Recreation Expenditures and Sales in the Pigeon Lake Area of Alberta: A Case of “Trickle-up?”

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Abstract
The study measures the spatial distribution of capital and current expenditures by recreationists with respect to a rural water-based development of cottages, institutional camps, and parks at Pigeon Lake, Alberta, Canada, 50 miles from the major city and growth centre of Edmonton. After a review of recreation and growth centre literature, three hypotheses were formulated and tested using detailed monetary data collected by field survey. They are (1) that the major part of the economic impact of a hinterland-based recreation development will be felt within the economy of the metropolis, that is in this case Edmonton; (2) that there are substantial differences among different recreation pursuits in their generation of money flows with respect to type, size, and spatial distribution; and (3) that the direct effects of recreation trade on the local economy will be very low, if any. The hypotheses were all accepted. Implications of the results for regional development planning, incorporating the expansion of recreation facilities at lakes elsewhere in Alberta, are discussed. The lack of “trickle-down” effects from Edmonton via expenditures by residents visiting their cottages or the parks at Pigeon Lake, has serious implications for employing this type of recreation as a vehicle in rural or regional development. Recommendations are made to improve the benefits to rural businesses, farmers, and governments.

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