Economic benefits of Mt. Cook National Park

Abstract

Market and non-market valued decisions are associated with New Zealand's system of national parks. The use benefits of Mount Cook National Park are not priced by the market mechanism, whereas many of the inputs necessary to operate and maintain the Park are priced. Estimates of the economic benefits are relevant information when deciding upon the allocation of resources to, and within, a system of national parks.

In 1984, the consumers' surplus for adult New Zealand visitors was about $2.2 million. An estimate of the net national benefits is given by the consumers' surplus obtained by New Zealand visitors, plus the net benefits associated with foreign visitors, less the cost of Park management and land rental. The net benefit of Mount Cook National Park, as it was in 1984, is likely to be positive, indicating that the benefits associated with the current use pattern of resources exceeds their opportunity cost to the nation. However, this result cannot be used to establish the optimality of current expenditure and management.

Approximately 170,000 adults visited Mount Cook National Park over 1984; 29% were from New Zealand, 25% were from Australia, 18% were from the United States, and 7% were from Japan. Visitors to the Park spend money in towns and villages in the Mackenzie Basin area. Average adult visitor expenditure in the Mackenzie Basin area is $58. These expenditures give rise to secondary economic benefits and create opportunities for regional development. Visitor expenditures in the Mackenzie Basin area are associated with $13.4 million of additional regional output, $6.8 million of additional regional income, and 196 jobs. These effects derive their significance from regional objectives; they are not indicators of the national benefits associated with Mount Cook National Park.