Demand for Improved Public Transport Services in the UAE: A Contingent Valuation Study in Dubai

Abstract

Service quality, being an integral part of urban growth, has been a subject of interest to city transport planners.The provision of better quality public transport service is a challenge in the United Arab Emirates, as this countrystrives to meet the transport requirements fundamental to sustain the investment and economic as well as urbanpopulation growth exhibited over the last few years. United Arab Emirates government intervention strategiesinclude increasing share of public transportation and decreasing transport by private vehicles through betteringbus service delivery. Such shift of demand for public service requires not only understanding of people'swillingness to use and pay for improved public transport services but also market incentives to pull-downpersonal vehicle ownership demand into public transport services. This study examines the willingness of UnitedArab Emirates residents to use and pay for improved public transport services. A contingent valuation survey isconducted on 852 representative sample of cross section of United Arab Emirates residents. Probit and Orderedlogit models are used to analyze the survey data. The study has generated results with significant ramificationsfor policy. It suggests that there is the knowledge that residents, in general, are willing to use and pay higher feesfor using public bus provided its service quality is improved. This has to provide reassurance to the Roads andTransport Authority who may be interested about the potential demand for improved public bus service. In orderfor the United Arab Emirates Government to increase the share of public transportation and decrease transport byprivate vehicles, effort will have to continue to improve the public bus service quality. In particular, marketing ofsuch improved service will have to consider the residents' socioeconomic and demographic as well as sometravel attributes.