APPENDIX 21
THE ECONOMIC IMPACT OF
BEAR HUNTING IN ONTARIO
Jennifer Backler, Lands and Waters Branch
and Laurie Gravelines, Industry Relations Branch
Ontario Ministry of Natural Resources
(March 2003)
ABSTRACT: This paper examines the economic impacts arising from recent
hunter expenditures made in Ontario by resident and non-resident bear hunters.
These hunter expenditures represent the best available information on
recreational bear hunting in Ontario. The raw data was collected by the Ministry
of Natural Resources’ Fish and Wildlife branch through provincial mail surveys
conducted at the end of selected hunting years. Non-resident licence sales fell in
1999 and have remained relatively constant since. There was also a decrease in
total expenditures made by bear hunters in Ontario. Licence sales have
increased in 2000 and 2001.
ECONOMIC IMPACT ANALYSIS
Economic impact analysis measures economic activity that may be attributed to an
event.
For the analysis of bear hunting in Ontario initial expenditures by hunters represent the
direct expenditures and their effects on the economy are direct effects. Purchases by
suppliers (e.g. tourist outfitters, hotel and restaurant owners, charter operators) used to
sustain the original purchases are called indirect effects. When workers in the
supporting industries and sectors are stimulated by the initial and indirect expenditures
spend their additional income on goods and services, induced effects occur. The direct
plus indirect plus induced effects equal the total effect.
In this analysis, the economic impacts of bear hunting were calculated using the
Socioeconomic Impact Model (SEIM Version 6.0) developed for the MNR by
Econometric Research Limited.
SEIM produces many output variables; the variables explained below are used in this
report.
Gross Provincial Income (GPI) is a measure of economic impact used to gauge
economic benefits. Value added GPI includes only final goods and services. GPI
Appendix 21 The Economic Impact of Bear Hunting in Ontario
1
includes wages and salaries, depreciation allowances, interest payments, and pre-tax
profits.
EXPENDITURE DATA
Data for this analysis were obtained from the Ministry of Natural Resources Provincial
Mail Surveys from 1997, 1999, and 20001. The Provincial Mail Surveys (PMS) provide
estimates on the number of resident and non-resident hunters who bear hunted in
Ontario, the number of days they hunted, and their harvest. The reports also contain
information about the type and amount of expenditures made by hunters that were
directly related to bear hunting.
A sample of total hunters is taken from the Ministry of Natural Resources list of
registered hunters and these hunters are asked to complete the Provincial Mail Survey.
Responding is voluntary. In order to obtain totals to represent the entire bear hunting
population the responses from sampled hunters are multiplied by the total licence sales.
All data expressed as dollars has been converted to a 2000 base year of Canadian
dollars.
In 1997, approximately 22,252 resident and non-residents hunted bear (Table 1). They
spent an estimated 143,600 days and more than $30.3 million2 (Table 2) on travel,
supplies and services directly connected with the activity. Of the total expenditures,
resident hunters spent about 17%. On a per hunter basis, resident bear hunters spent an
average $521, non-residents spent $2,030.
In 1999, approximately 17,322 resident and non-residents hunted black bear in
Ontario (Table 1). They spent an estimated 63,013 days and more than $20.5 million
(Table 2) on travel, supplies and services directly connected with the activity. Of the
total expenditures, resident hunters spent 30%. On a per hunter basis, resident bear
hunters spent an average $603, non-residents spent $2,030.
In 2000, approximately 18,239 resident and non-residents hunted bear (Table 1).
They spent an estimated 69,867 days and more than $21.5 million (Table 2) on travel,
supplies and services directly connected with the activity. Of the total expenditures,
resident hunters spent 28%. On a per hunter basis, resident bear hunters spent an
average $585, non-residents spent $2,014.
1
There was no Provincial Mail Survey conducted in 1998 and the 2000 survey was the last one completed.
There was an extensive remodel of the Provincial Bear Survey between the 1997 and 1999 issues of the
survey. As a result, the 1997 data have been adjusted to address the changes in the survey design, making
comparisons between the 1997 survey and subsequent surveys possible.
2
Appendix 21 The Economic Impact of Bear Hunting in Ontario
2
TABLE 1
LICENCES ISSUED AND LICENCE REVENUES
FOR RECREATIONAL BEAR HUNTING
1993
1994
1995
1996
1997
1998
1999
2000
2001
20024
Resident
Licences
10,409
12,287
12,369
9,697
9,831
10,208
10,264
10,473
12,424
11,737
Non-Resident
Licences
10,442
13,439
13,713
12,913
12,421
12,069
7,058
7,766
7,495
7,924
Total Licences
Revenue from
Licences3
$ 1,942,295
$ 2,335,060
$ 2,410,983
$ 2,239,819
$ 2,171,458
$ 2,183,096
$ 1,763,512
$ 1,949,369
$ 2,034,800
$ 2,099,678
20,851
25,726
26,082
22,610
22,252
22,277
17,322
18,239
19,919
19,661
Source: OMNR Fish and Wildlife Branch.
CHART 1
HISTORICAL LICENCE SALES IN ONTARIO
FOR RECREATIONAL BEAR HUNTING
3 0 ,0 0 0
T o t a l lic e n c e s
2 5 ,0 0 0
2 0 ,0 0 0
1 5 ,0 0 0
N o n - r e sid e n t lic e n c e s
1 0 ,0 0 0
5 ,0 0 0
R e sid e n t lic e n c e s
0
9 3
9 4
9 5
9 6
9 7
9 8
9 9
00
0 1
0 2
Chart 1 above illustrates the peak in licence sales in Ontario for black bear licences in
1995. Between 1995 and 1999, total licence sales fell by 33%. Non-resident licence
sales accounted for most of that drop as sales fell by 48% over the same period, while
resident sales fell by only 17%. Between 2000 and 2002, there has been growth in sales
of about 7%.
3
4
Revenues are calculated on a fiscal year basis. Licence revenue is presented in current dollars.
Estimate of sales as of January 2003.
Appendix 21 The Economic Impact of Bear Hunting in Ontario
3
TABLE 2
EXPENDITURES DIRECTLY RELATED TO BEAR HUNTING IN ONTARIO
All dollar figures are reported in Canadian dollars (2000 base year).
1997
1999
2000
$
$
$
Residents
5,126,906
6,196,591
6,140,836
Non-Residents
$ 25,214,630
$ 14,328,204
$ 15,451,696
$
$
$
All hunters
30,341,536
20,524,796
21,592,532
Source: OMNR Provincial Mail Surveys 1997, 1999, 2000.
Chart 2 below illustrates the recent trends in hunter expenditures in Ontario.
Expenditures decreased from $30.3 to $20.5 million between 1997 and 1999 (-33%).
Depending on the base year used to calculate percent change over time, the appearance
of the change may vary. The year 1997 was used as the base year in this analysis
because it represents a similar level of activity and expenditures as 1995 and 1996.
CHART 2
EXPENDITURES BY BEAR HUNTERS IN ONTARIO
Millions Cdn $
All dollar figures are reported in Canadian dollars (2000 base year).
$35
$30
$25
$20
$15
$10
$5
$1997
1999
2000
Note: There was no Provincial Mail Survey completed in 1998 and the 2000 survey is the most
recent.
Between 1997 and 1999, total expenditures by bear hunters fell by 33% while licence
sales fell by only 22%. Non-resident hunter expenditures dropped by 43% over the
same period.
Appendix 21 The Economic Impact of Bear Hunting in Ontario
4
ESTIMATED ECONOMIC IMPACT OF BEAR HUNTING IN ONTARIO
This analysis is based on hunters self-reporting activities and expenditures related to
bear hunting in Ontario.
All financial figures reported in this section have been converted to Canadian dollars
with the year 2000 as the base year. This allows for comparison across years without
inflation effects.
In 1997, estimated initial expenditures of $30.3 million yielded a contribution to gross
provincial income related to bear hunting of $31.6 million.
In 1999, estimated initial expenditures of $20.5 million yielded a contribution to gross
provincial income of $21.7 million.
In 2000, estimated initial expenditures of $21.5 million yielded a contribution to gross
provincial income of $22.8 million.
SUMMARY
Hunter participation in the bear hunt in Ontario dropped between 1997 and 1999 when
non-resident licence sales fell by 48%.
Between 1997 and 1999, there was a decrease in expenditures related to recreational
bear hunting in Ontario of 33%.
CONSIDERATIONS
The cancellation of the spring bear hunt early in 1999 and the extension of the fall bear
hunting season in the same year makes it difficult to interpret the change in hunter activity
and expenditures.
This paper is based on the data collected through Provincial Mail Surveys on Bear by
Ministry of Natural Resources staff. The survey design used to collect social and
economic information from bear hunters changed between 1997 and 2000. The impact of
these changes is difficult to assess though some impact is expected.
Appendix 21 The Economic Impact of Bear Hunting in Ontario
5