The Effect of "Foreign" and Local Visitors on Granting Park Concessions

Abstract

If parks have particular characteristics, park managers should grant firms exclusive right to provide products or services within the park. The particular characteristics include that park development is only attractive to foreign visitors, that foreign visitors are only valuable for the currency they spend, and that development and congestion reduce the park's value to domestic visitors. Permitting monopoly to provide development means maximizing net revenue from sale of services to foreigners. Monopoly concessions also mean less development is produced than with competing concessions. Less development and fewer foreign visitors mean increased value to domestic visitors.