The demand for recreational land and its impact on local and neighbouring land values and economic activity : a comparative study of Methven and Oxford

Abstract

A study of all the businesses in Methven and Oxford was undertaken to obtain information on their business performance over a 20 year period. A social study of 155 Methven residents, selected on a systematic area sampling basis was also carried out to secure information on how much the local population has been affected by the development of the ski-field, and their perception of it. The studies were designed to investigate whether the demand for recreational land impacts land values and economic activities in the local and neighbouring areas. Comparisons were made where appropriate with similar activities in Oxford.

In general, the study showed that the demand for recreational land does affect other land values and economic activities. It has also been established that a relationship between the demand for recreational land and many other social factors also exists.

The particular study of the Mount Hutt ski-field's effect on land values in Methven has shown that residential, commercial, industrial and vacant land prices have all increased considerably since its inception. The number of property transactions has increased substantially as many people have taken the opportunity to sell.

Rents and rates have also been increased and homes and businesses have been extended or altered.

Other areas of change include the growth in the number of business places. Winter turn-overs have increased by as much as 300 percent over summer turn-overs. Increased business patronage has been matched by increased demand for public facilities and infrastructure. Telephone subscription, newspaper subscription, power consumption, water usage, postal services and savings transactions have all increased since the development of the ski-field. Employment prospects have improved as full-time, part-time and seasonal jobs increased. Some of the seasonal employees undertake on-farm jobs during the summer months. The increased amount of wages has increased the spending power of local people thereby creating further employment. The growth in tourists has been met by increased provision of local accommodation. The social implication of the development was looked at to see the effect on the population, schools, church and other social organisations. Efforts were also made to assess the level of association between local people and the skiers. Several conclusions were drawn from the results of the empirical survey. The main conclusion was that the demand for recreational land does affect other types of properties and further socio-economic changes may occur as a result of the increased demand. This information is expected to contribute to the development of a body of knowledge useful in assessing economic, social or environmental impacts of any major recreational development.