Category: Travel

“The purchasing power of money is the same everywhere”

Didn’t Mises insist on that proposition in his Theory of Money and Credit?  The claim always bugged me, as it is true only tautologically.  Here is one counterexample:

In a remote area of Papua’s Pegunungan Bintang regency, purchasing staple commodities will put a far bigger dent in your wallet than in most other areas of Indonesia.

For a sack of rice, typically weighing 10 kilograms, people in the traditional gold mining area of Korowai have to spend at least Rp 2 million (US$138.5), similar to the cost of a low-end smartphone.

For comparison, in Jakarta, 1 kilogram of rice costs Rp 10,000 to Rp 11,000, meaning 10 kg of rice costs people in the capital around Rp 110,000.

The massive price discrepancies are not limited to rice. A box of instant noodles costs Rp 1 million in Korowai. Sometimes, people even pay with two grams of gold.

“A pack of instant noodles costs Rp 25,000,” said Hengki Yaluwo, an administrator of a cooperative in Korowai’s Mining Area 33 on Wednesday.

“Ten kilograms of rice costs four grams of gold. If you pay with cash, you need Rp 2 million,” he said.

One can of fish typically costs Rp 150,000, while a cell phone could cost 10 to 25 grams of gold, Hengki said.

As for arbitrage:

Reaching Korowai is difficult. People must take a helicopter from Bovel Digoel regency, and then continue by longboat, traveling along the Boven Digoel river for one day. After this, they must travel by foot for two days before finally arriving at the Korowai mining area.

Here is the full story, via Shaffin Shariff.  Here are photos of the Korowai people, ignore the text.  Here is a more sober and probably more accurate Wikipedia article.

Deconvexifying the car, car feature markets in everything

…BMW is planning to move some features of its new cars to a subscription model, something it announced on Wednesday during a briefing for the press on the company’s digital plans.

…now the Bavarian carmaker has plans to apply that model to features like heated seats. BMW says that owners can “benefit in advance from the opportunity to try out the products for a trial period of one month, after which they can book the respective service for one or three years.” The company also says that it could allow the second owner of a BMW to activate features that the original purchaser declined.

In fact, BMW has already started implementing this idea in some markets, allowing software unlocking of features like adaptive cruise control or high-beam assist (in the United States, those options are usually standard equipment). Other features are more whimsical, like having a Hans Zimmer-designed sound package for your electric BMW or adaptive suspension for your M-car. Indeed, the company says that its forthcoming iNext will “expand the opportunities for personalization.” I’m sure y’all can’t wait.

Here is the full story, via the excellent Samir Varma.  In the standard theory of bundling, bundling enables more price discrimination, as for instance with the cable TV bundle.  But if most consumers really don’t value the add-ons at all, which perhaps is the case here, a’la carte may maximize revenue after all.

How to identify interesting boats and sailors

I know nothing about this topic, so thought I should pass along this email from MR reader Edward Dixon:

Having benefited from your advice on restaurants, I thought I would pass on some simple tips for the identification of interesting boats & interesting sailors.

The method is actually a little like finding an interesting restaurant: most of the boats you see are more or less in the form in which they left the boatyard that built them.  You can think of them and their owners as being akin to chain restaurants.   These are the ones to ignore!

Watch instead for boats:
– Ignore anything suggested of a racing pedigree
– Equipped to sail. Two masts are better than one.  Gaff rigs and junk rigs are also interesting indicators.  The limited speed but unlimited range are attributes of sail that act as a sort of filder.
– extra hardware bolted on top, like a solar panel / wind-vane combination
– A complicated-looking wind-vane attachment bolted onto the stern indicates self-steering gear
– A cupola or dome, a little reminiscent of a turret on top of a WWII bomber somewhere on the coach-roof.
– Indications that the boat is a home-build – possible harder for you to assess

Boats with quirks tend to contain interesting people; often they have made Unconventional Life Choices, including of course long sea voyages, often solo.  They have often made extraordinary efforts to go to sea – I once met a man in late middle age who had crossed the Irish Sea in an easterly gale in a 17ft open boat he had constructed himself using (non-marine-grade) plywood, and who was engaged in a boat-based camping tour of Ireland.  This turned out to be entirely consistent with the rest of his history.

Interesting boat folk, like interesting restaurants, are out there to be found, once you learn a few heuristics.

Do walls work?

To be clear, I do not favor building the Trump Wall (at all), still I am willing to present relevant evidence when it appears. Here is the abstract of a new paper by Benjamin Feigenberg:

This paper estimates the impact of the US-Mexico border fence on US-Mexico migration by exploiting variation in the timing and location of US government investment in fence construction. Using Mexican survey data and data I collected on fence construction, I find that construction in a municipality reduces migration by 27 percent for municipality residents and 15 percent for residents of adjacent municipalities. In addition, construction reduces migration by up to 35 percent from non-border municipalities. I also find that construction induces migrants to substitute toward alternative crossing locations, disproportionately deters low-skilled migrants, and reduces the number of undocumented Mexicans in the United States.

That is from American Economic Journal: Applied Economics, you should be able to click through the captcha and get to the paper.

Singapore facts of the day

At Changi, one of the world’s great travel hubs, traffic plunged from 5.9 million passengers in January to a mere 25,200 in April — a 99.5 percent drop. The number of airlines serving the airport collapsed from 91 to 35. Two of the four main terminals have been temporarily mothballed; plans for a fifth have been set back at least two years.

Here is the full article, about the retreat of globalization.

It’s a Good Summer to Explore America at Random

That is the topic of my latest Bloomberg column, here is the premise:

With my summer trips abroad canceled, I decided to be resourceful about travel. Having lived in Northern Virginia for 30 years, I asked myself a simple question: Which local trip have I still not done?

Earlier in the summer I thought I might spend time in scenic Maine, but too many of my friends from the Northeast and mid-Atlantic seemed to be planning the same. I decided a more adventurous course of action would be to get in the car with my daughter Yana and spend a three-day weekend on the road.

The column is not easily excerpted, but here is one bit:

Lunch was in Morgantown, West Virginia, but rather than visit the university, we stopped for excellent Jamaican food with jerk chicken, oxtail and plantains — better than the equivalent in the D.C. area. A tip: If you’re ever looking for great food in obscure locales, don’t just google “best restaurants Morgantown WV,” as that will yield too many mainstream options. Pick a cuisine you don’t expect them to have, and Google something like “best Haitian restaurant Morgantown WV.” Whether a Haitian restaurant comes up (it didn’t), you’ll get a more interesting selection of “best” picks. In this case we learned that a town of 30,000 people has several Caribbean restaurants, highly rated ones at that.

Five states in one day (VA, WV, MD, PA, OH) was great fun.  In my view, every excellent trip has one stop or locale at its emotional and narrative heart, and for this trip is was the Native American Earthworks in Marietta, southern Ohio.

I’m so American, I can’t even tell if this British speech is parody

Here is the story, the speech appears in a box in the corner:

Brexiteer Tory MP has urged the government to let his dogs keep their freedom of movement rights after Britain leaves the EU.

Bob Stewart, the MP for Beckenham, said his “French-speaking” hounds crossed the Channel regularly on their EU “pet passports”.

Millions of Britons are set to lose the ability to live and work freely on the continent at the end of the year as a result of the UK’s departure from the bloc.

I am an advocate of canine cosmopolitanism, rather than canine nationalism.  Is everyone?

Speaking in French, Mr Gove added: “We always defend the rights of dogs.”

Is that true?  Under the previous pre-Brexit regime, a pet passport was sufficient.  But now:

Under the worst case-scenario of a no-deal Brexit, taking a pet to the EU will likely require a four-month advanced process that includes microchipping, a rabies vaccination, a blood test and a three-month wait to travel after the blood test.

Developing…

Our regulatory state is failing us

The Transportation Security Administration withheld N-95 masks from staff and exhibited “gross mismanagement” in its response to the Coronavirus crisis – leaving employees and travelers vulnerable during the most urgent days of the pandemic, a senior TSA official alleges in a new whistleblower complaint.

On Thursday evening the Office of Special Counsel, an independent federal agency that handles whistleblower complaints, said they had found “substantial likelihood of wrongdoing” in the complaint and ordered the Department of Homeland Security to open an investigation…

TSA Federal Security Director Jay Brainard is an official in charge of transportation security in the state of Kansas, and has been with the TSA since the agency’s inception in 2003.

He told NPR that the leadership of his agency failed to protect its staff from the pandemic, and as a result, allowed TSA employees to be “a significant carrier” for the spread of the Coronavirus to airport travelers.

Here is the full NPR story.

Coronavirus travel markets in everything

As tourism slowly resumes around the world, many nations are still reluctant to open their borders fully – with Cambodia imposing perhaps the toughest entry requirements of any country.

The south-east Asian country is popular with backpackers, and most renowned for the Unesco-listed temple complex at Angkor Wat.

According to the latest Foreign Office bulletin on Cambodia, foreign travellers must pay a $3,000 (£2,400) deposit for “Covid-19 service charges” at the airport upon arrival.

What appears to be the first “coronavirus deposit” can be paid in cash or by credit card.

The FCO says: “Once deductions for services have been made, the remainder of the deposit will be returned.” But those deductions may be steep – especially if another passenger on the same flight happens to test positive for coronavirus.

So far, so good, perhaps you are keen to go.  But here is the downside of the experience:

But if one passenger on their flight tests positive for coronavirus, everyone on the same flight is quarantined in government-approved accommodation for two weeks, at a cost of $1,176 including meals, laundry and “sanitary services”. They must also pay another $100 for a second Covid-19 test. This totals a further £1,021.

If the traveller happens to be the coronavirus-positive patient, they will have to take up to four tests at another $100 (£80) each, as well as $3,150 (£2,500) for treatment at the Khmer-Soviet Friendship Hospital in the capital, Phnom Penh.

And:

…Cambodia also imposes a requirement for $50,000 (£40,000) of travel insurance cover for medical treatment.

If the unfortunate arrival passes away, the Foreign Office warns: “The cremation service charge is $1,500 [£1,200].”

Here is the full article, via Shaffin Shariff.

Coronavirus imaginary travel markets in everything

When you’ve been cooped up for months, you start to miss aspects of life you used to dread. Remember airport security lines? Remember 3.4-fluid-ounce bottles? Remember taking off your shoes and then scrambling to put them back on at the end of a conveyor belt? What we wouldn’t give for those experiences now.

For travelers longing for the days of yore, Taipei’s Songshan Airport is offering 90 people the chance to pretend they’re going on vacation.

The airport is hosting a tour that will allow people to go to the airport, without actually going anywhere. The half-day experience will include a tour of the airport, a mock immigration experience and finally, the chance to board and then disembark an airplane.

Here is the full article, via Shaffin Shariff.

Chesapeake travel notes

Now is an ideal time to visit Maryland’s Eastern Shore, if only for a few days.  There are open vistas, water birds, charming old homes, and plenty of signs of Revolutionary and 19th century history.  (At that time the Chesapeake was a focal area with important water access, now it is a literal “backwater.”)  None of those features are diminished by opening restrictions or social distancing.  Most of the restaurants you want to eat in were serving outside anyway.  Mask observance I would describe as “not below average.”  On Tilghman island, you can see one of the old Navy research stations where they worked to make radar operational, plus there is a nice 19th century church.  The whole “white guys with boats” thing I find boring, however.

St. Michael’s is one of the nicest small towns in all of America.  It is also where Frederick Douglass spent some of his early life as a slave and downtown you can see the above plaque.

Coronavirus travel insurance markets in everything

Moral hazard — forget about it!:

In the Mediterranean island nation of Cyprus, government leaders have pledged to cover all costs for any traveler who tests positive for the coronavirus while on vacation, according to the Associated Press. In a letter sent out to governments, airlines and tour operators, Cypriot officials said they would cover “lodging, food, drink and medication for covid-19 patients and their families” while on the island.

Tourism accounts for 13 percent of Cyprus’s economy, according to the AP, and with one of the lowest coronavirus ratios per capita in Europe, tourism ministers plan to restart international air travel on June 9.

Here is the full story, which includes other examples.

The plans for Greece’s reopening to tourists

In the European Union Greece is moving the quickest, but still this does not sound so appealing:

Phase 1 – Until 15 June
International flights are allowed only into Athens airport.
All visitors are tested upon arrival and are required to stay overnight at a designated hotel. If the test is negative, then the passenger self-quarantines for 7 days. If the test is positive, the passenger is quarantined under supervision for 14 days.

Phase 2 – Bridge phase- 15 June to 30 June
International flights are allowed into Athens and Thessaloniki airports.
If your travel originated from an airport not in the EASA affected area list (https://www.easa.europa.eu/SD-2020-01/Airports#group-easa-downloads), then you are only subject to random tests upon arrival.
If you originate from an airport on the EASA affected area list, then you will be tested upon arrival. An overnight stay at a designated hotel is required. If the test is negative then the passenger self-quarantines for 7 days. If the test is positive, the passenger is quarantined under supervision for 14 days.

Here is much more detail.  Via Yannikouts.

Our regulatory state is failing us

You don’t think airlines can just provide hand sanitizer to passengers, do you? On Tuesday the FAA wrote to American Airlines granting permission, and the letter they sent (.pdf) offers a window into process the airline had to go to in order to secure the government’s blessing.

Tuesday’s correspondence came from the FAA’s American Airlines Certificate Management Office in Irving, Texas. Imagine having a local office of a federal agency dedicated to your business, with its own letterhead.

American wanted permission to provide “personal use quantities of hand sanitizer gel and sanitizing wipes to customers prior to boarding and/or distributed during flight.” That means there would be hand sanitizer on the aircraft, and that falls within the FAA’s jurisdiction.

Before writing for permission, a team from American Airlines held two separate meetings with FAA inspectors, from two separate FAA offices – the airline’s direct regulators in their certificate management office, and also with the Office of Hazardous Materials Safety. The purpose of these meetings was “to discuss the 14 CFR part 5 required safety risk assessment” required to have hand sanitizer on board.

Passengers and crew are permitted to carry hand sanitizer, consistent with 49 CFR §175.10. And shippers can carry hand sanitizer, consistent with 49 CFR §173.150(g). For the airline to carry and distribute it, though, 49 CFR §175.8 (a)(4) requires permission of the Administrator of the FAA.

And:

The FAA issued a finding that American’s proffered plan to offer hand sanitizer to passengers “meets conditions for FAA approval allowed in 49 CFR §175.8 (a)(4).” Even so, the specific products that the airline sources for use must be “approved by the AA Chemical Review Board (CRB) to meet the above CFR limitations and will be tracked on an internal reference list.”

Furthermore, permission is contingent on “mitigations and procedures included in the AA RWM ‘Corp SMS and Team – 200512- 01 / Hand Sanitizer in Amenity Kits and Snack Bags’ [being] “completed and complied with.” Any deviations require advance coordination with the dedicated FAA Certificate Management Office for American Airlines “prior to any further flights that provide personal use quantities of hand sanitizer gel and sanitizing wipes to customers.”

A small matter, yes, but indicative of the larger whole.  Here is the full post from Air Genius Gary Leff, via Lama.

Charles Town, West Virginia

It is only about 70 minutes drive from Fairfax, VA, and yet so few go and visit — why might that be?  This town is full of charm, old buildings, Civil War history, and there is a plaque to Martin R. Delany in the town center.

West Virginia is in the process of reopening (note the obscenity), but barber shops require appointments and take only one person at a time.  The restaurants seem to be doing curbside only, as in Virginia, and what would you want to eat there anyway?  Population density in town is low, and it feels quite safe to walk around because you don’t have to switch sides of the street to avoid people.  You just have to walk at a constant pace.

In one store they will sell you toilet paper and masks.  But the guy takes his mask off to sell you the masks, because he feels he needs to explain and justify the prices for the masks.

The gdp per capita of West Virginia is, surprisingly to many people, equal to about that of France.  Charles Town is by no means run down, and either the center of town or the outskirts appear to be somewhat wealthier than most parts of Western Europe.

Here are eleven classic dishes you might try in West Virginia.

And there is still an opera house in town, and it was staging Sondheim’s Into the Woods until Covid came along.