National Park Service

Scope: Market Analysis, Contract Structuring Analysis, Rate Analysis

Services: Guided Bear Viewing, Guided Fishing, and Air Taxis

Issue: Lake Clark National Park and Preserve (LACL) is one of the most remote units of the national park system, and Crescent Lake within LACL is even more remote. Over the past decade, visitation to LACL and Crescent Lake has increased dramatically. The NPS had historically used Commercial Use Authorizations (CUA) to manage Crescent Lake commercial services. The NPS asked CHMGS to assess future demand for Crescent Lake visitor services, and to evaluate whether traditional concession contract(s) or another type of contract structure would be a better option for managing Crescent Lake commercial activity.

Process/Outcome: CHMGS began by visiting the Anchorage, AK, LACL, and Crescent Lake. We interviewed representatives of the region and the Park to understand priorities and challenges associated with Crescent Lake visitation. We also interviewed area outdoor recreation firms to understand the recent history of and projected demand for outdoor adventure recreation in Alaska. CHMGS interviewed more than 10 of the largest air taxi, bear viewing, and fishing guide operations that currently hold CUAs to operate visitor services at Crescent Lake. with the NPS. CHMGS also completed a rate study of similar activities to determine appropriates rates for commercial air taxi, guided bear viewing, and fishing operations.

Based on our analysis, CHMGS recommended the optimal number and type of commercial services (concession contracts, CUAs, or a combination) of commercial air tour, guided bear viewing, guided fishing providers, the optimal number of tours per day and per season, and passenger counts for each service. Finally, we developed a preliminary financial analysis to test pre-feasibility of the various contract structure options.