Tag Archives: Hut economics

Hut Economics: what does it cost to operate the NZ DoC Hut System?

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.

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