AW and TU Give Economics Talk

On Sunday, May 22nd, American Whitewater’s Kevin Colburn and Trout Unlimited’s Mike Clark presented a talk on “Economics and Recreation” at the River Rally held in Keystone Colorado. The River Rally is a National gathering of organizations and agencies that focus on river issues.

The talk outlined results of recent studies of the economic benefits of paddling, angling, and other recreational activities and also offered communities suggestions on how to enhance the economic benefits of recreation in their community. Our talk was based on a strong theme of river stewardship and inspired a lively and diverse discussion by the attendees.

The five methods we suggested for improving the economic benefits of recreation were:

1. Protect the River (water quality and quantity, riparian areas, aquatic habitat, and biodiversity)
2. Provide Public Access (safe, legal, convenient, and environmentally responsible)
3. Provide Multiple Recreational Activities (hiking, biking, angling, boating, etc)
4. Enhance or Create Recreational Opportunities if Appropriate
5. Use Free Marketing (through recreational groups – encourage local spending!)

The premise of our talk was that:

Healthy Accessible Rivers lead to Enhanced Recreation

Enhanced Recreation leads to Economic Benefits

Economic Benefits lead to Healthier More Accessible Rivers – through reinvestment and collaboration with recreationists.

Our message to boaters is to SPEND RESPONSIBLY – support local businesses in the regions where you travel to paddle.

American Whitewater’s contribution to the session was based largely on our economics chapter of our forthcoming River Stewardship Tookit. A portion of this chapter is included below as a sneak preview!

RECREATION AND ECONOMICS

– An Exerpt from the American Whitewater River Stewardship Tookit –

Whitewater paddlers contribute a significant amount of money to local economies surrounding the rivers that they paddle. Through spending money on gas, food, lodging and other items paddlers provide revenue to rural communities. This side effect of whitewater recreation is typically welcomed in these communities and comes at a very low cost, since the towns do not need to market rivers, and since a moderate level of paddling requires little to no investment in infrastructure or services. American Whitewater often shares economic data with communities and managers when river access is either being proposed or challenged in an area, in an effort to show tangible benefits of supporting whitewater recreation.

Many rural communities are suffering economic woes because of shifting economic factors that drive industry, and because natural resource extraction has seldom been managed at a sustainable pace. Paddling represents one part of a changing economy in many mountain areas – a change from resource extraction and industrial economies to a tourism based economy. Oftentimes, paddlers visit areas overlooked by other groups, and in times of the year when other tourism is greatly reduced. These factors can make paddlers’ contribution to local economies even more important.

One of the best ways for paddlers to encourage river stewardship in the communities that we travel to is through their spending patterns. Paddlers can maximize their economic and social benefit to river communities through spending money in those communities, and specifically in locally owned businesses, rather than filling up gas tanks and buying meals in outlying areas. Spending money in these communities shows local residents a tangible economic benefit associated with river conservation and access, since paddlers prefer rivers that are legally accessible and that have good water quality and natural scenery. American Whitewater encourages all paddlers to have positive social, environmental, and economic effects wherever they travel.

Several studies have measured or predicted the economic impacts of whitewater recreation on local and regional economies. We have collected these studies and have summarized the findings, as well as provided direct links to these studies whenever possible. Most studies have mostly or completely overlooked private boaters in their study designs, however this does not indicate that private boaters do not have significant economic influences.

Studies of Economic Effects

In 2002 Charles Sims, a graduate student at the University of Tennessee, wrote an excellent summary of several peer reviewed journal articles focused on the economic impact of whitewater paddling. This article is highly recommended as a starting point for anyone interested in the topic. The findings of his summary are described in Table 5.4.1.

A more recent study than those listed in Table 5.4.1 once again estimated the economic impacts of boating on the Gauley and New rivers, as well as the Cheat River. The findings of this study, Whisman et al, 1996, are summarized in Table 5.4.2.

A recent in-depth study was carried out by NC State University (sponsored by and American Rivers and the US Park Service) found that in 2001 roughly 43,000 people visited the Chattooga River. Even in this low visitation drought year, the authors of the study found that boaters annually spent 1.8 million dollars in a 6 county area, resulting in a total economic benefit of roughly 2.7 million dollars. The full Chattooga Study is available online and is an excellent resource: http://www.americanrivers.org/site/DocServer/final_report_chattooga.pdf?docID=532

Predictive Economic Studies

In addition to these studies of actual spending patterns, several robust predictive studies have been carried out on regulated rivers prior to the restoration of flow. A 1997 US-Forest Service environmental impact statement regarding the Upper Ocoee River in Tennessee predicted that recreational releases would generate roughly $210,000 per day. American Whitewater and our partners were successful in 2004 in securing 54 annual releases on the Upper Ocoee which should result in an annual economic benefit of roughly $11,340,000. A similar Study carried out by the Licensee on the Cheoah River in western North Carolina predicted that each release would generate roughly $155,000 per day. While the actual number of recreational releases has yet to be determined, Table 5.4.3 shows the economic impact of a range of release numbers. Table 5.4.3 is based on the assumptions from the relicensing economic and recreation studies, specifically that an average day of releases would draw 576 commercial boaters spending $234.38 each, and 256 private boaters spending $79.84 each.

Whitewater Park Studies

Whitewater parks are increasingly being built in towns across the country. While use of these parks is consistent and the towns are generally pleased with the aesthetic and health benefits of the park, few studies have reported the economic impact of the parks. One example is the recent Golden Whitewater Park Study, focused on the Clear Creek Whitewater Park in Golden Colorado, which reported positive results. The authors found that the annual value of the Whitewater Park (based on boater spending) is between 1.4 and 2.0 million dollars per year. The authors also estimated significant future increases in that value.

Study Your River

Oftentimes economic arguments prevail. However, while the economic benefits of dams, pollution, or development are readily at available, sound economic data on the economic benefits of river conservation and access is seldom available. To help river stewards effectively make economic arguments, American Whitewater developed a Methodology for gathering and reporting the economic benefits of river conservation and access. This methodology was designed to be user friendly and scientifically robust. More often than not, the true value of healthy rivers far outweighs the value derived from allowing them to be impacted.

Additional Resources

For further information on the economic benefits of river stewardship we encourage those interested to view two annotated bibliographies. The first is a document published by the National Parks Service’s Rivers, Trails, and Conservation Assistance Program titled The Economic Benefits of Conserved Rivers: An Annotated Bibliography. The second such resource is another Annotated Bibliography that was generated by American Whitewater. This document focuses on economic research methodology, recreation, and hydroelectric projects. A related resource for learning about whitewater boating use levels and trends is the Outdoor Industry Association, who publish an Annual Participation Study addressing many forms of outdoor recreation.

State tourism departments have economic impact analysis of tourism related activity and in some cases have grants for tourism development projects. Such funds have been used to build river access areas, and may be available for whitewater park and greenway development. Regional economic development offices and state departments of commerce are also good recourses for finding out about local economies and the impact of recreation and tourism activity at a local or county level. These economic development entities sometimes support destination marketing organizations, which have been very active in the promotion of heritage tourism (including outdoor recreation and whitewater paddling). A good example of such an organization is North Carolina’s Advantage West.

We encourage individuals seeking to make an economic case for river stewardship to utilize these resources.