Course:ECON372/OK2019WT2/Topic17
Economics of Outdoor Recreation
Group #1
| Category | Mark | Comments |
|---|---|---|
| Article Source (10) | 0 | |
| Article Relevance (10) | 0 | |
| Summary (20) | 0 | |
| Course Related Analysis (30-50) | 0 | |
| Extended Analysis (0-20) | ||
| Presentation (10) | 0 | |
| Total | 0 |
Group #2
https://globalnews.ca/news/5423926/mount-everest-trash/
Summary:
The tallest and one of the most renowned mountains, the Everest, is facing a serious congestion problem. Mountain climbers, an extreme subset of outdoor recreationists, are leaving poop and various other trash on the mountains. They do this by defecating in open toilets instead of biodegradable bags, and not bringing their stuff during the descend due to attitude sickness and/or irresponsibility. As well as overcrowding the summit during the climbing season, they contaminate the surroundings, with wastes leaking down to base camps and the communities under the mountain. This safety hazard also reaches out to future climbers, as climate change will accelerate glaciers melting and waste diffusions. Furthermore, efforts to carry leftover tents and human defecation down the slope is inefficient, costly, and risky for the local porters. The article delineates three problems - the lack of regulation for disposure of waste, the relatively low cost of accessing the mountain (around $30000 for a pass), and the irresponsibility of some climbers, as the reasons to this resource overuse failure. The government of Nepal, who were under scrutiny, are in talks to impose some solutions, such as tagging climbers' equipment and charging them a deposit fee.
Analysis:
Everest had become a classic problem of open access resource depletion. With an extra mountaineer congesting the mountain, the marginal, and hence total, willingness to pay to climb the Everest, dips in the form of increased congestion costs. A fall in total social benefit occurred, and was further exacerbated by the mountaineers being irresponsible and deteriorating the passive benefits of the Everest's scenery by pooping in open air. In the four ways of rationing use for an outdoor recreational resource, an entry price was tried in form of permit fees and expedition payments, but none of this was enough to address the waste removal schemes. Furthermore, this open-use access problem also creates negative externalities to locals, whose water supply come directly from the increasingly contaminated mountain. The socially efficient visitation rate of the Everest should be much lower than the 700 people this season as a compounding result of the above effects.
It is suggested (by me) that the Nepalese government should impose more regulations to reach the socially efficient visitation rate, and therefore promote sustainable ecotourism that would maximize benefits in the long run. First, increasing the price would deter some climbers, as their willingness to pay is now below their costs, rendering net benefit negative or at least less than climbing other mountains. Second, imposing a quota is necessary. The quota can be tied to certain maximum capacity of the Everest, and with it policy makers can more easily estimate the cost of waste removal for a fixed number of people. Lastly, besides tagging equipment, the government can develop their own system of scanning and tagging of every personal items, so actions like ripping logos off tents to avoid litigation would happen less. An extra fee charged for every item lost could deter unskilled climbers, and bring in a better, more responsible group. Together, the new stream of revenue can be used to sustain the quality of the park, its nearby dependant communities, and maximize, at least, the Nepalese benefits on their sacred peaks.
| Category | Mark | Comments |
|---|---|---|
| Article Source (10) | 10 | |
| Article Relevance (10) | 10 | |
| Summary (20) | 20 | |
| Course Related Analysis (30-50) | 45 | I expect that the efficient number of climbers is lower. However, if the benefits to Nepal as a whole - foreign currency - are greater than the cost for the marginal climber, then it isn't efficient. You can charge a low admission fee to a park, and ask people to clean up after themselves, or you can charge a high fee and use the funds to pay for a cleaning staff. |
| Extended Analysis (0-20) | ||
| Presentation (10) | 10 | |
| Total | 95 |
Group #3
Summary:
As Canada celebrates its 150th anniversary, the discovery passes were free for everyone in 2017. Due to free national park passes, the number of visitors to Elk Island Park is increase by 20% compared to the previous year. The unknown Elk Island became widely know now. However, the sudden increase in tourists has put pressure on the park's camping sites. People had to book a place in advance, but it is obvious that Elk Island Park was in short supply on weekends and was more abundant on weekends. Park officials look forward to an increase in tourists from July to August, and they were very happy about this rising number of visitors because they can serve more people and the popularity of Elk Island was gradually increasing. Tathum mentioned that "Elk Island" is such a unique place, with a long history and bison protection. This is a way for Canadians to connect with Parks Canada and everything it can provide" (CBC, 2017).
Analysis:
EIk Island park provides lots of outdoor activities, such as walking, hiking, skating and camping. Elk Island park is a public recreational area that is charged and managed by the government, and its fees are divided into admission fee and other activities fees for using facilities. Admission fee may restrict a certain number of people to enter the park and provides the largest net profit for the users. However, people can enter various national parks without paying any fee due to free national park passes in 2017. Therefore, demand of visiting parks had increased dramatically, but supply of parks remained at the same level. The total revenue had fallen again because of the loss of main revenue from the admission fee. Free using of national parks was benefits for visitors, but it will greatly reduce government revenue. With less revenues, the government may reduce the funds for the future expansion of national parks that reduce the net benefits for future users. On the other hand, free entry has attracted many new tourists to Elk Island park, which has made Elk park more famous and increased the potential future users, which would rise future total revenue. Park officials may need to effectively establish increased management requirements in the future due to increasing number of users.
| Category | Mark | Comments |
|---|---|---|
| Article Source (10) | 10 | |
| Article Relevance (10) | 10 | |
| Summary (20) | 18 | |
| Course Related Analysis (30-50) | 30 | Capacity is an issue. Weekends are full while midweek is not. Entering park is free, while staying at a campground still costs. Part of management could be different camping charges for weekend and midweek. Chapter also talks about distributional impacts of rationing by price compared to other means. |
| Extended Analysis (0-20) | ||
| Presentation (10) | 10 | |
| Total | 78 |
Group #4
https://theprovince.com/news/local-news/gridlock-frayed-tempers-common-as-people-flock-to-deep-coves-popular-quarry-rock-trail/wcm/0c12ac66-9426-4ea2-9b60-b21660fec9af
Summary
Deep Cove is one of the most popular parks in Vancouver for visitors all around the world. However, due to the large amount of foot traffic and its popularity, the local government had to introduce a strict parking and hiking restriction. Similar patterns have been occurring in other Vancouver hot-spots as well including Belcarra Regional Park. These recreational areas are usually full by 9:30 on a good day and it speaks volume to the growing popularity of outdoor recreational activities. To meet the demand the city, McEwen, the mayor of Anmore and the head of Metro Vancouver regional parks is asking for the region to buy more land for parks. In addition the city should better its transportation services into the recreational areas.
In the case for the Deep Cove, the area was not orginally intended for a tourism hot spot, instead it was dedicated as a local community resource. However, in the past few years there has seen much gridlock, frayed tempers and damages to the roads due to the traffic leading up to the path. To combat this and to preserve the integrity of the surrounding environment, parking was limited specific areas and the time allotted for park was limited to just 3 hours. Even for those that were lucky enough to find a parking spot still had to wait at the top of the peak before they get the chance to start their like. The district had placed a limit of 70 people at a time and park rangers are posted in the area to take a head count of the foot traffic.
Although visitors may see the restrictions as a major hindrance, the locals are supportive of the restrictions. Despite this, the area is still very popular and flooded with visitors. Officials are considering installing a pay to park system as an answer.
Analysis
Relating to this chapter and earlier chapters on access to nature and willingness to pay, this article demonstrates the concept in practice. One of the opportunity costs for developing the land for tourism is the environmental degradation and the externalities that the tourism may bring in. On the other hand the opportunity cost for preservation is the money from tourism it may bring to the cities and its local shop owners, so finding a balance where the tourism industry flourishes while still preserving the nature of the area is tricky but necessary. One of the things talked about in the article is the introduction of a pay to park system, this keeps parks as a public good (open and free for everyone) but still provide a source of money for the parks to pay for the negative externalities. In addition, this may limit/ discourage those that have a low willingness to pay from coming to the parks and prevents the free riding that would occur in a donation system. Another solution could be through an introduction of a system that distributes the right to access the area by lottery. Those that are given access can also sell their access rights to other people creating an external market. If done correctly, this system can create the most amount of economic efficiency by producing the highest possible net benefit for the tourists, parks and the locals.
That being said, there already has been a number of restrictions on the access to the area and public encouragement to visit other areas. Despite this, the number of visitors in the area has not reduced, and since other recreation zones have seen similar patterns, the evidence point towards that there is a lack of sufficient recreation areas. When demand far out weighs the number of available parks, having a pay system for access will do little in reducing the number of people. As the article has already addressed, another solution would be to build more recreational parks to meet the ever growing demand for outdoor activities. To support the case that outdoor activities are becoming more prevalent in Canadian lives, there are other articles/examples that speak to the growing frustration at the lack of available accommodations (https://theprovince.com/news/b.c./unhappy-bc-campers-roast-reservation-system-not-marshmallows/wcm/e5e40f30-2d2d-4961-aed5-856ebb03b93a). It seems that campers and camp sites are seeing similar issues of over use and lack of camp sites.
| Category | Mark | Comments |
|---|---|---|
| Article Source (10) | 10 | |
| Article Relevance (10) | 10 | |
| Summary (20) | 20 | |
| Course Related Analysis (30-50) | 48 | The various restrictions in effect are a cost of entry. |
| Extended Analysis (0-20) | ||
| Presentation (10) | 10 | |
| Total | 98 |
Group #5
https://www.americanprogress.org/issues/green/reports/2019/09/10/474256/vast-liquidation-public-lands-underway-alaska/
Summary:
Since the 19th century, the Trump administration is on the lead of the most massive liquidations of America's public lands. This has seen over 28.3 million acres of land being at risk because of the initiative to expand Alaska's economy. However, this is receiving setbacks because it is coming up at a time when these exploited lands in Alaska are acting as a protector for climate change and are preventing natural area loss. This initiative by Trump's government could cause serious problems, for example, damage of habitat for most animals in the forests. Also, Arctic National Wildlife and Tongass National Forest could be affected by this liquidation. This could even worsen the state's budget, which only depends on oil drilling for its revenue.
The liquidation of public lands in Alaska could cause way more significant problems to the state. Much of the Alaska state is covered by forests, which helps to fight climate change and the natural area loss. There are various areas in Alaska which could suffer the repercussions of this liquidation. Some of the cases raising issues as a result of the liquidation in Alaska is the transfer of 20,000 acres of land situated in the refuge to the state of Alaska for oil drilling. This has caused disputes as the Department of the Interior (DOI) has indicated that fishing activities extend to this river. Also, 448,000 acres of land could be at risk because the provision aims to transform these lands to private areas or sell them for oil and gas extraction. Pebble mines estimated at 8,000 acres are at risk of being converted to open-pit mining. This could see a decrease in employment because this land initially provided more than 4,000 jobs each year. Other areas which are at risk of the liquidation include the Izembek National Wildlife Refuge and the Bering Sea-Western Interior region estimated at 1.8 million acres. In conclusion, the settlement of public lands in Alaska is against the will of the state and could lead to degradation of the state's economy.
Analysis:
The article that directly relates to Chapter 17: Economics of Outdoor Recreation of the course material was published by American-Progress online news article on September 10, 2019. The article was written by Rowland-Shea et al. and is titled “A Vast Liquidation of Public Lands Is Underway in Alaska”. In the article, the authors discuss how the act by the Trump administration to hugely liquidate the America’s public lands in Alaska will have a devastating environmental and economic toll on the region and the economy at large. In the article, Rowland-Shea et al. (2019) state that the liquidations are the largest ever since the 19th century and are being done in secret, and if fully implemented, they would lead to the transfer, private exploitation, or sale of more than 28 million acres of public lands located in Alaska. The reason behind the selection of this article for discussion under Chapter 17 is that the affected region is Alaska, which falls right into the area covered in the course material within North America and Canada, and most importantly, because the authors discuss how the liquidation process will affect outdoor recreation. To be precise, some of the leading impacts that are highlighted pertaining the action taken by Trump’s administration include the loss of subsistence hunting by the Native communities living in Alaska and destruction of the polar bears, both of which are great tourist attraction elements in the region as they draw people to come and share that nature’s beauty. Additionally, important outdoor recreation events supported by the region, such as salmon spawning streams will also be adversely impacted by the move as the millions of acres in Arctic National Wildlife Refuge and the Tongass National Forest get sold out or transferred to private ownership. Such actions as well as degradation of the environment have been accurately cited by the course material as some of the leading factors that cause a decline in outdoor recreation trends.
| Category | Mark | Comments |
|---|---|---|
| Article Source (10) | 10 | |
| Article Relevance (10) | 7 | Better fit with biodiversity than with recreation. |
| Summary (20) | 14 | |
| Course Related Analysis (30-50) | 20 | More of a summary with some reference to the tax. Is the liquidation efficient? It is possible to have too much protected land, if the net benefit generated from the land when it is in private hands is greater than when it is in public hands. What would it take to tip the balance one way or the other? |
| Extended Analysis (0-20) | ||
| Presentation (10) | 6 | |
| Total | 57 |
Group #6
https://www.marketwatch.com/story/outdoor-recreation-is-a-more-than-400-billion-industry-2018-09-21
Summary:
This article explores outdoor sports as an industry worth more than $ 400 billion. According to the latest government report, the outdoor leisure industry ’s economic activity is estimated to be $ 40 billion more than previously estimated, for a total of $ 412 billion. The BEA report also shows that outdoor recreation accounted for 2.2% of GDP in 2016. The overall economic growth of the United States in 2016 was 1.6%, while the outdoor leisure economic growth rate was 1.7%. To ensure the accuracy of the BEA report, the Bureau revised the original report. The latest report takes into account any spending on outdoor leisure travel. In the latest report, the salary growth rate of the outdoor leisure economy was 4.3%, with boating and fishing accounting for the largest proportion of real income. So Jessica Wall, the director of government affairs for the Outdoor Industries Association, believes that outdoor leisure economic data is essential for people considering their profession.
Analysis:
Since the Outdoor Industry Association first completed its research on the US outdoor leisure industry in 2006, the US outdoor industry has undergone tremendous changes. The recession has changed consumer spending habits completely, and the unemployment rate leading its highest level in decades. The core of the outdoor leisure economy is the outdoor consumer, and their rich hobbies promote the industry to flourish. Today's outdoor enthusiasts can no longer define by traditional demographics or activity categories. They may have fun outdoor activities nearby or in remote areas. Now, outdoor sports are so important and become one of the mainstay industries in the United States.
Supporting the outdoor leisure economy in the United States is abundant in public leisure places and waters. Open spaces and leisure areas are the main factors driving amateur activities and attracting tourists. Most importantly, if U.S. Parks, waters, and roads are integrated into the national outdoor recreation system for management and investment for economic benefits. The outdoor leisure economy will continue to increase employment and promote the economic development of the entire country. The continued growth and success of the US outdoor leisure industry depend on the outdoor leisure opportunities available to everyone.
| Category | Mark | Comments |
|---|---|---|
| Article Source (10) | 10 | |
| Article Relevance (10) | 10 | |
| Summary (20) | 20 | |
| Course Related Analysis (30-50) | 15 | No real use of class concepts. Basically recap of summary. What value does this information have? Career choice for sure. Expenditures on parks, etc. where outdoor recreation takes place? What does growing demand mean in terms of the efficient provision of areas for outdoor recreation? |
| Extended Analysis (0-20) | ||
| Presentation (10) | 9 | |
| Total | 64 |
Group #7
Summary:
This article by The Economist examines the changes that negatively impact winter sports: climate change and demographic change. It details the drastic loss of glacier ice, threatening the future of summer skiing high in the mountains. Although human induced global warming has had global repercussion, its effect in the Alps has been greater than in most other places. One study mentioned in the article examined former cities that have hosted the Winter Olympics. The study found that only 13 of the 21 cities look certain to be cold enough to host snow-sport in the 2050s. Besides the threat of climate change to winter-sports, the more immediate danger to the industry is that skiing and snowboarding have peaked in popularity in the rich world. It seems that ageing skiers and snowboarders are gradually giving up the sport with less young people picking it up. The article describes that recreational winter-sports as an industry only started expanding in the 1960s. This expansion took place in decades of abundant snow, but the long-term trends are sobering. Nowadays snow-making machines are widely used at ski resorts around the world, which use large amounts of fresh water and electricity. An expert quoted in the article says that this strategy of prolonging winter seasons in resorts is costly and environmentally damaging. The example of Beijing's 2022 Olympics is made, which will be covered entirely by artificial snow.
Analysis:
This article touches on several different topics covered in Chapter 17 about the Economics of Outdoor Recreation: The demand for outdoor recreation, by touching on a reduction in the number of skiers and snowboarders at resorts; as well as the biological impacts of the winter sports. Something that the article does not touch is issue of pricing to cover fixed operating costs of winter sports resorts. Many ski resorts around the world do not only face issues of warm winters and decreasing winter sports enthusiasts, but also issues of economic sustainability due to high operating costs.
| Category | Mark | Comments |
|---|---|---|
| Article Source (10) | 10 | |
| Article Relevance (10) | 10 | |
| Summary (20) | 20 | |
| Course Related Analysis (30-50) | 15 | Yes, it connects to the chapter. How can the issue be represented using our tools? Climate change is increasing the cost of providing skiing, by requiring snow making. Demographics means the demand is shrinking. The net result is a reduction in the number of ski days demanded. How is this accomplished? Some resorts, those that cannot provide a long season, are shutting down. The demand is also changing from a family day out, to a luxury outing for the wealthy elderly. |
| Extended Analysis (0-20) | ||
| Presentation (10) | 8 | |
| Total | 63 |
Group #8
https://www.stalberttoday.ca/beyond-local/banff-grappling-with-high-visitation-2111541
Summary:
This article written by Cathy Ellis talks about the number of visitors entering Banff national park and whether they should limit the number of visitors allowed at a time. The article talks about how this could benefit the park and how with less visitors they are able to maintain the park better. With less people there is less disturbance to the wildlife and less wildlife related incidents. With the average amount of people currently going into the park each year totaling over 4 million it is something that we need think about. With the increasing number of visitors in the park people are complaining due to overcrowding and traffic. There are some efforts to help with these issues by having tour busses bring people between Banff and other scenic areas such as Lake Louise. The CEO of Banff Lake Louise tourism said that people tend to jump right to issues with the number of people but not look at other possible solutions. Bow Valley Naturalists have a different view than the CEO of Banff Lake Louise Tourism as they argue the increased visitation causes direct and indirect ecological impacts. Bow Valley Naturalists list reasons throughout the article why visitor management needs to move beyond managing the symptoms of overcrowding by limiting visitors.
Analysis:
This article contains many good examples of content learned throughout the course material in chapter 17 Economics of Outdoor Recreation. This article also has many things that relate to the chapter. The chapter talks about efficient visitation rates and the impacts they have. Within this topic overcrowding is mentioned which directly relates to the troubles Banff is having. The increased presence of visitors reduces the visitor’s quality of experience and over crowds the area. This is the last thing Banff wants as it is a world heritage site and wants to maintain its prestigiousness and remain a relaxing place for outdoor recreation and sight-seeing. The article talks about numerous tactics for managing high visitation levels such as a reservation system and differential fee structures. A reservation system is a method of rationing that makes sure the system is fair and everyone has an equal opportunity at visiting the park without overcrowding it which is exactly what the chapter talks about. The chapter also goes into detail about differential pricing and many different methods that can be used. Although the article doesn’t specify what type of differential pricing they might be looking to implement. Peak load pricing seems to make the most sense as in the article Cathy mentioned more visitors come to the park in the summer.
| Category | Mark | Comments |
|---|---|---|
| Article Source (10) | 10 | |
| Article Relevance (10) | 10 | |
| Summary (20) | 17 | |
| Course Related Analysis (30-50) | 47 | There is also mention of shifting demand to the shoulder seasons. Peak load pricing would have this effect. |
| Extended Analysis (0-20) | ||
| Presentation (10) | 9 | |
| Total | 93 |