Insight diagram

This is a system dynamic model to describe relationship between local logging industry and biking tourism in Tasmanian Derby Mountain.

In the dynamic model, the left-hand side shows how Derby get income from local biking tourism. The biking visitors number are influenced by scenery evaluation which depend on local size of forest and influenced government policy support when Biking Tourism income is over 1000 unit. Biking visitors with good recommendation will also back to Mountain Derby and bring income for local in twice or more times.  In the right-hand side, we found the income of logging industry was influenced by local logging growth rate and government policy if local Biking Tourism income is over 1000 unit. The increase of logging industry will also increase local employment which will influence employee cost. This factor will also affect total logging income in Derby Mountain.

 

The simulation results show, with governments support the Biking tourism will increase sharply in the first few years and finally instead local logging industry, at same time bring good environment and save local forest under local increase logging industry. The recommendation graph shows that, the number of good recommendation & bad recommendation for Derby Mountain biking tourism will also increase in high speed in front of few years with data fluctuation but finally maintain in a stable line. Last simulation graph shows that how policy factor influences logging and biking industry. The Government has strong support in local tourism, however, as number of tourists increase, the positive impact from government support will continue decrease. On the contrary, the government support influence will also decease to local logging industry when logging been instead by tourism. 

Insight diagram
Overview
This model is a working simulation of the competition between the mountain biking tourism industry versus the forestry logging within Derby Tasmania.

How the model works
The left side of the model highlights the mountain bike flow beginning with demand for the forest that leads to increased visitors using the forest of mountain biking. Accompanying variables effect the tourism income that flows from use of the bike trails.
On the right side, the forest flow begins with tree growth then a demand for timber leading to the logging production. The sales from the logging then lead to the forestry income.
The model works by identifying how the different variables interact with both mountain biking and logging. As illustrated there are variables that have a shared effect such as scenery and adventure and entertainment.

Variables
The variables are essential in understanding what drives the flow within the model. For example mountain biking demand is dependent on positive word mouth which in turn is dependent on scenery. This is an important factor as logging has a negative impact on how the scenery changes as logging deteriorates the landscape and therefore effects positive word of mouth.
By establishing variables and their relationships with each other, the model highlights exactly how mountain biking and forestry logging effect each other and the income it supports.

Interesting Insights
The model suggests that though there is some impact from logging, tourism still prospers in spite of negative impacts to the scenery with tourism increasing substantially over forestry income. There is also a point at which the visitor population increases exponentially at which most other variables including adventure and entertainment also increase in result. The model suggests that it may be possible for logging and mountain biking to happen simultaneously without negatively impacting on the tourism income.
Insight diagram
Overview
The model explores the interactions between mountain biking industry and logging industry in Derby, Tasmania. Although both industries promote the economy, they generate income at a different rate and at each other's expense. Given such competing relationship, this model focuses on demonstrating to what extent can these two industries co-exist through runing simulation. Further, the model explores the conditions under which one may adversely impact the other. 
How does the model work?
We build two models for forestry and mountain biking respectively. Each model demonstrates how the industry imposes influences and benefits the economy as a whole. 
  • With mountain bike visits, forestry enhances the scenary and increases excitement and adventure, that will lead to better tourist experiences and recommendation. As such, more visitors come to the park, that boosts the economy through higher tourism income. 
  • From the perspective of logging, logging creates employment opportunities and generates income from timber. On the other hand, it also degrades the scenary and the experience of mountain bikers looking for adventure. The immediate effect is the decreasing amount of visitors. However, fewer visitors improve experience and may pull up amount of park visits. 
Interesting Insights
  • As shown from the simulation results, logging does not deter the development of mountain biking in Derby. Over the long term, adventure tourism is expected to continuously generate increasing income. This is attributable to the direct income from park charges, as well as accompanying spending in restaurants and accommodation. As a result, the total economic benefits for the local area is positive and tends to increase over time. 
  • In addition, past experience fluctuates as the amount of visitors changes. These two variables interact and impose impacts on each other. More visitors will degrade the experience and decrease park visits, which will in turn improve the experience and increase park visits. 
  • Moreover, demand for timber actually promotes adventure tourism through creating more job opportunities, which would increase park visits.
Insight diagram

Overview

This model simulates logging and mountain biking competition in Derby, Tasmania. The Simulation is referenced to simulate Derby mountain biking with logging.

 

Model Work

The tourism industry is represented on the model's left side, and the logging industry is on the right side. Interactions between these two industries generate tax revenues. Logging and tourism have different growth rates regarding people working/consuming. The initial values of these two industries in the model are not fixed but increase yearly due to inflation or economic growth.

 

Detail Insights

From the perspective of tourism, as the number of tourists keeps growing, the number of people who choose to ride in Derby City also gradually increases. And the people who ride rate the ride. The negative feedback feeds back into the cycling population. Similarly, positive cycling reviews lead to more customer visits. And all the customers will create a revenue through tourism, and a certain proportion of the income will become tourism tax.

From a logging perspective, it is very similar to the tourism industry. As the number of people working in the industry is forecast to increase, the industry's overall size is predicted to grow. And as the industry's size continues to rise, the taxes on the logging industry will also continue to rise. Since logging is an industry, the tax contribution will be more significant than the tourism excise tax.

 

This model assumption is illustrated below:

1. The amount of tax reflects the level of industrial development.

2. The goal of reducing carbon emissions lets us always pay attention to the environmental damage caused by the logging industry.

3. The government's regulatory goal is to increase overall income while ensuring the environment.

4. Logging will lead to environmental damage, which will decrease the number of tourists.

 

This model is based on tourism tax revenue versus logging tax revenue. Tourism tax revenue is more incredible than logging tax revenue, indicating a better environment. As a result of government policy, the logging industry will be heavily developed in the short term. Growth in the logging industry will increase by 40%. A growth rate of 0.8 and 0.6 of the original is obtained when logging taxes are 2 and 4 times higher than tourism taxes.

 

Furthermore, tourism tax and logging tax also act on the positive rate, which is the probability that customers give a positive evaluation. The over-development of the logging industry will lead to the destruction of environmental resources and further affect the tourism industry. The logging tax will also affect the tourism Ride Rate, which is the probability that all tourism customers will choose Derby city.

 

This model more accurately reflects logging and tourism's natural growth and ties the two industries together environmentally. Two ways of development are evident in the two industries. Compared to tourism, logging shows an upward spiral influenced by government policies. Government attitudes also affect tourism revenue, but more by the logging industry. 

Insight diagram
Overview: 
This simulation will show the relationship between tree logging forestry and how this can affect mountain biking tourism in Derby Park Tasmania. The main goal of this simulation is to show these two industries can co-exist in the same environment, or increase in demand or production in one sector will affect the result of another.  

Function of the model:
In comparison there are both pros and cons for both sectors working correspondently. Demand for derby park is caused by individual past experience when visiting the park or friends recommendation which increase in the number of demands. Increase in demands will increase in the number of visitors. When visitors visits the park they require make a purchase a bike and pay the park for using the park facilities. All this will adds up to bikers total spending when visiting Derby. When consumer spend it is booting the economy especially in the tourism sector. Similarly tree logging will also contribute financially towards the Tasmania economy. The regeneration stage is relatively low compare to the logging rate. The growth will not cover the loss which can cause some level of damage in the scenery of the park, affecting tourist to view when mountain biking. Visitors overall experience will have the impact towards the demand for mountain biking in derby park, if visitors experience is satisfied they will come back to visit again or visit with group of friends, even words of mouth recommendation will also increase the level of demand of visiting Derby. 

Some key insights base on the simulation:
Based on the simulation of the two models we can see there are some key changes.
Tree logging increase will cause the disturbance of the natural scenery, thus change the overall experience of the visitors, decrease in the level of demand. Tree logging will also have negative impact towards the overall tourist experience thus affect the park facility and track. The natural scenery and the overall experience can affect their experience and if they would continue to recommend this area to friends to increase the demand. 

Insight diagram
Overview: 
The model shows the industry competition and relationship between Forrestry and Mountain Bike Trip in Derby, Tasmania. The aim of the simulation is to find a balance between the co-existence of these two industry.

How Does the Model Work?

Both industries will generate incomes. Firstly, income is generated from the sale of timber through logging. In addition, income is also generated from the consumption of mountain bike riders. Regarding to the Forrestry industry, people cut down trees because there is a market demand for timber. The timber is sold for profits. However, the experience of mountain biking tourism is largely affected by the low regeneration rate of trees and the degradation of the environment and landscape due to tree felling. People have better riding experiences when trees are abundant and the scenery is beautiful. People's satisfaction and expectations depend on the scenery and experience. Recommendations of past riders will also impact the tourists amount.

Interesting Insights

The income generated by logging can provide a significant economic contribution to Tasmania, but excessive logging can lead to environmental problems and a reduction in visitors. Excessive logging can lead to a decline in tourism in the mountains, which will affect tourism. Despite the importance of forestry, tourism can also provide a significant economic contribution to Tasmania. The government should find a balance between the two industries while maintaining the number of tourists. 



Insight diagram

Overview 

This model not only reveals the conflict between proposed logging of adjacent coups and Mountain bike in Derby but also simulates competition between them. The simulation model aims to investigate the potential coexistence opportunities between the mountain biking and forestry and find out the optimal point for coexistence to help improve Tasmania’s economy. 

 

How the model works 

It is recognized that the mountain biking and forestry industries can help support the Tasmanian community and strengthen the Tasmanian economy. The logging and forest sector in Derby can help the local community generate wealth and create more employment opportunities. The sector main source of income come from selling timber such as domestic and export sales. Nevertheless, the sector’s profit has decreased over the past few years on account of the weaker demand and reduced output. Accordingly, the profitability and output of the sector have fluctuated in response to the availability of timber, the timber price movements as well as the impact of changing demand conditions in downstream timber processing sectors. The slow growth rate for a timber has a negative impact on the profitability of the forestry industry and the economic contribution of this industry is set to grow slower, as there is a positive correlation between these variables. In addition, the mountain biking industry in Derby can bring a huge significant economic contribution to the local community. The revenue streams of the industry come from bike rental, accommodation, retail purchase and meals and beverages. These variables also influence the past experience which is positive correlation between reviews and satisfaction that can impact the demand for the mountain biking trails. More importantly, the low regeneration rate for a timber can have a negative impact on the landscape of the mountain biking and the tourist’s past experience that led to a decrease in the demand of tourists for the mountain biking, as the reviews and satisfaction are dependent on the landscape and past experience. It is evident that the industry not only helps the local community generate wealth through industry value addition but also creates a lot of employment opportunities. Therefore, the Mountain Bike Trails can be regarded as sustainable tourism that can help increase employment opportunities and economic contribution that can be of main economic significance to the Tasmania’s economy. Therefore, both industries can co-exist that can maximise the economic contribution to the local community and the Tasmanian economy.


Interesting Insights

It is interesting to note that the activity of cutting down trees does not influence the development of Mountain Biking industry. By lowering the prices of accommodation, food, bike rental and souvenirs, it can help increase the reviews and recommendations of Mountain Biking that will enhance the number of tourists. In this case, the Mountain Biking industry can achieve sustainable economic growth in the long-term while the economic growth rate of forestry industry will continue to decrease.