PurposeThe article aims to elucidate the impact that neoliberal tourism development has had on the living environment of the Old Town of Tallinn through the perceptions of residents and property owners.Design/methodology/approachThis article's empirical analysis is based on a sociological survey conducted amongst 338 residents and property owners of Tallinn Old Town.FindingsThe research showed quite low tourism tolerance amongst the residents of Tallinn Old Town, the host community, in comparison to the city's residents in general. Half of the residents estimated the tourism load to be too heavy during the high season before the pandemic. The differences in perceptions based on geographical location indicated that people who lived in the most touristic areas of the Old Town were more critical about all aspects about their living environment.Originality/valueThe article provides a detailed insight into the social impact of tourism in a historical urban area, where the post-socialist neoliberal context has enabled unrestricted tourism growth and increasing vulnerability of the local community. The roots of these processes can be traced back to Soviet urban and housing policies. The case exemplifies the significance of local time-space specificities to be considered in building an understanding of contemporary touristification and its impact on local communities in heritage areas.