Economic Benefits of Protected Areas - CPAWScpaws.org/...economic-benefits-of-protected-areas.pdf · Economic Diversification Protection and Preservation of Community and Tourism

PROTECTED AREAS

BENEFITS of

ECONOMIC

by justinthompson & juripeepre

canadian parks andwilderness society

cpaws-yukonbox 31095,whitehorse

yukon, Y1A 5P7p:867.393.8080f:867.393.8081

e:[email protected]

CPAWS-Yukon thanks the following organizations for their support of this reportand other northern conservation projects:

The Pew Charitable TrustsWalter and Duncan Gordon FoundationWorld Wildlife Fund Canada

The opinions and recommendationsexpressed in this report are those of theauthors and may not reflect the views of supporting organizations.

acknowledgements

photo: marten berkman

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Executive Summary

Economic and Demographic Trends

Economic Benefits of Protected Areas

Economic Benefits of a completed Protected Areas Network in Canada’s North

Recommendations

Introduction

Economic and Demographic Trends Support Protected AresCreation

Nature Related Tourism Leads Growth Opportunities

Entrepreneurs and Retirees Choosing to Live Near Scenery and Wildlife


Visitor Spending

Job Creation

The Impact of Land Claims

Government Spending and Revenues

Non-government Organizations

Benefits of a Completed Parks System in Canada’s North

Community and Regional Development

Economic Diversification

Protection and Preservation of Community and Tourism Assets

Marketing the North’s Natural Attractions

Conclusion and Policy Implications

Other Readings

table of contents

photo: juri peepre

Protected

areas fit well

with northern

life styles,

quality of

life

expectations,

the desire to

pursue

subsistence

harvest of

wild species,

and

opportunities

for community

development,

created

through land

claims

agreements.

page 3

executivesummary

This report contains compelling evidence that thecompletion of a protected areas network in westernCanada’s north would have significant economic and socialbenefits for northern communities. Due to abundantwilderness and intact watersheds, the report shows thatcommunities in Canada’s north are well positioned to takeadvantage of economic and demographic trends that areplacing increased value on regions with a healthyenvironment and access to natural attractions. It alsohighlights why the creation of protected areas represents animportant economic opportunity, specifically for northerncommunities, due to the nature of the economic benefitsthat occur.

Protected areas fit well with northern life styles, quality oflife expectations, the desire to pursue subsistence harvestof wild species, and opportunities for communitydevelopment, created through land claims agreements.Protected areas are also compatible with a mixed economydependent on a variety of renewable and non-renewableresource industries, and tourism. Conservation is a key partof any sustainable economy.

economic benefits of protected areas

THE CASE FOR COMPLETION OFA PROTECTED AREAS NETWORKIN NORTHWESTERN CANADA

Economic and

demographic

trends across

North America

and inter-

nationally

are showing

that regions

with a

healthy

environment

and access to

natural

attractions

are

increasingly

in demand.

Economic and Demographic Trends

Completion of land claims agreements in the North meansthat First Nations and communities now haveunprecedented opportunities to participate in and managethe development of diverse local and regional economies.

Conservation and protected areas provide new alternativesin economic development. They also create reasons foreducation and training in areas related to conservation andtourism services. These opportunities will allow more peopleto stay in communities to pursue their chosen careers.

Economic and demographic trends across North Americaand internationally are showing that regions, with a healthyenvironment and access to natural attractions, areincreasingly in demand. There are two major factors drivingthis demand: 1) impressive growth in nature related tourism,and 2) a dramatic increase in people who are moving toand investing in areas with a clean environment andoutdoor recreation opportunities.


The economic impact and value of protected areas havebeen described in a broad range of research reports overthe past two decades. We recognize, however, that the corereasons for establishing protected areas are usually notbased on economics. Maintenance of ecological integrity,conservation of wildlife habitat and species, or spiritual andcultural values are often the dominant reasons forestablishing protected areas.

This report focuses on the following three tangible, market-based, economic benefits associated with protected areas:visitor spending, job creation, and government spendingand revenues. Visitor spending on nature related activitiesrepresents a large potential export market for northernCanada. In addition, several examples demonstrate thatgovernment spending on parks is an excellent way toleverage significant amounts of private spending in the

executive summary (continued)

page 4

This report

focuses on

the following

three

tangible,

market-based,

economic

benefits

associated

with

protected

areas:

visitor

spending, job

creation, and

government

spending and

revenues.

economy. The report also shows that protected areas havethe potential to generate substantial employment across abroad range of skill levels. Finally, government investment inprotected areas can have considerable effects on theeconomy, in turn resulting in increased government taxrevenues.

Economic Benefits of a Completed ProtectedAreas Network in Canada’s North

A completed protected areas network would be particularlyvaluable to the economies of the Yukon and NWT forseveral reasons.

First, protected areas provide an opportunity for regionaleconomic development where many of the benefits have thepotential to stay within rural communities.

Second, they are a good way to help diversify northerneconomies and decrease the impacts of the boom and bustcycles caused by resource extraction industries.

Third, protected areas protect and preserve tourism assets,ensuring the long-term viability of this growing industry.Protected areas will help the North in its efforts to market itsnatural attractions by providing prospective residents andvisitors with a tangible product and access to naturalattractions. And finally, protected areas will support well-established subsistence economies and traditional life stylesof the North.

executive summary (continued)

page 5

We recommend that the Government of Yukon, incooperation with the federal government, First Nations,communities, business and public interest organizations:

• Build and diversify the Yukon’s economy by completingand investing in a network of protected areas in the Yukon;using the Yukon Protected Areas Strategy, First NationsFinal Agreements, and the provisions of the National ParksAct, Yukon Wildlife Act and Yukon Environment Act.

• Reduce the economic uncertainty for resource industries,and increase the certainty for tourism operators, bycompleting the protected areas network within 6 years;continue to support the completion of land use plans.

• Invest in research, education, training, business incentivesand infrastructure related to implementing and managing anetwork of protected areas.

• Assess the opportunities to designate protected areasadjacent to Yukon highways, and further, consider thebenefits of protected areas as an integral part of travelcircle routes.

• Provide support and incentives to communities and FirstNations to identify and designate protected area candidatesand assist in developing ways to generate local economicbenefits from these protected areas.

• Use protected areas as a foundation for marketing theYukon’s wilderness in a way that is consistent withmaintaining the ecological integrity of the protected areas,and is supportive of each community’s approach to tourism.

• Complete further research on the economic impacts ofprotected areas, and include the economics of conservationin departmental policies on economic development.

• Fulfill the federal government’s land management andconservation obligations by investing in the completion of aprotected areas network.

recommendations

page 6


• Commit to the identification and designation of a protectedareas network in advance of, or at the same time as,resource dispositions for large-scale timber harvest, mine,oil and gas, and pipeline development.

• Recognize the proven value of Justice Berger’s pioneeringrecommendations on the MacKenzie Valley Pipeline inquiryby completing the protected areas network at the same timeas pipeline routes are being assessed, planned ordeveloped; if a pipeline is developed, capitalize on theopportunity to ensure that conservation areas are put inplace.

• Invest in a territorial Conservation Trust Fund tosupplement existing departmental budgets used toimplement the Yukon Protected Areas Strategy. Use thetrust fund to help assess, establish and operate territorialprotected areas. Use a portion of new tax revenues androyalties from resource development projects, matched bycontributions from industry, to create and maintain the fund.

recommendations (continued)

page 7

photo: ken madsen

Reasons forProtectedAreas• protect the varietyof life –“biologicaldiversity”

• help maintain theecological integrity ofecosystems

• save our natural andcultural heritage, andour ability tounderstand ourselves

• protect sacredplaces, places withspiritual value

• recognize wildernessas the raw material forartists, writers andother foundations ofculture

• protect nature’sgreat works of art –the beauty of the land

• all life has a rightto exist, protectingwild species inprotected areas respectsthis intrinsic value

• provide research andeducation opportunities- with knowledge comesunderstanding, withunderstanding comesappreciation, withappreciation comesconservation

Protecting wilderness results in tangible and significanteconomic benefits for local communities and regions, aswell as Canadians in general. Job creation, increasedspending in local economies, and increased governmentrevenues can all occur as a result of protected areas. Thesebenefits are in addition to the underlying economic value ofa broad range of ecological services from protected areas,such as clean water and air, health benefits from outdoorrecreation, or the harvest of wild plants and animals.

Society also places a high intrinsic and spiritual value onthe protection of nature. These values may be outside therealm of conventional economics, but are important to socialwell-being. Some economists have tried to assess non-market benefits of wilderness, for example through“willingness to pay” models, or the bequest value ofprotected areas. These measures consistently show that thefull economic value of protected areas is far greater thanthe direct economic impacts of job creation or increasedspending

The reasons for creating protected areas in Canada haveevolved over time. In the late 19th and early 20th centurywe preserved the “wonders of nature” and providedopportunities for outdoor recreation. Today, we focus on theconservation of biodiversity and the maintenance ofecological integrity. Spiritual, cultural, intrinsic, andaesthetic reasons for conservation remain very important,but our emphasis has shifted in response to dwindlingwildlands worldwide.

The recent Yukon and Northwest Territories protected areastrategies are both effective tools for implementing anetwork of protected areas. These policies are consistentwith existing and proposed land claim agreements – andthey are recognized across Canada for their progressiveapproach to conservation and community involvement.

Protected areas in Canada have often had an economicdimension, for example as tourism destinations or

introduction

page 8

More reasonsfor protectedareas

• provide anopportunity fortraditional knowledgeto flourish throughuse and appreciationof protected areas

• keep examples ofnature intact asscientific benchmarks

• provide forrecreation andrelated healthbenefits

• protect ecologicalservices such aswetlands, intactwatersheds, cleanair, wild foods,medicines

• create economicopportunities andjobs throughmanagement, researchand services

• keep our futureoptions open

instruments of regional economic development. Still, parkestablishment has sometimes been constrained by aperception that the potential economic value is less thancompeting land use options, such as resource extraction.New approaches to economic assessment are showing thatprotected areas should be given equal or even greaterconsideration next to resource extraction when evaluatingways to generate economic activity and create sustainablecommunities. For example, if resource development projectswere subjected to a full life-cycle assessment, the additionalcosts, such as decommissioning, reclamation, andmitigation of long-term environmental or social impacts,would present a more complete picture of public investmentand liability.

In the early 1970s through the first half of the 1980s,expectations for public funding of parks were high, with thepotential for long term community benefits. With decliningpublic investment in park establishment and managementacross Canada during the last decade, the promisedeconomic benefits of some parks have not materialized asexpected. For example, Parks Canada’s budget in theYukon, the annual federal expenditure has fallen from about$10 million to $7 million, a reduction of 30% that has meantfewer opportunities for employment and related parkservices.

Economic trends indicate that in the last few decadesindustries and investment associated with wilderness areasare growing dramatically while most resource extractionindustries have been stable or in decline. This represents asignificant opportunity for northern communities due to theirabundant wilderness. In fact, as wilderness continues todisappear around the globe at an alarming rate, the wildcharacter of Canada’s north is rapidly becoming one of itsgreatest economic assets.

This report is not an economic analysis. The purpose of thereport is to provide a synthesis of the most recentinformation relating to the economic benefits of protected

introduction (continued)

page 9

EcologicalServices andthe EconomyHealthy ecosystemsprovide a completelife support systemfor all species,including humans. Thislife support systemprovides numerous“ecological services”that make lifepossible and give itmeaning.Ecologicalservices also haveindirect economicvalue for communities.For example, a healthywetlands system caneliminate the need fora costly waterfiltration plant.Theopportunity to hunt,fish or recreate inwild places can alsoprovide healthbenefits and these canbe linked to reducedhealth carecosts.Country foodalso offsets the costof purchasing importedfood.In the North:

• The air we breatheis filtered andoxygenated by theplants of the borealforest.

• Wetlands and intactwatersheds purify thewater we drink.

areas. In particular, the report highlights the importantimplications this information will have for northerncommunities.

The report focuses on three key areas:

• Economic + demographic trends relating to protected areas

• Economic benefits of protected areas

• Economic implications of a completed protected areassystem in Canada’s north

This report will look specifically at examples of tangible,market benefits associated with protected areas. Theseinclude visitor spending, employment creation, andgovernment expenditures and revenues. As outlined earlier,there are many other benefits from protecting wilderness,including wildlife conservation for subsistence harvest, andthe social benefits of recreation. These benefits, althoughrecognized as having great value, are often difficult toquantify and will not be the main focus of this report.

introduction (continued)

page 10

photo: courtesy of pcmb


Ecologicalservices andthe economy(continued)

• Floods, droughts,and fires aremitigated by intactecosystems.

• The climate istempered & madelivable by theeffects of intactregional ecosystems.

• Pollination ofbeneficial plantsand dispersal ofseeds is assured.

• Beneficialbyproducts areprovided, such asanti-toxins,nutrients, andtraditionalmedicines.

• A wild, healthygenetic pool ofplants and animalsis maintained inhealthy ecosystems.

Undisturbed naturalbeauty providesspiritual,intellectual andrecreation benefits.

Economic and demographic trends across North Americaare indicating that regions with a healthy environment andaccess to natural attractions are increasingly in demand.

These trends are the result of a better public understandingof the importance of a healthy environment, a growing partof the work force that can locate anywhere in the world, andan aging population that is spending more of their moneyon travel and recreation.

Communities that are protecting their wilderness values arecapitalizing on these trends and creating sustainable andstable economic activity.

Protection of natural areas and provision of infrastructure sothat people can experience these areas, will be critical toattracting business and investment to northerncommunities.

Nature Related Tourism Leads GrowthOpportunities

A recent study commissioned by the Canadian TourismCommission found that Canada’s tourism industry isoutpacing the overall economy and generating jobs at twicethe pace of other businesses.

More importantly, the study found that the fastest growingsector within the tourism industry was adventure travel andeco-tourism. This is consistent with recent job creationfigures for British Columbia’s tourism sector.

economic anddemographictrends supportprotected areascreation

page 11

Althoughrecentbooms innature-relatedtourismand otherservicesectorsare mostnoticeablein thesouth,they arerapidlymakingtheir waynorth.

trends (continued)

page 12

The BC workforce and tourism-related employment, 1984-1995 (‘000s of persons)

BC WorkforceTourism-Related

Year employment growth employment growth % of BC workforce

1984 1,262.7 146.9 11.6%

1985 1,296.9 2.7% 156. 4 6 .5% 12.1%

1986 1,353.8 4.4% 171. 1 9 .4% 12.6%

1987 1,390.5 2.7% 176. 2 3 .0% 12.7%

1988 1,444.3 3.9% 165. 7 --6.0% 11.5%

1989 1,523.7 5.5% 186.9 12.8% 12.3%

1990 1,561.5 2.5% 196. 5 5 .1% 12.6%

1991 1,585.2 1.5% 200. 6 2 .1% 12.7%

1992 1,619.3 2.2% 203. 0 1 .2% 12.5%

1993 1,665.9 2.9% 192. 3 - 5.3% 11.5%

1994 1,732.9 4.0% 220.4 14.6% 12.7%

1995 1,761.7 1.7% 219. 6 - 0.4% 12.5%

1996 1,805.8 2.5% 223. 7 1 .9% 12.4%

Average 1,538.8 189.2 12.3%

Visitation

trends in

Canada’s

north also

suggest a

significant

increase in

the demand

for nature

related

experiences.

trends (continued)

page 13

70 80 90

100

110

12019841985

19861987

19881989

19901991

19921993

19941995

1996 70 80 90 100

110

120

Index points (1990=100)

BC Labour Force

Tourism-Related

Source:M

inistry of Sm

all Business,Tourism

and Culture, B

ritish Colum

bia, Dec.8, 1998.

Since 1990, G

rowth in Tourism

-related Em

ployment has been at

the Sam

e Rate as the E

ntire Provincial Labour F

orce

More

importantly,

the study

found that

the fastest

growing

sector

within the

tourism

industry

was

adventure

travel and

eco-tourism.

trends (continued)

page 14

Tourism is one of the fastest-growing sectors of BritishColumbia’s provincial economy. Between 1996-1997,employment in the eco-tourism industry grew faster than allother sectors increasing by 11% and creating a total of13,000 jobs.1

The impressive growth in nature related tourism in recentyears suggests that tourists are increasingly choosing travelexperiences where they can access natural attractions. Thisis promising for northern communities that have anabundance of these features. In fact, during 1999 the singlemost popular activity for visitors to Canada’s Yukon wasvisiting natural attractions.2

41% of visitors to the territory in that same year participatedin one of the following activities: visiting natural attractions,wildlife watching, hiking, and guided walks or tours.

Visitation trends in Canada’s north also suggest asignificant increase in the demand for nature relatedexperiences. The 1999 visitation figures for the Yukon saw a13% increase over 1994 with several record years inbetween. Part of this increase can be attributed to vigorouspromotion of centennial celebrations. In 1999, 74% ofvisitors came from the U.S., 15% from Canada, and 11%from overseas. Overseas visitors, however, increased asurprising 36% over the five years between studies, asignificant indication that the Yukon is becoming aninternationally renowned tourism destination. In several ofthe past five years the Yukon has outperformed the nationalaverage in growth from both European and U.S. markets.

1 B.C. Ministry of Small Business, Tourism and Culture,News Release, backgrounder, December 19982 Yukon Department of Tourism and Yukon Beureau ofStatistics, 1999 Yukon Visitor Exit Survey, May 2000

Entrepreneurs and Retirees Choosing to LiveNear Scenery and Wildlife

Recent studies of the Rocky Mountain region stretchingfrom Wyoming to the Yukon demonstrate that an area’snatural beauty and the health of its environment areimportant economic assets. A 1997 study of economic anddemographic conditions in the region shows that economicgrowth is no longer fueled by resource extractionindustries.3 Instead, business owners, retirees andentrepreneurs who have decided that living close tobeautiful scenery and wildlife is important to their quality oflife, are stimulating growth.

In the U.S. portion of the Rockies the study found that thelargest source of income was from the service andprofessional industries. Together, these industries generated20 times the income earned in farming and 11 times theincome earned in mining, oil and gas, and forestrycombined. The second largest source of income was fromnon-labour sources, including money earned from pastinvestments and retirement income.

In the Alberta portion of the Rocky Mountains, the studyfound that the fastest growing employment category wasalso in the service sector. Over 65,000 new jobs werecreated in the region between 1986 and 1991, 99 percent ofwhich were not related to resource extraction.In B.C., communities along the east side of the Rockies lost470 jobs in the resource extraction sectors during the samefive years, while service, trade and construction sectorscollectively added 19,000 jobs.

Contrary to popular belief, the decline in resource extractionindustries did not result in a decline in average income.

trends (continued)

page 15

3 Ray Rasker and Ben Alexander, Economic Trends in theYellowstone to Yukon Region: A Synopsis, The SonoranInstitute, October 1997

The facts presented in this study help to dispel theassumption that resource extraction is the driving economicforce for communities along the Rocky Mountains.

The study also shows that people are increasingly choosingto live in places where the environment is healthy andoutdoor recreation is accessible. More and more people canlocate anywhere in the world to do their work and a growingnumber of baby boomers are spending their retirementincome on recreation and travel.

The study also warns, however, that this new form of growthtaking place in the communities along the Rockies, presentsa whole new set of environmental challenges.

If not managed properly, problems such as urban sprawland road development can lead to environmental impactssimilar to those caused by resource extraction industries.

The increase in the number of backcountry visitors inprotected areas and wilderness near mountain communitiescan also lead to significant environmental effects such asdisplacement of wildlife or a decline in water quality. Theseobservations are important lessons for the North andunderscore the need to manage land uses, tourism andcommunity growth with a clear eye on conservation.

The study’s main conclusion is that environmentalprotection, including the creation of protected areas, is goodfor business. Not surprisingly, several of the mostprosperous communities in the mountain regions of NorthAmerica are adjacent to national or provincial/state parks.The resource industry role in the northern economy maychange, but will remain important.

Industrial land uses in the greater ecosystems aroundprotected lands will also continue. With improvedpartnership arrangements, the ecological integrity goals ofparks will be better achieved. Industry seeks security oftenure and a stable investment climate.

trends (continued)

page 16

kluanenationalpark• 17 year-

round employees

• 19 seasonalemployees

• all employees based in Haines Junction

• jobs include: wardens, maintenance crew, park interpreters

Industrialland uses inthe greaterecosystemsaroundprotectedlands willalsocontinue.With improvedpartnershiparrangements,theecologicalintegritygoals ofparks will bebetterachieved.Industryseekssecurity oftenure and astableinvestmentclimate.

Industry also seeks an efficient and timely permittingprocess to ensure that investment dollars are wisely spent.To be successful, co-operative partnerships betweenindustry, communities and parks must consider botheconomics and ecology.

trends (continued)

page 17

Source: Statistics Canada.1986 & 1991 Census Industry Canada, Ottawa, Ontario

The economicand communitybenefits ofprotectedareas nearnortherncommunitiesin WesternCanada couldbe based ona wide rangeofopportunitiesincluding:

long term economic andsocial benefits frommaintaining regionalecological integrity and waterquality;

creation of directmanagement, research andoperations positions relatedto protected areas;

contributions to schools,provision of role models foryoung people, and benefits tocommunity volunteer workresulting from the presence offull time professionalconservation staff in acommunity;

This section looks at three tangible, market-based economicbenefits associated with protected areas: visitor spending,job creation, and government spending and revenues. Newapproaches to economic evaluation and a growing body ofdata on the people accessing protected areas are helpingto demonstrate that their market benefits are both real andsignificant. Protected areas also contribute to a wide rangeof non-market benefits including clean water, biodiversity,the social welfare benefits of recreation, and education andresearch. Although there is much agreement that thesebenefits have real impacts on our economy, they are difficultto quantify given the limitations of our current economicmodels.

It is important to note that the market benefits generated bynew protected areas in the North will depend on initialpublic investment, the location and design of the park orconservation area, the supporting infrastructure provided,and the management approaches used. The benefits tocommunities will depend on the extent to which theplanning and management of the protected area involvescommunity input, employment and entrepreneurialopportunities. The economic viability of a protected areawill depend on whether ecosystem health is maintained sothat residents and visitors can experience and benefit fromthe wildlife, plants and clear water for which the area wasconserved. The continued ability of local people to carry ontheir traditional land uses and lifestyle will also affect thetangible benefits of protected areas.

Protected areas may also be created strictly to preserveimportant ecological or cultural values and not providedirect tourism opportunities. However, these areas still makean economic contribution by ensuring healthy wildlifepopulations and allowing for economic opportunitiesassociated with hunting, fishing, and wildlife viewing in the

economicbenefits ofprotected areas

page 18

Economic andcommunitybenefits ofprotectedareas nearnortherncommunitiesin WesternCanada(continued)

maintenance of huntingand fishing opportunitiesthat contribute to localsubsistence economies andlifestyles;

maintenance of huntingand fishing opportunitiesaround protected areasresulting from the protectedarea acting as a seed areafor wildlife dispersal;

continuation of trapping asa renewable andsustainable economicactivity;

wildlife and northernresource managementtraining, research andeducation;

cultural and archeologicalresearch;

surrounding areas. Most protected areas have opportunitiesfor direct visitor participation and this section of the reportoutlines the resulting economic benefits.

Visitor Spending

Visitor spending from nature related tourism represents ahuge export market for Canada. A 1996 survey by the U.S.Census Bureau revealed that during that year 1.1 millionU.S. visitors spent $383 million on fishing and $322 millionon wildlife viewing while in Canada.4 Although not all of thisspending can be attributed directly to protected areas, parksare often the places that tourists participate in theseactivities because of the associated services and amenities.Visitor spending in protected areas by residents of aterritory or province also has important regional benefits byre-distributing wealth from population centers to smaller andmore remote communities.

A 1996 study by Coopers and Lybrand Consulting for theB.C. Ministry of Environment Lands and Parks found thatvisitors to B.C. provincial parks spent $417 million in 1994.5

More than a third of these expenditures were made by out-of-province residents, making the provincial parks systemequivalent to a major export industry. The study also foundthat government investment in parks was a great way toleverage private spending in the B.C. economy. For eachdollar spent on park operations, roughly 9 dollars werespent by visitors to parks.

economic benefits ofprotected areas (continued)

page 19

4Environment Canada, The Importance of Nature toCanadians: The Economic Significance of Nature-RelatedActivities, 20005 Coopers and Lybrand Consulting, Current and FutureBenefits of British Columbia Parks, Report for the B.C.Ministry of Environment, Lands and Parks, April 1996


cultural camps and centers;training and educationopportunities;

creation of local, nationaland internationalwilderness, wild river,northern mountain andboreal forest destinations;

development of nature andculture based tourismbusinesses in local andgateway communities;

creation of unique wildlifeviewing opportunities, forexample in northernwetlands or pristine largemammal habitats;

maintenance of guide-out-fitting with possibilities toexpand into eco-tourismoperations;

A 1995 study done by the Government of the NWT (GNWT)on the economic impacts of parks and tourists facilitiesdemonstrated governments in the North can also leveragesignificant visitor spending.6 For every dollar spent by theGNWT to operate park facilities in 1993, tourists wereleaving behind 3.5 dollars. Most importantly, the studyconcluded that the improved and expanded park andtourism facilities in the territory were attracting more touriststo the territory and encouraging them to remain longer.

A 1994 study carried out by an independent economist forCPAWS-Yukon found that completion of a territorialprotected areas network would result in significanteconomic impacts and benefits.7 These impacts would flowfrom increased visitor spending and result in an annualincrease to Yukon’s Gross Domestic Product (GDP) ofbetween $8.8 million and $17.4 million. The mid-rangescenario of the analysis concluded that the territorialprotected areas network would yield an increase of $12.7million in GDP.


page 20

6Government of the NWT Standing Committee on Finance,Economic Impact, Cost and Benefit of Parks and TourismFacilities, 1995.7CPAWS-Yukon, Economic Analysis of Protected Areas:Methods and Yukon Impact Analysis, 1994.8United States National Parks and Wildlife Service, TheMoney Generation Model, 1990.

photo:karstenheuer


development of relatedcommunity tourismservices and retail, ortransportation businesses;

opportunities to create a“watchman” program,similar to the program atGwaii Haanas, whereindividuals and familiescould spend time on theland monitoring use,carrying out research, orproviding interpretationservices to visitors.

This analysis did not include national parks and historicsites which were estimated to contribute close to $11 millionto the GDP at the time.

In addition to the direct economic benefits of spending byvisitors to protected areas, there are also significant indirectbenefits to the economy.

These indirect benefits occur when a chain of localtransactions is necessary to provide an end product orservice to visitors. For example, food products may undergomany stages of preparation before the tourist actually buysthe food. These indirect benefits also occur when wagesearned by people providing services to visitors re-spendtheir wages in the local economy.

These indirect benefits are often defined in terms of their“multiplier effect”. The multiplier is a way of taking directspending and multiplying it to get a measure of the overallimpact on the economy. The U.S. National Parks andWildlife Service has developed a model called the MoneyGeneration Model (MGM) to estimate the local economicimpact of protected areas.8

The model suggests that the multiplier for protected areasaverages 2. This means that for every dollar spent byvisitors to protected areas, the total benefit to the economyis 2 dollars. Although this number varies with how much theproducts and services purchased by visitors are generatedlocally, this multiplier is relatively high compared to themultiplier for industrial sectors.

This is because products offered by the service sectors,e.g. food and accommodation, require significant input fromthe local economy such as construction, transportation, andfood preparation.

Parks Canada also uses economic models to predictmultiplier effects of national parks.


page 21

The B.C.

provincial

parks

system

employs

people on

the same

scale as a

mid-size

mega

project or

a large

industrial

operation.

Job Creation

There is a wide range of direct employment opportunitiesgenerated by protected areas. Federal, provincial andterritorial governments hire a significant number of staff forpark management, operations and visitor services. In theYukon and NWT, Parks Canada employs approximately 155full-time equivalents and spends around $7 million insalaries and wages.9

The assessment, planning and facility construction phasesof protected areas also offer diverse employmentopportunities. Many of these jobs are highly skilled in natureincluding research and survey work. Employmentopportunities for local people include monitoring,documentation of local history, construction andmaintenance. It is also important to note that protectedareas can help contribute to the continuation of asubsistence economy, which is still important in manynorthern communities.

Parks also generate jobs in tourism and other serviceindustries that provide food, accommodation, transportationand guiding or nature interpretation to people visitingprotected areas. As mentioned earlier, visitor spendingassociated with parks also creates indirect jobs such asconstruction and manufacturing through demand for localproducts and services.

Interestingly, the study by the Government of the NWTfound that every job directly supported by the government in1993, resulted in 1.7 jobs after factoring in visitor spending.Coopers and Lybrand Consultants estimated that in 1994the B.C. provincial parks system created employment for atotal of about 9,500 people.


page 22

9Gordon Hamre, Parks Canada, Yellowknife, NT, PersonalConversation, September 2000.

nahanninationalpark

• 1994 study of nahanni visitors indicates they spent $1.4m locally

• 7 fulltime employees

• 6 seasonal employees

• nahanni’s annual payrollis approx. $600,000.

• yearly operations and maintenance budget of $250,000 isspent locally

5,400 of these jobs came from direct spending (visitor andgovernment) and 4,100 were dispersed throughout theeconomy from indirect expenditures associated with parks.

The Coopers and Lybrand study points out that the B.C.provincial parks system employs people on the same scaleas a mid-size mega project or a large industrial operation.

The study also adds that when you take into considerationthe considerable subsidies that are sometimes offered toattract large industrial employers into a region, theimportance of the parks system as a local employerbecomes clear.


page 23

photo: karsten heuer

Government

spending on

protected

areas can

be an

effective

way to

stimulate

private

spending in

the

economy.

Furthermore, if protected areas are managed to maintainecological integrity there is no long-term public liability formonitoring, clean up or restoration costs often associatedwith resource extraction.

Parks related employment also contributes significantly toeconomic diversification and provides a buffer to the boomand bust cycles of resource extraction industries. This isespecially important for smaller northern economies thatare particularly susceptible to large employer shut downs.With the decline of the mining industry in the Yukon, tourismis now the largest private sector employer. If not for theYukon’s internationally renowned reputation for undevelopedwilderness, the territory would likely be much worse off. Byprotecting wilderness, a major source of employment willalso be protected indefinitely. Another benefit of jobscreated by protected areas is that many of the jobs arebased in rural communities. For example, Parks Canadahas offices in Dawson, Haines Junction and Old Crow in theYukon, and Inuvik, Sachs Harbour, Paulatuk, Fort Smith andFort Simpson in the NWT. Tourism jobs are also particularlyimportant for youth and can help provide meaningfulemployment opportunities for young people, allowing themto remain in their communities.

The Impact of Land Claims

In the Yukon, many Final Agreements provide for SpecialManagement Areas or other types of protected areas. FirstNations have a variety of reasons for establishing protectedareas in their traditional territories, but most of theagreements include provisions for economic opportunitiesand other benefits related to protected areas. These mayinclude rights of first refusal on contracting or concessions,a percentage allocation of guiding or tourism licenses, orother affirmative measures. These conditions will helpensure that First Nations and local communities benefitfrom any economic dividends that protected areas mayprovide. In the case of national parks, impact and benefitagreements are negotiated as part of the park


page 24

The benefits

of federal

government

spending on

parks in

the north

are also

widely

distributed

throughout

rural

communities.

establishment process, over and above the support for co-management boards or other management or advisorybodies. Aboriginal harvesting, including hunting, fishing andtrapping is guaranteed in all protected areas through theprovisions of the Umbrella Final Agreement. Theseprovisions can have a significant and positive economic andsocial impact on First Nations.

Government Spending and Revenues

According to the federal government, the Canadianeconomy “is an economy in which rural Canada alsobenefits from value-added activity, environmentally astuteland management, and new skills and job opportunities.”(Federal Speech From the Throne, October 1999) Thisvision is entirely consistent with establishing new protectedareas and maintaining their ecological integrity.

Public investment in protected area establishment, facilitiesand management is essential to realize the potentialcommunity and regional economic benefits. Governmentspending on protected areas can be an effective way tostimulate private spending in the economy. In 1994, the $35million B.C. provincial parks budget was less than ten percentof the total direct spending generated by the park system.10

Federal government spending on national parks in theNorth also represents an important economic driver for theregion.

In 1999, total Parks Canada spending on operations in theYukon and NWT was approximately $14 million.11 About $7million of those direct federal government expenditureswere spent in the Yukon. If federal government spending inthe Yukon is even one quarter as effective at generatingvisitor spending as the B.C. parks system, the total directspending caused by national parks in the Yukon in 1999


page 25

10Coopers and Lybrand Consulting.11Gordon Hamre.

A more

recent and

growing

economic

contribution

related to

protected

areas is

made by the

non-

government

(ngo) not-

for-profit

sector,

such as

environmental

non-

government

organizations.

would be twice as much as those reported to have beenspent on mining in the territory during that same year.12 Thebenefits of federal government spending on parks in theNorth are also widely distributed throughout ruralcommunities.

Parks can also generate significant revenues for government.Parks often show up in government accounting systems asa “cost”. Tax revenues generated from economictransactions such as visitor spending in parks then go intogeneral revenues and are often not attributed back to theparks system. Coopers and Lybrand found that the B.C.government received about $42 million in tax revenues fromthe operation of its parks system in 1994, more thanenough to cover the $35 million required to fund it. Withoutspending any money, the federal government was estimatedto receive almost $130 million from the economic impacts ofthe B.C. parks system in that same year.


page 26

12Total spending on mining in the Yukon in 1999 was $9.5million. If, for every dollar Parks Canada spent in the Yukon,it generated 2.25 dollars of visitor spending (this is less thanin BC or NWT) the result would be $13.5m in visitorspending. Total direct spending would be $6m by ParksCanada plus $13.5m by visitors for a total of $19.5m.

photos: karsten heuer

A completedprotectedareas systemwouldgenerateemploymentopportunitiesin ruralareas allover thenorth. Thiswould helpto reducethe problemof have andhave notcommunitiescreated byshorter-termresourceextractionprojects.

Non-government Organizations

A more recent and growing economic contribution related toprotected areas is made by the non-government (NGO),not-for-profit sector, such as environmental non-governmentorganizations.

The NGO sector, in general, is growing across NorthAmerica.

It relies on the public interest in supporting conservation aswell as a long tradition of conservation philanthropy. NGOsare part of a service sector that provides research,communications, training and public education on protectedareas and other conservation issues.

These organizations provide direct employment in Canada’snorth, but also support a variety of local conservation andprotected area projects in smaller communities.

page 27



page 28

This section of the report explores some of thekey benefits that a completed protected areassystem would provide for northerncommunities. On the ground, completingnorthern protected areas systems wouldinvolve implementation of Final Agreementswith First Nations, the Yukon and NWTprotected areas strategies, as well as thecompletion of the National Parks system innorthern Canada. Conservation tools wouldalso include wildlife habitat protection areasand special management zones designatedthrough land use planning or wildlifemanagement legislation.

There are several reasons why a completedprotected areas system would be particularlyvaluable to the economies of the Yukon & NWT:

• community and regional economic development

• economic diversification and improved stability

• protection and preservation of community and tourism assets

• improved ability to market the North’s natural attractions, and

• re-distribution of the economic benefits of government investment in conservation and tourism to small and sometimes remote communities.

benefits ofa completedparks systemin canada’snorth

Marketing the North’s NaturalAttractions

If part of the Yukon’s protected area network isplanned adjacent to highways, travel loop routeswith protected areas as features could bedeveloped.

For

example,

community

watershed

protection

areas that

ensure a

clean water

supply,

along with

intact fish

and

wildlife

habitat can

provide

long term

benefits to

residents.

Community and Regional EconomicDevelopment

A completed protected areas system would generateemployment opportunities in rural areas all over the North.This would help to reduce the problem of have and have notcommunities created by shorter-term resource extractionprojects. More stable employment opportunities in ruralcommunities could help ease some of the social impactsassociated with “one industry towns” and by doing so,reduce reliance on government social programs.

Experience shows that community-based job creationrelated to protected areas takes time, since much of theeconomic spin-off from the service sector relies onentrepreneurial effort. Adequate government investment intraining, community capacity building and infrastructure isrequired to realize these local economic benefits. In smallercommunities, even a modest number of new jobs related toprotected areas can have a significant and lasting localeconomic impact. The new Tombstone Territorial Parkestablished in the central Yukon is expected to generatesignificant economic benefits to Dawson City, as well asprovide economic opportunities for the Tr’on dek Hwech’inFirst Nation.

Government studies estimate that up to 50 seasonal jobsrelated to the park could be created, over and above fulltime management jobs.

Economic Diversification

During the last century, the economies of the North havedepended largely on resource extraction industries. Thesubsistence and trapping economies that existed before arestill important in many communities but sustain a smallernumber of jobs.

benefits of a completedpark system in the north(continued)

page 29

Theunderlyingecologicalgoals ofprotectedareas shouldguide anymarketingstrategy;marketingshouldcomplement,notinterferewith thesegoals ortheaspirationsofcommunitiesto managethe pace oftourismdevelopment.

As a result of this reliance on the resource extractionindustries, northern communities have been particularlysusceptible to boom and bust economic cycles and short-term job opportunities in a few communities. Serviceindustries associated with protected areas such as tourismhelp to provide a stabilizing effect for the economy. Theincreased number of visitors to the North from the U.S. andoverseas also suggests that short of a global recession,tourism dollars will continue to flow from year to year.

Protection and Preservation of Communityand Tourism Assets

The guiding principles of the Yukon Tourism Strategyinclude respect for the environment and sustainablecommunities.13 Consistent with these principles the strategyidentifies two key objectives that relate to protected areas:

1) the need to develop a high quality tourism experience bysupporting new public infrastructure, and

2) the need to sustain tourism for tomorrow by preservingand protecting tourism assets. The creation of protectedareas clearly supports these objectives. In fact, notprotecting ecologically important areas, so that wildlife andnatural systems can continue to thrive, will undermine thelong-term viability of this growing industry.

Protected areas also serve to conserve a community’snatural assets, resulting in social, health and economicbenefits. For example, community watershed protectionareas that ensure a clean water supply, along with intactfish and wildlife habitat can provide long term benefits toresidents. Some watershed protection zones could also


page 30

13Yukon Department of Tourism, Draft Yukon TourismStrategy, Guidelines for the Strategic Development ofTourism in the Yukon, November 1999.

Protected

areas

are a

tangible

product

that

tourists

can plan

around.

include land uses such as small scale timber harvesting,provided that water quality, wildlife conservation andcreation goals were also met.

Marketing the North’s Natural Attractions

The underlying ecological goals of protected areas shouldguide any marketing strategy; marketing shouldcomplement, not interfere with these goals or theaspirations of communities to manage the pace of tourismdevelopment.

However, having a completed protected areas system wouldallow the Yukon and NWT to more effectively market theNorth as a travel destination. Protected areas are a tangibleproduct that tourists can plan around. Simply havingwilderness does not necessarily provide visitors with anaccessible product. Where appropriate, protected areas canprovide the infrastructure which visitors know will allow themto access natural attractions. This is particularly importantfor the North where most visitors are choosing to visit thearea and are not just passing through. Nahanni and KluaneNational Parks, and Chilkoot National Historic Park areexcellent examples of northern travel destinations that haveachieved national and international recognition.In cases where tourists are simply driving through, such asthe large number of Americans who drive through the Yukonon their way to Alaska, protected areas could encouragethem to spend more of their time and money in the territory.Currently, the only protected area easily accessible from theAlaska Highway is Kluane National Park, which is only a fewhundred kilometers before tourists reach the Alaska border.

If part of the Yukon’s protected area network is plannedadjacent to highways, travel loop routes with protectedareas as features could be developed.

page 31


If part of

the Yukon’s

protected

area

network is

planned

adjacent to

highways,

travel loop

routes with

protected

areas as

features

could be

developed.

For example, if protected areas were designated along theAlaska Highway, such as at Coal River, Jennings Lake, WolfLake, Tarfu-Snafu Lakes and Kusawa Lakes, there would bereasons for tourists to stop in communities and take moretime passing through the Yukon. If protected areas weredesignated along the Robert Campbell highway, forexample at Frances Lake or along the Canol Road, visitorscould be encouraged to use circle tour routes. This strategyhas worked successfully in parts of the southwest UnitedStates.

The implementation of this type of marketing strategy mustreflect the local community’s wishes with respect to thevolume of visitors that would be appropriate in eachprotected area.

Through careful planning, the majority of visitor use couldbe directed to limited areas next to highways – such ascampgrounds and short loop trails.

This strategy would ensure that all but the very edge of theprotected area remains in a pristine state. Local use ofprotected areas would also remain unchanged with thisapproach. Protected area management plans woulddetermine whether or not backcountry trails or otherfacilities are appropriate.

The examples and information contained in this reportstrongly support the economic case for a completedprotected areas network in western Canada’s north.Economic and demographic trends are causing investmentto grow rapidly in areas with a healthy environment andaccess to natural attractions, and this investment appears tobe moving north. Protected areas also provide benefits thatare particularly important for northern economies such ascommunity and regional development, economicdiversification, and increased attraction of tourists.

page 32


The

protection

of the

north’s

wilderness

resources

represents

an economic

opportunity

that is too

valuable to

pass up.

The time to

take

advantage

of this

opportunity

is now.

By moving quickly to complete protected areas, the Yukonand NWT will be able to capitalize on these benefits andcreate a more stable investment climate for resourceindustries. This will require both financial and politicalsupport, from the federal and territorial governments, to getmoving on the planning and development stages of theterritories’ protected areas networks. It will also requireincreased efforts on the part of governments to work withrural communities to help them participate in the planningand development of protected areas and ensure that theybenefit appropriately.

The protection of the North’s wilderness resourcesrepresents an economic opportunity that is too valuable topass up. The time to take advantage of this opportunity isnow.

We recommend that the Government of Yukon, incooperation with the federal government, First Nations,communities, business and public interest organizations:

•• Build and diversify the Yukon’s economy by completingand investing in a network of protected areas in the Yukon;using the Yukon Protected Areas Strategy, First NationsFinal Agreements, and the provisions of the National ParksAct, Yukon Wildlife Act and Yukon Environment Act.

•• Reduce the economic uncertainty for resource industries,and increase the certainty for tourism operators, bycompleting the protected areas network within 6 years;continue to support the completion of land use plans.

•• Invest in research, education, training, business incentivesand infrastructure related to implementing and managing anetwork of protected areas.

page 33

conclusion andpolicyimplications

herschel islandnationalpark

• 1 to 2 year-round employees in Inuvik

• 4 seasonal employees hired from Aklavik

• • Assess the opportunities to designate protected areasadjacent to Yukon highways, and consider the benefits ofprotected areas as an integral part of travel circle routes.

• • Provide support and incentives to communities and FirstNations to identify and designate protected area candidatesand assist in developing ways to generate local economicbenefits from these protected areas.

• • Use protected areas as a foundation for marketing theYukon’s wilderness in a way that is consistent withmaintaining the ecological integrity of the protected areas,and is supportive of each community’s approach to tourism.

• • Complete further research on the economic impacts ofprotected areas, and include the economics of conservationin departmental policies on economic development.

• • Request the federal government to fulfill its landmanagement and conservation obligations by investing inthe completion of a protected areas network.

• • Commit to the identification and designation of a protectedareas network in advance of or at the same time asresource dispositions for large-scale timber harvest or oiland gas development.

• • Recognize the proven value of Justice Berger’s pioneeringrecommendations on the MacKenzie Valley Pipeline inquiryby completing the protected areas network at the same timeas pipeline routes are being assessed, planned & developed;if a pipeline is developed, capitalize on the opportunity toensure that conservation areas are put in place.

• • Invest in a territorial Conservation Trust Fund tosupplement existing departmental budgets used to implementthe Yukon or NWT Protected Areas Strategy. Use the trustfund to help assess, establish and operate territorialprotected areas. Use a portion of new tax revenues androyalties from new resource development projects, matchedby contributions from industry, to create and maintain the fund.

conclusion and policyimplications (continued)

page 34

In smaller

communities,

even a

modest

number of

new jobs

related to

protected

areas can

have a

significant

and lasting

local

economic

impact.

Berger, Justice Thomas R. Northern Frontier NorthernHomeland: The Report of the MacKenzie Valley PipelineInquiry. Ottawa: Ministry of Supply and Services Canada,1977.

Dixon, John A. & P.B. Sherman. Economics of ProtectedAreas: A New Look at Benefits and Costs. Washington,D.C.: Island Press, 1990

Munasinghe, Mohan, ed. Protected Area Economics andPolicy: Linking Conservation and Sustainable Development.Washington D.C.: The World Bank, 1994.

Panel on the Ecological Integrity of Canada’s NationalParks. “Unimpaired for Future Generations”? ProtectingEcological Integrity With Canada’s National Parks. Ottawa:Parks Canada Agency, 2000.

White, Adam. The Economic Benefits of ConservingCanada’s Endangered Spaces. Toronto: World Wildlife FundCanada, 1993.

Website: http://www.Economics.IUCN.Org

other readings

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Economic Benefits of Protected Areas - CPAWScpaws.org/...economic-benefits-of-protected-areas.pdf · Economic Diversification Protection and Preservation of Community and Tourism