Increasing Bigrock National Park's Entrance Fees

Bigrock National park is trying to evaluate two alternatives. One of them is to increase the entrance fees to the park from $5 to $20. The other alternative is to leave the entrance fees as it has been. The decision being made is expected to result to higher revenues of the park. This is by increasing the number of people visiting the camp on an annual basis. Both alternatives come with associated costs. For this reason, the management of the park has to evaluate a number of factors before making the final decision. This paper is in support of the alternative of increasing the admission fees to the park. Various factors are analyzed in the paper as to why the charges should be increased. Increasing the entrance fee should be done since other similar facilities charge relatively high fees. The management of the park can also use the additional money raised to make the park better and more attractive than before.

Firstly, it is noted that all other facilities offering similar services charge more than $20. We have Waterworld USA charging $25.99 as admission fees while Paramount’s Great America charges $40. For this reason, it is unlikely that the park will lose some clients as a result of increasing the admission fees. What this means is that Bigrock Park might have potentially lost income. This might have occurred through charging low charges while it should have been charging higher admission charges. It is thus advisable to increase the entrance fees from $5 to $20. After increasing the charges the National park may still be the one charging the lowest fees. This is because the analysis of its two main competitors shows that they charge more than $20. In supporting the increasing if the entrance fee, the rising costs of maintaining the park can be taken into consideration. It is obvious that the costs of maintaining the park had increased over the years while the charges have remained constant at $5. This has led to additional costs to the park, which are not matched by an increase in revenues. When the entrance fee of $5 was set, the operation costs might have been low and commensurate with the fees. However, with the advent of time, the related costs have increased. Some of the costs that might have increased include the employment costs of the park’s employees, costs of maintaining the facilities among others. This gives every necessary justification to increase the park’s entrance charges. It can also be noted that increasing the entrance fees to the park will lead to an automatic improvement in the services provided. This is because increasing the charges will result into increased revenues. This increment can be reflected in terms of increased wages and salaries for the park’s employees. Higher salaries will serve to motivate the workers to deliver better and improved services to the visitors of the park. Visitors who receive better services are enticed to make repeats trips to Bigrock Park. This will further increase the park’s revenues. The perpetuation of this cycle will grant benefits to all parties involved, that is, the park’s management, employees, and visitors.

The funds obtained from the increased entrance fees can be utilized in the building of a new visitors’ center. This has been identified as part of the managements plan for improving the national park. This might be useful in increasing the number of visitors to the park. Building a new visitors center will attract more visitors, who would not have otherwise visited the park. It may also serve to increase the frequency with which existing visitors come to Bigrock. The overall result of all these would be to increase the number of annual visitors to the park, thus increasing its revenue. The additional funds will facilitate the building of a new and improved campground. Entertainment and educational facilities will also be added. The effect of this is increasing the number of visitors in the park. The variety of those who visit the park will also increase as there will be diverse facilities provided. Visitors who value entertainment will be catered for as well as those who want educationl facilities. This will lead to higher revenues for the park hence improved services.

To conclude, it can be said that the park’s attempt to increase its entrance fees will have a positive impact on the revenues. For this reason, Bigrock National Park should increase the charges. The additional revenue raised can be used for the various projects in the park’s development plan. The additional funds may also be applied in repairing the damage caused by the recent floods. All these will lead to a better Bigrock National Park, which will draw more clients, further increasing its revenues.

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