Benefits of the forest enterprise for the regional economy

The article ensues from the growing social requirements for forestry from the viewpoint of regional development and the benefits of forest enterprises for local economy. In our research we have chosen the area of interest, the Training Forest Enterprise Masaryk Forest Kftiny (TFE Krtiny), or one of its three forest districts, i.e. Bilovice nad Svitavou. The TFE Kftiny is an organizational part of the Mendel University in Brno. The goal of the article is to present selected outcomes of the research performed in the territory of the TFE Krtiny with a focus on the cash flows intended for providing the recreational function of the forest ecosystems for the local inhabitants and suppliers of the TFE Kftiny. The methodological approach for the evaluation of the benefits of forest enterprises for the regional economy is based on ascertaining both real and potential cash flows related with the fulfilment of the recreational function of the forest ecosystems in the area of interest, and an application of the local multiplier methodology that will allow us to express the role of a forest enterprise in regional economy. From the secondary research in local and foreign literary sources it emerged that many publications deal with economic localization in relation to regional economics and the recreational function of forest ecosystems, but none of the authors applied him to the benefits of forest enterprises on the grounds of cash flows. These benefits include primarily economic costs of assuring aesthetic function, repairs and maintenance of forest paths and bike trails. From the TFE accounting it was found out that in 2013 the costs of the aesthetic of forest performance in the Bilovice nad Svitavou forest district amounted to roughly (sic)8,000. Other costs consist of costs of repairs and maintenance of forest paths and bike trails. Other benefits ensue from the social aspects, namely employment of persons from the region and contracting of local suppliers. The current system of selection procedures stemming from the legislation in force in the Czech Republic does not allow including a criterion of a privileged regional supplier into the selection of contractors. This is also corroborated by the fact that in 2014 only 7 out of the total number of 21 contractors of the forest district Bilovice nad Svitavou were regional suppliers.