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White Water Rafting

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Submitted By ashleybrown
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White Water Rafting
ACC 543
April 2, 2012

White Water Rafting Consultation
When considering options to choose when starting a whitewater rafting business, one can become overwhelmed by the number of laws and regulations in place that must be followed and which can limit other decisions for the location and running of the business. Insurance laws and land use regulations vary from state to state; both of these will have a significant impact on how a company conducts business. Real property and personal property laws also vary between the states and play a significant role in business decisions. Research into insurance laws, environmental regulations, and the impact of real versus personal property laws in states considered for business operations is paramount to a successful business venture.
Real and personal property acquisition
A whitewater rafting business requires operating from the ground up. In searching for the best place suited to start up this business three sites where chosen, the Nolichucky River in North Carolina, the Chattooga River in South Carolina, and the Colorado River in the Grand Canyon in Arizona.
There are two kinds of property, personal and real. Personal property in all three states is classified as movable. Mobile homes are classed as personal property and may be acquired with minimal formality. According to all state laws, mobile homes as personal property depreciate in value. Real property is immovable or attached to the land and the civil law protects the status of real property in real estate markets. Accountants "distinguish personal property from real property because personal property can be depreciated faster than improvements while land is not depreciable at all" (Wikipedia, 2012 Feb. 19). There are certain fees and other expenses that become part of the cost basis in the property.
Real properties are registered in government-sanctioned land registers. "The statutes of limitations are usually shorter when dealing with personal or movable property. Real property rights are usually enforceable for a much longer period of time and in the three locations. In some jurisdictions, rights (lien or other security interest) can be registered against personal property. It is an owner's right to get tax benefits for real property, and there are businesses that specialize in appraising personal property. Each of the states has similar laws governing real property and the estates therein, grounded in the common law" (Wikipedia, 2012, Feb. 19).
Risks and Insurance
Risks associated with whitewater rafting tour businesses are the same no matter the location. A whitewater rafting business in North Carolina on the Nolichucky River, or one in South Carolina on the Chattooga River, and one in the state of Arizona on the Colorado River in the Grand Canyon, requires the same types of insurance because of similar risks associated with whitewater rafting.
Insurance companies that ensure whitewater rafting businesses usually have several types of insurance to choose from, including property, inland marine, crime, automobile, and general liability. Coverage specific to the whitewater business includes watercraft liability and waterborne exposure of business equipment. Some insurance companies offer umbrella or excess liability policies that cover claims that exceed the amount of the primary insurance policies (Wikipedia, 2012).
Environmental Issues and Regulations Most regulatory efforts are based in part on safety factors, whereas environmental issues arise when damage, pollution or injury occurs to humans, animals, or plant life. There do not seem to be many environmental issues associated with the activity of whitewater rafting and this is probably because these rafts do not have motors on them. Many believe that whitewater rafting can encourage environmentalism in participants who would otherwise be indifferent to environmental issues. These participants sometimes develop a strong desire to safeguard and care for the area because of their positive experience. There are a number of regulations listed for rafting in the Grand Canyon on the Colorado River and although private permits are not required, business use permits are required. Rafting companies offering camping activities face special regulations. The Grand Canyon National Park Service has a unique regulation that prohibits water rafting and other recreational trip participants to one trip per year. This one-trip-per-year rule is in force because of limited availability and high demand (Arizona River Runners, 2011). On the Chattooga River in South Carolina, the usual rafting safety regulations require raft leaders to register, rafters must wear life jackets, and a helmet, and rafts on this river must have a minimum of two air chambers. Commercial rafting trips must be under a special use permit issued by the Forest Service at Walhalla (GORP, 2011). The Nolichucky River, which originates in North Carolina and flows in a southwesterly direction into Tennessee, represents an important recreational resource for the state. Through much mitigation and education over the past 40 years, the water quality of the Nolichucky River has improved. The biggest environmental issue on the Nolichucky is that during seasonal droughts when there is inadequate summer rain fall, the depth of the river does not allow rafting trips (Wikipedia, 2012 January).
Choosing a Location The Nolichucky River in North Carolina, although it follows a historic and picturesque route, limits a whitewater rafting business in operations because of seasonal droughts that lead to low water levels in the peak of whitewater rafting season. When deciding whether to use a mobile home or to erect a structure on the site, occasional flooding because of the low lying country along the river needs to be taken into consideration by future business owners. The concern with starting a whitewater business on the Colorado River in the Grand Canyon in Arizona centers on The Grand Canyon National Park Service limiting the number of trips a potential customer is legally allowed to participate in each year. There are only a small number of people relative to the rest of the population of people in the United States who engage in whitewater rafting activities, and to have this number so strongly regulated, so as to be limiting, is not the best atmosphere in which to start a robust and booming business. Another factor against choosing the Colorado River in the Grand Canyon is that the site is a National Historic Site and is subject to very strict environmental protection laws that forbid personal or real property structures near the water. The Chattooga River in South Carolina, offers the best advantages to a new whitewater rafting business. The river flows year round and is not subject to seasonal droughts. The United States Forest Service restricts motorized boats on long stretches of the river making the river in these particular spots whitewater rafting friendly. A number of the rapids on this river were featured in the motion picture Deliverance (Wikipedia, 2012, March), which acts as a draw to potential whitewater rafting customers. The real versus personal property land use laws are more lax here on the Chattooga River than on either the Colorado or Nolichucky Rivers. The Chattooga also can be subject to occasional flooding so this should be taken into consideration when deciding where to locate the business. In conclusion, when choosing a location to start a whitewater rafting business a number of complimentary conditions should exist in the form of business friendly insurance requirements, compatible state, and environmental regulations regarding activities on the water and at the business site.

References
Arizona River Runners. (2011, Fall). Colorado River Rafting in Arizona. Retrieved from http://www.raftarizona.com/
GORP or Great Outdoor Recreation Pages. (2011, May 26). Paddling the Chattooga River. Retrieved from http://www.gorp.com/parks-guide/travel-ta-chattooga-river-paddling-south-carolina-sidwcmdev_068932.html
Wikipedia. (2012, February 19). Real Property. Retrieved from http://en.wikipedia.org/wiki/Real_property
Wikipedia. (2012, February 28). Umbrella Insurance. Retrieved from http://en.wikipedia.org/wiki/Umbrella_insurance
Wikipedia. (2012, January 24). Nolichucky River. Retrieved from http://en.wikipedia.org/wiki/Nolichucky_River
Wikipedia. (2012, March 16). Chattooga River. Retrieved from http://en.wikipedia.org/wiki/Chattooga_River

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