6Lisbon, Portugal
Lisbon has transformed from a relatively undiscovered gem into one of Europe’s hottest travel destinations in recent years. While tourism has boosted the local economy, it has also brought significant challenges. Popular areas like Alfama and Bairro Alto are now overcrowded, and the rise of short-term vacation rentals has driven up housing costs, pushing many locals out of the city center. Lisbon has taken steps to regulate the short-term rental market and promote other areas of the city to disperse tourists, but the issue of overtourism persists.