Iowa Lakes Valuation Project



Hannen Lake   


Iowa lakes have great value to the citizens of the state. In the process of using lakes for fishing, boating, swimming and enjoying other outdoor recreation, Iowans also spend money that benefit local economies. During the 2002-2005 period, Hannen Lake averaged 75,583 visitors annually. They spend an average $10.41 million annually which in turn supports 207 jobs and $2.79 million of labor income in the region.

Show more information on expenditure impacts associated with water quality improvements at Hannen Lake.

Table 1: Average Spending
CategorySingle DayMultiple DayAnnual Single DayAnnual Multiple DayTotal
Supplies$17.00$59.65$794,995$1,719,053$2,514,048
Eating and Drinking$9.45$96.30$441,924$2,775,270$3,217,193
Gas and Car Expenses$5.10$29.70$238,498$855,924$1,094,423
Lodging$0.60$69.80$28,059$2,011,566$2,039,625
Shopping and Entertainment$10.85$36.05$507,394$1,038,925$1,546,319
Total$43.00$291.50$2,010,869$8,400,739$10,411,608
Table 2: Spending, Labor Income, and Job Effects of Lake Visitations
CategorySpendingIncomeJobs
Supplies$2,514,048$284,55913.8
Eating and drinking$3,217,193$345,03417.1
Gas and Car Expenses$1,094,423$270,30327.0
Lodging$2,039,625$723,51548.3
Shopping and entertainment$1,546,319$100,1177.3
Total$10,411,608$1,723,528113.5
Table 3: Economic Value of Direct and Secondary Recreational Spending
CategoryTotal SalesLabor IncomeValue AddedJobs
Agriculture $106,328$13,005$22,6270.5
Construction $97,937$25,085$29,7350.7
Manufacturing $397,996$57,635$82,7841.6
Tran.Utilities$272,613$61,480$110,3341.3
Trade $5,408,252$620,260$975,46932.1
Fin.Ins.R.Estate$406,211$60,214$154,5181.8
Prof. Services $992,250$231,203$299,5307.9
Other Services$6,020,108$1,696,834$2,726,311160.9
Government $486,013$19,326$228,4070.3
Total$14,187,708$2,785,039$4,629,716207.1
Hannen Lake
Single Day Trips, 2002-05 Average 46,764
Multiple Day Trips, 2002 28,819
Total Trips, 2002 75,583

Each recreation trip or visitation has an associated set of expenditures. The composition of these expenditures for typical trips of single day or multiple days (Table 1) is based on a survey of Storm Lake and Rock Creek Lake during the 2002 season. Applying these averages to the lake visitors in the above table results in the estimated spending figures in Table 2.

This level of spending is linked to other economic activity in the region as the initial expenditures are re-spent on goods and services in the regional economy. These multiplier effects are estimated with an Input-Output model for the region and are summarized in Table 3.