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National Park Service: Concession Reform Issues

  Premium   Download PDF Now (12 pages)
Report Type Reports and Testimonies
Report Date March 12, 1998
Report No. T-RCED-98-122
Subject
Summary:

Concession activities on federal lands is big business, generating billions of dollars. Many of the largest concessioners operate in the national parks. In the National Park Service, the average return to the government was about 3.5 percent of concessioners' gross revenues. In contrast, concessioners in nonland management agencies paid fees equal to about nine percent of their gross revenues. The key factors affecting the government were whether (1) the fee was established through competition, (2) the agency was allowed to keep most of the concessions fees that it received, and (3) an incumbent concessioner had a preferential right in renewing its concession agreement with the government. In considering concession reforms, Congress may want to encourage greater competition by eliminating preferential rights of renewal and providing opportunities for the Park Service to retain at least part of the concession fees.

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