Booking a place on the Tuerredda beach app
Rationing a common-pool resource
On the southern tip of Sardinia, Italy, lies the popular beach of Tuerredda. This 500-metre sheltered beach is a favourite among visitors because of its white sand and crystal-clear, tranquil waters. In response to the beach's popularity and overcrowding, the local authority responsible for the beach has limited the daily visitor capacity to 1,100 at Tuerredda. To effectively organise the number of visitors, the local government in Sardinia has set up a booking app where holidaymakers who want to visit the beach must book their place online.
Beaches are a common-pool resource. They are non-excludable if they are common land and not subject to property rights. They are rivalrous because one person's use of a beach reduces its availability to others. This is particularly true when beaches have limited space and are very popular. This is the case with the Tuerredda beach, which is a relatively small beach and extremely popular.
As a common-pool resource, there is a market failure because, without some form of rationing system, the beach becomes overcrowded, and the satisfaction of beach users will diminish during busy periods during the summer holidays. There is also likely to be some market failure due to negative externalities if the visitors cause local tariff congestion and leave litter.
By limiting the number of visitors to Tuerredda beach, the local government in Sardinia has created a formal rationing system that limits the number of people who can use the beach. This is ideal for visitors who can book a beach spot on the app and enjoy Tuerredda without overcrowding. With a limit on the number of visitors to the area, there is likely to be less traffic congestion and litter.
The booking system on Tuerredda Beach may incur some costs. There will be people who would like to go to the beach but will be disappointed and cannot visit it. The vendors at the beach (businesses that sell refreshments and rent sun loungers) may see a fall in their revenues if there are fewer visitors.
The Tuerredda beach situation is a notable example of a broader issue affecting the tourism market. With more and more tourists seeking the ‘best places’ to visit, it puts increasing pressure on places like Tuerredda and the social costs that accompany this.
Possible questions for discussion
- Why do you think beaches are common-pool resources?
- Why are public beaches considered to be a market failure?
- What is the rationing system that the local government in Sardinia used to try to combat the market failure associated with the Turredda beach?
- What are the advantages and disadvantages of the rationing system used by the local government?