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Valuation of nature-based tourism using contingent valuation survey: evidence from South Africa
Environment for Development, University of Gothenburg, Gothenburg, Sweden; Public and Environmental Economics Research Centre, University of Johannesburg, Johannesburg, South Africa.ORCID iD: 0000-0001-5656-5762
School of Economics, University of Cape Town, Cape Town, South Africa.
Luleå University of Technology, Department of Social Sciences, Technology and Arts, Social Sciences. School of Economics, University of Cape Town, Cape Town, South Africa.ORCID iD: 0000-0002-3400-7548
2022 (English)In: Journal of Environmental Economics and Policy, ISSN 2160-6544, E-ISSN 2160-6552, Vol. 11, no 3, p. 331-349Article in journal (Refereed) Published
Abstract [en]

The increasing pressure within developing countries to focus on other national objectives has led to declining fiscal transfers for conservation. This paper assesses the potential for a typical large African park such as the Kruger National Park to generate additional revenue through an entrance fee hike in order to finance park operations. This is investigated by estimating international tourists’ willingness to pay (WTP) for possible future visits. The estimated WTP is substantial, ranging from $216 to $255 per trip and $79 million to $94 million per year for all international tourists. Using a non-parametric survival function to calculate the consumer surplus that could be extracted from tourists, we show that park authorities can increase total revenue by 57% to 61% ($38 million and $40 million) per year. These findings indicate that unique African parks such as the Kruger National Park can contribute to African economies through revenues from increased entrance fees.

Place, publisher, year, edition, pages
Taylor & Francis, 2022. Vol. 11, no 3, p. 331-349
Keywords [en]
Contingent valuation method, entrance fee, Kruger National Park, willingness to pay
National Category
Economics
Research subject
Economics
Identifiers
URN: urn:nbn:se:ltu:diva-88753DOI: 10.1080/21606544.2021.2010604ISI: 000736041400001Scopus ID: 2-s2.0-85121857328OAI: oai:DiVA.org:ltu-88753DiVA, id: diva2:1630776
Funder
Sida - Swedish International Development Cooperation Agency
Note

Validerad;2022;Nivå 2;2022-09-26 (hanlid)

Available from: 2022-01-21 Created: 2022-01-21 Last updated: 2022-09-26Bibliographically approved

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Muchapondwa, Edwin

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