Impacts of Visitor
Spending on Local Economy:
Crater Lake National
Park, 2001
Summary and Discussion
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Visitors to Crater Lake NP spent $30.7 million
within a 100-mile radius of the park in 2001. The total economic impact of
visitor spending was $25.8 million in direct sales, $8.6 million in personal
income, $13.0 million in direct value added and 733 jobs. With multiplier
effects, created by the re-circulation of money spent by tourists, visitor
spending generated a total of $34.3 million in local sales, and an associated
$11.5 million in personal income, $18.3 million in value added and 863 jobs.
Sectors receiving the greatest direct benefit from park visitors were lodging
($10.8 million in direct sales) and restaurants ($6.6 million).
The park’s relative importance to the local
economy can be identified by comparing these figures with local tourism and
economic statistics. Total lodging sales in East Douglas, Jackson and Klamath
County was $60 million and total visitor spending was around $496 million in
2000 (Dean Runyan Associates, 2002). Crater Lake NP visitors contributed around
$30.7 million in overall spending and $10.8 million in lodging sales. This
spending accounts for 6% of total tourism spending and 18% of total lodging
sales in the three county region.
The overall MGM2 economic impact estimates
provide a quantitative picture of the role the park plays in the region’s
economy. An understanding of the park’s economic significance is helpful in
garnering support among local partners to help preserve the park and also to
better serve both the visitor and the surrounding communities. The MGM2 model
can also be used to evaluate alternative management, development and marketing
decisions. For example, the marginal economic impacts of particular visitor
segments can be useful for evaluating particular marketing and development
policies both within and outside the park. Table 8 shows the changes in sales,
jobs, income and valued added associated with an increase or decrease of one
thousand additional party-nights by each visitor segment.
To evaluate the regional economic impacts of
adding an additional 10 rooms to an area hotel, for example, first compute the
change in party nights – 10 rooms occupied 100 nights yearly yields 1,000 extra
party nights. Applying the marginal impacts for the “Motel-out” segment in Table
8, generates an additional $175,500 dollars in direct sales in the region,
Table 8. Direct impacts of an additional 1,000 party nights by
lodging segments, Crater Lake NP, 2001

Impacts of Visitor Spending on Local Economy: Crater Lake
National Park, 2001 Page 15
$56,800
in personal income, $85,100 in value added and 5 direct jobs. The impact of this
alternative could be compared to others such as expanding campsites, a marketing
campaign to increase day trips, etc.
The impacts presented in this report document the
economic significance of 457,000 recreation visits to Crater Lake NP in 2001.
The impacts will vary from year to year with changes in prices, visitor volumes,
the mix of visitors attracted, and other changes in the park and surrounding
communities. The MGM2 model has built- in procedures to price adjust spending
averages over time, so updated figures may be obtained fairly easily, if there
are not significant changes in visitor use and spending patterns. In the absence
of significant structural changes in the local economy, multipliers will be
quite stable. So the primary input for updating the estimates are visit
estimates, which must take into account any changes in the mix of visitors or
their length of stay in the area.
Suggested research to further refine the spending
and impact estimates would include (1) a survey of off-season park visitors to
refine the annual segment shares, party sizes, length of stay and spending
profile; (2) general surveys of visitors to the region in cooperation with local
tourism organizations to understand the park’s share of the region’s travel
market and visitor patterns of use both inside and outside the park.