Economic Value of Trails and Forest Recreation in the Republic of Ireland. Final Report

Transcription

1 Economic Value of Trails and Forest Recreation in the Republic of Ireland Final Report September 2005

2 TABLE OF CONTENTS EXECUTIVE SUMMARY CHAPTER 1 INTRODUCTION AND BACKGROUND INTRODUCTION AND CONTEXT STUDY REQUIREMENTS RESEARCH METHOD REPORT STRUCTURE...4 CHAPTER 2 LITERATURE REVIEW INTRODUCTION VALUING FOREST RECREATION ECONOMIC IMPACT OF INTERNATIONAL TRAILS TOURISM ECONOMIC VALUE OF DOMESTIC TRAIL USERS NON-MARKET RECREATIONAL VALUE OF TRAILS HEALTH BENEFITS OF TRAILS AND OUTDOOR RECREATION SUMMARY OF CHAPTER FINDINGS...15 CHAPTER 3 INTERNATIONAL CASE STUDIES INTRODUCTION FINLAND NEW ZEALAND SCOTLAND SUMMARY OF CHAPTER FINDINGS...28 CHAPTER 4 TRAIL AND FOREST RECREATION USERS SURVEY INTRODUCTION SITES VISITED AND VISITOR PROFILE DIRECT EXPENDITURE BY SITE INTERVIEWEES IN LOCAL ECONOMIES HEALTH AND WELL-BEING BENEFITS ASSOCIATED WITH VISITS VALUE OF SITE VISITS TO USERS SUMMARY OF CHAPTER FINDINGS...39 CHAPTER 5 POSTAL SURVEY INTRODUCTION USAGE PROFILE ECONOMIC VALUE REASONS FOR NON-USE AND IMPROVEMENTS REQUIRED SUMMARY OF CHAPTER FINDINGS...49

3 CHAPTER 6 CONCLUSIONS AND POLICY IMPLICATIONS INTRODUCTION SUMMARY OF ECONOMIC VALUE OTHER KEY STUDY FINDINGS INCREASING THE BENEFITS OF TRAILS AND FOREST RECREATION IN IRELAND TRAIL INVESTMENT PRIORITIES RECOMMENDATIONS FOR MEASUREMENT FRAMEWORKS...61 ANNEXES

4 Executive Summary Introduction Coillte, the State-owned company with responsibility for the management of Ireland s forests, and the National Waymarked Way Advisory Committee (NWWAC) of the Irish Sports Council, jointly commissioned a study on the economic value of trails and forest recreation. This collaborative study aims to assist Coillte in planning the increasingly important recreational management aspect of its activities and will make an important contribution to work currently being undertaken by the Irish Sports Council in developing an Irish Recreational Trails Strategy. The overall study objective has involved identification, quantification and valuation of the socio-economic benefits of trail and forest recreation in Ireland. The study has placed particular emphasis on estimating the non-market value of trails and forest recreation to users. Research Method The research has involved extensive primary research work, through both postal and on-site surveys. A questionnaire was sent to 3,000 households in Ireland while some 640 trail and forest users were interviewed on-site at 15 locations throughout the country. This primary research was supplemented by a review of existing literature, three international comparative case studies, and consultations with key stakeholders. Economic Value of Trails and Forest Recreation The direct economic expenditure by Irish trail users on items such as food, drink, accommodation and trail equipment was found to be 307 mn annually, while the non-market value of trails was found to be 95 mn. The direct economic impact of forest recreation by Irish residents is estimated to be 268 mn, while the non-market value of forest recreation is estimated at 97 mn Given that about 50% of all off-road National Waymarked Ways are on Coillte property it is evident that there would be some overlap in the value generated by forest recreation and trails and the two therefore can not be added to provide a total combined value. Developed recreational trails and forest infrastructure are an integral part of the walking tourism product in Ireland. Fáilte Ireland data indicate that overseas visitors who engaged in walking in Ireland in 2003, spent an average of 673 while here. This study s on-site survey validated this information and found that overseas walking visitors expected to spend 787 during their visit to Ireland in Fáilte Ireland estimate that about 260,000 overseas tourists engaged in i

5 hiking/hillwalking in Ireland in Total expenditure by these visitors was just under 138 mn 1. Fáilte Ireland data also show that cycling tourism is worth about 80 mn annually to the Irish economy International Case Studies A review of the socio-economic benefits of trails and forest recreation in Scotland, Finland and New Zealand provided the following important lessons for Ireland: General countryside access rights in the countries examined are much greater than those in Ireland and this has implications for the level of demand for designated trail and forest recreation areas in this country The level of public investment provided for trail development is much greater in the countries reviewed than in Ireland. The New Zealand government currently provides about NZ$60 mn annually for the development of trails and other outdoor recreational facilities. The Scottish Executive provides considerable funding to both local authorities and the Forestry Commission to maintain and expand the trail network The public forestry management companies in both Finland and Scotland receive substantial annual funding in recognition of the recreational facilities they provide. Both the Forestry Commission in Scotland and Metsahallitus in Finland receive about 25 mn in public funding annually for the provision of recreational facilities. Key Survey Findings The majority of visitors to forest areas and trails are not specialist users and are unlikely to stay for more than three hours or engage in active hiking or other specialist sports The proximity of residence to a trail or forest area has a major bearing on the frequency of usage sites located in densely populated areas are therefore likely to generate much greater socio-economic benefits than those in very remote areas The vast majority of site visitors were satisfied with the quality of trails and forest areas available in Ireland. A high proportion of those who had travelled abroad to participate in trail activities, however, believed that the product available in the countries they visited was superior to that in Ireland The health benefits associated with trail usage are the primary motivation for usage for about one third of all trail visitors. Over two thirds of those interviewed stated that trail activities were either the most important form of exercise they undertake or an important element of a wider exercise regime Users of forests and trails typically place a value of about 5.40 (in 2005) on the benefit to them of a single visit 1 Fáilte Ireland, Preliminary Tourism Facts ii

6 Older age groups were found to visit trails and forests more frequently - this indicates a likely increase in demand for these recreation activities as Ireland s population ages The lack of local availability of trails was found to be most significant obstacle to usage, while a large percentage of survey respondents stated that they were not aware of the location of trails In relation to the priorities for investment, over half of survey respondents identified the development of additional trails as the highest priority while improving the quality of existing trails, promoting and marketing trails. Improving ancillary facilities such as parking and toilets were also regarded as important required improvements. Implications for Investment and Study Recommendations The study has demonstrated that the economic benefits of trail and forest recreation usage by domestic visitors are much greater than those generated by overseas visitors. The research suggests that the economic value of trails and forest recreation in Ireland could be greatly increased through: firstly, encouraging more Irish people to use trails; and secondly, by attracting more overseas visitors to Ireland for the purpose of walking and other trail activities. It is estimated that a greater return on investment, from both an economic and health/well-being perspective, can be achieved by prioritising investment in the trail requirements of domestic users. The health benefits associated with trail usage have become increasingly important in light of the worsening obesity problem in Ireland. Investment should mainly be targeted at the needs of nonspecialist users and should focus on the provision of additional trails in relatively densely populated areas that are not currently well serviced. Major areas of population that benefit from large numbers of overseas visitors should receive particular priority for investment. Considerable investment is also required for marketing and promotion in order to improve awareness of trail availability, while improved funding for development of ancillary facilities such as signage, toilets and car parking is also needed. In order to update the economic value of trails and forest recreation on an on-going basis an extensive annual day visitor survey should be carried out and occasional on-site surveys should be completed to update the non-market value data. iii

7 Chapter 1 Introduction and Background 1.1 Introduction and Context Coillte and Irish Sports Council (ISC) jointly commissioned Fitzpatrick Associates to undertake a study on the economic value of trails and forest recreation in Ireland. The Sports Council recognises the importance of outdoor recreation and its potential to contribute to improving the health and well-being of all Irish citizens through increased physical activity and participation in the broad range of recreational activities possible in the outdoors. The Council s National Waymarked Way Advisory Committee (NWWAC) has guided the development of a longdistance walking route network in Ireland (National Waymarked Ways) since the 1980s and is currently in the process of developing a comprehensive strategy for the development of an improved integrated recreational trails network. This study is intended to make an important contribution to that work. Coillte is the State-owned company with responsibility for the commercial management of Ireland s state forests. The company has a long tradition in provision of recreation facilities for the public, and this function has grown in importance in recent years in line with increased demand for such activities. Coillte permits access to over 440,000 hectares of forest land and as countries largest individual land owner it is the most important provider of outdoor recreation and trail facilities in Ireland. Access to Coillte recreation areas is generally free of charge to the user, Coillte has recently developed a comprehensive policy Recreation Policy - Healthy Forests, Healthy Nation which sets out the company s policy on forest recreation for the coming years. Almost 50% of all off-road National Waymarked Ways are on Coillte land, and future investment in an integrated trails network could therefore greatly benefit from close co-operation between Coillte and the NWWAC. The undertaking of this joint study on the economic value of trails and forest recreation in Ireland is therefore an important element of a collaborative approach by the two organisations to trail investment in Ireland. Limited research has previously been undertaken in relation to the non-market benefits of Irish trails and forests. This study therefore seeks to make an important contribution to the topic by providing a more comprehensive measurement framework for the recreational value of Irish trails and forests. 1

8 1.2 Study Requirements The Terms of Reference for the joint study as set out in the project brief are presented in Figure 1. While ISC and Coillte each defined their own individual requirements, the issues addressed in the study are closely related with both organisations having complementary objectives in relation to the development and management of trails and outdoor recreation infrastructure and facilities in Ireland. FIGURE 1: STUDY TERMS OF REFERENCE Study Requirements NWWAC The Irish Sports Council is preparing a first Statement of Strategy for the development and maintenance of an integrated multi-purpose trails network in Ireland. The collective term trail signifies any developed walking, cycling and other multi-purpose recreational trails, located in both rural and urban environments or both. Using best available data (from appropriate and reliable sources), and also deriving fresh data from fieldwork as is deemed necessary, the NWWAC would like the following questions and tasks to be addressed and reported on in this study: 1. What are the current economic, social and quality of life benefits to the Irish economy and to the people of Ireland of existing walking, cycling and other recreational trail developments? 2. On the basis of relevant research and information from other countries, what are the potential benefits likely to accrue from accelerated investment in the development of an integrated, quality trails network in Ireland? 3. What is the optimal rate and thrust of investment required in order to achieve the identified potential benefits over a 10-year period? 4. To develop an economic measurement framework that will illustrate potential and actual return on investment in this area over a 10-year period. Study Requirements Coillte Coillte has recently approved a revised Recreational Policy, which it hopes will define its role in recreation over the coming decade. As part of this policy review, Coillte addressed the value of its estate as a recreation resource in terms of the economic value to users. It estimated the value to users was approximately 16 mn, however this was based on work from the 1990s. It now wishes to address the following research tasks: A valuation of the economic value to users based on: a reliable estimate of the present level of usage of its estate by all recreational users; a measure of the average value of a recreation visit to users; it is expected that this valuation will involve a considerable element of fieldwork and the gathering of raw data; Methods for calculating this on an ongoing basis; Forests are also a major backdrop and contribute significantly to the tourism industry in the Republic of Ireland. A measure of the economic value of such a contribution is required. Coillte wishes to establish the multiplier effect and the value of forest recreation to the overall tourism industry. The common study objectives thus involved identification, quantification and valuation of the socioeconomic benefits to Irish society associated with trail and forest recreation usage. Coillte s specific study focus was to improve and update the quality of its information in relation to the non-market value of forest recreation. 2

9 The study focus of the ISC was to develop a framework for estimating the total market and nonmarket economic benefits associated with all trails, forest and other, and to use this to identify pointers for a trail investment strategy. For the purpose of this study the collective term "Recreational Trail" means any developed walking, cycling, water-based or other single or multi-purpose recreational amenity, established primarily for non-motorised recreational purposes. These can be located in rural or urban environments, or both. Further details of the different type of trails included within this definition are set out in Annex Research Method Overview The research on the economic value of trails and forest recreation has involved extensive primary survey work in Ireland; three international case studies (Scotland, Finland and New Zealand); a review of relevant literature and other data; and consultation with industry and other stakeholders On-Site Recreational User Survey The central element of the research involved two surveys. The first was an on-site survey carried out at a sample of 15 individual trail and forest recreation locations during April and May To maximise the value of the fieldwork many of the sites selected were combined both forest and trail sites. The survey sites were selected in conjunction with Coillte and ISC. The criteria considered in the selection of the sites included a balance between urban/semi-urban and more rural locations; geographical spread throughout the country; inclusion of waymarked ways and forest sites and a combination of both. A team of interviewees administered the surveys, and a total 636 users were interviewed at the 15 sites. Site visitors were asked a series of questions in relation to usage patterns; level of satisfaction with the site; expenditure associated directly with the visit; and most importantly the value that they placed on the visit. The latter issue lies at the centre of the research methodology in that it seeks to place an economic value on something that in Ireland generally does not have a market price, i.e. it is not directly paid for at point of use by the user via e.g. an entry fee. Interviewees were asked to place a monetary value on the benefit they got from their visit to the site. Those surveyed were also asked to compare the value they got from their visit to other similar recreational activities they sometimes undertake and which have an associated price e.g. game of golf this allowed cross-checking with 3

10 comparable activities. This methodology, using willingness-to-pay (WTP) and contingent valuation (CV) is discussed in further detail in Chapter Postal Survey A postal survey of 3,000 adults, selected at random from the electoral register, was also undertaken in order to obtain the views of those who may not use forests or trails regularly. The questionnaire was similar in structure to that used on-site, but also provided the opportunity to examine reasons why many people do not use trails or forest areas for recreation. A total of 441 questionnaires were returned, a 15% response rate. Copies of the both the postal and on-site questionnaires are provided in Annex Report Structure The remainder of this report is structured as follows: Chapter 2 provides a review of the Irish and international literature examined Chapter 3 presents the findings from the three international case studies Chapter 4 sets out the main findings from the on-site survey Chapter 5 examines the findings of the postal survey. Chapter 6 summarises the overall study findings and sets out their implications for investment strategy. 4

11 Chapter 2 Literature Review 2.1 Introduction This chapter examines a selection of previous studies in relation to the economic value of trails and forest recreation undertaken in Ireland and internationally. Lessons from previous studies provided a useful input to the development of our research methodology and also some benchmarks as to likely current economic value of trails and forest recreation in Ireland. Section 2.2 examines a number of studies on the economics of forest recreation, while Section 2.3 looks at the direct economic benefits of international trails tourism. Section 2.4 reviews a number of studies which considered the economic impact of domestic tourism related to trails, while 2.5 looks at the nonmarket benefits of trails. Section 2.6 looks at the economic cost of obesity in Ireland and the potential of trail activities to help address the issue. The review of literature has been of particular importance in considering the importance of non-market benefits associated with trails such as health benefits related to exercise. 2.2 Valuing Forest Recreation Irish Studies Irish forests are an excellent environment for outdoor recreation and provide a very cost-effective means of improving Ireland s trail infrastructure. Their main attributes are: They are robust habitats, They are capable of absorbing large numbers of people due to their capacity for noise absorption and screening They are well served with forest roads, rides and tracks which allow and encourage access They are generally perceived by most users as wild places They are often situated in areas of high amenity value The landscapes are interesting due to flora, fauna and historical artefacts They are widely dispersed around the country. According to Murphy and Gardiner 2 the most established methods internationally used for valuing recreational benefits are those using total expenditure calculations or the Travel Cost Method (TCM). Murphy and Gardiner examined methods of evaluating benefits of forest recreation using a 2 Murphy, W. & Gardiner, J.J. (1983) Forest recreation economics - Irish Forestry 40 (1) 5

12 pilot scale survey carried out in Portumna Forest Park. The primary aim of the survey was to collect data with which to construct a consumer demand curve. Their study identified some major flaws in relying on TCM alone and argued for the incorporation of time values in measuring recreational benefit. Further work by Murphy 3 on methods for valuing a forest visit under Irish conditions concluded that the willingness to pay gave the most reliable estimates. Broadhurst 4 subsequently identified two techniques for estimating the value of forest recreation, the TCM and contingent valuation using willingness-to-pay (WTP). According to Broadhurst s model, the total economic value of recreation can be broken down into direct values that accrue to the user and indirect values that accrue to the tourist industry or outdoor leisure industry. Scarpa et al 5 study into the reliability of benefit value transfers (the degree to which values calculated at a particular site can be used to estimate benefits at another site) focuses on the differences between on-site value estimates and transferred value estimates to test whether they demonstrate convergent validity. They investigated whether benefit value transfers are adequate surrogates of on-site estimates achieved through costly full-scale studies. This investigation concluded that WTP value transfers are frequently reliable when forest attributes are similar. Discrete choice contingent valuation can be used when the data sets are sufficiently large and there is variation across site attributes. The most recent estimate of the value of recreational activities associated with forests is 15.9 mn annually, based on 1994 data calculated as part of the CAMAR study (Section 2.2.2). In other previous studies Clinch 6 valued the total non-market benefits of Irish forestry including recreation and other values - at 164 mn UK Studies Scarpa et al s study of the non-market benefits of forestry 7 categories of benefit: in the UK identified six different Informal recreation Landscape and amenity Biodiversity conservation Environmental services Human health and well-being 3 Murphy, W 1984 An examination of methods for the economic evaluation of forest recreation - Unpublished Masters thesis, Forestry Dept, University College, Dublin. 4 Broadhurst, R 2001 Managing environments for leisure and recreation, Routledge, London. 5 Scarpa, Riccardo, Hutchinson, George, Chilton Sue, Buongiorno, Joseph. Benefit value transfers conditional on site attributes: some evidence of reliability from forest recreation in Ireland. 6 Clinch, J.P. Economics of Irish Forestry (1999) 7 Willis, Garrod, Scarpa, MacMillan, Bateman. Non-Market Benefits of Forestry Phase 1 Report to the Forestry Commission. University of Newcastle, Sep

13 Historical and cultural benefits. Their study found recreational benefits to be of a higher value than any of the other non-market benefits. Scarpa et al note that two main issues determine the level of benefit from forestry recreation: The location of the forest and Whether or not the forest is known to the general public. Benefits are likely to be higher if the forest is close to where people live, near a major attraction, within driving distance or in the vicinity of major tourist attractions. Furthermore, the benefits from the forest are likely to be enhanced if it is identified with recreational attributes such as the age and diversity of the trees, archaeological sites, scenic points, nature reserves or water resources. Many of the estimates calculated by the studies reviewed are derived from the EU CAMAR data set. This is the largest benefit valuation study of woodland recreation in the UK and Ireland. The socioeconomic component of the study involved surveying users at 42 woodland sites. There was an average sample size of over 350 per site, with over 15,000 observations. The data set contains details of the characteristics of woodland and recreational facilities in each forest as well as the socio-economic characteristics of each visitor. The survey employed two types of CV in the form of an open-ended question and a discrete choice question. The mean WTP taken from an open-ended question on the CV survey was estimated at 1.66 per visit. This estimate was applied to similar sites to determine the aggregate value of woodland recreation, which was estimated to be 393 million per annum for GB. 8 Of this estimate 90% is attributed to English forests. CJC Consulting focused on a case study of the Tweed Valley Forest Park. This park is divided into seven forest areas, the most important being Glentress. This facility offers large-scale and varied experiences primarily for walkers and mountain bikers. It is located near several towns and its facilities are such that it attracts visitors from over 100 miles away with many coming from Edinburgh and other parts of central Scotland. It is estimated that 300,000 visitors are received per year, including 70,000 cyclists. Taking into account the cost of development over four years and the current running costs of the park, CJC Consulting gave a conservative estimate for the WTP per visit for bikers at 10 and 1.80 for non-bikers, giving a net benefit (after subtraction of development costs) per annum of 916,000. The review concluded that formal recreational sports such as 8 Willis, Garrod, Scarpa, Powe, Lovett, Bateman, Hanley, MacMillan Social & Environmental Benefits of Forestry Phase 2. July

14 mountain biking had the greatest economic potential in terms of developing existing forest facilities. However, this is dependent on the accessibility of the site and on the growth of public/tourist demand. This is due to the much greater WTP placed on a visit by a biker the total value would obviously be dependent on the overall demand for biking and is likely to remain a niche market interest in Ireland. Total cycling tourism, however, continues to be an important product category, both in Ireland and internationally. Fáilte Ireland estimates that cycling tourists spend about 80 mn in Ireland annually, while it is estimated that the value of the European cycling tourism market will grow to about 14 bn by According to CJC Consultant s report for the UK Forestry Commission 9, considerable growth in demand for forest recreation can be expected over the coming years and in particular for specialised sports such as mountain biking. A number of studies reported that in developed countries the proportion of personal time put aside for leisure activities has been on the increase. This trend is likely to continue and the potential for woodlands and forestry to increase the supply of outdoor recreation is likely to remain high. 2.3 Economic Impact of International Trails Tourism Recreational walking has considerable potential to contribute to rural economic sustainability and regeneration. According to Midmore 10, walking and mountaineering in Wales in 2000 represented 2% of rural GDP and about 1% of rural jobs. The significance of this percentage can be recognised in comparison to agriculture which contributed 4% to rural GDP and 7% of rural jobs. Furthermore, Midmore argued that creating a job via the mechanism of supporting and improving walking opportunities in the Welsh countryside involved public cost of 433 in contrast to the direct and indirect public cost of supporting a job in agriculture which is almost ten times higher at 4,279. In evaluating the economic and social benefits of countryside access routes in the North East of England, Regeneris Consulting 11 calculated that a total of 2.9 million trails-related holiday trips in England (2004) accounted for a total expenditure of 494 million. Regeneris went on to break down this figure of 2.9 million to identify the types of activities undertaken by the holidaymakers: 59% engaged in short walks of up to 2 miles in length 31% embarked on longer walks of more then 2 miles 3% took part in cycling whilst on holiday in the North East 3% were engaged in horse riding or pony trekking 9 CJC Consulting. Economic Analysis of the Contribution of the Forest Estate-managed by Forestry Commission Scotland. Final Report for Forestry Commission Scotland April Midmore, Peter. The Economic Value of Walking in Rural Wales. 11 Regeneris Consulting Economic and Social Benefits of Countryside Access Routes in the North East. 8

15 Christie and Mathews analysed data collected from the International Passenger Survey (IPS) of 250,000 passengers entering and leaving the UK and the UK Tourism Survey figures on the proportion of countryside trips that involve walking. 12 From this data they estimated overseas visitors undertake just over 1 million walking trips into the English countryside and spend a total of 355 million (an average expenditure per visitor of 355 per trip). Using multiplier analysis on expenditure the study estimated income and employment benefits to rural areas as a result of overseas tourist expenditure during walking holidays/excursions. Christie and Mathews estimated that the income benefits from tourist walking expenditure in the UK for 2003 were between 85 million and 160 million. Full-time equivalent employment benefits were estimated at between 10,441 and 14,200 jobs. Bergin and O Rathaille of Waterford Institute of Technology carried out a study of recreation in the Irish uplands 13 estimating expenditure based on the summer of The study arrived at an estimate for the total expenditure per trip for overseas visitors of 420 compared to 94 for domestic Irish visitors. A Dublin Institute of Technology study on the Waymarked Ways in Ireland 14 focused on the Kerry way and the Wicklow way in order to do a comparative expenditure analysis. The study concluded that the mean spend for foreign visitors is greater than that of Irish walkers on all routes. It provided a breakdown of expenditure in Kerry and Wicklow in order to arrive at estimates for average spend over the walking season (March September). Average spend per day by overseas walkers in Kerry was found to be 53 while that in Wicklow was estimated at Economic Value of Domestic Trail Users International Studies In England walking tourism generates an income of between 1,473 and 2,763 million annually in rural areas. This figure includes expenditure on food, accommodation, transport etc. In terms of employment it is estimated by Christie and Mathews that between 180,558 and 245,560 full-time jobs are supported as a result of walkers expenditure. 15 To get a picture of the contribution from the domestic market, it is necessary to isolate domestic expenditure from the overseas tourism expenditure. The economic value of specialist trail activities 12 Christie, Mike Dr & Mathews, Jon The Economic and Social Value of Walking in England 13 Bergin, Jack & Milo O Rathaille Recreation in the Irish Uplands 14 O Donnell, Vicki & Boyle, Ken Waymarked Ways in Ireland User Profiles and Numbers and Route Management Strategies 15 Christie, Dr Mike & Mathews, Jon The Economic and Social Value of Walking in England 9

16 such as mountain biking is also growing rapidly. This has made a particular impact on the economy of rural Wales in areas such as Coed Y Brennin. In terms of evaluating the direct economic value from the domestic expenditure Christie and Mathews identified three categories within the general group of domestic users of trails and leisure excursions. Leisure Day Visits: include round trips made from home for leisure purposes to locations anywhere around the country. People must start and return to their home within the same day. Tourist day visits: last for three hours or more and are not taken on a regular basis. Domestic UK tourist trips: are made by domestic residents and include a stay of one or more nights away from home for holiday, business or visits to relatives/friends. Expenditure on leisure day walking trips in the countryside in England was estimated at 2,124 million in A UK tourism survey estimated there were 3.4 million tourist day trips with walking as the main activity in Given the average spend per tourist trip is 214, an aggregate estimate for expenditure for trips with walking as the primary activity was 727 million in Of the income and employment benefits generated in the UK from the total tourist industry related to walking, Christie and Mathews surmised that 35% is derived from expenditure of leisure day walkers, 38% is from expenditures of tourists on short walks and 16% on long walks. In 1998 Midmore estimated walking-related expenditure in Scotland at 257 million and that some 9,400 full-time jobs were generated from the activity. If mountaineering is taken into account these figures rise to 361 million in expenditure and 13,350 jobs. 16 Highlands and Islands Enterprise commissioned a study to determine the expenditure of mountaineers from a sample taken from Mountaineering Clubs, The British Alpine Club and subscribers to High Magazine. Two distinct populations were identified from the sample: casual walkers who spend a short time in the area and mountaineers who spend a considerable amount of time in the area pursuing their main pastime or sport. The study attributed an income value of 89 million and 10,050 full-time jobs from mountaineering in the topographical highlands area and in the highlands and islands enterprise area combined. 17 Using estimates for walking expenditure in Scotland and focusing on rural impacts alone while taking into account the contrasting economic profiles, Midmore arrived at an estimate of 77 million and 4,250 jobs for the impact of domestic walking and mountaineering in Wales Midmore, Peter The Economic Value of Walking in Rural Wales 17 Highlands and Islands Enterprise The Economic Impacts of Hill walking, Mountaineering and Associated Activities in the Highlands and Islands of Scotland. 18 Midmore, Peter The Economic Value of Walking in Rural Wales 10

17 2.4.2 Irish Studies In Ireland a number of studies have been undertaken to estimate expenditure by domestic users of trails. Data on the breakdown of expenditure in the Irish domestic walking market was collected as part of an on-going monthly survey conducted by the ESRI. 19 Expenditures were identified as relating to food, drink, and in some instances entry fees. The study acknowledged the substantial expenditure by the recreational walkers on food and drink, most of which is purchased on or near the facility. Two categories were identified: Expenditure during half-day trips this ranged between 0 and 60 with a mean expenditure of It was estimated that this group spent approx 3.9 million on food, drink and entry fees between July and October Expenditure during day length trips (in excess of 4 hours) this varied between 0 and 300 with a mean expenditure of 21. This group spent an estimated 3.3 million on food, drink and entry fees between July and October In order to determine the level of expenditure on recreational walking gear the ESRI used a 12- month recall period to allow for seasonal factors and occasional purchases of equipment. It was found that in excess of 70% of respondents did not spend any money on walking equipment. Of those who did the most common expenditure was approx 100 per annum. Across all respondents the average annual expenditure on equipment was 34 or approx 76 million. This estimate must be qualified by noting that some of the equipment might have a multi-purpose function and therefore can be used outside of recreational walking. In 1997 Bergin and O Rathaille examined walking-related expenditure in the Irish uplands. Total expenditure was divided into the following categories: Accommodation: 51% of Irish visitors did not incur accommodation costs. For the remaining 49% the average annual expenditure was estimated at 90 Travel Costs: The number using public transport to visit the uplands sites was deemed negligible. An average of 2,000 was estimated for Irish visitors per year in travel costs to the uplands Expenditure incurred on-site: This includes the amount spent per visit in a pub, café or shop. The average expenditure for domestic users was found to be 7.80 per visit. This is more likely to occur closer to the site than to home, therefore emphasising the importance of the village pub, shop or café adjacent to upland areas 19 Curtis, John A & Williams, James ESRI A National Survey of Recreational Walking in Ireland 11

18 Equipment: The annual expenditure per Irish visitor on specialised equipment was 90 with a large percentage spending over 250. According to a Dublin Institute of Technology study on Waymarked Ways in Ireland 20, recreation behaviour in Ireland has dramatically changed over the past few decades. This study marks the considerable rise in car ownership as a primary cause of this change. Furthermore, people are experiencing extended leisure time and widened individual access to activity amenities, suggesting that public benefit of the Irish countryside will continue to grow. 2.5 Non-Market Recreational Value of Trails Clearly, those who use trails in the countryside for recreational purposes enjoy the benefits from access to these facilities. However, quantifying these benefits in monetary terms is a challenge since access to trail facilities, such as forest car parks with access to a trail network or uplands is generally a non-market good, i.e. users are not charged an entry fee or other charge. TCM and WTP (already described) are generally accepted methods of estimating these non-market benefits. However, there have been relatively few studies which measured the non-market benefits of trail usage in Ireland. Research to date has concentrated on measuring benefits from recreational visits to forest sites and nature reserves. Some site-specific international estimates were reviewed which used WTP as a tool for estimating the value of recreational benefits. In the US, Fix and Loomis 21 applied TCM to mountain biking recreation facilities in Moab, Utah. Mountain biking is a relatively new form of recreation and Moab is one of the best-known areas to ride in the USA, with over 20 trails for mountain biking and a view over unique rock formations. The survey identified a single purpose and single destination sample and, using a WTP methodology, arrived at a user benefit of $197 - $205 per trip. These high values are attributed to the unique facility being surveyed and therefore are not readily transferable. A contingent valuation study of visitors to the Ridgeway National Trail in the UK was carried out in September The purpose was to establish the value users place on access to the trail. A mean WTP was established of 1.24 per visit with an estimated 150,000 visits per year, giving an estimated annual aggregate benefit of 186, O Donnell, Vicki & Boyle, Ken DIT Waymarked Ways in Ireland User Profiles and Numbers and Route Management Strategies. 21 Fix, Peter & Loomis, John The Economic benefits of Mountain Biking at One of its Meccas: An application of Travel Cost Method to Mountain Biking in Moab, Utah 22 Bennett R.M, Tranter R.B., Blaney R.J.P. The Value of Countryside Access: A Contingent Valuation Survey of Visitors to the Ridgeway National Trail in the UK 12

19 2.6 Health Benefits of Trails and Outdoor Recreation International Studies The rise of obesity levels in developed countries has been widely reported over the past decade, with varying causes identified. The growing levels of non-manual labour, greater car usage and the accessibility of cheaper, convenient, food are all cited as contributing factors. A study by Sustrans into the benefits of exercise highlighted that in % of UK women and 6% of men were classified as obese; these figures had risen to 21% of women and 17% of men by Illnesses such as coronary heart disease, certain types of cancers, diabetes (type 2) and stroke are associated with obesity and can lead to premature death. The cost to England s economy of poor health due to lack of exercise is estimated by Regeneris Consulting 23 to be between 2 billion and 6.5 billion annually, or between 40 and 140 per head of the population. Furthermore, an increase in levels of physical activity by 10% in adults in England would, according to Regeneris, lead to annual economic benefits of around 500 million. In the US research has shown that people who exercise regularly have: 14% lower claims against medical insurance 30% fewer days in hospital 41% fewer claims greater than $5,000 According to Sustrans, the costs attributed to inactivity in the US have been estimated between $24.3 billion and $37.2 billion per annum. 24 In addition to the physical health benefits of exercise, improved psychological well-being is an accepted benefit of regular exercise. Research into the effects of Green Exercise on mood and self-esteem was carried out by the Countryside Recreation Network using quantitative survey analysis of 263 people from ten case studies from around the UK, and representing various activities ranging from mountain walking, cycling to horse riding. 25 The study confirmed that the effects of green exercise generate many positive physical and mental health benefits regardless of the level of intensity or duration or type of activity. 23 Regeneris Consulting Economic and Social Benefits of Countryside Access Routes in the North East 24 Sustrans The Economic Potential of Active Travel 25 Countryside Recreation Network A Countryside for Health and Well-being 13

20 2.6.2 Irish Studies According to the Obesity Report published by the National Taskforce on Obesity in April 2005, the level of obesity in Ireland is increasing by 1% every year. Currently 39% of Irish adults are overweight and 18% are obese. The report identified those most affected as: men those over 35 years of age those with poor educational attainment levels lower socio/economic groups. The report highlighted concerns over the growing levels of childhood obesity. The number of Irish children overweight or obese is 327,000. Furthermore the report highlighted the rising numbers of premature death and excess morbidity due to obesity, estimating 200 deaths attributable to obesity annually. In order to estimate the costs of physical inactivity and obesity it is necessary to take into account not only the direct costs incurred in the treatment of obesity itself but also wider health consequences. The Obesity Report cited an estimate for the UK of 9.4 million for direct healthcare costs. The cost of treating the consequences of obesity involves looking at each attributable illness such as diabetes and CHD as well as various types of cancer and estimating treatment costs. Around million is spent per annum in the UK in the treatment of these consequential effects of obesity. Using these figures for the UK and translating them to Ireland on a pro-rata basis the report arrived at an estimated cost of 70 million for the treatment of obesity in Ireland. This figure allows for the higher costs of GPs and drugs in Ireland. To put this figure in context; this is more than twice the estimated health care costs of environmental tobacco smoke. 26 However, the task of estimating the total costs of obesity does not stop at treatment of these direct costs, there are additional indirect costs. These indirect costs include: Costs incurred in the workplace from days lost due to illness Lower wages due to discrimination And output losses due to premature death. The UK estimate for indirect costs of obesity is 2.6 billion in Again, using a pro-rata basis and taking account of increased labour costs for Ireland, the Obesity Report estimated the indirect costs for Ireland at 370 mn. 26 National Taskforce on Obesity, Ireland The Obesity Report April

21 A Dublin City University 27 study on the benefits of recreational trail use concluded that the health benefits of a physically active lifestyle include weight control, development of healthy bones and the protection against cardiovascular disease, diabetes and certain types of cancer. The study noted that trails provide opportunities for individuals to be regularly active through walking or cycling and are, therefore, a means of achieving physical activity goals as outlined in current health promotion strategies in Ireland. Furthermore they are seen as attractive, enjoyable, motivating and relaxing, creating an enhanced state of mood and psychological well-being. The study argues that trails therefore offer excellent potential for Ireland to address its obesity problem, and that increased trail usage could result in considerable cost savings associated with obesity reduction. 2.7 Summary of Chapter Findings The following are the main chapter findings: Only limited work has previously been carried out in Ireland in relation to the non-market value of forests and trails. The most recent estimate of the value of recreational activities associated with forests in 15.9 mn but as the figure is based on data over a decade old it is likely to greatly underestimate the current true recreational value of Irish forests Previous Irish research has highlighted shortcomings in relying on the TCM to estimate nonmarket values but found that WTP worked well in an Irish context The extensive CAMAR study, which included fieldwork in Ireland, found a mean WTP for forest visits of 1.66 ( 2.10). When adjusted for inflation the mean WTP for a single forest visit in 2005 prices would be about 3 Research in the UK has found the WTP for mountain bikers could be up to 5 times greater than that for hikers Trail activities in Wales are estimated to contribute 4% to the country s rural GDP and account for 7% of total rural employment Research by the ESRI has shown that Irish walkers spent some 7.2 mn on food, drink and entry fees over a given three-month period in The estimated annual expenditure on walking equipment was some 76 mn The Obesity Report estimates that the annual cost of treatment of obesity in Ireland is about 70 mn while indirect costs associated with the problem are estimated at 370 mn A number of studies have highlighted the health benefits associated with trail usage and have indicated that increased trail usage could greatly alleviate Ireland s obesity problem. 27 Centre for Sport Science and Health DCU The Benefits and Values of Recreational Trail Use 15

22 Chapter 3 International Case Studies 3.1 Introduction To establish an international benchmark for the economic importance of trails and forest recreation and to examine funding mechanisms for supporting trail and forest recreation infrastructure in other countries, three international case studies were undertaken. The countries chosen were Scotland, Finland and New Zealand. The criteria used in the selection of these three countries were the stage of trails development; the importance of forests and trails in delivering benefits to the society recreation; and standing in the global market for outdoor recreation tourism. New Zealand and Scotland have particularly well-developed trail networks and New Zealand is a market leader in outdoor activity and adventure tourism. Scotland as a near neighbour and with a similar tourism target market provides considerable potential for lessons for Ireland. Finland is a densely forested country with a long history in the provision of forest recreation areas, of which trails are a significant part. The case studies were predominantly desk-based, although a short visit to Scotland was undertaken which involved consultations with a range of recreation, trails, forestry and tourism interests. 3.2 Finland Context The key to understanding the trail provision and management in Finland, and the relationship between backcountry recreation and forestry, is the strong cultural affinity that Finns have for the outdoor environment. In addition, there is a strong association between this outdoor recreation and the experience of nature. This relationship can be viewed under the traditional concept of everyman s right 28 which ensures that anybody can use nature for recreational purposes. Finland possesses 35 national parks as well as 12 designated wilderness areas, numerous recreation areas and 100 recreational forests. A thorough network of trails is maintained by the state or by municipal authorities. A few of these trails cross the whole country and are linked into a European network of long-range trekking routes (ERA Routes). Several trails are marketed under 28 Everyman s right is a legal concept in Scandinavia which bestows on citizens a right to roam for hiking, camping, berry picking etc. 16

23 their respective characteristics which include wilderness, white waters, lakes, fjords and cultural/industrial heritage trails (iron works, rock paintings). Many forest areas possess good visitor facilities, including nature trails, campsites, shelters and visitor centres. Cross-country skiing is very popular and ensures that trails continue to be used into the early winter months and early spring. The focus is primarily on domestic tourism, largely in recognition of the public good rather a commercial return. However, Finland is actively marketing the country to foreign tourists and the wilderness aspect is a major asset in this respect. The promotion of long-distance trails has been an element of this strategy, particularly the 80 km length of the Nordkalotteden Trail, which is part of a Scandinavian trail network Forest Ownership and Funding Mechanisms Three quarters of Finland is under forestry, the majority of which is commercial forestry, albeit with a long harvesting cycle. Metsahallitus (The Finnish Forest and Park Agency) is the overall state body with responsibility for commercial forestry and recreation. It is also responsible for the country s national parks and sets management targets in relation to these and hiking areas. Conservation of natural areas is, however, the principal objective and the everyman s right carries with it obligations in relation to minimal impacts on the natural environment. Conservation is taken very seriously and departure from trails in fragile designated wilderness areas is discouraged. Most of these natural areas are characterised by extensive areas of forest. The everyman s right ensures that no permission is needed to enter an area (excluding designated nature reserves) and that no fee can be demanded for access. This is in stark contrast with the legal situation in relation to countryside access in Ireland. Trails are therefore managed for the public good rather than for income. Metsahallitus receives an annual government subsidy of 25 million for the purpose of managing recreation in these areas. Around half of this is understood to be allocated directly to the maintenance of trails and hut facilities. The infrastructure for trails is well-developed on public lands, but less so in the two-thirds of the forested area that is in commercial hands. It is argued that these areas are, in any case, less attractive to hikers. Municipalities are important providers of trails, particularly around urban areas where forests are well frequented for walking and jogging. Some of these municipal forest land are also cut for timber. Many Finns using these areas are able to access them directly from home on foot. 17