COMBINING NON-MARKET VALUATION AND INPUT–OUTPUT ANALYSIS FOR COMMUNITY TOURISM PLANNING: OPEN SPACE AND WATER QUALITY VALUES IN COLORADO, USA

Abstract

We use a combination of non-market valuation and input-output approaches to inform community scale planning for natural-resource based tourism development in rural Colorado. Contingent behavior and trip expenditure information are used in conjunction with IMPLAN input-output software to simulate the likely regional economic effects of changes in local environmental attributes. Visitor surveys reveal sensitivity to the amount of ranch open space and local water quality resulting in discernable regional economic effects should these valuable dimensions of the local environment change. The likely total, direct, indirect, and induced effects and implications on local residents and tourists of a sales tax, mill levy, and hotel occupancy ('bed') tax to preserve ranch open space and maintain local water quality are simulated. The losses offset from maintaining environmental quality are found to significantly outweigh the regional impacts of any of the tax policies.