socioeconomicbenefitslatvia

8/7/2019 socioeconomicbenefitslatvia

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Natura 2000Salaca river:

Nature capital for human welfare

Photo:AndrisSoms


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Chances for development

Ainazi Town and its Rural Territory(ATRT) are situated on the northeastern shore of the Gulf of Riga,approximately 120 km to the north of Rigaand 65 km from the regional centre(Limbazi). They border on to the Republic

of Estonia.

The total territory is 143 km, of which

22.3% is agricultural, 70.5% covered byforests, and 3.5% is port territory. There are2,100 inhabitants, with a population densityof 14.6 persons/km. The River Salaca,which is an important salmonoid river andalso a prospective Natura 2000 site, flowsthrough the territory. The river flowsthrough 7 municipalities, thus calling for co-operation between various localstakeholders, notably in rural development

and sustainable river management.This case study focuses on the Salaca Riverwhich is of great ecological importance, andoffers opportunities for social and economicdevelopment of rural areas, notably: Salaca sustains the fourth largest

spawning salmon population in theBaltic sea basin; It has significant "self-purification"

capacities, providing an importanteco-system service;

There are opportunities for eco-tourism (estimated visitor numbers in2002 were 20,000); and

The site provides importanteducational opportunities.

The ATRT is located in the North VidzemeBiosphere Reserve (NVBR). Many keyinitiatives in the project site are closelyrelated to the ongoing activities in theNVBR.

Nitterjack toad. Photo: A.Soms

Combining nature conservation interests with sustainable development is challenge for newNature 2000 sites.

THE SALACA RIVER HAS ENORMOUS

NATURE HERITAGE THAT HAS BEEN LOST IN

OTHER PARTS OF WESTERN EUROPE.


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Site DescriptionSalaca River flows through the Limbazi andValmiera Districts in the north-western partof Latvia. The site covers an area of 5,323hectares (ha), approximately 600ha of whichare located within the Ainazi municipality.

Particular ecological features of the site

include its picturesque 10-15m deep valley,

with terraces and sandstone outcrops, and amosaic of different forest types andextensively used farmlands. Salaca Riverholds the fourth biggest Wild AtlanticSalmon spawning population in the BalticSea area and is characterised by diverseriverine habitats, featuring a mixture ofhigh- and low velocity river tracts. Morethan 300 aquatic insect species, 600 plantand fern species, 31 fish species, and 8 bat

species are recorded so far. Beavers, ottersand kingfishers are also common in the area,and there is also a stable population offreshwater mussels (eg Unio crassus andTheodoxus fluviatilis).On-site activities include leisure outings(picnics), water sports and sport fishing.Theriver and its tributaries are used for studenttraining in biological water quality testingand river restoration methods, carried out byNVBR specialists.

Site HistoryIn 1977, the Salaca Valley was designated asa protected area - Complex Nature Reserve.It covers an area of 5,323 ha. In 1992 theValley was included in the North VidzemeRegional Nature Protection Complex, andlater (1997) declared 'North VidzemeBiosphere Reserve' (NVBR) under theUNESCO Man and the Biosphere

Programme. In 1999, in accordance withLatvian legislation, the Salaca ValleyComplex Nature Reserve was renamed the'Salaca Valley Nature Park'. The site wasdesignated by the national government.

According to the IBSFC (InternationalBaltic Sea Fisheries Commission), SalacaRiver is nominated as the National IndexRiver for the maintenance and monitoring ofwild Atlantic salmon populations. There are

several monitoring programmes carried outin the Salaca region (Migrating FishMonitoring programme, Monitoring ofhydro biological parameters within theNational Monitoring Programme).

The Association of Salaca River Valley(ASRV) includes representatives from themunicipalities located along the river andthe non-governmental organisationMakskernieku pasaule (The World ofFishermen). ASRV closely co-operates withthe Regional Nature Protection Board,

Salaca river

Photo: A.SomsSalaca river valley atMrnieki.


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which is responsible for the supervision offish resources, and the administration ofNVBR on the joint management of theSalaca River and its resources. There issome involvement of local people, notablyin the form of developing a network ofservices along the river (e.g. nature-friendlycamping). There are also local activitygroups that monitor fish resources and

manage certain sites along the river.

Projects on site

There are a number of important projects onor related to the site, as follows:

Biodiversity Protection in the NorthVidzeme Biosphere Reserve (UNDP GEF) -to assess the necessary nature restorationactivities in Salaca.

North Livonia - this PHARE Credoproject deals with cross-border co-operationfor the development of the Estonian -Latvian transboundary site. It includes ninecommunities and combines socio-economicand cultural aspects, as well asenvironmental co-operation anddevelopment. It promotes the developmentof sustainable tourism and related services,and seeks to overcome the feeling of"remoteness" and isolation in the area. Management Plan for the transboundaryWetland Complex between the Republic of

Estonia and Latvia (PIN-MATRA, TheNetherlands) - the project area flanksSalaca Valley and certain activities areinterlinked with activities carried out withinthe Valley (e.g. the development of atourism strategy, management of privateforests around the Wetland Complex). Northern String - dealing with thedevelopment of roads and related

infrastructure, connecting 5 Latvian districtsalong the Latvian-Estonian border. Part ofthe project area is located within the SalacaValley and will directly impact on localenvironmental and socio-economicconditions.

Site Context

NVBR and the Salaca River are consideredpriority areas for the development of a

nature-friendly tourism scheme, as set out inthe National Rural Development Programme(2001).

Salaca plays an important link betweenvarious regional development plans,including those covering areas outside theValley (e.g. development plan for thesurroundings of Lake Burtnieks;Management of Biodiversity within theCoastal Area).

Lamprey (Lampetra fluviatilis) cages at Salacgrva. Photo: A.Soms

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In 2002, more than 27,000 people visited'Park Skanais Kalns' in Salaca Valley,located upstream from ATRT nearMazsalaca town. As a result (additional)revenue has been generated for localentrepreneurs, most notably those in theservice sector (hostels etc). 'Park SkanaisKalns' is the most popular tourist destinationin Salaca Valley. Local municipalities arehoping to divert some tourists to other partsof the valley.

The site's specific environmental resources,

its relative proximity to Riga (1.5 hourdrive) and its location along importanttransit routes (VIA Baltica highway),provide opportunities for developing diverseand sustainable businesses within the Valley.This socio-economic development should beguided by the administration of NorthVidzeme Biosphere Reserve in closecooperation with ASRV.

THE SITE'S SPECIFIC ENVIRONMENTALRESOURCES AND ITS LOCATION ALONG

IMPORTANT TRANSIT ROUTES, PROVIDE

OPPORTUNITIES FOR DEVELOPING DIVERSE

AND SUSTAINABLE BUSINESSES

WITHIN THE VALLEY.

Ainai municipality map.


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BenefitsThe area provides spawning grounds andhabitats for a number of species listed underthe Bern Convention and EU HabitatsDirective (92/43/EEC) Appendix II. Theseinclude the Baltic Salmon (Salmo salar),and other fish species such as Lampetra

planeri, Lampetra fluviatilis, Rhodeus

sericeus amarus, Cobitis taenia and Cottus

gobio; invertebrate species (e.g. Uniocrassus), and mammals, such as the beaver(Castor fiber) and otter (Lutra lutra). Inaddition, the river valley is home to anumber of bird species protected under theBern Convention and the EU BirdsDirective (79/409/EEC) Appendix I. Theseinclude Ciconia nigra, Ciconia ciconia,Crex crex andAlcedo atthis. The riverinehabitats feature many aquatic organisms,

such as Rhodophyta, Unio crassus, andAstacus astacus.

The river sustains some 6% of the total wildsalmon population in the Baltic Sea. TheInternational Baltic Sea FisheryCommission and the Helsinki Commissionhave declared it the most productivespawning river for natural salmon species inthe Eastern Baltic, with an annual

production of 30,000 wild salmon smolts.

Despite the discharge of domesticwastewater from Mazsalaca and Staiceletown (effluents are only partially treated), ahigh water quality is maintained by theriver. The sheer volume of water and riffleareas provide a high water self-purification capacity.

The main threats to the site are:

illegal fishing of wild salmon and seatrout;

intensive forest logging close to the siteboundaries increasing possible leachingof nutrients into Salaca River;

shrub-encroachment and associated lossof coastal meadows due to the ceasing ofgrazing regimes.

Recent progress in site managementincludes:

Increased local awareness leading to adecrease in illegal fishing of wild salmonand sea trout.

Participation of local stakeholders,notably involving newly established localFishermen Clubs and volunteer groups, inriver maintenance and monitoring hasincreased.

Co-operation between local, national andinternational NGOs and localcommunities has prevented theconstruction of a hydroelectric powerstation (in the town of Staicele), thussaving an important salmon migrationroute and spawning areas.

River restoration measures have beenundertaken in tributaries of the Salaca

(approx. 4.4 km stretch in the RiverJaunupe, and a 300m stretch in the RiverKorge) in order to restore salmon spawninggrounds and remove excessive macrophytesgrowth caused by the wash out of nutrientsinto the river.

Nature capital


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Health or recreational benefitsApproximately 3,000 tourists use rafts andcanoes on the River Salaca annually. It isespecially popular with families due to itsgenerally calm waters and its conveniencefor outings and picnics. There were 27,000

recorded visitors to Skanais Kalns Park in2002 (near Mazsalaca town, upstream fromATRT). Salaca River is also the mostimportant river for sports fishing of Vimbavimba in Latvia.

Education/Research:Training and awareness raisingNVBR manages an educational programmefor children and students. This includes the

provision of learning materials such asbooks, a web page and a film, as well asoutdoor equipment for the measuring ofwater quality etc. In addition, there is aninteractive exhibition explaining the lifecycle of caddis flies (Trichoptera) andintroducing visitors to the world below andabove the water mark ("In the Water and inthe Air"). Regular outdoor activities fordifferent age groups, includingkindergardens and schools, are alsoorganised.The programme is run by specialists from

NVBR who also provide their expertise tothe UNESCO "Baltic Sea Project",concerned with environmental awarenessraising. This project addresses amongstothers more than 400 schools in the Balticregion. Furthermore, students from the

University of Latvia receive annual on-sitetraining on coastal and aquatic ecology.A parallel programme is aimed at theimprovement of local conservationmanagement skills and practical activities intraining for low-cost river restorationprogrammes.There is further need for capacity buildingregarding the development of environ-mentally sound businesses in the local

community, and a more strategic plan forthe restructuring of the local economy isrequired. This is particularly important inareas where the need to combine natureprotection and economic development isprominent.

Volunteer activities

The local community has been involved involunteer activities, such as the guarding ofsalmon spawning grounds to prevent illegalfishing and the removal of waste washed upon the banks of the river.

Photo: E.ZvejaVimba vimba anglers atSalaca.

Benefits to the localcommunity


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Tourism in ATRT - an overview

Salanca River represents the main touristattractions in the area, with most visitorsattracted by fishing and boating

opportunities, Ainazi beach, and twomuseums in Ainazi town. It is estimated thataround 20,000 people visit ATRT annually,and that this number will increase byapproximately 7% per year. These estimatesrely on figures obtained from nearbyMazsalaca and are applied in latercalculations.There is currently no regular employment inATRT related to site management. However,

there are two people employed by ASRV ona temporary basis to provide sitemanagement services. An additional twopeople provide seasonal assistance, guidingfishermen during the salmon-fishing season.

The types of tourists

Most of the tourists in ATRT are dayvisitors. A general lack in touristaccommodation currently discouragespotential long-term visitors. Moreover,many visitors who are taking advantage ofthe water sport facilities on the river only

pass the area in transit (e.g. rafters).Fishermen and people visiting localmuseums and beach come primarily toATRT. Based on records of foreign touristsvisiting local museums, it can be estimated

that 10% of tourists to ATRT areinternational visitors.

Main sources of tourism revenue

There is no access fee that applies to thearea, however, boating and fishing licenceseffectively serve a similar restrictivepurpose. Table 1(a,b) summarises existingand expected revenue from tourism for theyears 2002 to 2006. Most of this revenue is

created through purchases in local shops andthe use of catering facilities in the area.

Local tourism

Local residents use the river for angling andswimming. They also engage in berry and/ormushroom picking. There are currently noproducts sold aimed specifically at tourists.However, there are local entrepreneursinterested in supplying tourists with freshvegetables and other food in the future.

The results of the first wildsalmon and sea troutfishing competition atSalaca in 2002Photo: A.Strazdia

Economic benefits

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Passive and active scenarios forthe development of tourism

Tables 1 a and b summarise two scenariosfor the growth of tourism in ATRT. The firstscenario illustrates 'business as usual', i.e.the tourism sector continues to grow at arate of 7% per year, there is 5.5% growth inexpenditure per tourist (in line with theexpected increase of GDP in Latvia), and nonew value-added services are provided.

The share of value-added in tourism-generated revenue has been indicated. Thisis important as an indicator for the directcontribution of tourism to the localeconomy. However, the value added onlyapplies to direct providers of services andgoods. As discussed later, there aremultiplier effects as the money continues tocirculate in the local economy. Themultiplier is estimated to be 0.5, giving thetotal contribution of tourism as a share ofthe local economy (see table).

Table 1a: Summary Statistics - business as usual

2002 2003 (F) 2004 (F) 2005 (F) 2006 (F)(estimate)Total employmenton site 1 0 0 0 0Site general -wardens etc 1 1 1 1 1Project related 0 0 0 0 0OtherTotal tourists 20,000 21,400 22,898 24,501 26,216Local ? ? ? ? ?National 18,000 19,260 20,608 22,051 23,594Foreign 2,000 2,140 2,290 2,450 2,532Site Receipts -

total (LVL) 92, 884 104,490 117,556 132,250 148,782Receipts - entrance1 2,884 3,085 3,471 3,904 4,393Receipts -sales 90,000 96,300 114,085 128,346 144,389Value added forthe local economy2

without taking intoaccount multipliereffects 36,200 46,389 58,002 71,280 86,213The GRP of ATRT3

(LVL) 2,956,000 3,119,000 3,290,000 3,471,000 3,662,000Direct tourismrevenue as a share

of GRP of ATRT 3.1% 3.4% 3.6% 3.8% 4.1%Cash outflows forinputs in theregion's economy 56,684 58,101 59,554 61,042 62,569Value added asa share of GRPof ATRT 1.2% 1.5% 1.8% 2.1% 2.4%The total contributionof tourism as a shareof the local economy(taking into accountmultiplier effects) 1.8% 2.25% 2.7% 3.15% 3.6%1 EUR=0,59 LVL (Latvian lat)1 Under the "entrance" row the fishing and boating licenses, tickets to museums are included2 For how the value added numbers for 2002 are obtained, look at table 2. It is assumed that the amounts that the region pays for inputs in itseconomy, grow at 2.5% per year, therefore the value added is expected to grow faster than revenue. This expected increase is quite low. It requiresthe development of local food production to supply the needs of tourists, especially in the active scenario when their number grows quickly.3 It is assumed here that the growth of Gross Regional Product (GRP) of ATRT will be in line with the baseline forecast of the GDP growth inLatvia


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Table 1b: Summary Statistics - active scenario

2002 2003 (F) 2004 (F) 2005 (F) 2006 (F)(estimate)Total Tourists 20,000 24,000 28,800 34,560 41,472Local ? ? ? ? ?National 18,000 21,600 25,920 31,104 37,325Foreign 2,000 2,400 2,880 3,546 4,147Site Receipts -

total (LVL) 92, 884 121,678 159,389 208,811 273,543

Receipts - entrance4 2,884 3,778 4,949 6,483 8,493Receipts -sales 90,000 117,900 154,440 202,328 265,050The value added for

the local economy5

without taking into

account multiplier

effects 36,200 63,577 99,835 147,769 210,974

The GRP of ATRT6

(LVL) 2,956,000 3,144,782 3,352,750 3,585,733 3,849,142Direct tourismrevenue as a shareof GRP of ATRT 0.031% 0.039% 0.048% 0.058% 0.071%Cash outflows forinputs in the region'seconomy 56,684 58,101 59,554 61,042 62,569

Value added asa share of GRPof ATRT 1.22% 2.02% 2.97% 4.12% 5.48%The total contribution

of tourism as a share

of the local economy

(taking into account

multiplier effects) 1.83% 3.03% 4.46% 6.18% 8.22%1 EUR=0,59 LVL (Latvian lat)

4 Under the "entrance" row the fishing and boating licenses, tickets to museums are included5 For how the value added numbers for 2002 are obtained, look at table 2. It is assumed that amounts that the region pays for inputs in its

economy, grow at 2.5% per year, therefore the value added is expected to grow faster than revenue. This expected increase is quite low. Itrequires the development of local food production to supply the needs of tourists, especially in the active scenario when their number growsquickly.6 It is assumed in this table that the growth of Gross Regional Product (GRP) of ATRT be faster than in the first table under the impact ofadditional value added generated by increased tourism and multiplier effects of this revenue.

The second scenario predicts the growth intourism to be 20% per year, based on theactual increase observed in Gauja NationalPark, and assuming an increase inexpenditure per tourist at double the'pessimistic' rate (11%). This growth couldbe achieved as a result of raised awarenessand improved services. Table 1 b omitsemployment numbers because the rate ofemployment creation is too uncertain.

Neither of the two tables takes account ofinflation, hence future revenues arepresented in 2002 figures. While thisreduces the nominal value of futurerevenues, it helps to assess their potentialsize in terms of today's prices.


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The number of touristsThe number of tourists in ATRT can beestimated from the following data providedby Ainazi municipality and otherinstitutions. the number of people visiting localmuseums, estimated at 10,000; the number of people visiting Ainaibeach during the summer, at least 4,000;

the number of people taking boating tripson Salaca: at least 3,000; the number of people buying salmonlicences for the section of Salaca Riverpassing through ATRT: 494. the share of people buying generallicences multiplied by the ratio of salmonlicences for ATRT in relation to the totalnumber of salmon licences for River Salaca= 1989 x 0.29 = 576 (the share of licences

sold for the stretch of river located withinATRT is 29%, the total number of salmonlicences is 1989). Because the number ofgeneral permits includes daily, annual andseasonal licenses, the number of separatelicensed fishing trips could be greater).

From the above data it ispossible to estimate that thenumber of people visiting

ATRT is approximately20,000. This estimate isconsistent with figuresavailable for Skanais KalnsPark near Mazsalaca, a townlocated upstream from ATRT.

According to the mayor of Mazsalaca,Ojrs Beeris, the number number ofvisitors to Skanais Kalns Park is currentlyincreasing by about 2,000 visitors per year,which is an increase of 7%.

Similarly, visitor data is available for GaujaNational Park, an area that resembles SalacaValley. The number of visitors to Turaida

castle, the main visitor attraction in GaujaNational Park, is approximately 350,000annually. The number of visitors to nearbyLgatne is about 75,000 (entrance to GaujaNational Park). The number of tourists inGauja National Park is growing at a rate of20% per annum. It is important to note,however, that Gauja National Park has alarger 'attraction factor' than Salaca Valley,given its greater number and diversity of

destinations, its proximity to Rga and itsestablished reputation.

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Pietrags sandstone cliffs in winter. Photo: A.Soms

Benefits from tourism


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RevenueLicencing revenue

There are two types of licensed recreationalactivities related to Salaca River: fishingand boating. The revenues from theseactivities are collected by ASRV. Thismoney is spent on developing tourisminfrastructure and nature protectionactivities in the seven regionalmunicipalities. Expenditure is to be spreadproportionally within the region in the longterm.

Boat tripsAbout 3,000 people annually take part inriver excursions. Because ATRT featuressome of the best sightseeing spots in thearea, it is expected that the majority oftourists pass ATRT. In 2002, a fee forboating trips was introduced. The price perperson is currently 0.5 Lats (approx 0.8),giving a proportional share of ATRT in thisrevenue of 214 Lats7 (approx 355).

Fishing

Local fishing is also subject to permitting(in addition to national fishing permits). Thetotal revenue from licences in the first half(when most of the annual revenue occurs) of2002 was 17,859 Lats (approx 29,607).There are two types of permits: generallicences that are valid for the total length ofthe river; and specific salmon licences

limited to specific sections of the river. It isnot possible to source the income from thegeneral licences specifically to ATRT oractivities taking place in ATRT. However,the income from salmon licences fromATRT is given at 2,470 Lats (approx 4094),or 29% of the total revenue from salmonlicenses.

Future revenue from fishing licences isexpected to increase, following a rise in thenumber and size of areas where fishing isallowed.

Revenue from catering

There are four restaurants/cafes in Ainazitown, all of which rely mostly on touristspending. It is difficult to distinguishbetween money spent by genuine touristsand money spent by people passing the areaen route (via Via Baltica road). There are norestaurants along the river, but there is onesuitable location in Mrnieki Village (oldwater mill). This could be developed as atourist spot.

Revenue from lodging activities

The hotel/hostel sector in ATRT still offersgreat untapped potential. Currently, there isonly one place that offers touristaccommodation in the area: this is a motelintegrated into the local petrol station inAinazi town. According to the mayor ofAinazi, this motel is visited almostexclusively by transit travellers. Thissuggests that it is of little importance withrespect to visitors to the area and hence

irrelevant to this study.

According to the information provided bythe lodging reservation system "Countrytraveller" (CT), it would be feasible toincrease the number of hostels/hotels in thearea to approximately four. The averageprices per night would be 9 Lats (approx15), and on average 10 Lats (approx 16.5)are spent by tourists on additional services.

The average number of bookings perlodging facility in 2001 was 90. Therefore,the average revenue for a facility in Latviacould be around 5,700 Lats (approx 2835),or 22,800 Lats annually (approx 11,339) forfour facilities.

Revenue from products specially

produced for tourists

Judging from other successful initiatives inareas along the Salaca River, the marketingof souvenirs and local produce also holds asyet untapped economic potential for the

7 3000 tourists x 0.5/7


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area. According to Andris Urtns, thedeputy director of North Vidzeme BiosphereReserve, there is a farmer in Staicele (asmall town located upstream on Salaca) whoearns about 400 Lats (approx 663) fromselling fresh strawberries and vegetables fortourists. Similar entrepreneurship may beencouraged in ATRT.

Museums

There are two museums in ATRT, a firefighters' museum and a maritime museum.The former is maintained by the

municipality and employs one person. It isresponsible for an annual income ofapproximately 200 Lats (approx 331). Themaritime museum is maintained by thecentral government and raisesapproximately 2,000 Lats (approx 331) peryear in revenue. It employs five people.

Total revenue from tourists

In 2000, the average spending per tourist in

Latvia was 20 Lats (approx 33). However,this includes well-off business visitors andrelatively affluent foreign tourists, andpredominantly involves visits to Riga. Thefigure is, hence, not directly applicable toATRT.

Table 2 lists the estimated total businessrevenue from tourists to ATRT (excludinglicense revenue and museum fees). Given

the absence of local studies, this data isbased on rough estimates only (notably forexpenditure for purchases and catering). Thedata from this table provides input intotables 1a and 1b.

For catering and purchases the estimatedcurrent number of tourists (20,000) is used,for lodging it is assumed that 4 countryside-

lodging facilities could be created and thesecould provide the average number of bed-nights per such facility in Latvia (300)

Direct benefits from funding

There are two measures under the EUSAPARD fund (Special AccessionProgramme for Agriculture and RuralDevelopment) that present an opportunityfor the ATRT from the point of view of

sustainable development. These are"Organic Agriculture" and "The preservationof biological diversity and rural scenery".The applications for funding under thesemeasures will start in 2002. Until nowSAPARD has mostly been directed towardsthe purchase of agricultural equipment forintensive, large-scale farming.

Multipliers

An estimated 50% of tourism revenue stayswithin the region. Therefore, the regionbenefits from the 'multiplier effect' as therevenue circulates within the local economy,benefiting a number of stakeholders.

Table 2Revenue Estimated

value addedCatering 50,000 28,600Purchases 40,000 7,600

Subtotal 90,000 36,200Lodging 22,840 9,467Total 112,840 45,667Notes on the tableCalculationsCatering (2.5 -18% (VAT)) x 0.7 = 1.43 Ls added valuePurchases (2.0-18% (VAT)) x 0.2 = 0.328 Ls added valueLodging (19.0-18% (VAT)) x 0.5 = 7.79 Ls added value


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Employment in ATRT is currently mostlydependent on tourist purchases in localshops and catering facilities, and to a lesserextent on the seasonal provision of guidanceto anglers. Additional economic potentialmay be present in the development oflodging services.According to a survey carried out by ASRVamong local residents, 99% of theinhabitants living along the river are willing

to supply various goods to tourists. Thisshould be encouraged by supporting localentrepreneurship and promoting localproduce to tourist.

Direct employment benefits on site

The only person in ATRT whoseemployment is directly linked to natureprotection is the local forest warden.However, his employment is not in any way

related to tourism and is funded by thecentral authorities. There are also twopeople employed on a piece-rate basis atone of the three campsites in ATRT. Thereare plans to create an additional twopermanent posts. According to Mr Birkovs,there is further need for an environmentalinspector to carry out patrols along the riverwith an aim to prevent illegal fishing,hooliganism and polluting activities.

Off-site employment directly linkedto site

Additional resources are needed to supportnature guides for nature excursions for non-specialists. It is assumed, for the purposes ofthis study, that the site could provide at least1 full time equivalent (FTE) job forenvironmental guides in ATRT. This isrealistic, given the level of tourist activity.However, the division of FTE jobs amongterritories along Salaca probably would notbe very meaningful because these activities

would not be confined only to ATRT or someother municipal territory. At the moment,according to A. Urtns, guiding activities areorganized by North Vidzeme BiosphereReserve, but on an irregular basis (there arethree people that perform this task occasionally).There are two local people engaged inacting as fishing guides on an informalbasis. The current pay rate for this activity is10 Lats per day. It is planned that there will

be 5 such people along Salaca in the future.29% of licensed salmon fishing took placein ATRT, therefore we can assume that therewill be 1.45 FTE positions for the periodfrom the end of February until the middle ofMay (roughly 3 months) which gives 0.39FTE (full time equivalent) jobs.According to 'Country Traveller', there isone full time staff position created per everysix beds in a country tourism facility8.

Because there are on average 3.9 beds ineach facility, roughly 0.65 FTE jobs exist ineach. If we assume that there could be 4average size facilities in ATRT, there is thepotential to create 2.65 additional FTE jobsin ATRT through the development ofcountry tourism.The current number of jobs supported bytourists and transit travellers in Ainazi isapproximately 11.

According to O. Zvejnieks, the total numberof persons working in catering facilities inAinazi is 20. Therefore the number of jobsin Ainai attributable to cateringexpenditure by tourists and transit travellerscould be at least 10, because most ofcatering revenue is derived from non-locals.The number of jobs in local shops isapproximately 20, and the share of turnoverattributed to non-locals is around 5%.Therefore, one can assume that 1 job inlocal shops exists as a result of tourists andother travellers. Unfortunately, it is

Employment benefits

8 Country tourism facility in this document refers generically to a farmer's house used for hosting tourists ora small building specially constructed for this purpose


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impossible to separate tourists and transittravellers in this case.

Indirect Employment benefits

Table 3 presents the estimated number ofcurrent and potential additional project andtourism related FTE jobs in ATRT, assumingthat the number of visitors stays constant.

It is difficult to estimate how thedevelopment of tourism will impact onemployment in the various sectors. Theimpact largely depends on whether

developments involve capital-intensivemeasures, such as the construction ofsupermarkets, or labour intensive measures.It is expected that growth in tourism relatedemployment will roughly match increases inthe share of tourism in Gross RegionalProduct (GRP) (refer also to Table 1 a) andb)). The optimistic scenario predicts thatcontributions from tourism to the GRP ofAinazi could reach as much as 8.2%. This

corresponds to 100 jobs existing as a resultof tourism, assuming that the overallemployment stays the same as in 2001 (seebelow).

Employment context in the region

The level of unemployment in ATRT iscurrently 3.49%, according to officialstatistics. This is low compared to thenational average of 8%. However, registered

levels of unemployment in Latvia do notreflect actual levels. The total level ofnational unemployment, according to theILO definition is 13.8%, or 1.72 times theofficially recorded number.Correspondingly, 'true' levels ofunemployment in ATRT are more likely toreach 6%. The number of economicallyactive inhabitants in ATRT in 2001 was1292. The actual number of peopleunemployed might therefore be about 77.The level of unemployment has fallensharply since 1999. The previously high

levels of unemployment had resulted fromthe Russian economic crisis, which notablyaffected the regional fishing sector.Unemployment was then at 14.7%.Diversification of the local economy, forexample through the development of

tourism, can help to decrease the economicvulnerability of local economies to externalfactors.

The size of the local economy

To evaluate the importance of tourismrevenue for ATRT, it is useful to know thetotal value added by the local economy orGross Regional Product (GRP). There is nodata available for regional GRP in Latvia,

but the size of personal income tax revenuescan be used as a proxy. In 2001 the personalincome tax revenues in Ainazi were 74% ofthe average for Latvia. The GDP per capitain 2002 in Latvia was 2007 Lats (approx3,327); for Ainazi it was around 1458 Lats(approx 2,417). Accordingly, the GRP forAinazi in 2001 was around 2,802,233 Lats(approx 645,611). This data was used intables 1a and 1b, which indicate the overallcurrent and potential impact of tourism onthe local economy.

Table 3

Positions Estimated Estimatedcurrent FTEs potential FTEs

Environmental

inspector 0 1Tourist guide 0 1Fishing guides 0 0,4Environmental PR 0 1Lodging facilities 0 2,7Additional cateringfacility in Mrnieki 0 4Plus existingTourism related jobs 11 11Total 11 21,0Multiplier effect (+ 0.5) + 5,5 10,5Total jobs + multipliereffect 16,5 31,6Share of total

actual employmentin ATRT 1,4% 2,6%


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Natura 2000

16

The Salaca River has enormous natureheritage that has been lost in other parts ofWestern Europe. The Salaca River offersvarious other benefits to the localcommunity from tourism, for examplehiking, biking, boating etc. So far these

opportunities are just partly used.The main economic developments in thefuture could be linked with tourism servicesand infrastructure development, offeringvarious travel packages (fishing, hunting,lodging services, guiding activities). Thedevelopment of tourism in ATRT coulddiversify employment opportunities inAinazi, as well as provide significantadditional income to local businesses. Cross

border co-operation with Estonia in tourismcould be one of the key points.Long-term benefits should be linked withthe sustainable use of the nature resources(fishing, logging etc.) as well asdevelopment of the tourism services andinfrastructure.

The way forward

Promotional campaigns for Natura 2000 and

its benefits should help to address possiblelocal misperceptions that may otherwiseinhibit development, and encourage futureinitiatives. Capacity building of localinhabitants and local authorities should beseen as an asset for sustainable developmentof the area.

Special attention should be paid topromoting environmentally friendlybusinesses and activities, which could be anattraction for local and international tourists.Small grants should be provided to launchlocal environmentally friendly businesses

and conservation activities. Cooperationamong the local municipalities should befurther improved, thus helping to create acommon vision for the future developmentof the area, as well as attracting finance forthe local nature conservation activities andbusinesses.

In cooperation with the North VidzemeBiosphere Reserve, training in nature

conservation should be offered to localfishermen, forest owners and farmers toensure appropriate stewardship of naturalresources. Consultation with, andparticipation of, stakeholders andmunicipalities is needed for rivermanagement.

Local municipalities should search, withassistance from governmental authorities,

for "twinning" opportunities withmunicipalities in neighbouring Estonia, topromote international exposure of the area.

Contribution to

Sustainable Development


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WWF Latvia

Elizabetes Str. 84 LV-1010 RigaTel.: +371 7505640 Fax: +371 7505651

[email protected] www.wwf.lv

IEEPOverall project coordination

For information about the project,Including the Bruselle conference,contact:

Clare CoffeyInstitute for European EnvironmentalPolicy (IEEP)18 Ave des GauloisB 1040 BruxellesBelgiumTel: +32 2 738 7471Fax: +32 2 732 4004Email: [email protected]

WWF

For information on individual

case studies, or WWF activitiesin general, contact the following:

Sandra JENWWF European Policy OfficeAve de Tervuren 36B 1040 BruxellesBelgiumTel: +32 2 743 8813Fax: +32 2 743 8819Email: [email protected]

This project is being financially supportedby the European Commission

Local partners

Andris UrtnsNorth Vidzeme BiosphereReserve (NVBR)Salacgrva, Rgas Str. 10a,LV-4033,Tel: +371 4071408Fax: +371 4071407Email:[email protected]

Ojrs ZvejnieksAinai municipalityAinai, Parka Str. 16,LV-4035Tel: +371 4071370Fax: +371 4071370

Ints Mednis

WWF LatviaRga, Elizabetes Str. 8-4,LV-1010Tel: +371 7505644Fax: +371 7505651Email:[email protected]

Alvis BirkovsNon-profit JSC Salaca valleyStaicele, Liel Str. 7,LV-4043Tel: +371 7316943Fax: +371 7316943Email:[email protected]

socioeconomicbenefitslatvia

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