The base premium takes into consideration the investment the concessionaire has made to establish their business on public conservation land. The investment must predominantly support their operations.
The base premium ranges from 3.5% to 7.5% of revenue depending on the extent of the investment made by the concessionaire. If they have made a larger investment the base premium is set lower.
Premium for land uniqueness/limited supply
This premium is added to the revenue percentage activity fee if:
- the land has some uniqueness that makes it difficult to conduct the activity elsewhere (eg developing a ski field)
- demand to provide an activity exceeds land availability (e.g. a walking trail that is limited to a set number of people).
The premium varies from 0.5% of revenue to 2% of revenue. In special cases where the area is unique and demand is very high the premium may be set at 2.5% of revenue.
If DOC has developed and/or maintained the local infrastructure that benefits a business the concessionaire contributes to the cost of the infrastructure through their percentage of revenue activity fee.
This contribution ranges from 0.5% of revenue for moderate infrastructure investment to 1% of revenue for large infrastructure investment.
If a concessionaire has exclusive access to an area, with the right to keep the public out, they are charged an exclusivity premium. The premium depends on the size of the land they have exclusive access to. These are:
- less than 5 ha - 0.5% of revenue
- greater than 5 ha - 1% of revenue
- greater than 20 ha - 1.5% of revenue.
Occasionally there may be unique circumstances that are considered when establishing a revenue percentage fee. In these cases DOC may adjust the revenue percentage fee accordingly.