“Here, We Sell Land”: Collectivist or Tribal Protectionism

Whether nationalism is a form of integration or modern nationalism is shown by what is happening now: the people of other countries seem so unpopular that, according to other people’s opinions, “we” should not exclude, or send “them.” On the import side—foreign producers or their governments or recent taxpayers—they are unpopular because they produce goods at such a low price that “our” producers cannot compete. As for “our” greedy merchants who import goods that “our” consumers want, they are all greedy unpatriotic people. Since the 17th or 18th century, an important aspect of progress has been to suppress these emotions economically and morally, or so one might have thought.

On the export side, consider tourism, where new protectionism appears to be on the rise. Inbound tourism is an export, whether it comes from other countries or regions (and is entered as such in the national accounts and trade balance). Tourists, like importers, use “our” resources (money, labor, land) to satisfy their needs. Hence, emerging claims to restrict tourism. Tourists are encroaching on “our” space and, at least temporarily, undermining services they have no right to—even if others “say” they want to welcome some of them into their homes or commercial spaces.

I Financial Times reports (Eleni Varvitsioti and Barney Jopson, “Greece Drops Over-Tourism,” September 8, 2024):

Greece has said it will reduce short-term holiday rentals and cruises as part of measures to curb over-tourism in the Mediterranean country. …

Following the same restrictions imposed in Spain, Greece is also taking steps to regulate short-term rentals on social media platforms such as Airbnb. Mitsotakis announced a one-year ban on new short-term rentals in three areas of Athens. Tourists often start or end their holidays in the historic capital of Greece before moving on to the island.

Andreas Chiou, president of the Greek Property Managers Association, said the ban was due to pressure from hoteliers.

It seems that “we” should not let “our” greedy shop owners, restaurant owners, hotels, or Airbnb’s profit from tourism. That these are citizens just as the local people who are disturbed by travelers are ignored by many people, they are very used to the government favoring their flock.

Imagine a government (local, state, or national) posting, in an area under its jurisdiction, a warning sign that says “We hate tourists” or “Here, we only sell property.” This can be a throwback to the earlier eras of humanity, when the nation or collective “we” reminds us of it. These sentiments ignore the logic well developed in John Hicks’ book Theory of Economic History: the rise of the merchant, which began in the city-states of Ancient Greece, marked the first stage of the transition from a culture or command society to a market society.

By the way, notice here an example of the equal position of “external things.” Tourists can be said to create external things for certain local people, but local people also create external things for certain tourists: if there were no local people, many services for tourists would be developed: unspoilt nature, crowded beaches and the Acropolis, and so on. Private property is a powerful means of internalizing externalities but, in any liberal philosophy, local people do not share any individual’s shopkeepers or houses, preferences, and liberties.

It is true that travelers come with expenses, but they make up for it by paying for the services they use and what they eat in hotels, Airbnb rooms, restaurants, etc. Only in public places, in a sense the commonsdo they, and the local people, often do not pay fees. This is a common problem of public space, and few would argue that non-discriminatory fees or taxes are levied equally on tourists and locals using common criteria. Higher standard port fees may be appropriate, as opposed to special taxes for cruise ships. Even at public museums, foreigners and local guys usually pay, or have to.

Notice how in free markets, high demand for private goods and services, whether by locals or tourists, will automatically lead to higher prices, lower quantity demanded, and equalization of scarce resources—assuming a “benevolent” government doesn’t. close these prices. In the case of defense as in dirigisme generally, discrimination takes the place of values. A free market society largely avoids social discrimination by allowing it individuals and their voluntary organizations or associations resolve any conflict with freedom of contract. Collectivism—whether based on ideology, the greed of rulers and their supporters, or by special interests that hijack the government—is a modern-day remnant of racism, as Friedrich Hayek argued.

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The purpose of tourism protection


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