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Want to Run a Billion Dollar Business? Look at Wildlife!

Want to Run a Billion Dollar Business? Look at Wildlife! by Greg Brown Disclaimer

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Want to Run a Billion Dollar Business? Look at Wildlife!

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  1. Want to Run a Billion Dollar Business?Look at Wildlife! by Greg Brown

  2. Disclaimer • I dislike evaluating nature in terms of only financial worth. With that said, however, when we look at lobby groups operating in Alaska, financial worth seems to be the only way our government values things. I strongly believe in the intrinsic value of wilderness and wild animals. I do not oppose guns or hunting and personally hold a hunting license.

  3. Business of Wildlife Buggy Whips

  4. Business of Wildlife

  5. Business of Wildlife • Hunting Licenses • Resident $1,802,487 • Non Resident $ 996,161 • Big Game Tags $3,340,976* • Total $6,139,624 * Down 39% from 2000 to 2009 2009 Dept of Fish and Game

  6. Big Game Tags2000-2009 in $

  7. Business of Wildlife • Hunting Licenses • Resident $1,802,487 • Non-resident $ 996,161 • Big Game Tags $3,340,976 • Total $6,139,624 • Cost of Intensive Game • Management ($3,881,700) • Up 3% from 2009 • 2008 Dept of Fish and Game

  8. Business of Wildlife Cost of Intensive Game Management ( $3,881,700) No new jobs have been created other than administrative jobs to manage IGM. No growth in industry for more than a decade Non Resident Hunting Licenses are down 28 % over the last 9 years Resident hunting license revenues down 8% over the last 9 years

  9. Business of Wildlife • HomeGo Back     Public NoticesRequest For Proposals; Video ProductionSubmitted by: pjchaplin/11Date Submitted: 03/15/2010 03:27 PMDate Modified: Ak Admin Journal: [not printed] • Attachments: • RFP Wolves in Alaska.pdf • Request For Proposals; Video Production • Category: ProcurementDepartment: Fish & GamePublish Date:03/15/2010Location:StatewideCoastal District: N/ABody of Notice: • The Alaska Department of Fish and Game, Division of Wildlife Conservation (DWC) is soliciting the services of a contractor (working closely with DWC staff) to videotape, co-produce and deliver video content on predator management in Alaska. • Revision History:03/15/2010 03:27:04 PM by pjchaplin/11/State/Alaska/US

  10. Business of Wildlife Stated Reasons for Intensive Game Management Feed low income people 20% of people who buy hunting licenses fit into this classification - less than 4% of the population Entertainment of urban hunters Brings in money from out of state hunters Non Resident hunting license sales Down 28% from 2000 to 2009

  11. Culture

  12. Culture

  13. Value of Wildlife • According to the Dept. of the Interior, the amount of all money spent in Alaska in 2006: • For hunting: $124,000,000

  14. Value of Wildlife • According to the Dept. of the Interior, the amount of all money spent in Alaska in 2006: • $124,000,000 for hunting • For wildlife viewing: $581,000,000

  15. Business of Wildlife

  16. Value of a Whale • Approximately 200,000 people pay to go whale watching in Juneau annually. • There are approximately 60 whales present around Juneau during the summer months. • The average whale watching trip exceeds $100 per person.

  17. Value of a Whale • That makes the market more than $20,000,000 annually coming into Juneau for seeing whales.

  18. Value of a Whale • Therefore each whale is worth $333,000 annually. Whales live to be more than 80 years old, so the total asset value of an individual whale for Juneau is $26,600,000 over the life of the whale.

  19. Value of Wildlife • The value of a bear can be calculated in a similar manner. People pay $480 each to fly to Pack Creek to see bears and there are other bear viewing opportunities throughout Alaska. If you simply go though the math like we did for the life of a whale, it is obvious that bears are worth far more economically alive than dead.

  20. Value of Wildlife • Last year I did an informal survey and found people would be willing to pay more than $500 each if I could guarantee that they would see a wolf. We have not currently quantified the number of people who would do this, but clearly there is a substantial market for such viewing opportunities.

  21. Wolves good for U.S. parks, report says A 2006 study reported that the introduction of wolves in Yellowstone National Park increased visitor numbers and expanded ecotourism spending by $35 million in 2005.

  22. Value of Wildlife • This year there is a new business opening in Juneau to view bears. This is a sign that the non-consumptive market is growing.

  23. Value of Wildlife • Denali • 415,935 visitors in 2006 • $63,170,000 spent • Using the same calculation as we did for whales, the value of a wolf in its lifetime can be estimated to be $137,326. • Bear and moose viewing are worth similar amounts.

  24. Value of Wildlife Economically, these animals are clearly worth far more alive than dead in Alaska.

  25. I am not against hunting, but we should consider having out of state and urban hunters pay a fair value similar to the alternative market value for these animals. Alaskan hunters represent only 20% of the population and 20% of the economical wildlife market. Value of Wildlife

  26. Value of Wildlife • With the exception of low income hunting licenses (less than 4% of the total residents) where people really need to hunt to survive, the other hunting licenses should be based on the economic value of the animal. Currently, the 80% of the residents who do not hunt are subsidizing those - both resident and non-resident - who do.

  27. Business of Wildlife • To look at this another way: The total cost of IGM: $3,881,700 Cost per day is $10,634 If we go to Fred Meyer and buy rib eye at $7.99 per pound, we could give away 1,331 lbs. per day of meat or 485,819 lbs. per year for the same value.

  28. Business of Wildlife • Facts: Hunting license revenues have been declining in the lower 48 for years. In Alaska, hunting license revenues in total have been also been declining for a decade or more.

  29. Business of Wildlife • Facts: In the total US, the non-consumptive use of wildlife is enjoyed by over 62 million people with an expenditure of $29 billion dollars and is growing by 6 to 10% a year.

  30. Value of Wildlife

  31. Value of Wildlife Beach at Churchill

  32. Value of Wildlife Churchill

  33. Business of Wildlife

  34. Business of Wildlife • If Alaska Wildlife were a company in which one division were becoming unprofitable, you would continue that business with minimal resources and focus your main resources on the growing, profitable sector of you business.

  35. Business of Wildlife • Strategy: Dissolve the Dept. of Fish and Game Replace it with: Alaska Department of Fish, Marine Mammals, and Wildlife Management

  36. Business of Wildlife • Alaska Department of Fish, Marine Mammals, and Wildlife Management Mission would be to represent all Alaskans in the management of these important wildlife resources.

  37. Dept. of Wildlife Management • Goal Grow the vibrant non-consumptive business from $581 million to $1 billion dollars in 5 years, creating over 2000 new Alaskan jobs. Manage the consumptive business in a maintenance mode.

  38. Dept. of Wildlife Management • Board Of Wildlife Management Voting Seats 1- Hunting Seat 1 -Trapping Seat 1- Native Interests Seat 1- Land Non-consumptive Seat 1- Birding Non-consumptive Seat 1- Marine Non-consumptive Seat

  39. Dept. of Wildlife Management • Non-voting Seats 1-Business Management Seat 1-Biologist Seat Chair who would vote only if there is a tie

  40. Wildlife Tourism • Tourism is the sustainable money pipeline for Alaska. • People come, visit, see wolves, moose, bears, whales, etc., leave a lot of money and then go home. Business just does not get better than that.

  41. Legislators: • I am not asking you to become greenies or even conservationists. • I am asking you to become responsible business people representing the economic interests of all Alaskans by growing a vibrant business and creating thousands of new environmentally friendly jobs.

  42. Business of Wildlife • Do you want to be a buggy whip manufacturer (consumptive) in a slowly declining industry? or • Do you want to be an accelerator manufacturer (non-consumptive) in a high growth industry that brings money and new jobs into Alaska and manages all wildlife for abundance?

  43. Business of Wildlife You are the board of directors for this company. What are you going to do?

  44. Business of Wildlife Thank you.

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