 50% higher than in mainland Spain, with workers struggling to make ends meet. Additionally, 20% of homes on the island sit empty, owned as second residences or rented to tourists at exorbitant rates. This imbalance pushes local workers out of their communities, leaving them with few options but to seek employment elsewhere.
Tourism at the expense of locals
Experts argue in newspaper El Periódico that Ibiza is now a “tourism machine,” where mass tourism has eroded the island’s cultural heritage. With platform capitalism driving the illegal construction boom and the dominance of Airbnb-style rentals, the island has become a place where its own residents struggle to live. Tourism and real estate moguls rake in the profits. However, little of that money is reinvested into the local community. As a result, many locals are being pushed out of their homes and into economic hardship.
What lies ahead?
For many, the solution is clear—limit tourist numbers and set entry restrictions. However, political will is lacking. Therefore, without significant change, Ibiza could continue down a path of unsustainable tourism. As one resident summed up, “Ibiza is no longer for the people who live here”.