The recreational value of sal forests in Bangladesh

Special attention is needed to manage the Sal forest sustainably to maintain its natural beauty and ecosystem services to society. Photo :TBS

The Sal forest near Dhaka is one of Bangladesh's most attractive tourist destinations and is home to Bhawal National Park. These forests are habitats for a variety of animal and plant life. 

The lush green landscape and serene ambiance attract many city dwellers who want to escape crowded and polluted cityscapes and experience clean air, open space, and natural beauty. Being close to nature reduces mental stress, improves physical health, offers social interaction opportunities, and ultimately contributes to a higher quality of life. 

Sal and other forest types also provide unseen benefits, such as filtering water, preventing erosion, and buffering against climate change. However, Sal forests are constantly threatened by the expansion of industrial zones, land grabbing, and unauthorised logging that compromises the health and extent of the forest. 

Tourism has been growing in and around Bhawal National Park in recent years. Though the National Park provides recreation opportunities like bird watching, nature walks, lake boating, picnics with friends and family, camping, and staying overnight in cottages, there is concern that tourist amenities often do not meet visitors' standards. This is especially true compared to private resort amenities. Special attention is needed to manage the Sal forest sustainably to maintain its natural beauty and ecosystem services to society.

Understanding the economic value of recreation can help government agencies and society to decide how to meet tourism demands in a way that best manages forest health to ensure long-term benefits to people. 

To this end, recently, a study was commissioned jointly by USAID and the US Forest Service-implemented Community Partnerships to Strengthen Sustainable Development (Compass) Program, focusing on areas in the Gazipur District, such as the Bhawal National Park and privately owned resorts.

The study collected information from more than 400 visitors and 25 private resort informants interviewed between 2022 and 2023. Almost 90% of the visitors interviewed came to the Sal forest from Dhaka city for recreation, and 75% had visited at least once. 

More than 95% of the surveyed visitors believe that the Sal forests in Gazipur are an excellent place to visit, especially the Bhawal National Park. Visitors there stated they felt the air quality was comparatively fresher inside forested areas than in the city. 

Findings from the study clearly show that Sal forests have significant economic importance and that tourism amenities positively attract tourists. The monetary value generated by tourists visiting the Sal forests was estimated to be Tk 573,916 per hectare. 

Approximately 76% of respondents showed interest in paying more for improved facilities and forest habitat conservation to attract more animals and bird species, which they want to see with their family and friends. Tourists pay more to stay in resorts surrounding Sal forests, where natural beauty can be enjoyed with comfort, luxury, safety, and security. 

In contrast, most visitors expressed disappointment in public areas, specifically with safety and security levels and conditions of the amenities, such as walkways, seating areas, watch towers, restrooms, and playgrounds. They also desired better internet availability and cleanliness and mentioned that the noise from the Dhaka-Mymensingh highway was too loud. 

The study observed that overall, the area is generally lacking in planning for nature-based and tourism-centric facilities, especially in the form of human resource support to monitor and maintain facilities. 

Several solutions based on data and findings are available to address these core problems and generate maximum utility from forest ecosystem services in terms of monetary value. These solutions are designed to help inform planning and funding decisions in a way that maximises benefits to tourists, communities, and ecosystems.   

Higher entrance fees

The first solution is a simple adjustment to the entrance fees charged to visitors. Survey participants said they would pay more for improved safety and security conditions, cottage facilities, watch tower access, scenic drives, and high-quality package tours. 

For example, more than a third said they would pay a Tk200 entrance fee (compared to the existing Tk20 fee) for adding security posts along walkways. Importantly, our analysis also indicates that the number of tourists will decrease if the entrance fee increases. 

The tradeoff is between earning more revenue with fewer visitors and improved services versus earning less with more visitors and existing services. The authority could decide on the optimal carrying capacity for the low and high tourist seasons by adjusting fees as necessary, lowering tourist pressure, and improving amenities.  

Multidimensional bidding for lease

Some of the facilities offered in Bhawal National Park are leased out to private entities to manage the entrance, cottages, washrooms, and boating, usually for only a year. Entities are selected through a competitive bidding process based only on the highest bid. 

As an alternative, a "multidimensional" bidding system could be introduced that includes more criteria for winning a bid, including economic, social, and environmental considerations. Weights can be assigned to emphasise environment-friendly options. This approach is ideal for longer-term contracts, which would be legally binding and include clear clauses on deposit for damages or services not delivered and other exit or termination strategies.       

Occupancy tax on resorts

If there are too few resorts, the economic value of the Sal ecosystem's beauty would only be partially realised. If there are too many, the environmental and economic value may fall. 

There is a need for balance to achieve sustainable development, and conservation efforts need to be funded to enforce zoning and keep contiguous Sal forest areas in good condition. With environmental occupancy taxes, a virtuous circle can be created: funding conservation generates more taxable economic value from resorts, and these tax revenues allow governments to keep investing in maintaining Sal forests. 

Where there is growth of resort sites and more people that negatively affect forest health, the optimal tax could be higher than in other sites. This policy instrument should be supported both as a revenue generator and an incentive for sustainable tourism. 

Our research generates important inputs for public policy design and decision-making. It provides an economic valuation of Sal forest ecosystem services, the benefits of forest protection, and a means for comparing the costs of forest protection. 

The findings are also useful for informing the development of policy instruments that can increase the value of the Sal forest, help manage the use of its resources, and do so so that lower-income households and small businesses do not lose but rather gain from these policies. If not properly protected, the natural beauty of Sal forests would be short-lived, as would be the economic activity generated by it. 

We propose to implement the above solutions in a policy that channels the economic strength of nature-based tourism back into the conservation of Sal forests.

This article is made possible by the support of the American people through the United States Agency for International Development (USAID). The contents of this article are the sole responsibility of Compass and do not necessarily reflect the views of USAID, the US Forest Service, or the United States Government.

Dr Naeema Jihan Zinia, Research and Global Exchange Fellow, Compass Program, U.S. Forest Service. Dr Md. Abdur Rahman Forhad, Professor of Economics, Dhaka University of Engineering and Technology 

Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the opinions and views of The Business Standard.