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on Tourism Economics |
| By: | Peter Chacha, Edwin Muchapondwa, Anthony Wambugu and Daniel Abala |
| Abstract: | This study analyses the factors influencing pricing of National Park visits in Kenya. A two step regression procedure is used to develop a pricing mechanism for Lake Nakuru National Park (LNNP). In the first stage, count data models are applied to estimate the Trip generating function to LNNP and in the second, the results from count data models are used to simulate visitation as price varied through an increase in the gate fee to LNNP. The simulated data is used to estimate the demand curves for LNNP. The finding shows that the current price set-up at LNNP of Ksh. 7,050 for international tourists and Ksh. 1,000 for domestic tourists is in fact cost recovery. However, there is greater scope to raise more revenue from an increase in entry fees. The study proposes price increase for international visits from the current Ksh. 7,050 (US$75) to Ksh.20,000 (US$230) in the medium term. This will yield a total revenue estimated at Ksh. 2,823 million (US$33 million) without major decline in visitation days. With regard to domestic visitors, the Kenya Wildlife Service (KWS) can increase the price from the current Ksh. 1,000 (US$11.8) to Ksh. 2,000 (US$ 22) over the same horizon. This price increase will yield revenue equivalent to Ksh. 288 million (US$ 3.4 million) but also lead to a decline in visitation levels from domestic group by 30 percent. |
| Keywords: | Pricing, protected areas, international and domestic visits, travel costs |
| JEL: | C24 C25 I31 Q26 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:rza:wpaper:357&r=tur |
| By: | Deborah E. Lee, Stephen G. Hosking and Mario du Preez |
| Abstract: | Many valuations have been made of changes to in-estuary attributes but few have been made of out-of-estuary attributes. From a recreation perspective, an important type of out-of-estuary attribute is the availability of public paths by which to access attractive features of the estuary environment. This paper values an improvement in the level of public access in the form of an additional nature trail along the banks of the Sundays River Estuary in the Eastern Cape, but does not compare this value with the costs. By means of choice experiment modelling analyses it is estimated that in 2010 the marginal willingness-to-pay for an investment in a nature trail was R34 per user per annum. In order to determine whether the development of this trail is efficient, this benefit (R34 per user per annum) needs to be compared to the cost of the development, an analysis that remains to be done. However, this find does serve to provide guidance on how much funding could efficiently be allocated to such a development - about R1.22 million, assuming a social discount rate of 8.38%. |
| Keywords: | Estuary, willingness to pay, choice experiment, public access, recreational attributes |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:rza:wpaper:353&r=tur |