Use values of the Hollyford Valley Track : with specific reference to the proposed Haast-Hollyford tourist road

Abstract

1.1 The Subject The Hollyford Valley is valued by many people, it is an area of spectacular scenic beauty that for many years has been kept in isolation by the fact that the only means of visiting the valley is by foot or to a lesser extent by plane and boat. People who use the Hollyford Valley Track value the area for its scenic beauty and its solitude, as well as for its fishing, tramping and hunting resources. However because use of the Hollyford Valley Track is severely restricted by the lack of easy access, there are many people who currently do not use the the area but who would value the opportunity to do so given the chance.

Consequent] y, the advantages and disadvantages of developing a road in the Haast - Hollyford Valley Track area has been the subject of much public debate. Those in favour of such a development suggest that the establishment of a road would not only open the area up to the tourism, but it would also provide easier access to all New Zealanders and not just a small advantaged segment of society. Those against the proposal suggest that any development within a national park is an unwelcome intrusion into an area that should be kept as a wilderness park, or at least, in a largely natural state.

1.2 The Issues A large part of the discussion has centred on the fact that until now only those members of the public who are fit and have the time could visit the area, but if the Haast- Hollyford Tourist Road were to go ahead, it would allow access to the Hollyford Valley Track to a much wider sector of the public.

While those who currently have access to the Hollyford Valley Track may suffer a loss in benefit because of the road, those who do not have access to the track but would do so if the road proposal went ahead may gain benefit from the road. The loss or gain of benefit, in this case 'use value', as a result of the road proposal is an example of an intangible. Any such loss or gain of use value to either group would represent a real cost or benefit of completing the road proposal, and should therefore be included as part of an economic appraisal of the proposal. In order to assess the benefits to be gained and lost from the two alternative uses of the Hollyford Valley Track and in order to determine which use would be of the most net benefit for the public, it is necessary to use economic methods such as a non-market benefit assessment technique. This study will introduce and apply one such non-market benefit assessment technique, the Contingent Valuation method. [excerpt from Introduction]