Posted at 11.22.2018
The research question is exactly what has been the economic effect on discotheque by the raising of the legal drinking age and the ban on smoking in public areas in Mumbai. Im not covering entire Mumbai and concentrating on the primary areas where people visit, these areas are colaba, lower parel and bandra (west)
I chose this topic because I needed to know how the nightclubs and people residing in Mumbai got affected. I haven't included the complete of Mumbai, but centered on three areas colaba, lower parel and bandra (west). I determined two factors that afflicted the nightclubs and individuals; these factors are namely the ban on smoking in public places and the rise in the legal drinking age. These factors fall under the group of demerit good. I read a newspaper article which led me to the research question -" Bishnu Das, associate vice-president, TGIF. , says, "The ruling is certainly going to affect the business enterprise for clubs and pubs in Mumbai. It's sad. But honestly I don't believe it's going stop people under 25 from drinking. They would only have more curious. " the article highlights showing that this will lead for an underground and illegal market and you will see an increase in the number of drinkers.
I HAVE TO WRITE ABOUT THE LAW OF DRINKING PLUS THE DATE THE LEGAL AGE INCREASED
This is another article that led me to get another demerit good in my own research question "The Bling lounge at the Leela in Mumbai, which also run the famous discotheque Poison, has already been feeling heat. "There has been a 10-15 % fall of men and women coming in due to the smoking ban. It is a great cause for concern, " said one of the managers. "
Farzad Birji, F&B manager at Gordon house, which runs the popular discotheque Polyesther, said: "People enjoy smoking while drinking. Guests are peeved that they have to come completely down to the lobby and get out of the hotel to smoke. " This post clearly states that there is a decrease in the number of customers, a drop of 10-15%.
Demerit goods are private goods with negative externalities that are considered socially undesirable. Negative externalities occur when the intake of a good has measurable negative consequences on others who do not consume the nice themselves.
Hypothesis-as the core notion of the essay is to learn the impact of the smoking ban and the increase in the legal drinking age on the earnings of the discotheque in bandra (west) Mumbai.
The revenue of the discotheque in bandra (west) Mumbai has decreased
After the ban on smoking in public areas places
The Raise in the legal drinking age
The ban on smoking in public places and the raise in the legal drinking age has caused high barriers to entry in this market (discotheque) in Mumbai.
Enforcement of the smoking ban in public areas has reduced negative externalities.
Increase In legal drinking age has caused a decrease in lots of drinkers.
The above five hypothesis would be proved or disproved using graphical analysis, statistical tools and in comparison to assumptions.
The given extended essay uses both primary and secondary data.
Primary data has been collected utilizing a written questionnaire and oral interview. I'm not covering entire Mumbai, but covering the key areas where people visit, these areas are colaba, lower parel and bandra (west) Data was obtained from three nightclubs that are in each on the areas mentioned previously; before and after the ban of smoking and from the increase in the legal drinking age. The info was also obtained from random people and through friends. The sample size for the primary data is 70. The age group focused on the youth and the working class basically from 18-30. Primary data is used for both qualitative and quantitative analysis.
Secondary data has been collected through the internet (e-newspapers), magazines and past records of the three night clubs in bandra (west) Mumbai.
Primary data and secondary data has been represented using bar graph, pie chart and column graph, the info has been analysed using mean, median, mode, average income and marginal revenue. The monetary theories pertaining this essay would be theory of market-demand and offer, theory of costs and revenues, theory of firms, market failure, negative and positive externality of consumption.
Analysis of data:
The various hypothesis is been analysed by the assistance of statistical tools, graphical representation and monetary theories.
Age group-18 to 25
This graph is basically showing the different age groups, I have highlighted two age groups. The graph is showing the number of folks who only drink, only smoke, do both and do none. the sample taken for the age group 18-24 is 40 and for 25-30 is 30. the graph is showing that smoking and drinking together is the highest, this has reduced in the number of customers. HAVE TO WRITE ABOUT THE OWERS PERPECTIVE. This proves by hypothesis one (the earnings of the nightclubs has been reduced because of the implementation of the laws) The nightclub owners are giving entry to younger crowd, this younger crowd will be the crowd that begun to indulge into alcohol, cigarettes and get dependent on it. The night club managers allow to increase their revenue
The graph is showing that we now have more number of people drinking below the legal drinking age; this implies that there can be an underground market formed. Secondary data has been taken from an article from the internet, that article states that Statistics from a recent survey by the social development foundation of the Associated Chambers of Commerce and Industry of India (Assocham) reveals that nearly 45 percent of 12th graders in metropolitan cities drink excessively at least five to six times per month. "
The article is showing us just how many teens drink, about 2, 000 teens drink between your generation of 15-19. In my own extended essay I have focused on the age groups from 18 to 30, I included this generation as I've seen that people of this age group going to nightclubs and indulging into alcohol. The age group specified above is below this group I've taken, people below the age of 18 are consuming alcohol which shows that there surely is The federal government increased the legal drinking age from 21-25 because there is a lot of alcohol consumption get back age group. The upsurge in the legal age to consume alcohol just managed to get worst and increasingly more teens are indulging involved with it. The government did not make sense by increasing the legal age to drink, different parts of India have different an alternative age to consume alcohol, example-in goa and Karnataka you can consume alcohol at age 18, in Maharashtra its 25 and wardha district its 30. throughout the world the legal drinking age is between 18-21 and in India its 25, the federal government wants Mumbai to be a hotspot for tourists, but this has only reduced tourism as the tourists drink young so when they come to Mumbai they can not drink if they are not 25. many famous celebrities have also commented on the rise on the legal drinking age namely Amitabh Bachan, he says that "Bollywood superstar Amitabh Bachan tweeted that it is odd that Indians are deemed mature enough to vote and join the army before 25 however, not drink. "At 23, Sid Mallya is GM and owner of the 3rd greatest liquor company on earth. But, guess what? It's illegitimate for him to drink, " Bachan wrote. Mallya junior, who's actually 24, tweeted: "What's this I hear that they've gone and bumped the drinking age up to 25?!!! That means I cannot get served for another year!!!!"
The celebrities are saying that its unfair for a person to wait till 25 to drink, Amitabh Bachan says that the owner of the third greatest liquor company on the globe cannot consume alcohol; he must wait till he's 25.
In my questionnaire I asked a question stating that 'has the ban on smoking in public places and the rise in the legal age to drink alcohol reduced you or stopped you from drinking and smoking'. People answered saying that shops, nightclubs still serve alcohol and there is no fine charged if your caught smoking in public areas. Some people said that they smoked front of the cops and they said nothing. This is just showing that regulations has not been implemented properly and there has not been a reduced amount of these activities that your government wanted. The fine for smoking in public areas is Rs. 200; this is a little amount of money. I feel that the policemen should stop taking bribes, become stricter and the fine for smoking should be increased.
My second hypothesis states that - The ban on smoking in public areas and the raise in the legal drinking age has caused high barriers to entry in this market (discotheque) in Mumbai.
I would support my hypothesis with quantitative and qualitative data. Nightclubs have high barriers to entry in Mumbai; the excise duty on alcohol has risen to reduce the consumption of alcohol. I read a newspapers article supports my point
The article is saying that the excise duty on all alcohol is increased which has caused problems for most it implies that the purchase price is hiked by almost double, this article is extracted from a news article in the entire year 2011, in the beginning there was a decrease in the consumption of alcohol such as the same year regulations was passed for the legal age to consume alcohol, the federal government increased it to 25 from 21. This did not make a difference as the consumption of alcohol happens to be very high inspite of regulations and high excise duty. The government basically rose the rates of excise duty as he wanted the intake of hard liquor to lessen by people switching to soft liquor like wine and beer, the excise duty on wine is low and folks have reduced going to nightclubs, pubs, bars and restaurants to drink because they charge high due to excise duty, thus there can be an increase in the consumption of alcohol through wine shops. To create a nightclub there are a lot of things requires and the price is very high, the cost depends upon the area, licenses, security, dj, utilities (gas and electricity etc. ), advertising, rent, insurance, guests, staff like bartenders, waiters, managers, a good retailer,
WRITE OWNERS VIEW permits and there may be additional costs like establishing a smoking section due to the ban on smoking in public places, lighting etc.
To set up a night club you will desire a lot of financial support, the rates in your nightclub will show the amount of men and women visiting. The excise rate being high makes it difficult for nightclubs to lower their price on alcohol served, if the purchase price is too low the nightclub won't cover its cost nor get any profits. This is one reason why many nightclubs in Mumbai allow underage drinking. Teenagers and other younger crowd drink for the first time and do not realise the amount they spend, there's a nightclub which I'm talking about allows underage crowd. That nightclub is namely tryst. this is one of the comments made by a person on tryst -
This comment demonstrates the guidelines and laws are not followed and this is increased in the consumption of alcohol among teens. This is a comment in one of folks who visited the club. Definitely not it is the clubs fault as people use fake I'd s to get into clubs. The clubs may be allowing younger people in to increase their revenue; this will cause some additional costs like paying the cops. .
Thus my hypothesis is proved that nightclubs have high barriers to entry.
My third hypothesis states that "Enforcement of the smoking ban in public areas like reduced negative externalities"
Negative externality is basically when the third party is influenced which is not involved, example smoking occurs between the smoker and the cigarette, and the 3rd party that is the passive smoker gets influenced by the smoker without the participation of the passive smoker. in this hypothesis I'm showing the way the ban on smoking has reduced negative externalities.
In my questionnaire I asked two questions relating to smoking
DOES THE BAN OF SMOKING IN NIGHT CLUBS CAUSE YOU INCONVIENCE? IF YES, HOW?
IF YOUR CAUGHT SMOKING IN THE NIGHT CLUB, WHAT HAPPENS?
In the age group 18-24, about 6 people out of 40 do not smoke, and in the age group 25-30 about 5 out of 30 do not smoke, these people said that these were happy smoking was banned in a public places especially nightclubs, as nightclubs are a closed area, most of the smoke does not venture out and these non-smokers get damaged passively. According to the Non-smokers they get more affected then the folks who are actually smoking, this is a successful fact; there is a report on
Surprisingly smokers also say that the law hasn't caused them inconvenience because regulations is not implemented properly, majority of the answers for the second question were 'they tell you to venture out and smoker' and 'they tell you to throw the cigarette'. smokers say these rules do not cause any inconvenience and after their told to throw an cigarette, they light another one. They haven't been charged or anything and so they do not fear to smoke again because they are not getting thrown out of the club for smoking.
These smokers and non-smokers even said that it's not only clubs, they smoke everywhere and nothing has happened to them, this just demonstrates the law was passed on paper and nothing's happening about it. Based on the cops the individuals should comprehend themselves by not smoking breaking the law.
Given that many smokers don't think twice about lighting cigarettes all across the City, the idea of the ban on smoking in public areas can really be questioned. The authorities may say that all is in order - but you may still find people smoking on the streets and open spaces like parks.
The commissioner of police (law and order), T Suneel Kumar, comments, "The smoking ban doesn't seem to be to be effective as the fine amounts that are imposed don't really affect anyone. People are not bothered. " He adds, "It can be made far better if the fine is increased and awareness is established. At college levels, awareness programmes and respect for the legislature and its own proceedings should be created. "
The fine charged for smoking in a public place should be raised which would make a difference. We can not say that the fine will stop the smoking in public places immediately, but it'll surely reduce the consumption of smoking in public areas.
Many countries on the planet have banned smoking in public areas like Australia, Belgium, Bermuda, Bhutan, British Virgin Islands, Canada, Cuba, Denmark (in April 2007), France, Hong Kong, Iceland (in June 2007), India, Iran, Ireland, Italy, Latvia, Lithuania, Malta, Malaysia, Montenegro, New Zealand, Norway, Puerto Rico (in March 2007), Singapore, South Africa, Sweden, Uganda, UK (in April 2007 in Wales and Northern Ireland and July 2007 in England), and Uruguay.
This shows smoking is very harmful to the environment and folks who smoke, nor smoke, the law is implemented properly in the other countries. Advertisement for smoking is banned so that folks do not indulge involved with it and on the cigarette boxes it is specified that 'smoking is harmful' and 'It causes cancer'. in movies if anyone is smoking it is said below in the subtitles that smoking is injurious to health. These are one of the items the government has enforced to lessen smoking. in India also these things are done, however the smoking does not stop because people do not need to.
Thus, my hypothesis is not proved as negative externality is not reduced.
DO YOU SMOKE?
ARE YOU ALERT TO THE BAN OF SMOKING IN PUBLIC AREAS AREAS?
DO YOU DRINK?
ARE YOU AWARE OF THE LEGAL DRINKING AGE?
DO YOU VISIT NIGHTCLUBS?
HOW OFTEN DOES ONE VISIT NIGHTCLUBS?
ONCE A WEEK
TWICE A WEEK
THRICE A WEEK
WHICH NIGHTCLUB DO YOU REALLY HEAD TO?
HOW WOULD YOU GET ENTRY IN THE NIGHT CLUB, WHEN THE LEGAL DRINKING AGE IS 25?
KNOW THE MANAGER
DOES THE BAN OF SMOKING IN DANCE CLUBS CAUSE YOU INCONVIENCE? IF YES, HOW?
IF YOUR CAUGHT SMOKING IN A NIGHT CLUB, WHAT GOES ON?
THE INCREASE IN THE LEGAL AGE TO DRINK CAUSES YOU INCONVIENCE? HOW?
DO YOU IMAGINE THE LEGAL AGE TO DRINK SHOULD HAVE DECREASED? WHY?
Has the ban on smoking in public areas and the raise in the legal drinking age stopped you from drinking and smoking or visiting nightclubs?
If yes, how will you manage to drink and smoke?
NAME OF NIGHT CLUB-
HAS THE LEGAL AGE TO DRINK REDUCED THE REVENUE OF THE NIGHT TIME CLUB?
HAS THE BAN ON SMOKING IN PUBLIC PLACES (NIGHT CLUB) CAUSED ONE TO OPEN A SMOKING SECTION?
IF THE BAN ON SMOKING OR THE UPSURGE IN THE LEGAL DRINKING AGE REDUCED YOUR REVENUE, HOW HAVE YOU OVERCOMED THIS PROBLEM TO ATTRACT CUSTOMERS?
DO YOU THINK THE LEGAL DRINKING AGE MUST HAVE DECREASED? WHY?
Do other nightclubs you know of, allow young crowd?
DO YOU ALLOW PEOPLE BELOW THE DRINKING AGE?(optional)
IF THESE FOLKS ARE ALLOWED ARE THEY SERVED ALCOHOL?(optional)
HAS YOUR NIGHT CLUB EVER BEEN RAIDED, IF YES? WHY?(optional)
DO YOU THINK NIGHTCLUBS HAVE HIGH BARRIERS TO ENTRY?