Animas-La Plata Operation, Maintenance, & Replacement Association Meeting Minutes 7/7/10

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DRAFT Market Study
EXECUTIVE SUMMARY
Lake Nighthorse
Lake Nighthorse offers a rare opportunity to develop recreational facilities tailored to the actual
demand for reservoir -based recreation in the Southwest Colorado and the Northwest New
Mexico region. Recreational facilities at Lake Nighthorse will also add to the menu of amenities
that attracts a million visits to La Plata County each year, most of which are tourist trips.
While the recreation market in and near Southwest Colorado is diverse and deep, this market
study focuses on identifying the market at Lake Nighthorse for the activities constituting the
pillars of developed reservoir recreation:
— Power/ Non -Power Boating — Swimming
— Fishing — Trails Use
— Camping
The study applies a triangular approach for estimating the potential market for recreation at
Lake Nighthorse best stated as a series of research questions:
1) Given the size and characteristics of the population, how much reservoir -based
recreational use is possible in the region?
2) How much of this use occurs inside the region vs. outside the region at other attractions
(such as Lake Powell)?
3) Given the demand met by external attractions and the existing recreational opportunities
and use patterns in the Southwest Colorado region, what share of the regional market
would developed recreational facilities at Lake Nighthorse attract?
4) How many tourists would recreational facilities at Lake Nighthorse attract?
5) What are the price points for user fees and how can opportunities such as special events
raise revenue and publicity for the facilities?
The population within a 100 -mile drive of Lake Nighthorse is estimated to generate 3,374,639
user -days annually participating in the activities offered as the pillars of reservoir recreation. Of
these, 70% are expected to leak out to locations outside of the 100 -mile market reach of Lake
Nighthorse and 30% are expected to occur at locations inside of this range.
Figure 1- User -Day Summary
Local and Regional User -Days
1,016,619
Tourist User -Days
123,039
Total User -Days
1,139,658
Competition User -Days
976.462
Nighthorse User -Days
163,000
Source: RPI Calculations, results rounded to 1000s.
Within the 100 -mile range from Lake Nighthorse are 12 major reservoirs, dozens of
campgrounds, stocked lakes /managed fisheries, and 60 major trailheads. In total, the area
reservoirs alone already account for an estimated 976,462 user -days annually. These existing
uses are expected to continue, with Lake Nighthorse contributing to the menu of amenities.
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RPI