Economic benefits of Newfoundland's busiest provincial park far outweigh costs

Posted on October 25, 2005

The economic benefits of Butterpot Provincial Park far outweigh lost industrial opportunities, according to a recent report commissioned by CPAWS Newfoundland & Labrador. "An Assessment of the Economic Costs and Benefits of Protected Areas in Newfoundland and Labrador" by LandTech Consultants looked at economic opportunities in the province's most visited provincial park.

A brief summary of the economic costs and benefits showed that lost economic opportunities such as forestry and mining amounted to just under $250,000 a year, while the economic benefits from tourism, outdoor recreational sectors, annual park revenues, employment and tax revenue was valued at close to $600,000. While this does not include revenue boosts to local business, several business owners in the area deemed the positive effects of tourism very substantial. This number also includes only park fees attributed to visitors and not the total amount spent while staying in the park. Board members of CPAWS-NL are also looking at a park exit survey on visitors' nightly spending. The yearly total of park-related revenue is expected to approach $2,500,000.

The report 's overall findings indicate that there are great financial, social and environmental benefits from protected areas throughout the province, which far outweigh the economic costs associated with these areas. CPAWS-NL is currently seeking funding for a similar study on a provincial marine protected area.