Research Highlight
Roger Merchant, Extension Educator
University of Maine Cooperative Extension

Tourism and Forest Products: Twin Resource Sectors for Effective Community Development in the Lake States" 

by Henry H. Webster and Daniel Chappelle
Journal of the Community Development Society
Volume 32, No.1, 2001

Qualifying Note: This highlight points out the compatibility and benefits of forest product and tourism economic activities. Based upon community research in the Lake States Region, the authors suggest their findings are "likely applicable to other regions". This assumption has not been tested for applicability to Maine. This highlight is provided by the University of Maine Cooperative Extension as background information and does not intend to reflect Maine realities.

The purpose of Webster and Chappelle's research is to help communities and leaders think realistically about prospects for becoming combined-development centers for economic activities in forest products and tourism. A combined development center is a community with a sufficient mix of location factors, plus natural and cultural assets to support economic activities in both forest products and tourism. Their findings are based upon field experience, and three community case studies in the Lake States Region. Some key highlights…

• "The central point of this study is that tourism and forest products together foster a more stable local economy with a better job mix and lower unemployment, than communities that are dependent upon only one, or the other of these two sectors."

• "Combined-development centers, CDC's, provide a wider variety of employment options that may appeal to multiple family members, providing associated benefits to family stability and community character".

• "The economy in each CDC case study has experienced faster economic growth than the state in which each particular CDC is located…suggesting that CDC’s contribute significantly to state and regional prosperity on a fairly broad scale, as well as to local prosperity."

•  "The underlying point about CDC's is that it takes a combination of historic, natural, and cultural assets to become a combined-development center. These assets are in addition to the specific location factors for the forest products and tourism sectors. With sufficient assets, location factors, and strong linkages between the two, a community may enjoy employment benefits as well as the other benefits of combined development centers."

• "Perhaps the single most important linking factor is encompassing and unifying community leadership… Communities endowed with the presence of this leadership quality can function as a unified whole with many sectors, including tourism and forest products playing complimentary parts… Such communities have by far the best chance of enjoying employment and associated benefits of being a combined-development center.

(Webster and Chappelle, 2001)

Research Highlight by: Roger Merchant, Extension Educator, Natural Resources and Community Development  University of Maine Cooperative Extension, Piscataquis County, August,  2004.

Research Summary

"Tourism and Forest Products: Twin Resource Sectors for Effective Community Development in the Lake States"

by Henry H. Webster and Daniel Chappelle
Journal of the Community Development Society
Volume 32, No.1, 2001

Abstract:
The purpose of Webster and Chappelle's research is to help communities and leaders think realistically about prospects for becoming combined-development centers for both forest products and tourism. Their findings are based upon field experience, and three community case studies in the Lake States Region which encompasses Michigan, Wisconsin and Minnesota. 

The conditions necessary for becoming a CDC, combined-development center, are examined in terms of location factors for each sector, forest products and tourism. 'Linking factors' that help the two sectors to exist compatibility are addressed. Suggestions are offered for forest resource management options that foster combined-development initiatives. Their paper concludes with guidelines that can assist communities in appraising their prospects for becoming combined development centers in forest products and tourism.

Research Context:
A major analysis of trends and opportunities associated with Lake States forest resources was carried out by the Lake States Forestry Alliance, http://www.lsfa.org/index.html, in 1996. LSFA is a regional organization formed by the governors of Minnesota, Wisconsin and Michigan. The LSFA Study revealed that “communities with major activities in both tourism and forest products are substantially better off, than communities with more nearly one or the other."

Systematic analysis of unemployment rates every month for six years for parts of the Lake States with various economic bases was the point of departure for this study. "It became clear that several combined-development centers had unemployment rates generally lower and more stable than communities more dependent on one sector alone."  (Chappelle, 1997.

A related analysis showed that combined-development centers provide a wider variety of employment options that may appeal to multiple family members by providing associated benefits to family stability and community character.  (Hacker & Andrews, 1997).

CDC’s, combined-development centers, support major economic activities in forest products and tourism, not simply one or the other. Webster and Chappelle’s research does not address CDC’s as a cluster of closely associated communities. However, the central point of their study is that “tourism and forest products together foster a more stable economy with better job mix and lower unemployment".

Webster and Chapelle note that historically, studies have been conducted on one sector alone and that very little has been published about combined sectors, forest products and tourism. They further suggest that the tendency has been to view economic development options facing any community as one or the other, and not both combined.

The authors cite William R. Burch, Jr., a recognized social scientist in forest recreation research, who developed some “rule of thumb” guidance regarding an optimal mix of forest product and tourism activities from the standpoint of community economy, vitality and stability.

"Nature tourism as an industry is best when it is an adjunct to primary [forest product] production, rather than the primary source for community survival… When tourism exceeds 35-40% of gross local product, some threshold of disutility is being reached where instability in jobs, property values, tax receipts and population characteristics become a frequent pattern… A mixed economy, where tourism supplements core economic activities, can serve as a balance for market fluctuations in forest product demand, with tourism as a stabilizing influence.”   (Burch, 1992)

Economic Findings about CDC’s, Combined-Development Centers:
Case studies were completed for three Lakes States communities: Rhinelander in northeastern Wisconsin, Grand Rapids in north central Minnesota, Gaylord-Grayling in the northern 'lower peninsula' of Michigan. All three had been previously identified as combined-development centers, each with a distinct development history and economic attributes as forest product and tourism centers.  Chappelle & Webster’s review found these characteristics... 

• “Personal income in each combined-development center experienced faster growth than has the state in which each particular center is located…The number of jobs in the three CDC’s grew relative to the population over past 25 to 30 years as well.

• “Combined-development centers appear to be more alike in economic/demographic terms than are their state-locations… The three centers have become progressively more alike and quite stable with the passage of time.

• “CDC economic growth that is faster than that of the state in which it is located, suggests that combined-development centers contribute significantly to state and regional prosperity on a fairly broad scale, as well as to local prosperity.

Important Attributes of Combined-Development Centers (CDC's):
Each case study community became a Combined Development Center via three very different time sequences. However, there were substantial similarities in terms of environmental, community and economic assets, which underpin the three CDC’s.   (Webster & Chappelle 1998)

1. “Each of the three CDC's is in an area where forest growth exceeds harvest by a substantial margin, (75-150 million cubic feet of growth over harvest).

2. “The locations of the three CDC's have historically had substantial numbers of available and effective workers with adaptable skills…The willingness of previous out-migrants to return in response to strengthened employment opportunities in the CDC's is also a part of this labor availability.

3. “Each CDC has railroad freight service, multi-directional trucking services, and offers access via good quality highways.

4. “Each of the three CDC's is in an area of moderately rolling topography and is substantially forested with diverse forest cover types, which add to an attractive and interesting landscape.

5. “Each CDC has cool summers and distinct, diverse water bodies (streams, lakes and/or rivers) that provide opportunity for water-related activities which attract visitors to the region. High quality trout streams in Gaylord are an additional plus for this CDC.  

Linking Factors for Combined-Development:
When location factors operate independently for forest products or for tourism this will likely result in separate-development centers. The three CDC's in Webster & Chappelle’s case study reveal additional linking factors that foster the compatible development of both sectors.

One set of factors is the extent of natural features, particularly gentle topography and intricate lakeshores. The second set is cultural. Of particular importance culturally, is the presence of strong, cooperative community leadership that fosters a sense of community cohesion. "The three CDC's, Rhinelander, Grand Rapids, Gaylord have a combination of historic, natural, and cultural assets that have made a substantial difference.

“Rhinelander's long history with tourism and forestry effects human perception. Local residents are quite accustomed to some people working in factories, other’s serving visitors. The gentle terrain limits the visual impact of timber harvesting activity where fiber supply is based more on processed pulp, less on solid wood. The lakeshore environment and interconnected water-ways contribute to a tangible sense of tranquility, even with the presence of sizable resorts,   summer visitors and numerous year-round and seasonal residences on area lakes. The absence of those interested in the most frenetic and exhibitionistic forms of nightlife, is noticeable and also contributes to the presence of tranquility.”   (Webster and Chappelle 1998)

In Grand Rapids, Minnesota, “strong, cooperative community leadership is an especially important cultural asset where three key entities have interacted, closely and effectively.

1. The strong community-supportive views held and shared by past and present leadership of the forest products industry, pulp and paper firm.

2. The community which has embraced, reciprocated and institutionalized these supportive views about industry and community.

3.  A civic-minded newspaper that has further reinforced the supportive community-industry views, contributing to Grand Rapids being an attractive community for forest product and tourism activities, as well as new possibilities.

Smaller scale, similar community leadership qualities can be found in Gaylord, which diversified its economy into destination skiing, golfing and blue ribbon trout fishing. These developments evolved concurrent with forest product expansions during the 1980's.

"The underlying point (about CDC’s) is that it takes a combination of historic, natural, and cultural assets to become a combined-development center. These assets are in addition to the specific location factors for the forest products and tourism sectors. With these assets and location factors, a community may enjoy the employment and other benefits of combined development centers."    (Webster and Chappelle 1998)

Many communities share some or all of these "vital conditions for pursuing becoming a CDC. However, across the Lake States region there are great differences among communities in terms of kind and strength of community leadership.”

"Perhaps the single most important factor is encompassing and unifying community leadership… Communities endowed with the presence of this leadership quality can function as a unified whole with many sectors,  where tourism and forest products playing complimentary parts…Such communities have by far the best chance of enjoying employment and associated benefits of being a combined-development center.”    (Webster and Chappelle, 2001). 

Forest Management Contributes to Combined Development:
Effective management of natural resources is important to the sustainable development of both tourism and forest products. In managing multiple assets, the question is which to put where, not which is most important ___they all are important. Combined resource management depends upon two things for delivering large quantities of high-quality forest product and natural resource tourism outputs from carefully selected sites:

1. Management planning that seeks to separate forest uses from uses that would otherwise conflict.

2. Investment oriented funding of sufficient scale to make combined resource management really effective.

Combined resource management plans consider a variety of options for field practice:

• Design and customize timber harvests that blend into landscapes.

• Maintain continuous forest canopy in all-aged/uneven aged stands.

• Intermix forest types and stand structure to enhance attractiveness.

• Vary forest species to enhance spring-summer-fall-winter color palates.

• Select openings for high value scenic viewpoints and view-sheds.

• Provide for management and protection of unique features in the forest.

“Last, but not least, inviting public participation with forestry and tourism stakeholders in the combined management process will build miles of good will and collaboration for CDC’s committed to forest product and tourism economic development.”

Conclusion: Self-Appraisal Prospects for Communities.

Tourism and forest products together can foster a more stable local economy with better job mix and lower unemployment than either sector alone. Webster and Chappelle suggest the idea, “that one sector must be selected over the other is simply false, leading only to unnecessary self-defeating choices. Combined development constitutes a major opportunity for communities with the requisite features and leadership.”

A realistic appraisal is crucial for accurately judging the prospects of a particular community for becoming a combined development center. Webster and Chappelle offer these suggestions for making a realistic CDC appraisal.

1. Examine the community in terms of primary location factors for whichever sector is substantially missing…….

2. Examine these location factors directly and factually. Focus on the current situation. Avoid mixing what is with what we might like, which is best done separately, later. Review and discuss this appraisal with people outside your community who have knowledge of the tourism and forest products sectors.

3. At this stage, a defining judgment is needed, based on the factual appraisal. Does the community have sufficient strength in location factors to become a CDC? If yes, then the next stage is to examine the community in terms of linking factors that could be brought to bear to foster the compatible development of tourism and forest products.

4. Work factually through this refined appraisal stage. Focus on linking factors in the current situation. Again, seek outside input from knowledgeable people.

5. A subsequent, defining judgment is needed. The question is, “does the community now have the natural and cultural assets to attempt realistically to become a CDC?” At this point pay particular attention to the matter of community leadership, which may be the most crucial single factor at this point.

6. A careful, factual appraisal of this sort will lead to three possible conclusions for a particular community:

C1: Yes, our community clearly has specific location factors, natural and cultural assets to be a CDC. The specific steps to attract/develop that sector now lacking is the next order of community business.

C2: No, our community substantially lacks some specific location factors, natural and cultural assets to be a CDC. Getting on with making the most of the sector the community has is the next order of community business.

C3: Our community comes close to having specific location factors, natural and cultural assets for becoming a CDC. However, we are slightly short in terms of one or perhaps two of these factors-assets. Determining what we can realistically do to  strengthen this is the next order of community business if there is a collective desire to become a Combined Development Center for both forest products and tourism.

Summary complied from JCDS Vol.32 No.1 by:

Roger Merchant, Extension Educator

University of  Maine Cooperative Extension

August 1, 2004