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Queensland the Smart State d11e, e~otlQ:m1i.( \(Cl\lu~,.of fit;~~~IINMaA~Ii i;mig;A~L!~~~dtRl.~:A~· fi~.IJ~,ni:~&0 i.t1l Q~r~~ensla~n·d~: The Bjelke-Petersen, Boondooma and Fairbairn Dams John Rolfe, Prabha Prayaga, Peter Long and Rod Cheetham Summary Report May2oos Executive summary An economic study was conducted in 2002-03, involving staff from Central Queensland University (CQU) and the Queensland Department of Primary Industries and Fisheries (DPI8:F). Data was obtained through the collection of surveys from anglers at the Bjelke-Petersen Dam, Boondooma Dam and Fairbairn Dam over a 12 month period. Boondooma and the Bjelke-Petersen dams are in the south Burnett region, while the Fairbairn dam is in the Central Highlands region. The three dams are on or near major highways with Boondooma dam near the Bunya Highway about 20 kms to the west ofProston. The Bjelke-Petersen dam is located on the Burnett Highway about 10 kms south of Murgon. The Fairbairn dam is on the Capricorn Highway about 11 kms south of Emerald. The total number of surveys collected during the 12 month period was 264 at the Bjelke-Petersen dam, 250 at the Boondooma dam and 182 at the Fairbairn dam. The expected number of groups visiting each year is 2,513 at Bjelke-Petersen, 3,275 at Boondooma, and 1,622 at Fairbairn. Average group size ranged from 2.6 people at Bjelke-Petersen to 3.8 people at Fairbairn. Average distance travelled (one way) to reach the dams ranged from 240 kilometres at both Bjelke-Petersen and Boondooma Dams to 701 kilometres at Fairbairn Dam. The average length of the fishing trip ranged from 6.5 days at Bjelke-Petersen to 8.6 days at Fairbairn. Anglers at Boondooma were making trips solely for fishing, by comparison anglers at Fairbairn tended to make the visit as part of a longer trip. Expenditure per group per trip at the dams has been estimated at $457 for Bjelke Petersen, $448 at Boondooma, and $1,368 at Fairbairn. After allowances have been made for the non-fishing component of holidays, the total annual expenditure by recreational anglers to the three dams are estimated at $0.95M for Bjelke-Petersen, $1.47M for Boondooma, and $1.07M for Fairbairn. Total annual spending by anglers in the local impoundment areas has been estimated at $0.78M at Bjelke-Petersen, $!.10M at Boondooma, and $0.97M at Fairbairn. The estimated consumer surplus1 for the visitors (making just I trip per annum) to each dam per person per trip was $60 at Bjelke-Petersen, $348 at Boondooma, and $904 at Fairbairn. The total annual consumer surplus for visitors with just a single visit per year was estimated at $0.16M for Bjelke-Petersen, $0.96M for Boondooma and $3.43M for Fairbairn. The value of recreational fishing at each dam was assessed with the travel cost method (TCM) - a specialist non-market valuation technique. This used the expenditure incurred by anglers to estimate the additional economic benefits of the visit. The data set had to be split into two groUps for each dam to fit a TCM. The economic value of groups only making single visits were assessed with a zonal TCM, while the economic value of groups making multiple visits each year was assessed with an individual TCM. The proportion of anglers making single visits to each dam (the tourism market) was 340fo at Bjelke-Petersen, 290fo at Boondooma, and 620fo at Fairbairn. The estimated consumer surplus for the visitors (making just I trip per annum) to each dam per person per trip was $60 at Bjelke-Petersen, $348 at Boondooma, and $904 at Fairbairn. 1 Consumer surplus: measure of the maximum amount a consumer would pay to purchase goods or a service less the actually amount paid. ii The total annual consumer surplus for visitors with just a single visit per year was estimated at $0.16M for Bjelke-Petersen, $0.96M for Boondooma, and $3.43M for Fairbairn. For the regular anglers (making > 1 trip per annum), the estimated consumer surplus per person per trip was $221 at Bjelke-Petersen, $359 at Boondooma, and $441 at Fairbairn. The total annual consumer surplus for the regular angler group was estimated at $0.91M for Bjelke-Petersen, $2.23M for Boondooma, and $1.11M for Fairbairn. The total economic value of recreational fishing can be estimated by adding the values of the single visit group to the value of the repeat visit group. The total economic value of current recreational activities is estimated at $1.07M for Bjelke Petersen, $3.2M for Boondooma, and $4.54M for Falrbairn. A contingent valuation question (a specialist non-market valuation technique) was included to assess values for improving the fishing experience at each dam. A hypothetical scenario was used, where respondents were asked if they would be willing to pay an increased fee of a set amount to improve their fishing experience by 20%. (The scenario is not government policy and has only been used in the project as a mechanism to assess these values). An analysis of the responses indicated that the average values for improving catch rates by 20% was $19/angler at Bjelke-Petersen, $43/angler at Boondooma, and $36/angler at Fairbairn. The results show that the value of improving catch rates by 20% per annum at each dam are estimated to be $0.12M for Bjelke-Petersen, $0.39M for Boondooma, and $0.22M for Fairbairn. Anglers at the Bjelke-Petersen Dam are spending $0.95M annually, mostly in the local economy, have a recreational value of $1.03M for fishing at the dam, and value a potential 20% improvement in catch rates at $0.12M. Anglers at the Boondooma Dam are spending $1.43M, mostly in the local economy, have a recreational value of $2.69M for fishing at the dam, and value a potential 20% improvement in catch rates at $0.39M. Anglers at the Fairbairn Dam are spending $1.07M, mostly in the local economy, have a recreational value of $1.5M for fishing at the dam, and value a potential 20% improvement in catch rates at $0.22M. iii Contents Executive summary ii 1 Introduction 1 1.1 Importance of recreational fishing in Australia 1 1.2 History offish stocking 3 1.3 Assessing the benefits of recreational fishing 4 1.4 Scope and aims of the study 5 1.5 Methodology 5 2 Data collection and preliminary results 7 2.1 Data collection 7 2.2 Survey results 8 3 Economic impact of freshwater recreational fishing 11 3.1 Overview of input-output analysis 11 3.2 Expenditure levels 12 3·3 Estimated visitation rates for each dam 12 4 Summary 16 References 16 List of Tables Table 1.1 Expenditure of Queensland recreational fishers 2 Table 1.2 Stocked fish species 4 Table 2.1 Average annual fishing trips 8 Table 2.2 Summary statistics for the three dams 8 Table 2.3 Method of fishing 10 Table 2.4 Number offish caught 10 Table 3.1 Average expenditure of anglers at the dams 12 Table 3.2 Average number of groups visiting each dam 13 Table 3·3 Average expenditure per group 14 Table 3.4 Ratio of trip to holiday 14 List of Figures Figure 1 Importance of fishing 9 Figure 2 Percentage of holiday spent fishing 9 Figure 3 Expected catch 10 Rgure 4 Angler participation details 13 Figure 5 Summary of expenditure patterns 15 iv Introduction 1 1.11mportance of recreational fishing This report is focused on estimating the economic values associated with recreational fishing at three freshwater dams in Queensland, Australia. It is not possible to directly estimate all of these values from market data, and specialist non-market valuation techniques need to be applied to assess these values. This can be done by interviewing or surveying recreational fishers directly to assess their expenditure patterns and other factors. Before moving to these stages, it is useful to summarise some available data about recreational fishing in Australia and Queensland. Recreational fishing is important because it generates both long term and short term benefits. The commercial benefits of recreational fishing are more apparent and hence easier to quantifY. Commercial benefits in the short term include jobs and increased turnover for businesses. In the long-term they include the attraction of new businesses to regions and increases in the profitability of existing ones. In this way recreational fishing can have significant direct and indirect effects on industries and business that rely on it. Recreational fishing has a direct effect on industries such as boat building and recreational magazines, and on local businesses such as charter vessel and tour guide operators, fishing tackle shops, and commercial bait collectors. It may also have a direct effect on the hospitality and transport service industries. There are also non-commercial benefits of recreational fishing. These can be thought of as the benefits that people gain from the recreation activity. Given the number of people involved in fishing, it is likely that these benefits are also very substantial. A focus on only the commercial benefits wouid underestimate the contribution that a recreational fishing facility might mak~ to a community. Constructed impoundments provide inland residents with water based recreational opportunities that were previously unavailable, or required much more travel. Recreational fishing is the fifth most important recreational activity in Queensland, after golf, swimming, tennis, and fitness activities like aerobics. Recreational fishing occurs in marine, estuarine and freshwater habitats (Williams, 2002). About 28% of the Queensland population aged over five years has fished at least once during in the year 2000-01, while expenditure on recreational fishing and associated recreational activities was around $300 million in 2000-01 (Henry and Lyle 2003).