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Concessionaires Want More Investment, Business Opportunities, In National Parks

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National park concessionaires, deeply concerned over what they see as three decades of stagnant visitation to the National Park System, want Congress to authorize better marketing of the parks, longer "high" seasons in the parks they believe would generate more revenues for infrastructure improvements, and expanded concessionaire opportunities in the parks.

Those items were among a list of nine that Derrick Crandall, counselor of the National Park Hospitality Association, recently presented to a House appropriations subcommittee with responsibility for Interior, Environment and Related Agencies.

"Mr. Chairman and Members, I know you would agree that we need to get Americans back in touch with nature, engaged in physical activities and outdoor recreation, and connected to the magnificent culture, heritage and landscapes that are celebrated by our National Park System," Mr. Crandall said in remarks prepared for his appearance before the subcommittee on March 19.

"We need to reach out to youth to encourage them to share in the wonder and enjoyment of our National Parks and discourage the increasingly sedentary lifestyles that are contributing to our health care crisis. We need to expand park visitation to encourage minorities, disadvantaged communities, new Americans and urban residents to see their national parks for themselves and to build a broader constituency for America’s great outdoors. And, we need to find new and innovative ways to reinvest in the maintenance, restoration, and expansion of critical park infrastructure – much of which was built either by private investment when the national parks were first created, or in conjunction with the work of the Civilian Conservation Corps more than half a century ago."

While visitation to the National Park System reached a record 292.8 million in 2014, an increase of more than 19 million from 2013, NHPA officials say visitation has "actually declined if you discount new units added to the system."

The solution? According to NHPA, a range of initiatives should be implemented, including:

* Extend the Federal Lands Recreation Enhancement Act for two years to allow the Park Service to continue to collect fees for entry into park units and a variety of recreational activities, including backcountry usage, campgrounds, and boat launches;

* "(C)ontinuation and expansion of the Centennial Challenge Program. Encouraging non-profits, corporations and individuals to contribute toward important national park programs and projects...";

* Creation of a "National Park Outreach and Promotion Fund," funded by a transfer of 10 percent of the concessionaire franchise fees to "support NPS outreach and marketing efforts in partnership with states, gateway communities and concessioners;"

* Expanding the seasons at national parks, a move that would lead to increase visitor spending and franchise fees for the Park Service. These revenues, coupled with "investment requirements under new concessions contracts and appropriate use of existing Leasehold Surrender Interest" should be used to improve infrastructure in the park system.

"There has been a loss of rooms, of restaurant capacity, of services and of retail space in national parks over two decades, producing a corresponding decline in overnight stays and in the average length of visitor stays," Mr. Crandall told the subcommittee.

* More national park campgrounds should be managed by concessionaires "to improve visitor services and reduce operating costs";

* Concessionaires should be allowed to qualify for "historic tax credits from investments in structures" in the parks, and;

* Programs such as Youth Conservation Corps utilized in Yellowstone and Shenandoah national parks should be expanded across the system to "undertake construction, reconstruction and maintenance projects," possibly at a savings for the Park Service.

During a conversation with the Traveler last week, Mr. Crandall said the concessionaires don't expect the Park Service to "dramatically" expand road systems in national parks, but would like to see facility improvements and additions and believe it can be done without posing a great competitive threat to lodging and dining options in gateway communities.

"We seem to be headed in just one direction (in the parks): No increase, reduce, reduce," he said. "While that may be appropriate for Yosemite Valley, while that may be appropriate for portions of Yellowstone, I think for the park system overall, that's not a wise tactic.

"... I think what we're really saying, there is still an opportunity to enhance the ability of visitors to enjoy their park experience in a small portion of the footprint of our National Park System, and by doing that, just have a more robust experience when they're in the parks," Mr. Crandall went on.

"We're not talking about adding dramatically to the road system of the national parks because people now by and large see the parks out of their windshields. The last thing I would ever say is that that's justification for building more roads. But I would say that when you look at Yosemite Valley, and you have 1,500 rooms, which is down dramatically from what we used to have, and only 800 of those have bathrooms, I'm not afraid to say at some point we should look at how we upgrade those rooms so that 1,500 rooms have 1,500 bathrooms."

How Congress responds to the concessionaires remains to be seen, but Mr. Crandall plans to continue discussions with the appropriate committee and subcommittee chairs and ranking members.

"I'd say we got an enthusiastic level of support from all of the members of Congress that we talked to," he said in reference to his recent appearance before the subcommittee. "And that includes even people on the minority side. They all agree that they want to continue a successful pattern of providing services for the visitors in the parks through private sector investment in things like lodges."

Comments

You are right Jim (and lee), they are seeking more profits.  And there is absolutely nothing wrong with that. 


Nothing wrong with seeking more profits as long as it's done fairly and honestly.

 


ec - Making a profit is of course the legitimate goal of any business. That's especially true for any business that is privately owned, on private property. If customers don't like the price, they can look elsewhere. That said, this thread does offer room for some potentially interesting discussion.

Some believe many concessioner-operated facilities (lodging, meals, etc.) are so expensive that many Americans are priced out of the market, and in many (most?) cases those businesses are operating publicly-owner facilities, located on public land. 

As in real estate, it's all about location when it comes to rooms or meals in a national park, so to a great extent, these publicaly-owned but privately-operated lodges and restaurants  enjoy a monopoly of sorts. There's no comparable view elsewhere to the one from the Many Glacier Hotel, and that view is provided to the concessioner free of charge by the taxpayer.

Under all the above circumstances, should a lesser profit margin be considered reasonable for concessioners in parks as compared to the profit margin for private facilities on private property? I don't claim to have the answer, but it seems worth discussion.


should a lesser profit margin be considered reasonable for concessioners in parks as compared to the profit margin for private facilities on private property?

Profit margin isn't the question.  ROA and ROI are the issue and there is no reason they should be lower in parks than in private facilities.  Why would anyone invest in a park facility is their ROI is less than in a private facility.


A good discussion! You asked two good questions. I think I gave some valid reasons why lower expected ROA and ROA could be defended in park facilities vs. private facilities. However, as you point out, few if any businesses would want to invest in parks if that were the case.

If concerns about prices in park facilities being too high for too many Americans are valid, and if ROA and ROI are part of the problem, maybe we need to find a new business model for operating those facilities:-) Nope, I am NOT suggesting the NPS should take over operating hotels, restaurants, and gift shops, but what if something like a non-profit NGO was available to operate the hotels in Yosemite or Grand Canyon, or.... ? Just tossing that idea out there for fun :-) 


If concerns about prices in park facilities being too high for too many Americans are valid,

Which I don't believe are

but what if something like a non-profit NGO was available to operate the hotels

If they provided services comparable to a profit org - fine by me.  There are few examples where that is the case 

 


Nothing wrong with seeking more profits as long as it's done fairly and honestly.

And what is your evidence that isn't the case?

As to your daughter, can you explain why we should be paying when she inadequately insured herself whilerunning her own small business?

 

 

 

 


Yes, but you wouldn't listen.

Thanks, Jim, for trying to turn the discussion away from the circular path to nowhere and insert some serious points.

Funny, I went to Youtube to look at pictures of the AT and pushed the wrong start button.  Instead of the AT, I found some guy trying to sell a fancy lodge in some place called Breckinridge.  Sounded like a used car salesman.

Concession problems inside national parks have been with us since Day One.  I'll ask again, how much of it is due to Congressional meddling in park management?  The reasons are lost not only in history but in a muddle of Congressionally produced tangleations that been pushed onto those awful bureaucrats who have to somehow make it all work without making anyone unhappy.


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