This section focuses on the estimation of the economic value of outdoor recreation to British Columbia. After explaining the theory underlying the economic values associated with outdoor recreation, the section presents estimates of these economic values on provincial forests, wilderness areas and Crown lands. The impact of outdoor recreation and tourism on the provincial economy is also discussed.
Many B.C. residents are willing to pay more for their outdoor recreation than is reflected in their actual expenditures. This consumer surplus value for their outdoor recreation (the difference between willingness to pay for outdoor recreation use and actual expenditures) is considered a net-use economic value for outdoor recreation use, or “net-use value.”
In addition, many B.C. residents feel their personal well-being is improved when outdoor recreation and wilderness resources are protected, even when they do not participate in outdoor recreation activities. Thus, many B.C. residents are willing to pay to preserve outdoor recreation and wilderness for non-use reasons. These values are considered net non-use economic values and are sometimes referred to as “non-use preservation values.” Commonly cited reasons for non-use preservation values include:[152]
A recent study by Gilbert and others also suggests an altruistic motive: knowing the resource can be used by other people.[153]
Surveys have been employed to estimate non-market values such as outdoor recreation and wilderness. One criticism of this technique is that respondents’ stated willingness to pay may not reflect their actual willingness to pay if payment were required.
The economic values obtained from forest recreation by B.C. residents are illustrated in Figure 7.48. This figure illustrates the terms and concepts used elsewhere in this section. — for example, that the gross economic value of outdoor recreation consists of actual expenditures, consumer surplus and preservation values.
Economic benefits are also generated by non-resident expenditures on outdoor recreation in B.C. Such expenditures represent gross economic value to the province as shown in Figure 7.49. The net economic value to the province from non-resident expenditures is determined by deducting the costs incurred by the provincial economy in providing the goods and services purchased by non-resident outdoor recreationists.
Many non-resident users in B.C. also are willing to pay more for outdoor recreation use and preservation in B.C. than is reflected in their actual expenditures. However, these net-use and preservation values are held by non-residents outside the province and are thus beyond the scope of this analysis.
The total net economic value to British Columbia is the sum of A and B from Figures 7.48 and 7.49, respectively.
The source of information for Figure 7.50 is discussed below.
The survey estimated actual expenditures for all outdoor recreation use in provincial forests, net-use (consumer surplus) values on an activity-day basis and non-use preservation values (for protecting recreation resources). Since many outdoor recreationists engage in more than one activity in a day, recreation activity-days exceed recreation user-days.[155] Therefore, the sum of the estimated net-use values for all recreation activity days was proportionally reduced in Figure 7.50 to reflect total net-use values on a user-day basis.
A 1986 study estimated that about one-half of the total expenditures in B.C. by non-resident anglers represent a net economic value to B.C.[157] This relationship was used to estimate the net-use value figure used in Figure 7.50 (one-half of the $288 million in non-resident expenditures or $144 million).
The gross economic value of outdoor recreation use is highest in the Vancouver Forest Region and lowest in the Cariboo and Prince Rupert Forest Regions. This is largely due to differences in resident population (using regional population estimates from Chapter 1). The gross economic value of outdoor recreation per capita is highest in the Cariboo Forest Region ($2870) and lowest in the Vancouver Forest Region ($670).
The B.C. resident wilderness survey estimated the expenditures incurred by B.C. residents for wilderness trips in B.C. in 1992 in both designated and non-designated wilderness areas,[159] including provincial parks and provincial forests. To estimate net-use values, the survey asked wilderness recreationists how much their expenditures would have to increase before they would no longer be willing to take a wilderness trip in B.C.
Figure 7.52 summarizes some of the economic findings of the wilderness survey. The updated results have been adjusted to reflect 3% annual growth in recreation and 1993 dollars.[160] Reid and others report a range of net economic values for wilderness recreation; the midpoint value is used here. These wilderness economic values do not include preservation values for maintaining the existing designated wilderness in the province and therefore underestimate total wilderness economic values.
Figure 7.52 also presents estimates of the value of non-resident wilderness recreation to B.C. The Visitor ‘89 study reported that the main trip purpose for 2% of non-residents to B.C. was wilderness adventure.[161] This 2% estimate is multiplied against all reported non-resident tourism expenditures in B.C. in 1989 and adjusted by a 2% growth rate for tourism (reported in Section 5.5.2) and also to reflect 1993 dollars by using the B.C. Consumer Price Index.
The B.C. resident wilderness study also estimated B.C. resident values for designating additional wilderness. The annual value of doubling designated wilderness was estimated to be about $160 million in 1993. About 76% of the value for doubling designated wilderness is due to existence and bequest motives, and about 24% is due to option or use motives.
Figure 7.53 estimates the economic value of outdoor recreation on Crown land, including parks, by extrapolating the expenditures and values determined for provincial forest recreation use by B.C. residents and non-residents to account for recreation use in national, provincial and regional parks.
Total actual expenditures for outdoor recreation on Crown land is estimated to be nearly $4 billion per year, with B.C. residents accounting for about 80% of those expenditures. Annual net economic value of outdoor recreation on Crown land is estimated to be nearly $1.5 billion, with B.C. residents accounting for about 74% of this value.
The estimated $780 million in non-resident outdoor recreation expenditures on Crown land in B.C. represents about 30% of all reported non-resident tourism expenditures (see Section 7.3.5). As discussed in Section 5.4.4, about 43% of non-resident use had an outdoor recreation dimension as part of the primary trip purpose (e.g., touring trip, outdoors/ wilderness/ adventure trip or resort vacation). Some of this use occurred on private lands or on public lands other than national, provincial or regional parks or provincial forests. Therefore more outdoor recreation values are found in B.C. than are identified in Figure 7.53.
Figure 7.54 compares the value of wilderness in relation to outdoor recreation in general. Wilderness recreation expenditures and net-use values are a subset of outdoor recreation use. However, for net non-use (preservation) values, motivation for wilderness preservation is largely non-recreational. Therefore most of these annual non-use values (probably around two-thirds or about $145 million) are additive values. Also, as mentioned, wilderness values are underestimated because wilderness preservation values for existing designated wilderness are not known.
