New Zealand Huts Department of Conservation, Part D:
Hut Economics: what does it cost to operate the NZ DoC Hut System?
by Sam Demas
(Note: this is part of the larger work New Zealand Huts: Notes towards a Country Study)
Determining hut economics is always the hardest part of studying huts. Quite often I get little or no useful information from the operators, particularly from private operations. With a government-operated hut system this has proved a bit easier in the case of New Zealand, though the data I have is an approximation based on some cost modeling that DoC has done over the years.
The bottom line:
- the estimated annual cost to operate DoC huts is about $12,000,000,
- DoC takes in about $7,500,000 per year in hut-related revenues, and
- that leaves about $4,500,000 in net annual expense from the DoC budget.
These figures are only estimates; see caveats and details below. All amounts are quoted in NZ Dollars. Note: these estimates only do not account for the following categories of expense:
- expenses for central services such as the web site and booking system, hut brochures, and Visitor Centers,
- situations where clubs get a share of the hut revenues,
- revenue from concessions, which are very difficult to break out specifically for use of huts.