nep-tur New Economics Papers
on Tourism Economics
Issue of 2011‒05‒24
two papers chosen by
Antonello Scorcu
University of Bologna

  1. Modeling Site Specific Heterogeneity in an On-Site Stratified Random Sample of Recreational Demand By Sardana, Kavita; Bergstrom, John C.
  2. Assessing Domestic Demand for Organic and âLocally Grown' Produce on An âOrganic Island': Dominica's Dilemma By Boys, Kathryn A.; Willis, David B.; George, Seraphine; Hammig, Michael D.

  1. By: Sardana, Kavita; Bergstrom, John C.
    Abstract: Using estimation of demand for the George Washington/Jefferson National Forest as a case study, it is shown that in a stratified/clustered on-site sample, latent heterogeneity needs to be accounted for twice: first to account for dispersion in the data caused by unobservability of the process that results in low and high frequency visitors in the population, and second to capture unobservable heterogeneity among individuals surveyed at different sites according to a stratified random sample (site specific effects). It is shown that both of the parameters capturing latent heterogeneity are statistically significant. It is therefore claimed in this paper, that the model accounting for site-specific effects is superior to the model without such effects. Goodness of fit statistics show that our empirical model is superior to models that do not account for latent heterogeneity for the second time. The price coefficient for the travel cost variable changes across model resulting in differences in consumer surplus measures. The expected mean also changes across different models. This information is of importance to the USDA Forest Service for the purpose of consumer surplus calculations and projections for budget allocation and resource utilization.
    Keywords: Recreational Demand models, Clustering, Subject-specific effects, Truncated Stratified Negative Binomial Model, Overdispersion., Environmental Economics and Policy,
    Date: 2011
  2. By: Boys, Kathryn A.; Willis, David B.; George, Seraphine; Hammig, Michael D.
    Abstract: The economy of Dominica faces a unique set of challenges. As with many other Caribbean nations, Dominica has historically been dependent upon agriculture. Over the past several hundred years, the island's economy has been largely supported through the concentrated mono-cropping of a variety of export-oriented crops including coffee, limes, vanilla, and bananas (FAVACA, 2008). Today, approximately 45% of Dominica's labor force is employed in the agricultural sector (FAVACA, 2008). While neighboring countries have economically benefited from tourism, due to its lack of white sand beaches, Dominica is not a typical tourist destination. Taking advantage of its landscape, rainforests, and diversity of natural wildlife, in an effort to diversify its economy Dominica has instead catered to eco-/wellness tourists. Bridging its agricultural foundations with the ecological preservation needed to support its tourist industry, the government of Dominica has signaled its interest in transforming Dominica into an Organic Island (âOrganic Dominica') by 2015. Through this initiative, sustainable, organic agricultural production methods will be encouraged. Complementing this, a âBuy Organic, Locally Grown' campaign has been proposed to encourage domestic and regional consumption of Dominica's agricultural outputs and food products. As such, âOrganic Dominica' has the potential to simultaneously address ongoing national concerns surrounding food security, foreign exchange availability, domestic un/underemployment, and environmental preservation. Before and since proposing this policy, surveys were conducted to identity the major stakeholders in (organic) agricultural production, and current and potential markets for organic production. It remains, however, to quantify Dominica's capacity to produce organic goods, the scale of the potential market, and the price premia that organic production could command. This information is critical to determining the appropriate initial level of producer support and marketing programs required to successfully promote the production and consumption of Dominica's organic outputs and propel Dominica toward the desired status of a model âOrganic Island'.
    Keywords: contingent valuation, willingness to pay, Caribbean, organic, locally grown, food, Agricultural and Food Policy, International Development, Marketing, O13, O54, Q01, Q13, Q18,
    Date: 2011

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