What is the economic cost of overtourism? Evidence from Machu Picchu

The objective of this project is to develop and apply an economic valuation model of overtourism. The study seeks to quantify the economic losses generated when tourist visitation exceeds the sustainable capacity of a cultural heritage site, leading to lower permissible visitation levels in the future. Using Machu Picchu as a case study, the project will estimate how short-term excess visitation reduces the monument’s long-run contribution to the Peruvian economy. By explicitly modeling the intertemporal trade-off between current tourist flows and future economic value, the project aims to provide a monetary measure of the economic cost of overtourism.