Importance factors affecting trout and salmon sport fishing’s demand and their elasticities Ely region Minnesota.

Abstract

The purposes of this study were to 1. Study the factors that impact on trout and salmons sport fishing’s demand in Ely region and their elasticities, and 2. Study sensitivity of these factors that impact demand of fishing of this region. Recreational fishing is an important sport and outdoor activity that creates a lot of jobs and income for the local community. Ely, Minnesota is the most famous area for fishing. Even though sport fishing provides high revenues to Minnesota but little information regarding specific type of fish for sport fishing such as trout and salmon is limited. The research questions for this study are why do anglers continue to choose this? What are important factors for them to return to this site? This study is quantitative study that includes mean, standard deviation, t-test and the sensitivity or elasticity is derived from the estimated coefficient of a double natural logarithmic demand function. The sample size of 1083 had been collected by mail for those who have fishing license. The result for purpose one shows that there are four factors that are statistically significant at ρ<0.05: travel cost (coefficient of -0.29 and t-value of -7.28), age (coefficient of -1.06 and t-value of -4.86), household size (coefficient of -0.23 and t-value of -1.96) and trout fishing experience (coefficient of 0.40 and t-value of 4.69). The result for purpose 2 shows that elasticity of travel cost(E=-0.29), household size(E=-0.23), age(E=-1.06) and trout fishing experience(E=0.40). Among these factors, only age is elastic, with an elasticity of -1.06. This information benefits the local community, local businesses, the local government, and the state by providing better policy and marketing strategies in order to increase tourist demand.