Economic Impact of College Spring Break
Marissa Lupo
Mr. Reuter
Economics
14 March 2017
The Economic Impact of College Spring Break
For many college students, March is only notable for one reason: Spring Break. At a midpoint in the semester, it is typical for at least 55% of college students to pack up for a week, and head to the beaches. Deciding whether or not a vacation is the smartest option on a college budget, many students allow the opportunity cost of missing out on a week of fun, warm weather and relaxation to guide their choice to travel. Notable college spring break destinations in the United States include Panama City Beach and South Padre Island.
With an increase in population for the month of March, there is a shift to the right in the demand curve for many resources in these Spring Break towns. Students need to pay for transportation, hotel rooms, food, and any complement good of a beach vacation, including sun screen, sunglasses, and swimsuits. College students alone pump more than “$1 billion each year into Texas and Florida’s economies alone” on spring break, which aids especially smaller businesses in the area (Staff). This revenue is not always seen in the whole county, rather more locally in certain cities.
However, while college students can pride themselves with boosting the local economy for the month they invade, a great deal of negative externalities come along with college spring break. Having a reputation of being rowdy, spring breakers in Panama City Beach crowd the area with 42 students -1 resident, and crime rates increase significantly. Additionally, more non-vehicle citations are written in March than any other month, likely for underage drinking or public intoxication. The influx of college students makes the city less safe, which is a negative side effect. Below are graphs showing this data.
And while the economy may flourish in these southern states in March, local businesses back home for many of these students see a decline in revenue. With a decrease in population, even for a week, there is a shift to the left in the demand curve in many local college-town businesses. Discussed in the video below, an owner of a local bar tells how “the effects of spring break are most felt” and how the sales being “cut in half” result in less employment for the week, and overall less revenue. Less students visiting and purchasing from the local businesses means that less employees can work, making them less money. Overall, the economy of college towns sees a decrease during the spring break week.
Spring Breakers bring with them a youthful spirit to the popular tourist cities for spring break, and spend a good amount of money, too. But, while they are increasing revenue in these cities, with the demand of many goods being high, they bring with them negative side effects. Cities like Panama City Beach see tourism all year round, and it is only slightly peaked when spring break rolls around, which pegs the question is all the crime even worth the extra $1 billion? Because even though an economy may be boosted with the increase of college students, the economy back home faces the opposite effect.
Works Cited
Bartholomew, Colten. "The Price of Spring Break." Exponent. The Exponent, n.d. Web. 13 Mar. 2017.
Free Enterprise Staff. "Spring Break & the Economy." Free Enterprise. N.p., 14 Mar. 2016. Web. 13
Mar. 2017.
Thompson, Derek. "People Started Partying Hard For Spring Break Thousands Of Years Ago."
Business Insider. Business Insider, 27 Mar. 2013. Web. 13 Mar. 2017.
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