**The Economic Paradox of Air Tourism** A new study by the New Economics Foundation (NEF), commissioned by the NGO Transport & Environment (T&E), questions the long-held belief that increasing air traffic automatically boosts local prosperity. While the aviation industry often highlights the economic benefits of international tourism—especially in major destinations like France, Spain, and Greece—the research suggests these gains may be overstated. The study argues that although gross economic activity rises, it does not translate into higher productivity or better wages in the tourism sector. Instead, low-paying jobs, infrastructure strain, pollution, and rising housing costs offset the benefits. **Concentration of Wealth and Stagnant Wages** One key finding is the growing concentration of value added among large hotel groups. In Spain, the share of value added by companies with over 250 employees rose from 28% in 2010 to over 45% in 2023. In France, it increased from 25% to 34% over the same period. This consolidation, coupled with the rise of platforms like Airbnb, limits wealth redistribution to local communities. Small independent businesses, often celebrated in political rhetoric, capture a shrinking share of revenue. Meanwhile, real wages in the tourism sector have barely budged, with France showing the most stagnation between 2008 and 2024. **Crowding Out Productive Investment** The study also highlights a crowding-out effect: capital flows into real estate—fueled by tourism-driven demand for short-term rentals—rather than into productive sectors like manufacturing or technology. According to NEF projections, several Southern European countries—Spain, Italy, Portugal, and Greece—could see significant declines in productive investment by 2031. Italy and Spain face the highest annual losses, at €1.1 billion and €1 billion respectively. This shift raises questions about the long-term economic model of tourism-dependent regions. **Housing Pressure and Social Tensions** One of the most visible impacts of mass tourism, closely linked to air traffic, is rising rents. In popular areas, the conversion of residential properties into tourist accommodations drives up housing costs. The study estimates that rents could increase by up to €250 per year between 2026 and 2031 in major European tourism economies, with the sharpest rises in Greece, Portugal, and Spain (€160–220 per year). This phenomenon, sometimes called "barcelonisation," fuels social unrest and hampers worker mobility, indirectly affecting overall productivity. Protests have already erupted in cities like Barcelona, Lisbon, and Athens. **Implications for Aviation Policy and ATPL/ATC Students** T&E calls for a rethinking of tourism development strategies and, by extension, air connectivity policies. Recommendations include reassessing the real economic benefits of air tourism in France, shifting toward lower-carbon transport modes like rail, and better accounting for housing and local economic impacts. For ATPL and ATC students, this debate is far from academic. Future regulations—such as taxes on short-haul flights, emissions caps, or airport expansion limits—could directly affect route planning, demand forecasting, and operational decisions. Understanding the broader economic and environmental context of air travel is essential for professionals who will navigate an increasingly complex policy landscape.