Venice’s beauty curse: the high demand for tourist services has crowded out residents

In Venice, the high demand for tourist-related services that guarantee large mark-ups has crowded out the supply of services for residents. In the absence of a long-term revitalization strategy, the historic city will remain on the path to becoming a cultural mausoleum, writes Edoardo Campanella

Venice's recent decision to charge an entry fee (€5) for day trippers merely confirms the larger problem: Venice is on its way to becoming an open-air museum — a cultural mausoleum. Photo: Gabriel Bouys/AFP via Getty Images

Countries with great wealth or natural abundance often fall victim to their own blessings. Economists have long known that resource-rich countries can get stuck in cycles of slow economic growth, intense environmental degradation, and weak democratic institutions. 

But places endowed with a unique artistic and architectural heritage also can suffer from this “resource curse”. Breathtaking monuments from a storied past can generate economic rents and sectoral distortions not unlike those created by large reserves of fossil fuels and precious minerals.