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The Green Economy of Wales

  By Simon Bilsborough

Dr Simon Bilsborough is Chief Economist with the Countryside Council for Wales.
It has always been said that “whilst it is possible to have a natural environment existing without an economy, it is impossible to have an economy existing without a natural environment”. It is vital that the work of the Welsh Assembly and its Agencies recognises this strong linkage between the natural environment of Wales and its economic performance. Programmes to promote the sustainable management, use and enjoyment of the environment can be seen to contribute directly to long-term sustainable wealth.

We now understand the full extent to which the management, use and enjoyment underpins the whole of the Welsh economy – and not just the obvious areas such as tourism and agriculture. Headline figures from the Valuing the Environment research report, funded by a wide ranging partnership led by the National Trust, showed that:

  •  Work associated with the management, use and appreciation of the natural environment in Wales creates 117,000 full-time jobs.
     
  • Other spin-off work related to this takes the total number of jobs in Wales that depends on the environment to 169,000 – equivalent to 1 in 6 Welsh jobs.
     
  • The management and use of the environment, and the knock-on economic effects of this, generates output goods and services worth £8.8bn billion to Wales each year.
     
  • GDP measures the ‘value added’ component of this total – this is £2.4bn each year, around 9% of Welsh GDP.
     
  • This work contributes around £1.8 billion in wages to people in Wales.
   

If the natural environment was defined as a sector – in the same way that manufacturing and agriculture are – then it would be second most important in employment terms in Wales, after manufacturing. Within the overall employment figure, the following number of jobs in different sectors are all environmentally-related:

 

The importance of environmentally-related tourism to the above is clear. It contributes £821m (1999 figures) annually in spending to the Welsh economy. Programmes to help integrate the enjoyment of the environment with local business opportunities can therefore help expand on this. A good example is Adfywio – the £5.2 million grant scheme funded by the Welsh Assembly Government, and managed jointly by the Countryside Council for Wales (CCW) and the Wales Tourist Board (WTB), with additional support from the Forestry Commission (FC). It aims to stimulate rural economic recovery following the foot and mouth outbreak. The aim of the scheme is to provide financial support for projects, which help integrate tourism business more closely with open air recreation, outdoor leisure and the natural environment. Projects seek to:

Adfywio closed its doors to enquiries and new applications in the early autumn of 2003 due to the high demand for the funding available, only 18 months after the scheme started. To December 2003, 192 projects had been awarded grant of just over £5.07 million. Total investment in Wales stimulated by this grant is £13.4 milllion.

Good examples of Adfywio-funded projects are:

“We are lucky that a superb network of bridleways, by-ways and minor roads criss-cross the Clwydian hills, Vale of Clwyd and Llandegla area”; says Jim. “By providing way marking and appropriate promotion we can enable local businesses to benefit financially from cycling visitors.”

As well as this work on the routes, bike racks are being fitted to local buses to enable a greater diversity of rides, reduce the use of cars, and provide welcome relief for tired legs!

Preliminary estimates of Adfywio, suggest that it will have had a positive impact on the rural economy of Wales. Based on established economic models we are predicting that Adfywio will have stimulated over £12 million of investment in tourism related work in Wales, creating in the region of 450 jobs. These estimates do not take into account visitor spending at Adfywio supported attractions, so the final jobs figure is likely to be higher. A more detailed evaluation next year will ascertain the full impact of the scheme.

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