Chart of the day – the spillover costs associated with inebriated Brits abroad:
It comes from Jason Welker, blogging at the Euro-wing of RGE Monitor, stirred into action by a recent feature on this troublesome export in the New York Times.
He reckons this is all about market failure, with the the over-consumption of alcohol by British tourists creating spillover costs for the societies of the nations in which the tourists get themselves into trouble. British consulates in places like Athens have taken to advertising on posters, beach balls and coasters, urging people to drink responsibly. As Welker observes:
Because British tourists only consider their own enjoyment (benefits) while on vacation, they consume alcohol at a level that fails to take into account the social costs of their behavior. In economic terms, the marginal private benefit of alcohol consumption exceeds the marginal social benefit, representing an overallocation of resources towards alcohol in tourist towns. Government action by British consulates is aimed at reducing demand (marginal private benefit) among tourists, shifting the MPB curve back towards the MSB curve, in the hope that alcohol consumption will decline to the socially optimal level, where marginal social benefit equals marginal social cost.
There seems to be a fine line between too much drinking and not enough in the tourist spots of Europe. As far as the impact that British drunkenness has on business, some in the tourist trade believe the very prospect of wild parties and cheap booze is what keep the local economies afloat. Crack down too much on the wild Britons, and business could collapse as customers attracted to the anarchy stop arriving.
Related links:
Some Britons Too Unruly for Resorts in Europe – New York Times