Parks and Trails
Lake State Examples - Other Examples         
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Lake States Examples:

Stynes, D. and Y.-Y. Sun. 2003. Impacts of Visitor Spending on Local Economy: Pictured Rocks National Lakeshore, 2001. East Lansing, MI: National Park Service, Department of Park, Recreation and Tourism Resources, Michigan State University. Web Link.

This study uses the National Park Service Money Generation Model - Version 2 (MGM2) to estimate the economic impact of visitors to the Pictured Rocks National Lakeshore on the local economy. In 2001 there were 421,000 recreation visits which resulted in expenditures of $14.8 million dollars in the local area (within 60 miles), $4.6 million in direct income and 426 jobs. The sales multiplier for Alger county is 1.24 which means that these expenditures generated an additional 44 jobs, about $979,000 in personal income and $1.8 million in expenditures as secondary impacts.

Stynes, D. and D. Propst. 2001. Money Generation Model - Version 2. East Lansing, MI: Department of Park and Recreation Resources, Michigan State University. Web Link.

Money Generation Model - Version 2 (MGM2) is a set of Microsoft Excel workbooks for estimating the economic impacts of National Park Service (NPS) visitor spending on a local region. MGM2 is an update of the NPS Money Generation Model as originally developed by Ken Hornback. Like the original MGM model, MGM2 estimates the impacts that park visitors have on the local economy in terms of their contribution to sales, income and jobs in the area. The Money Generation Model produces quantifiable measures of park economic benefits that can be used for planning, concessions management, budget justifications, policy analysis and marketing. Refinements to the MGM model make MGM2 more readily applicable to evaluating management, policy and marketing alternatives, both inside and outside the park. Economic impact information has proven quite helpful in fostering partnerships within the community and garnering support for park policies and interests. The economic analysis also helps to identify the roles the park, local community and tourism businesses play in attracting and serving visitors.

Stynes, D. 1998. State and Regional Economic Impacts of Michigan State Park Visitors. East Lansing, MI: Department of Park, Recreation & Tourism Resources, Michigan State University. Web Link.

This study estimates the the economic impact of visitors to the Michigan State Park system. Using a model with regional multipliers derived from IMPLAN the total economic impact of visitor spending is estimated at $118 million in direct income and $261 million in income when the multiplier effect is considered. Out-of-state park visitors account for approximately 34% of total spending generated by the park system which generated $44 million in direct income to the tourist industry and almost $100 million when multiplier effects are considered.

Leatherman, J. C. and D. W. Marcouiller. 1996. "Estimating Tourism's Share of Local Income From Secondary Data Sources." Review of Regional Studies 26(3):317-340.

This paper presents an alternative method for generating county-level estimates of employee compensation attributable to tourism based on secondary data sources. The procedure used principal components and cluster analyses to establish regions matched by tourism structure. The minimum requirements technique was then used to estimate the share of employee compensation attributable to non-local demand. The procedure was applied to Wisconsin counties to estimate tourism shares attributable to travelers and recreational homeowners. The principal components analysis showed Wisconsin tourism is driven by variable combinations of three components: urban tourism, outdoor-based activities, and natural parks/specialty tourism. Minimum requirements generated county-level estimates of non-local demand for disaggregated tourism-sensitive business sectors.

Schwecke, T. P., D. Sprehn, S. Hamilton and J. Gray. 1989. A Look at Visitors on Wisconsin's Elroy-Sparta Bike Trail. Madison, WI: Recreation Resources Center, University of Wisconsin-Extension.

The Elroy-Sparta bike trail provided one of the first examples of linear recreation trail development under what is now commonly referred to under the "rails to trails" initiative. This study presented a profile of trail users, their place of origin, and trip-related expenditures. This type of information was gathered and presented for organizations and businesses to promote the trail's use. Results suggest that users spent about $1,257,000 in the area with about half of them coming from out of state. The Chicago area represented the highest number of users.

Wisconsin Department of Natural Resources. 1988. Wisconsin State Parks -- User Data and Economic Impacts. Madison, WI: Wisconsin Department of Natural Resources.

This two-page information sheet provides information of the State Park system, its users, a visitor profile, and the economic impact of those visitor to the State's economy. This study found that direct and indirect spending of day users was estimated at $32.4 million and supported about 1,250 jobs.

Huberty, W. and R. Cooper. 1987. Feasibility Study for a Proposed Hostel and Bicycle Museum In Elroy, Wisconsin. Madison, WI: Recreation Resources Center, University of Wisconsin-Extension.

This feasibility study for a proposed hostel and bicycle museum in Elroy, Wisconsin used visitor profile information on the Elroy-Sparta bike trail. The study found that an estimated 53,600 people would use the trail in 1987. By studying costs and revenues, the study found that a hostel would be feasible. This study does not measure impacts directly.

Cooper, R. and D. Cangelosi. 1985. 1983 Summer Day User Survey. Madison, WI: Department of Natural Resources, Recreation Resources Center, University of Wisconsin-Extension.

The study collected information on visitors to state parks in Wisconsin to assist in future decisions about facility developments and improvements. Part of the study examined the economic impact of visitors within a 25 mile radius of the sampled parks. The study found the total direct spending was estimated at about $9.4 million with indirect spending amounting to an additional $30 million. In addition, about 1,200 jobs were supported.

Cooper, R., S. Sadowsek and M. Kantor. 1979. Winter Recreation Visitor Study Wisconsin 1979. Madison, WI: Upper Great Lakes Regional Commission.

The study collected information on visitors to state parks in Wisconsin to assist in future decisions about facility developments and improvements. Part of the study examined the economic impact of visitors within a 25 mile radius of the sampled parks. The study found the total direct spending was estimated at about $9.4 million with indirect spending amounting to an additional $30 million. In addition, about 1,200 jobs were supported.

Other Examples:

Lee, C.-K. and S.-Y. Han. 2002. "Estimating the Use and Preservation Values of National Parks' Tourism Resources Using a Contingent Valuation Method." Tourism Management 23:531-540.

The study uses the contingent valuation method, choosing it over the travel cost method for a number of reasons, to estimate the use and preservation (or non-use) values of natural and / or cultural resources in five Korean national parks. The use values ranged from $14.3 to $4.8 and the preservation values $13.5 to $10.6. The study found the further away the park was to the user the higher the use value while the closer the park was to the user the higher the preservation value. The study concludes that there is ample opportunity to increase the visitor fees at the Parks that currently are only $0.83.

Stynes, D. and Y.-Y. Sun. 2002. Economic Impacts of Selected National Parks; Update to Year 2001. East Lansing, MI: Department of Park, Recreation & Tourism Resources, Michigan State University. Web Link.

This study estimates the economic impact for thirty National Park Service (NPS) units using the Money Generation Model 2 (MGM2) model. The model estimates visits and spending within four NPS visitor segments: locals, non-local day trips, and overnight stays in motels or campgrounds. The model is based on visitor data from surveys and expert judgment of managers. Multipliers in the model were base on input-output models for regions around NPS units using the IMPLAN system.

Lee, C.-K. 1997. "Valuation of Nature-Based Tourism Resources Using Dichotomous Choice Contingent Valuation Method." Tourism Management 18(8):587-591.

The purpose of this paper is to measure the potential revenue from nature-based tourism resources in the environmentally sensitive area of Mt. Minju, South Korea. A dichotomous choice valuation method was employed to estimate mean willingness-to-pay, contingent on a hypothetical market scenario. The results who that the economic value of nature-based tourism resources was estimated at $7 per visitor. In addition to the value of natural resources, nature-based tourism also provides the locally owned small tourist businesses with lower leakages than the externally owned large-scale ones.

National Park Service. 1995. Economic Impact of Protecting Rivers, Trails and Greenway Corridors. Web Link.

This online resource book is designed for local professionals and citizens who want to use economic concepts as part of their effort to protect and promote greenways. The resource book provides examples of how greenways and parks have benefited local and regional economies, demonstrates how to determine the potential economic impacts of of river, trail, and greenway projects and suggests other sources of information.

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