The Business of Public Recreation
Lessons from the Field,
Opportunities and Challenges for
Economic Sustainability
The Business of Recreation
Doug NeilsonDeputy DirectorMarketing & Business Development DivisionDepartment of Parks and Recreation
Lisa O’DalyCalifornia Tahoe Conservancy Program Supervisor / Senior
Environmental Planner
Steve NollRecreation Planning, Land Use
Planning, Landscape Architecture
Chuck Nozicka ConsultingTourism and Recreation PlanningSacramento, California
Market and Economic Analysis For Recreation Sites
Chuck Nozicka Consulting
Tourism and Recreation
Planning
Sacramento, California
The Business of Public Recreation Learning to walk like a Duck doesn’t make you a duck
Being an Economics Interpreter Non‐excludable goods vs Excludable goods
Public vs Business Planning Timeframes Alternative or intermediate public recreation site planning
• Traditional master planning
time frames of 10 to 20
years
• Business planning model
annual or less
• Increasingly dynamic
recreation markets
• Applying ongoing user and
management feedback
• Evidence based policy
Balancing Revenue with Site Resources Working with Stakeholders
• Communicate with
governing boards, the
public, stakeholders, and
managers
• What are the policy limits
• What the community
desires vs what is off the
table
• Identify market trends and
use levels needed for
economic sustainability
Know the Market Establishing a use and market profile
• Existing use• Data is often limited• Research costs vary• Secondary research• Primary Research
(surveys, counts, zip codes, stakeholder
interviews, etc.)• Comparable site
information• Regular updates
Recreation Site Due Diligence Establishing a budget baseline
• Sometimes not available by site
• Maintenance by unit
• General costs (insurance, vehicle fuel,
etc.)
• Comparable data
• Staff input
• More often is available
• Special uses• Entry fees• Concessions• Rentals• No‐fee uses• Comparable data
• Staff input
Cost Baseline Revenue Baseline
Economic Break Even by Plan Alternatives The Concept Pro Forma
• Market growth, use projections,
and market penetration analysis
• Market occupancy rates and fees
• Staff workshop
• Includes full balance sheet by
scenario
• Applies fee and use levels
• Use volume and fees needed for
breakeven
• Describes non‐excludable vs
excludable
• Usually increases use overall
• Template easily updated by staff
SCENARIO #1 Units Days/Yr. Fee Rev Days/Yr. Fee Rev Days/Yr. Fee Rev
15% 22% 33%
12 55 $12.00 80 $12.00 120 $ 12.00
24 55 $12.00 80 $12.00 120 $ 12.00
35 55 $12.00 80 $12.00 120 $ 12.00
SCENARIO #2 Units Days/Yr. Fee Rev Days/Yr. Fee Rev Days/Yr. Fee Rev
15% 22% 33%
12 55 $ 35.00 80 $35.00 120 $ 35.00
24 55 $ 35.00 80 $35.00 120 $ 35.00
35 55 $ 35.00
80 $35.00
120 $ 35.00
SCENARIO #3 Units Days/Yr. Fee Rev Days/Yr. Fee Rev Days/Yr. Fee Rev
25% 40% 60%
6 91 $ 60.00 146 $60.00
219 $ 60.00
12 91 $ 60.00 146 $60.00 219 $ 60.00
24 91 $ 60.00 146 $60.00 219 $ 60.00
SCENARIO #4 PAOT Days/Yr. Fee Rev Days/Yr. Fee Rev Days/Yr. Fee Rev
22% 40% 60%
80 80.3 $ 50.00 146 $50.00 219 $50.00
80 80.3 $ 60.00 146 $60.00 219 $60.00
80 80.3 $ 75.00 146 $75.00
219 $75.00
Profit Break Even +/‐ $10k Loss
Managing New Revenue Producing Uses Site planning, design, and management
• Staff expertise
• Concessionaires
• Not‐for‐profit groups
• Mixing revenue and non‐
revenue uses in contracts
and policy
• Adjusting for use and
market trends
Final Thoughts
Your Brain On Nature
The Nature Principle
Last Child in the Woods
The Nature Cure: The Surprising Health
Benefits of the Outdoors
Easing Brain fatigue with a Walk in the
Park
In a Creative Slump? Talk a Walk
• Economic impacts
• Partnerships and
sponsorships
• Marketing and public
relations (Web sites, blogs,
social media, apps)
• Moneyball for Government
• Intrinsic values of outdoor
recreation
Steve Noll, PrincipalRecreation Planning, Land Use
Planning, Landscape
Architecture
Lake Tahoe, Nevada
Planning Issues
• Slow to Change• Public Perception – Non
profit
• Challenge to balance demand with
preserving natural environment
Repurposing Issues
• Often driven by accessibility
requirements
• Potentially reduces camping availability
• Impacts revenues for Agencies and
Concessionaires
• May not be consistent with
regulatory policy
Changing Demographics
Changing Demographics
• Demand for family/ group sites
• Accessibility a main issue
• Ease of camping ‐
leave the gear behind
• Youth back to nature• Portable “vices”• RV’s for all
Design Considerations
• Know your Rules• Adjustment to current
standards
• Engage your staff and concessionaires in
discussions
• Start small and test the market
• Flexible Spaces‐
Events
• Picture to be added
Planning for Now & the Future
• Walk the walk ‐
Being green
• Wireless with rules
• Not‐for‐profit groups• Opportunity to engage
in a greater level ‐ Volunteers
• Places to gather
Small Agency Recreation Site Operations
Lisa O’DalyCalifornia Tahoe Conservancy
Program Supervisor / Senior
Environmental Planner
Partnership Choices
• Public/Private
• Not‐for‐Profit
• Multiple Agencies
Responding to Change Over Time
• Contracts must provide enough FLEXIBILITY to
adapt with user demands and
ASSURANCE to create a
desirable environment
for investment
Happy Visitors
Cherished Public Lands
CALIFORNIA STATE PARKS & RECREATION
Doug NeilsonDeputy Director
Marketing & Business
Development DivisionDepartment of Parks
and RecreationDoug.neilson@parks.
ca.gov
Mission
• To provide for the
health, inspiration and
education of the
people of California by
helping to preserve the
State’s extraordinary
biological diversity,
protecting its most
valued natural and
cultural resources, and
creating opportunities
for high‐quality
outdoor recreation.
150th
Anniversary of California State Parks , 1864‐2014
Funding History
• General Fund in the past was 90%
of State Parks funding
• Currently represents 30%
• Severe cuts in State Parks System
budget in the 60’s
• Park bond measures ($2.5 billion)
and rapid increase in land trusts
significant growth in # of parks
continued
• However, inadequate $$ for park
future stewardship and
management
• Current status: over $1.3 billion in
deferred maintenance
Recent Strategies implemented
• New park operating models
• Match Fund programs for parks
on closure list• Revenue Generation
program legislation
Creation of Marketing & Business Development Division
(MBD)
• Reservations & Fees, Concessions and Visitor Services
sections moved from Park Operations to MBD • Planning, Research & Support Section created from Planning
Division to MBD. – Business Intelligence statewide integrated system– Product research & development– Visitor analysis – Integration Management & financial analysis
• Marketing Section – Brand awareness– Revenue generation programs – Social media
Technology Modernization
• POS / Reservations enhanced &
integrated system
• APM and Mobile App
• Website enhancement
Expand Partnerships & Alliances
• Operating Agreements
• Public / private partnerships
• Partnerships with tourism industry, non‐
profits and public agencies
New Markets and New Product Development
• Underserved / urban population / youth
• New product to meet new demands,
i.e. technology, cabins, events
Vision for The Future
• Decentralization• Concessions & Marketing in the field
• Business plans in the field• Per unit costing • District & Park Revenue Targets• Increase in partnership & alliances• Attracting today’s & tomorrow’s communities
Formula for Success
• Product & Services
meeting demands +
increased awareness +
revenues =
Sustainability
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