A regionalized IO-model to value seasonal recreational ecosystem services in a mountain National Park in Spain

Abstract

Recreational Ecosystem Services (RES) are among the most frequently evaluated ecosystem services. RES are seen as a major opportunity for sustainable development in areas of high ecological value resulting from the presence of emblematic species, habitats or scenery, often integrated in conservation areas, in particular in mountain areas affected by depopulation, rising environmental risks and poverty. Economically, the assessment of RES has been based on Contingent Valuation and Choice Experiments, methods with limitations related to their subjectivity. Alternatively, Input-Output (IO) models provide a very accurate and effective way of valuation of RES with regional information regarding interindustry transactions. Whilst data on nature tourist expenditure may be only available annually, tourism inflows have a strong seasonal behavior, which impacts the profitability of several local economic activities. In this paper, we firstly constructed a novel regionalized IO-model based on Cross-Industry Location Quotients using employment data and, secondly, based on Monte Carlo simulation, we estimated nature tourist expenditure monthly using data on nature tourism inflows. This method allowed for a more precise RES evaluation, estimating direct, indirect and induced monthly economic impacts of nature-based tourism. The method was applied to the Ordesa and Monte Perdido (OMP) National Park in the Spanish Pyrenees. To estimate the average tourist expenditure, we collected and analyzed spending on commerce, hospitality and restaurants, leisure, and transport of 385 visitors. Results suggest that using a regionalized IO model leads to a considerable reduction of over-estimation of the economic impact of tourist expenditure estimated by conventional methods. Taking into consideration the direct, indirect and induced effects of tourist expenditure in 2016–2018, the total annual output effect in the OMP National Park amounted to €208.8 million, while the total income effect amounted to €86.29 million. Also, a total of 2,429 jobs were created which indicates that for each thousand annual visitors to the National Park, 3.8 jobs are created in the surrounding area. Overall, the proposed methodology can be easily applied to the remaining National Parks in Spain or other regions in the world, making it a valuable tool to estimate the value of RES in areas affects by strong seasonality, to set priorities and support regional policies for mountain sustainable development.