This model demonstrates the intertwining relationship
between the economic contribution of industrial logging and that of adventure
tourism (dominated by mountain biking).
In terms of the revenue from industrial logging at Derby, it
is driven by demand of timber and the timber price. However, the forest
resources are limited, which will put constraints on the expansion of industrial
logging due to regrowth rate and existing forestation.
The tourism can bring economic benefits to Derby from hospitality
and selling tickets to local adventure activities. The hospitality income can
be determined by the average length of holidaying at Derby and average local pricing
for accommodation, food and beverages and related essentials. Tickets sales are
largely affected by the similar factors such as average expense per activity
and average number of activities that tourists usually choose. Having explained
the streams of possible income from the tourism, the key driver for tourism
income is the desire or demand to travel. Unlikely logging, tourism is
renewable and perpetual. However, logging can be conceived as a major
constraint on attracting as many tourists as the economy so desires.
This is because deforestation caused by logging will
diminish the natural scenery at Derby and in turn, the tourist operations and
attractions based upon natural scenery. Loss of forest resources is likely to
make Derby less attractive to visitors.
In short, the tourism and logging both provides economic benefits
to Derby but in a competing relationship. However, the sustainability possessed by tourism cannot be rivaled by industrial logging in long term. Logging revenue reveals its advantage at inception of observed time period. Such advantage wears out over the time due to reduction in resources and sluggish regrowth. Eventually. the tourism income turns into the major player. To understand how they co-exist,
please simulate the model.
