Economic Impact of the Proposed Run of River Whitewater Park in Skowhegan Maine

How to cite this study

O’Hara, F., Young, K. and Cannon, K. 2016. Economic Impact of the Proposed Run of River Whitewater Park in Skowhegan, Maine. Skowhegan, ME: The Town of Skowhegan.

Overview

The study estimates the impact of the proposed Run of River Whitewater Park in Skowhegan, Maine. The park would include infrastructure to support water sports and additional trails to encourage hiking, walking, and cross-country skiing. Run of River was estimated to generate a direct economic impact of nearly $6 million in spending in its first year and up to $19 million in its 10th year.

Relevance

This study is relevant to leaders interested in estimating the economic return from developing whitewater recreational areas, supporting a variety of recreational activities, and using marketing to increase participation. The authors emphasize the importance of marketing communications and publicizing events, such as engaging in outreach to local high schools and college students and creating clubs. The study outlines a possible annual integrated marketing communications plan. Though it focuses on Skowhegan, the plan is largely applicable to many whitewater areas or outdoor recreation areas as a useful tool to increase participation and engagement. 

The plan includes information on marketing objectives, target audiences, marketing strategy ideas, media advertising strategies, recommended annual marketing budget, and potential marketing funding sources. Those working in marketing communications may find value in the suggestions on how promotions and integrated marketing strategies can increase economic impact. It should be noted that the economic estimates are largely based on previous studies regarding whitewater parks.

Location

This study is located in Skowhegan, Maine, in the Kennebec River Gorge. 

Trail Type

Run of River is a proposed whitewater park in the town of Skowhegan, Maine, just below the dam in the Kennebec River Gorge. In addition to developing infrastructure to support water-related recreational activities, plans call for developing  trails for walking, biking, and cross-country skiing, ultimately creating the Run of River Whitewater Recreation Area. 

Purpose

The purpose of this study is to evaluate the potential economic impact of the creation of the Run of River Whitewater Park while also providing a concrete market communications plan to actively engage the public in events and publicize the recreational area.

Findings

• The direct economic impact of Run of River is estimated to generate about $6 million in spending, 50 jobs, and $1.5 million in income in the first year and up to $19 million and 171 jobs by year 10. 
• $155,000 are estimated to be generated from new tax revenue from increased property values in the first year and more than $200,000 in added state income and sales tax revenue. 
• By year 10, property tax revenues could increase by $270,000-$480,000, and state tax revenues could grow $364,000-$656,000 per year. 
• In the interviews conducted with municipal and county officials responsible for the operations of the parks, the authors found that successful whitewater parks tended to be located downtown and support multiple outdoor recreation activities such as trails, fishing, swimming, and public parks. Annual operating expenditures ranged from $5,000 – $65,000 depending on the types of structures and soil type. 
• According to the interviews, events like festivals or paddling competitions are the main contributors to the economic impact of whitewater parks, attracting users and spectators. 
• In the survey conducted on Facebook, one-third of the respondents were women and two-thirds were men, 87% participate in hiking and camping, most paddlers go in groups, and two-thirds are willing to drive more than two hours to paddle.