DOC PREVIEW
MSU PRR 475 - economicevaltools
Course Prr 475-
Pages 14

This preview shows page 1-2-3-4-5 out of 14 pages.

Save
View full document
View full document
Premium Document
Do you want full access? Go Premium and unlock all 14 pages.
Access to all documents
Download any document
Ad free experience
View full document
Premium Document
Do you want full access? Go Premium and unlock all 14 pages.
Access to all documents
Download any document
Ad free experience
View full document
Premium Document
Do you want full access? Go Premium and unlock all 14 pages.
Access to all documents
Download any document
Ad free experience
View full document
Premium Document
Do you want full access? Go Premium and unlock all 14 pages.
Access to all documents
Download any document
Ad free experience
View full document
Premium Document
Do you want full access? Go Premium and unlock all 14 pages.
Access to all documents
Download any document
Ad free experience
Premium Document
Do you want full access? Go Premium and unlock all 14 pages.
Access to all documents
Download any document
Ad free experience

Unformatted text preview:

Economic Evaluation ToolsTYPES OF ECONOMIC ANALYSISBenefit-Cost AnalysisCost Effectiveness AnalysisFiscal impact analysisEconomic Impact AnalysisQuestions an EIA AnswersTypes of Park Impact AnalysesSteps in an Economic Impact AnalysisWhat are economic impacts of Recreation & Tourism?PowerPoint PresentationSlide 12Slide 13Slide 14Economic Evaluation Tools•Benefit-Cost Analysis•Cost Effectiveness Analysis•Financial Analysis/Feasibility•Fiscal Impact Analysis•Economic Impact Analysis•Social/Environmental Impact AnalysisTYPES OF ECONOMIC ANALYSIS •Economic impact analysis (EIA) -- What is the contribution of tourism activity to the economy of the region? •Benefit Cost analysis (B/C) – Which policy will generate the highest net benefit to society over time? •Environmental Impact assessment – What are the impacts of an action on the surrounding environment? •Fiscal impact analysis – Will government revenues from tourism activity (taxes, direct fees, etc.) cover the added costs for infrastructure and government services•Demand analysis – How will the number or types of tourists change due to changes in prices, promotion, competition, quality,etc.? •Feasibility study – Can/should this project or policy be undertaken? •Financial analysis – Can we make a profit from this activity?Benefit-Cost Analysis•Measures economic efficiency as ratio of benefits to costs•Used in evaluating alternative actions•Measure stream of benefits and costs over time resulting from a project•Value these B/C in dollars•Discounting, NPV to handle time•Non-market benefits measured via WTPCost Effectiveness Analysis•Used in lieu of B/C when valuation of benefits is difficult; also measures efficiency•Best for comparing alternative means of delivering similar benefits•Evaluate in terms of Cost per unit of output•E.g. $ 4 per camper night to provide State Park camping experienceFiscal impact analysis•Assess impacts of a project on government revenues and costs•Identify added service requirements•Estimate costs and revenues received from fees or taxesEconomic Impact Analysis•Assesses impacts on sales, income, jobs, in a region•Action Activity Spending Jobs•Impact = Visits * Spending * Multiplier•With vs Without AnalysisQuestions an EIA Answers-How much do visitors spend in the area? -What portion of sales by local businesses is due to tourism?-How much income does tourism generate for households and businesses in the area? -How many jobs in the area does tourism support?-How much tax revenue is generated from tourism?-How are businesses in an area linkedTypes of Park Impact Analyses•By the Stimulus–Visitor Spending–Park Operations –Construction•Which Spending is included–Significance–Impact •Justification or Evaluation–Impacts of all visitor spending–Impacts of a management alternativeSteps in an Economic Impact Analysis•Define the action(s)•Identify visitors/visits affected (segments)•Define the study region •Specify Inputs–Visits–Spending averages–Multipliers•Inspect, Interpret & Communicate ResultsWhat are economic impacts of Recreation & Tourism?Covered in EIA•Sales•Income•Jobs•Tax RevenuesDirect & Secondary EffectsUsually Not Covered•Price Changes•Changes in QL or QN of goods & services available in an area•Seasonality•Fiscal costs•Non-market B/C e.g. CongestionThe Economic Impact Process Activity Spending Regional EconomyPolicy Plan or ActionActivities Visitors AgencyRecreation Operations ConstructionTrip spendingWages & SalariesDirect effectsIndirect effects Induced effectsDurable GoodsGoods & ServicesEconomic ImpactSpending per VisitorCapture rate*= **USE SPENDING MULTIPLIERTypes of EffectsDirect effect - Businesses receiving money directly from tourists, e.g. hotelIndirect Effects -Businesses receiving money from tourist businesses, e.g. linen supply firmInduced Effects - Businesses receiving money from workers in a direct or indirectly impacted business - e.g. apartment rentalsMeasures of EffectsSalesIncomeJobsValue AddedMultipliersExpress total effect in relation to direct effectTypes of MultipliersSales, Income & Employment Multipliers Ratio and KeynesianType I and, IIAggregate, Sector-specificType I = direct + indirect directType II = direct + indirect +


View Full Document

MSU PRR 475 - economicevaltools

Course: Prr 475-
Pages: 14
Download economicevaltools
Our administrator received your request to download this document. We will send you the file to your email shortly.
Loading Unlocking...
Login

Join to view economicevaltools and access 3M+ class-specific study document.

or
We will never post anything without your permission.
Don't have an account?
Sign Up

Join to view economicevaltools 2 2 and access 3M+ class-specific study document.

or

By creating an account you agree to our Privacy Policy and Terms Of Use

Already a member?