Australia’s Nsw South Coast is Being Devoured By Overtourism: Locals Struggling As kiama faces Housing Crisis And Rising Costs

Published on October 8, 2025

The NSW South Coast, for illustration galore different celebrated world destinations specified as Amsterdam, Rome, Barcelona, Santorini, Bali, Dubrovnik, Kyoto, and Byron Bay, is facing nan challenges of overtourism. While nan area is loved for its stunning beaches and picturesque landscapes, nan influx of visitors, peculiarly during nan vacation season, has brought important antagonistic consequences for some nan section situation and residents.

Kiama: A Town Overwhelmed by Mass Tourism

Kiama, a charming municipality pinch a imperishable organization of just 12,000 people, sees up to 1.4 cardinal visitors during nan vacation season. This monolithic influx of visitors has created a paradox wherever nan very attractions that bring group to nan area—its beautiful beaches—are simultaneously being damaged. For each pristine beach, location is different 1 strewn with discarded plastics, nutrient wrappers, and different waste. The accelerated maturation of tourism connected the South Coast is slow consuming nan diverseness it erstwhile celebrated.

While nan area has go a basking spot for some section and world tourists, nan benefits of tourism are not reaching nan organization arsenic intended. The activity of visitors causes overcrowding, pushes up lodging prices, and increases nan costs of living, making it harder for section residents—especially nan younger population—to spend to unrecorded successful their ain town. The costs of rent and basal equipment specified arsenic nutrient has skyrocketed, and galore poorer residents are forced retired of nan area owed to nan gentrification fueled by wide tourism.

Tourism Development: More of nan Same

The Kiama council is actively encouraging much visitors from Sydney and different parts of nan state, promoting a strategy focused connected maturation alternatively than sustainability. In business with DTM Tourism, nan assembly is moving connected a Kiama Visitor Economy Strategy, but nan scheme seems to prioritize much visitors and much spending complete biology concerns aliases value of life for residents. The strategy appears to halfway connected a elemental mantra: “More, more, more.”

Tourism Statistics: A Financial Success But a Local Struggle

Recent reports show that tourism is a financial boon for Kiama and surrounding areas. In 2025, visitors stayed a full of 1.8 cardinal nights, representing a 29% increase from nan erstwhile year. This surge successful visitors brought an additional $14 million in revenue, pinch full visitant spending reaching $362 million. While these figures look affirmative from an economical perspective, locals person yet to spot tangible benefits. For many, nan presence of able tourists, often driving luxury vehicles like Range Rovers, feels disconnected from their mundane lives. The municipality has go a magnet for tourists, but nan booming manufacture isn’t providing nan basal support for semipermanent residents.

In early October, nan business reached a highest when traffic backed up for 7 kilometers along Highway One, arsenic cars struggled to enter Kiama. Despite these challenges, section businesses, peculiarly successful nan unit and hospitality sectors, stay incapable to meet nan request aliases spot overmuch betterment successful sales. This disconnect betwixt nan accrued number of visitors and nan deficiency of section economical benefits has led to increasing vexation among residents.

Housing Crisis and Gentrification: Developers Eyeing nan South Coast

In summation to nan influx of tourists, developers person group their sights connected nan towns of Kiama, Minnamurra, Gerringong, Jamberoo, and Gerroa. These once green farmlands are now being eyed for large-scale developments that see luxury homes and short-term rentals such arsenic those listed on Airbnb. These cookie-cutter properties, galore of which are designed for able visitors, lend to nan escalating lodging crisis. The description of these developments has near section councils pinch small power complete readying decisions, arsenic immoderate councillors are perceived to beryllium much aligned pinch spot developers than pinch organization needs.

Rising Costs for Locals: Impact connected Daily Life

In Kiama, the Woolworths supermarket has go 1 of the most costly stores in New South Wales (NSW), 2nd only to Byron Bay. The emergence successful spot values has translated into higher prices for residents, further exacerbating nan struggle for locals, peculiarly the elderly population, galore of whom unrecorded on age pensions. These seniors are already emotion nan pinch of inflated costs, which further marginalizes them successful their ain community.

Local media outlets, including the Illawarra Mercury, person been hesitant to reside nan broader issues surrounding tourism’s effect connected nan community. The attraction has chiefly been connected showcasing nan beauty of the South Coast and nan opportunities for visitors to seizure nan principle of nan region done societal media. Influencers and recreation websites, specified as Australian Traveller, Urban List, and Homes to Love, beforehand expensive Airbnb stays that cater to the wealthyand those aspiring to subordinate nan ranks of nan affluent. These platforms seldom reside the affordable lodging crisis or nan challenges faced by local residents.

The Impact of Short-Term Rentals and Equity Concerns

One of nan astir contentious issues surrounding nan tourism roar is nan emergence of short-term rentals. As wealthier visitors threat up properties for short-term stays, local families are often near struggling to find rental options. The growing Airbnb market is exacerbating nan lodging crisis, and while spot owners person nan correct to rent retired their homes, nan authorities must measurement successful to ensure equity in nan lodging market. Many judge that nan authorities should enforce higher taxes on short-term rental owners to mitigate nan antagonistic effects connected nan section organization and guarantee that long-term residents are not priced retired of nan area.

Possible Solutions: Protecting Local Communities from Overtourism

To reside nan challenges faced by communities like Kiama, the NSW government must see implementing regulations that limit nan effect of tourism connected section residents. One projected solution is to halt tourist marketing and advertising, isolated from for promoting major yearly events. This would trim nan unit on local infrastructure and forestall further gentrification caused by tourism. Additionally, Airbnb rentals should beryllium capped astatine a maximum number of 90 stays per year, ensuring that these properties are disposable for long-term rentals and that section families tin entree affordable lodging options.

For property owners who lease retired their 2nd homes arsenic semipermanent rentals, they could beryllium incentivized with rate rebatesand tax concessions. Furthermore, visitors who enactment much than one night should beryllium required to salary a interest to lend toward nan attraction of beaches, parks, and roads that are affected by nan dense tourer traffic.

A Call for Change: Shifting nan Focus to Sustainability

The connection by former Labor Prime Minister Ben Chifley about striving for a “light connected nan hill” now holds a caller meaning for the South Coast. Instead of focusing connected nan interests of wealthy spot owners, nan authorities must displacement its attraction toward sustainability and ensuring that locals have entree to affordable lodging and services. The equilibrium between tourism and local welfare must beryllium addressed to sphere nan charm and integrity of the NSW South Coast for early generations.