A reform ending windfalls for concessionaires in
national parks seems certain this fall. Only minor differences
remain between House and Senate bills that passed overwhelmingly.
Both bills mandate competition for contracts of more than $500,000,
require that concession fees return to parks, and establish a
briefer duration on contracts. The current law, passed in 1965, was
based on the perceived need to lure businesses into parks that were
seen as remote and difficult places to make a profit. But the
Washington, D.C.-based National Parks and Conservation Association,
which has lobbied for years to change the law, says concessionaires
reap huge profits thanks to their monopoly status. Reform would
also end a practice that made concessionaires permanent owners of
improvements instead of leaseholders. When the Park Service decided
to terminate its contract with General Host in Yellowstone National
Park in the late 1970s, for example, it had to pay $19 million to
acquire buildings. While negotiations went on, says NPCA staffer
Phil Vorhees, service to the public deteriorated. One glitch in the
compromise negotiations: The Arizona group, Grand Canyon River
Guides, opposes competition for all contracts. “Intuitively,
competition is great,” says past guides president Tom Moody. “But
in our case it could drive out small companies and destabilize our
industry.”
This article appeared in the print edition of the magazine with the headline Park concessions to be corralled.
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