This model reflects the competition between mountain biking and the logging industry to determine the optimal point for coexistence to maximize the amount of state income.
How Does the Model Work
Both the logging and mountain tourism industries have the potential to boost Tasmania's economy. It is obvious that the logging industry sells timber to generate revenue and the mountain tourism industry will generate revenue through mountain bikers' spending including mountain bike equipment, mountain bike training expenses and park ticket expenses. Moreover, the logging activities have an impact on the forestry scenery to reduce the amount of park visitors. Meanwhile, the park's recommendations are impacted by the forest scenery and mountain biking experience. Furthermore, Government rules will restrict logging activities when the logging business cuts too many trees resulting in forest devastation.
Interesting insight
Although forestry may contribute significantly to Tasmania's economy, excessive logging will be decrease the forestry scenery to influence the visitors volume even through the amount of visitors is easily to exceed the park capacity. it indicate that tourism industry can always contribute more to the economy than forestry does, as long as the quantity of riders is consistent. The government should take into account the point of equilibrium between two industries.