Wales Activity Mapping: Economic Valuation of Marine Recreation Activity FINAL REPORT A project commissioned by Welsh Government’s Sustainable Development Fund and Port of Milford Haven Completed by Marine Planning Consultants in partnership with Atkins and Pembrokeshire Coastal Forum 1 November 2013 Wales Activity Mapping: Economic Valuation of Marine Recreation Activity Report prepared for Wales Activity Mapping Working Group Project Manager David Jones, Project Manager Pembrokeshire Coastal Forum The Old Sail Loft Milford Docks Milford Haven SA73 3AF [email protected] www.walesactivitymapping.org.uk www.pembrokeshirecoastalforum.org.uk Contract reference PCF 119654 Report prepared by Marine Planning Consultants Limited Project Manager Caroline Chambers, Project Manager Project Director Liam McAleese, Project Director Report Contributions Rupert Haines (Atkins) Jack Pitts, GIS Assistant Consultant (MPC) David Jones (PCF) Kath Wellard (Atkins) Marine Planning Consultants First Floor 67-69 George Street London W1U 8LT [email protected] [email protected] www.marineplanning.org.uk Report Warranty This report has been prepared with due care and diligence and with the skill reasonably expected of a reputable contractor experienced in the types of work carried out under the contract and as such the findings in this report are based on an interpretation of data which is a matter of opinion on which professionals may differ and unless clearly stated is not a recommendation of any course of action. Marine Planning Consultants Ltd have prepared this report for the client identified on the front cover in fulfilment of its contractual obligations under the referenced contract and the only liabilities Marine Planning Consultants Ltd accept are those contained therein. Please be aware that further distribution of this report, in whole or part, or the use of the data for a purpose not expressly stated within the contractual work scope is at the client’s sole risk and Marine Planning Consultants Ltd recommends that this disclaimer be included in any such distribution. 01 November 2013 Page i Wales Activity Mapping: Economic Valuation of Marine Recreation Activity Contents 1. INTRODUCTION ............................................................................................................... 1 1.1. Overview ............................................................................................................................ 1 1.2. Objectives and Approach ................................................................................................... 1 1.3. Clarifications on Scope ...................................................................................................... 5 1.4. Drivers ............................................................................................................................... 2 1.5. Recreation Data Availability ............................................................................................... 5 2. METHODS USED TO DATE IN ECONOMIC VALUATION OF RECREATION ................. 6 2.1. Overview ............................................................................................................................ 6 2.2. Expenditure of Participants ................................................................................................ 6 2.3. Activity Expenditure Considerations ................................................................................... 8 2.4. Business Data and Surveys ............................................................................................. 10 2.5. Other Approaches ............................................................................................................ 11 3. BUSINESS SURVEY ....................................................................................................... 14 3.1. Objective .......................................................................................................................... 14 3.2. Our Approach .................................................................................................................. 14 3.3. Survey Results ................................................................................................................. 15 3.4. Application of survey results ............................................................................................ 24 4. ACTIVITY EXPENDITURE VALUES ............................................................................... 27 4.1. Overview .......................................................................................................................... 27 4.2. Our Approach .................................................................................................................. 27 4.3. Allocated Values and Confidence .................................................................................... 32 4.4. Summary Values.............................................................................................................. 50 5. WAM DATA AND VALUE CALCULATIONS .................................................................. 51 5.1. WAM Data ....................................................................................................................... 51 5.2. Data Manipulation and Calculations ................................................................................. 55 6. VALUATION OF PEMBROKESHIRE CASE STUDIES ................................................... 61 6.1. Introduction ...................................................................................................................... 61 6.2. The Pembrokeshire Region ............................................................................................. 62 6.3. Valuation of St David’s Case Study .................................................................................. 63 6.4. Valuation of Dale Case Study .......................................................................................... 74 6.5. Further discussion ............................................................................................................ 83 01 November 2013 Page ii Wales Activity Mapping: Economic Valuation of Marine Recreation Activity 7. CONCLUSIONS & RECOMMENDATIONS ..................................................................... 85 7.1. Conclusions ..................................................................................................................... 85 7.2. Detailed Recommendations ............................................................................................. 88 7.3. Summary of Recommendations ....................................................................................... 96 APPENDIX A. ECONOMIC DEFINITIONS APPENDIX B. REFERENCES APPENDIX C. MARINE POLICY CONTEXT TO STUDY APPENDIX D. VALUE DATA SOURCED FROM LITERATURE APPENDIX E. WAM DATA ANALYSED APPENDIX F. CASE STUDY VALUATION APPENDIX G. BUSINESS SURVEY 01 November 2013 Page iii Wales Activity Mapping: Economic Valuation of Marine Recreation Activity Figures Figure 1: Project objectives and associated tasks ..................................................................... 4 Figure 2: Case study locations .................................................................................................. 1 Figure 3: Range of revenue inside case studies per activity .....................................................19 Figure 4: Range of paying customers inside case studies per activity provided ........................21 Figure 5: Range of FTEs inside case studies per activity provided ...........................................23 Figure 6: Range of revenue per customer inside case studies per activity provided .................25 Figure 7: Range of cost per customer for each activity service provided ..................................26 Figure 8: Dale case study, showing the wide range of activities provided by the Wales Activity Mapping project. .......................................................................................................53 Figure 9: St David’s case study, showing the wide range of activities provided by the Wales Activity Mapping project. ...........................................................................................54 Figure 10: Activity Value (Expenditure) Map: Average in St David’s case study. ......................65 Figure 11: Activity Value (Expenditure) Map: Minimum and Maximum in St David’s case study. ..................................................................................................................................66 Figure 12: Pie charts showing relative value (total expenditure per annum) and number of participants by activity type in St David’s case study .................................................67 Figure 13: Bar charts showing relative value (total expenditure per annum) and number of participants by activity type in St David’s case study .................................................70 Figure 14: Seasonal Variation in the Total Expenditure per Annum in St David’s case study ...71 Figure 15: Seasonal Variation in the Expenditure per Day in St David’s case study .................71 Figure 16: Seasonal Variation in the Total Annual Expenditure per Activity in St David’s case study .........................................................................................................................72 Figure 17: Activity Value (Expenditure) Map: Average in Dale case study. ...............................76