The Economics of Pokemon Go: The Launch of Cyber-Tourism
Pokemon Go provides us with an incredibly refreshing experiment in thought because its effect is so unexpected. Over the next few weeks, I’m cataloging my thoughts on the game’s effect and posting every weekend.
This is Part Two. Click here for Part One.
THE LAUNCH OF CYBER-TOURISM
This weekend, I had to get some shots around Washington D.C. for a documentary I’m working on and I made sure to have my Pokemon Go app on. It was also apparent that thousands others were doing the same — and for good reason: the National Mall is loaded.
Walking around and setting up, I heard plenty of Pokemon references in passing. Checking the game myself, there was always plenty of commotion around the gyms and stops. Pokemon were everywhere and I’m sure plenty of people decided to make the trek into town to try it out on a beautifully sunny Saturday.
Could this mean you could start a rickshaw business in Washington DC, taking people to all the best locations for Pokemon? Maybe not — it’s unclear if game-players are necessarily that personally invested in the game, but it probably wouldn’t hurt for the rickshaw-drivers to get a little well-versed in that realm of their cities. Potentially, Uber drivers could be called to take a scenic route once or twice and it wouldn’t hurt for people showing their friends and families around town to keep the little-ones busy with a good catch once in a while.
What does this mean for actual business owners who are based on tourism? Let’s not be mistaken: a tourist walking down the street of a beach town last week for the Fourth of July is an entirely different consumer than a Poke-tourist walking that same path today. Who’s more willing to actually expend money and stop for a bite here and there? While the poke-tourist might get an ice cream or water on their way, if they’re generally motivated by the Pokemon, then they’re actually incentivized to keep moving and not stop anywhere. Instead of enjoying the area for its views, atmosphere, or local culture, these are really just passerby’s.
Interestingly enough, Pokemon Go has a pretty curious work-around: The Lure Module; which lures Pokemon to a specific landmark on the game’s map: a feature that can be enjoyed by all players who stick around the area.
You could potentially purchase a Lure Module for around 60 cents each. Lasting around 30 minutes, you could stick them around your store around large rushes, tourist surges, or if an event for younger people happens nearby. Which is incredible seeing as this means that Nintendo and Miitomo aren’t monetizing the product through its direct users, but through those who utilize the cyber-ecosystem they have created.
Again, however, it’s important to emphasize how this kind of tourism is placing a widely different value on the local area than you might want. If you are a library that’s trying to market to the local youth for your Summer Reading Program, luring kids with Pokemon doesn’t necessarily mean you’ll get any better outreach for reading.
But let’s throw on our Economic Thinking Caps and talk about what we can realistically expect. There might be marginally more business for corner stores on hot Summer days, maybe more publicity for unique communities, but probably more than likely, a lot more kids walking around your neighborhood, especially at night when the trade-off for spending their time otherwise is relatively low.
I don’t know the full extent of this project’s effect, but the fact is, this game has opened up a whole digital layer to the real world around us. The potential for cyber-tourism is huge, but in a few months or years, it might not even be led by Pokemon Go — this technology might be useful in other applications that don’t even exist right now. Ultimately, Pokemon Go has quite seriously demonstrated that digital integration with the real world is a viable product. Who knows what could develop: maybe your next visit to the Museums might have an app that makes exploring the exhibits a bit more of an adventure.
