Socioeconomic Study

by Dave Wegner, Science Director

From Hidden Passage, the Journal of Glen Canyon Institute
Volume V

Many claims have been made about the socioeconomic impact that Glen Canyon Dam and the reservoir have on the northern Arizona and southern Utah area. Numbers are bandied about with little or no documentation or support. Glen Canyon Institute is committed to presenting correct and supportable information on the issues associated with restoring Glen Canyon.

This past year, with the generous support of several donors, we initiated A Preliminary Socioeconomic Impact Analysis of Lake Powell and Surrounding Region. This report will provide information critical to formulation of the Citizens Environmental Assessment CEA).

• The study, conducted by SWCA, Inc, focused on four primary objectives:

• Evaluation of the existing socioeconomic conditions of the reservoir region

• Assessment of impacts of Glen Canyon Dam and the reservoir on the local Native American groups

• Impacts of the reservoir-related recreation on the regional economics

• Development of recommendations for future additional economic and sociological studies

The region evaluated included Coconino County in Arizona and Kane, San Juan and Garfield counties in Utah. Communities within these counties and those located on the Navajo reservation were specifically evaluated as to their economic relationship to the reservoir development. Within each of the counties the largest sector of employment was associated with the government.

Page, Arizona was administratively created in 1957 by the government as temporary housing for contractors and laborers who were working on contruction of Glen Canyon Dam. In 1998 the population of Page was approximately 9,250. The primary sources of income to the Page economy come from the reservoir, the Navajo Generating Station and tourism. The Navajo Generating Station employs approximately 580 full time workers; over 50% of these are Native Americans. 28,000 acre feet of water is presently drawn out annually from the reservoir for cooling of the Navajo Generating Station.

Fredonia, the only other town located in Coconino County and within 50 miles of the reservoir, supports approximately 1,375 people who are primarily dependent on tourism dollars generated from the Grand Canyon National Park and other State and National parks within the area with very little of their income derived from reservoir related tourism.

The Navajo Nation is directly and indirectly impacted by the reservoir. In 1958 Congress authorized a land exchange with the Navajo Nation for land to be inundated by the reservoir. The land traded to the Navajo did not include mineral rights, rendering the land of limited value. Therefore, the Navajo Nation still retains the mineral rights to the land under the reservoir.

Presently the Navajo Nation is negotiating with the United States government over quantification of their water rights to the Colorado River.

The Navajo Nation is currently in litigation with Peabody Coal regarding allocation of and compensation for coal mined from Black Mesa. Additionally, the Navajo Nation has begun development of a marina and recreation facilities in the Antelope Point area. Of primary concern to the Navajo people is the use and abuse of Rainbow Bridge. This issue will continue to fester as long as direct and easy access to Rainbow Bridge is available via the reservoir.

According to the National Park Service, 2,458,990 people visited Glen Canyon National Recreation Area (gcnra) during 1998. This equated to 4,305,709 visitor days, which was a slight decrease from visitation in 1997. Over the period between 1993 and 1997, there has been a total decrease of 32.1% in visitor days. Utilizing the total number of visitor days and an average daily expenditure of $88.30 per day, visitation at the gcnra generated $380,194,100 in 1998. This is 24% less than figures which have been quoted by Congressman Cannon of Utah.

Much of the money generated by visitors is associated with the five primary marinas on the reservoir. It is estimated that 65% of the City of Page’s business is generated from tourism.

Studies conducted by the Department of the Interior show that 29% of visitors travelled 30 miles or less to gcnra. 14% travelled between 30 and 60 miles, 5% travelled between 60 and 120 miles, 29% travelled between 120 and 240 miles, and just over 15% travelled over 480 miles.

A significant number of the people who visit gcnra, and specifically the reservoir, are not there primarily to spend time on the reservoir. Rather, they are taking advantage of the large number of parks within the region.

The economic impact of visitation by non-resident anglers to the tailwater trout fishery is valued at approximately $2,185,702. Total visitation by anglers decreased by 25% between 1991 and 1998. Presently there are approximately 20 trout fishing guides who make their living in the tailwater, with a projected cumulative annual income of $1,050,000.

This study articulated and documented critical information needed for the Citizens Environmental Assessment. The study also identified several areas where additional information is necessary in order to assess the potential impact of decommissioning Glen Canyon Dam.

• Expanded assessment of potential impacts, both positive and negative, to the Native American people in the region. This includes impacts related to water development, recreation and cultural resource protection.

• Expanded input-output model identifying how dollars are spent in the region, to determine to what extent the money remains in the region.

• Expanded assessment of the potential economic impacts to Grand Canyon rafting concessionaires, recognizing that river recreation existed on the Colorado River through Glen and Grand Canyons prior to construction of Glen Canyon Dam.

• A contingent valuation survey addressing the desire of the public to restore Glen Canyon is essential as the campaign for restoration expands.

The work accomplished in this technical report provides important information for the restoration of Glen Canyon. Glen Canyon Institute is striving to provide accurate, documentable and supportable information to the public. We count on your support.