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Traveler's View: Surge Pricing For National Parks Doesn't Pencil Out Or Make Sense

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Having to hand over $70 to gain entrance to Yellowstone National Park for a week's stay is not outrageous. Indeed, there are many who say the fee should be higher. But the problems with Interior Secretary Ryan Zinke's plan to institute surge pricing for 17 national parks during their busiest seasons are many.

* It will hit families whose summer vacation schedules are dictated by school calendars harder than those who can travel to the parks any time of year.

* The contention that this fee structure will help address the $11 billion-$12 billion maintenance backlog in the park system is weak at best, and probably laughable. Even if the new structure, if approved, generates $70 million a year, President Trump wants to cut nearly $400 million a year from the National Park Service's budget. And even if Congress rejects the president's budget, which it likely will, this bump in fees will never make a significant impact on the backlog when you take into consideration inflation and ongoing, and unexpected, needs across the 417 units of the park system. (See: Scotty's Castle, Hurricane Irma and Maria)

* It's inequitable when you look at other fees assessed across the federal landscape.

* Why would someone spend $70 to enter a park for a week when, for $80, they could purchase a public lands access pass and enter as many parks as they wanted for an entire year?

* The biggest parks will benefit, while smaller ones continue to struggle.

* Why include Canyonlands National Park, which saw 776,218 visitors in 2016, for the higher surge fees and not the Blue Ridge Parkway, which counted 15.1 million, or Cape Cod National Seashore, which saw 4.7 million?

* Wasn't the president's much-ballyhooed infrastructure plan supposed to take care of much of the backlog in the National Park System?

* It gives Congress more reason not to take better care of the National Park System.

How did Secretary Zinke and his staff settle on that $70 fee for a week in Yellowstone, Arches, Bryce Canyon, Canyonlands, Denali, Glacier, Grand Canyon, Grand Teton, Olympic, Sequoia and Kings Canyon, Yosemite, Acadia, Mount Rainier, Joshua Tree, Shenandoah, and Zion national parks? By comparing prices around the marketplace.

"The proposed rates for this seasonal pricing were determined by analyzing historical NPS entrance fee and visitation data along with entrance fees at other park systems and family attractions," said Park Service spokesman Jeff Olson. "The proposed seasonal pricing structure is intended to balance the need to generate revenue to maintain high quality visitor experiences in our busiest national parks while still providing value to our visitors. The proposed pricing structure will likely generate significant new revenues that will positively impact our busiest national parks while maintaining existing prices in the vast majority of national park sites."

One aspect of what's wrong with that justification is that there are many parks struggling with deferred maintenance that are not among the 17. For instance, according to 2016 figures from the National Park Service:

* Petrified Forest National Park in Arizona had a maintenance backlog of $46.9 million;

* Death Valley National Park, $140.1 million;

* Mojave National Preserve, $113.8 million;

* Everglades National Park, $78.2 million;

* Mammoth Cave National Park, $94.5 million;

* Boston National Historic Park, $106.6 million;

* Gateway National Recreation Area, over $811 million when you consider both the New Jersey and New York sides of the NRA.

The list goes on, but you get the point. Even if this proposed surge pricing raised $70 million a year, it won't dent the needs of the park system, as just 20 percent, or $14 million, of that $70 million would be redistributed to the other 400 units with needs.

The ongoing financial plight of the parks can be blamed, largely, on two facts, Dr. Alfred Runte, author of National Parks: The American Experience and a Traveler contributing writer, told me: no one likes to pay more for anything, and the National Park System has never been properly funded.

He's no doubt correct.

And yet, ideally, the parks would be free to enter for all comers. The ideals behind the national parks movement should demand that, and Congress's role in holding these incredible landscapes and cultural and historical sites in trust for the American people should see that that is possible. The history of the country, its incredible landscapes, and the recuperative benefits of visiting the parks should raise these places above for-profit, commercial models that Congress is pushing them towards by refusing to properly fund them.

Secretary Zinke can work toward that goal rather than proposing a piecemeal approach that stands to serve nothing but to increase the cost of visiting the parks and presumably justify more concessions operations in the park system so the Park Service can get, on average, a single-digit percentage return. He only need look across his entire public lands portfolio -- and other market prices -- when figuring out how to make ends meet. Unfortunately, the secretary, who oversees a public lands kingdom of nearly 500 million acres when you combine the Park Service, U.S. Bureau of Land Management, and U.S. Fish and Wildlife Service holdings, seems to be looking at these agencies separately, not collectively, as he tries to balance his budgets.

Consider, for instance, how little ranchers pay the BLM to graze cattle on public lands in the West. These fees are reflected as AUMs -- Animal Units per Month, which reflect one cow and her calf, one horse, or five sheep or goats for a month. In 1966, the base year for calculating AUMs, the rate was $1.23 per AUM. For 2017, the rate has been $1.87. But if you based the cost of AUMs by the cost of living, the fee should be $9.38 per AUM. And perhaps it should be higher, for when you look at the AUM ranchers are charged to graze their livestock on private lands, the figures can be upwards of $17 per AUM.

Whether or not you agree that $1.87 per AUM on public lands is reasonable, when you consider that there were 12,365,877 AUMs active on BLM lands as of January 2016, you can see that a higher fee could generate a significantly higher return for Interior.

If you play that same cost-of-living game with park entrance fees, you'll see the current rates are perhaps much higher than they should be, especially when you glance back at the AUM scenario. Back in 1966, for example, the fee to drive into Yellowstone was $1 per car, according to park staff. If you used the cost-of-living to adjust that fee from year to year, it would now be $7.63, not the $30 the park currently charges, and far from the $70 Interior Secretary Zinke wants to charge.

When playing with these figures, let's look at what other revenues Interior has to work with. The department also oversees energy development on land and under the sea, and earlier this year the Interior secretary said he would like to use revenues from energy lease auctions to help address the park system's maintenance woes. While Interior has trumpeted its lease sales (here and here), which are generating hundreds of millions of dollars, there has been no mention from the secretary's office that some of the revenues will be applied to the park system's backlog.

Also yet to be tallied by Interior is the relative "haul" it took in this year in senior pass sales. During 2016, the Park Service realized at least $1 million in these sales, according to agency figures. That number surely spiked this year, as there was a rush by those 62 and older to purchase the $10 pass before the price jumped to $80 late in August. So hectic were the sales that the agency is far behind in sending out passes that were purchased in August.

It also would be better to ensure the Park Service's concessions program is accurately and timely recording revenues owed it by concessionaires. As the U.S. Government Accountability Office told the agency earlier this year, "we found that some of these data are incomplete because concessioners did not submit required financial reports or data were reported incorrectly and were not identified in the agency’s review of the reports."

For 39 of 485 contracts, concessioners reported gross revenues, but did not report paying a franchise fee in their 2015 financial report. Under these contracts, a total of about $21 million in gross revenues was reported in 2015. According to Park Service data, a franchise fee should have been paid under these contracts. Park Service officials said that they believed these were instances where the concessioner had paid franchise fees, but had not filled out the annual financial reports properly. They added that these inconsistencies should have been identified by the relevant park unit or the regional office during their review of these financial reports. Some park unit officials said that they are overwhelmed by the number of reports, including financial reports, they receive from concessioners and do not have time to review all of them. In addition, we found that the data from these financial reports are entered into a spreadsheet that does not contain edit checks that could identify possible errors.

But then, if the administration cuts 1,200 staff from the Park Service as it would like to, this situation might get worse, not better.

Let's not kid ourselves and think Park Service fee revenues alone are going to wipe out the agency's maintenance backlog and remedy all the infrastructure woes across the system. They won't come close. But perhaps if the Interior secretary considered all his revenues and expenses collectively, and if Congress met its responsibility to properly fund the parks, there just might not be a need for a $70 entrance fee that will accomplish little more than discouraging some folks from visiting their parks.

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Comments

Remember when gasoline was $5 a gallon? What was the price of visiting the parks then? Still for RVs it's a pile of dough. Why do people just complain about the entrance fees?

In the larger scheme of things--now 150 years--Uncle Sam has been the loss leader, and the concessionaires the beneficiaries of the parks. The railroads made very little--if anything--but then the railroads were after the prestige. Park business also swelled the seat count on existing trains.

No more. After the concessionaires, the gateway communities are the beneficiaries of selling the parks to tourists. If those tourists can afford $1000 getting to the parks, again, why complain about the entrance fees?

Because we like to complain. It's America, and bitching is in our DNA. History's bitch is how little the federal government gets for running the parks on its sucker model. Then when someone suggests hiring contractors for those services, it's called privatization, as it were. You're privatizing the parks! You're giving the best away! No, that was given away decades ago. Ask Xanterra, Delaware North, Forever Resorts, etc., etc. Why do they keep bidding on the contracts? Because they make millions when they do.

I would gladly turn over the rest of it to "private enterprise," allowing the Park Service to protect and preserve. Ha! Fat chance of that. As Harry Butowsky further points out this morning, we don't even have a director yet. The fees are the smokescreen; they are there to distract you from what is really ailing the parks--and always has. Kurt is right, of course. The fees are skewed everywhere. But money is NOT the issue.

The issue for the 21st century is whether or not we have the guts to limit automobiles in the parks, then to restore the tranquility and responsibility brought about by public transportation that works for the parks nationally and not just locally.

Ah, but I only vent, readers say. Why should I give up MY car? Fine. Don't give it up. I just hope all of us with that attitude are asked to pay for it, starting with higher entrance fees.


I've lived less than two house from Yellowstone for forty years and we visit often, especially since we have the golden age passport.  Over the years we have seen how crowded the park has become during peak season and even into September.  I don't have the answers to fixing this problem, but $70 for a carload of people is a bargain compared to $100 per person for one day at Disneyland.  I don't like the idea of upping the enterance fee because these treasures do belong to all of us and we've seen some pretty horendous federal waste out here, like the calf/cow grazing fees being so low and the the wasted equipment and food for fire fighting....somebody needs to look into saving money in one department so it can be used where it is more needed.

 


Kurt, To be fair you have reported on attendance issues.  Not saying pricing is the end all be all solution but what can it hurt.  Parks have been underfunded for many years even before Trump.  Nothing seems to change no matter who's in charge.  Even though it is small potatoes in the scheme of things, hopefully it will be money they haven't had before.  My opinion, but attendance/overcrowding is a much bigger problem than even a fully funded Parks service couldn't solve in a manner that is acceptable to most.


Ryan, I don't think a $70 enty fee will stop someone from traveling across the country to visit Yellowstone or Yosemite, or any of the other 15 park units that are targeted in this endeavor. So it won't help with the crowding issue, and it certainly won't help with the backlog.

As for "money they haven't had before," Yellowstone receives a base operations budget of roughly $35 million a year. It raises about $35 million more a year in reimbursements and fees, so they have roughly $70 million a year to work with. How much more do they need? I'm not an accountant, and I haven't gone over their budget with a comb, but that seems like a lot of money for one park. Could there be cost-saving measures implemented?

Now, if everyone who entered Yellowstone paid a $70 fee, that would be a tremendous bonus to the park's coffers. But that's not going to happen. Even Interior realizes that, when it says this might raise $70 million a year.

And I wonder how Interior arrived at that $70 million figure. Certainly, prudent folks would buy an annual public lands pass, which can be purchased through BLM and Forest Service offices, among other entities outside the NPS, and in those cases the NPS would realize zilch.

There are better ways to address both the maintenance needs and the crowding issue.


So Kurt, if the $70 entry fee won't stop anyone from coming (which I agree), what is the downside?  Perhaps it will shift some to come at another time.  It will force foreign visitors, who pay no taxes, to contribute more and it will raise some funds.  Enough to cover the so called maintenance deficit, no, but more than zero.  Noone has suggested this is the be all and end all but it is a step that appears, in your and my opinion, to have no downside - at least not on interfering with attendance.  


No downside? What about the 400 parks that aren't part of the surge pricing scenario? How will they benefit?

If these higher fees -- which already are seeing pushback from Congress -- are instituted, and they somehow raise $70 million, 20 percent of that -- $14 million -- will be available for disbursement to the other 400 units of the park system. Will $35,000 per park really make a difference? Go back and look at some of the maintenance backlog figures in the editorial. 

Interior seems to have plucked a number out of the air -- $70 -- and claimed it will help with the maintenance backlog. It won't, and it won't help with the crowding scenario. So what's it's purpose?

As for foreign visitors, how many come on their own, and how many via tour buses? And if most come in tour buses, will they pay the full $70 per?

Frankly, there need to be more details behind how that $70 figure was arrived at.

I'd rather the Congress be lobbied by the administration to better fund the parks. Secretary Zinke should get behind the legislation proposed by Sens. Portman and Warner earlier this year to wipe out the deficit. It's far from perfect, but it lays out a plan.

https://www.nationalparkstraveler.org/2017/03/sens-warner-portman-introd...

Here's an important snippet from that story:

The backlog stretches throughout the National Park System, and includes shabby buildings, poorly functioning restrooms, weary trails and campgrounds, broken water lines and decrepit sewer systems. The Park Service long has struggled to maintain its more than 75,000 assets across the country. Of these, 41,000 are in need of repairs, according to the senators.

Over the past decade, Congressional financial support for park maintenance has decreased by 40 percent, they pointed out in a release, and the last time Congress directly addressed the park system's infrastructure needs was in 1956 via the Mission 66 program.

In the months ahead, Interior is expected to announce a higher price for the annual public lands pass as well as additional "options to maximize revenue," and will be looking to "expand recreational activities."

John Muir is rolling over.


I would love cost cutting measures to be put in place.  We all know that is not going to happen.  History is not on our side.  Prices across the board should be looked at as one way to help out.  Free entry or $25 to $30 fees are somewhat outdated even though these are our lands and many feel we are entitled to visit for free.  I dont disagree that other things could be done that would help but unfortunately history has shown that it probably won't happen.  Our debt has doubled in 10 years.  I wish the Parks would receive more money but the cold hard truth is govt can't pay our bills now.  Anyway, I appreciate all your good work.  Thanks


What about the 400 parks that aren't part of the surge pricing scenario? How will they benefit?

Perhaps they won't benefit.  But then, they won't be any worse off while these 17 parks will be helped.  Again, this is not the be all and end all.  It is a step in the right direction.   

As for foreign visitors, how many come on their own, and how many via tour buses?

Doesn't the plan also call for a major increase in bus fees?  Maybe not $70 per person but substantially more than is currently charged. 

 


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