Possibilities for Harmonisation between Recreation Services and Their Production within the Forest Sector—A Case Study of Municipal Forest Enterprise Hradec Králové (CZ)

Abstract

This paper deals with the possibility of harmonising the needs of society and the possibilities of the forest property manager. The Municipal forest enterprise of the city of Hradec Králové (MLHK) in the Czech Republic (CZ) is an example of this principle, which proves that the intensive development of a recreational service is possible without limiting this principle. The forest enterprise manages 3707 ha of forest in the immediate vicinity of the city with 92,000 inhabitants. The forest enterprise pays the city rent and makes a profit. The data were obtained by analysing the economic data of the surveyed company, the annual observation of the forest attendance, the surveys of the characteristics of the forest visitors and the surveys of selected 16 companies (from seven countries) managing the forests of some European cities. The main results concerning MLHK are as follows: the share of recreational service costs in the total costs of the forestry activities is 19.7%. The recreational services of the forest are financed from 71.5% from revenues from the sale of raw wood, 17.5% from revenues from the sale of sand from its own quarry, 3.9% from revenues from the recreational services and 7.1% from subsidies. The operation of the gravel quarry contributes to the economic result of the forest enterprise roughly by an amount corresponding to the costs of the recreational services. An average annual forest attendance is 243 people/ha. The inhabitants of the city account for 61.5% of the visitors, 20.4% of the visitors live within a distance of up to 30 km, and 18.1% of the visitors live at a distance of more than 30 km. The main results of the survey among the forest enterprises managing the forests of the selected European cities are as follows: the share of costs for the recreational services in the total costs of the forestry activities is 21–72% for cities with a population of over 100,000, and 3–14% for cities with less than 100,000 inhabitants. As a source of financing recreational services, the forest enterprises from mentioned cities with over 100,000 inhabitants, the money especially came from the city budget (70–100%). Forest enterprises from cities under 100,000 inhabitants stated that they fund a recreational service with 95–100% of the revenues from the sale of raw wood. Data on the MLHK show that it is possible to finance a recreational forest service from its own resources if this is the owner’s priority. However, this only applies under certain conditions, such as that, in addition to the income from forest management, there are other sources of income (in this case, sand mining or subsidies from public programmes). If the forest owner did not have these resources, they would have to pay for the recreational service from their own other resources (e.g., from the city budget).