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Valuation of nature-based tourism using contingent valuation survey : evidence from South Africa

Mukanjari, Samson LU orcid ; Ntuli, Herbert and Muchapondwa, Edwin (2022) In Journal of Environmental Economics and Policy 11(3). p.331-349
Abstract

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... (More)

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.

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Please use this url to cite or link to this publication:
author
; and
publishing date
type
Contribution to journal
publication status
published
keywords
Contingent valuation method, entrance fee, Kruger National Park, willingness to pay
in
Journal of Environmental Economics and Policy
volume
11
issue
3
pages
331 - 349
publisher
Routledge
external identifiers
  • scopus:85121857328
ISSN
2160-6544
DOI
10.1080/21606544.2021.2010604
language
English
LU publication?
no
additional info
Publisher Copyright: © 2021 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group.
id
9a03fe81-8210-4576-9b20-ddd32093c74f
date added to LUP
2022-04-05 13:19:46
date last changed
2023-10-26 15:01:04
@article{9a03fe81-8210-4576-9b20-ddd32093c74f,
  abstract     = {{<p>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.</p>}},
  author       = {{Mukanjari, Samson and Ntuli, Herbert and Muchapondwa, Edwin}},
  issn         = {{2160-6544}},
  keywords     = {{Contingent valuation method; entrance fee; Kruger National Park; willingness to pay}},
  language     = {{eng}},
  number       = {{3}},
  pages        = {{331--349}},
  publisher    = {{Routledge}},
  series       = {{Journal of Environmental Economics and Policy}},
  title        = {{Valuation of nature-based tourism using contingent valuation survey : evidence from South Africa}},
  url          = {{http://dx.doi.org/10.1080/21606544.2021.2010604}},
  doi          = {{10.1080/21606544.2021.2010604}},
  volume       = {{11}},
  year         = {{2022}},
}