Economic Impacts of Parks, Rivers, Trails and Greenways

everage, indirect effects are when the local food manufacturers purchase additionalproduce from local farmers, and the farmers then purchase additional supplies in order togrow products necessary to meet the demand. Another example might be fishingequipment. For instance, the indirect effects attributed to a fishing rod would includepurchases by the rod manufacturer for graphite and other materials, and the graphitemanufacturers (if local) purchases of local supplies. Thus, indirect effects extend to sectorsof the economy beyond recreation-oriented businesses, such as agriculture, manufacturing,and transportation.The direct and indirect effects of increased spending by park or trail visitors can result in anoverall increase in the production of goods and services in the local economy. This increasein economic activity can also increase jobs and household incomes within the economy. Aportion of the incomes is then spent on other goods and services.Consumer purchases resulting from the increased income of business owners andhouseholds set in motion another sequence of expenditures and purchases. The sum of theseimpacts over and above the direct and indirect effects is the induced effects. For example,the induced effects would include all the purchases made by households which receivewages from their employment at the rod manufacturer or local market. Induced effectsresult from wages paid to households by both directly and indirectly affected businesses.These induced effects can be estimated from economic impact models. Together, the directand indirect effects are called secondary effects.DIRECT EFFECTSSales, income and jobs in those businesses selling directly to park users+INDIRECT EFFECTSPurchases of supplies and materials by the producers of park-related products and services,and the purchases made by the producers of the supplies and materials+INDUCED EFFECTSSpending of income earned directly or indirectly from the visitor expenditures=TOTAL ECONOMIC EFFECTS OF PARK EXPENDITURESFigure 3. Economic Effects of Park or Trail ExpendituresIf you estimate the direct, indirect, and induced effects of visitor expenditures, you canshow the total economic activity which can result from your park or trail project. Forrecreation expenditures, the total economic effects, whether sales, jobs or income, are oftenapproximately one and a half to three times more than the amount of the actual recreationrelatedexpenditures. The magnitude of direct, indirect, and induced impacts depends on thenumber of visitors attracted to the park; the amount they spend; the structure and diversityof the local economy; and the quantity of input supplies purchased within your localcommunity. Goods that are purchased from outside the local economy constitute a84