Economic values for recreational planning at Horton Plains National Park, Sri Lanka

Abstract

ABSTRACTAlthough recreational planning in national parks has long taken visitor characteristics and perceptions into consideration, economic valuation to date has not been part of such planning. Our study applies economic valuation for recreational planning in the Horton Plains National Park (HPNP) in Sri Lanka. The study, using a pretested questionnaire, interviewed 188 respondents in order to identify existing visitor satisfaction levels as well as visitor perceptions on available facilities. The existing visitor satisfaction at HPNP was 54%. Two alternative recreational scenarios were, therefore, developed based on visitor perceptions on how to enhance visitor satisfaction at the park. A hypothetical travel cost method and contingent valuation method (CVM) were used to estimate (1) the welfare benefits in terms of consumer surplus and (2) the demand in terms of willingness to pay (WTP) for the proposed recreational scenarios. The sample size for the economic study was 352 respondents. The per-visitor welfare benefits were financially valued at Sri Lanka Rupees (SLR) 3794 (USD 1 = SLR 130) and SLR 7045 for scenarios 1 and 2, respectively. These values show a 15 to 30 times increase from the existing value of the welfare benefits. The net present value of benefits also increased from SLR 516.8 million to SLR 5296.92 million and SLR 9835.73 million under scenarios 1 and 2, respectively. Under CVM, the estimated mean WTP values were SLR 132.00 and SLR 190.32 under scenarios 1 and 2, respectively. These values can be used as a tool for revising pricing policies at HPNP. Visitors' response to the proposed recreational scenarios suggests the need for planners to institute proper recreational schemes to enhance the welfare benefits of visitors. The study underscores the role economic valuation can play in policy decisions relating to recreational planning in national parks.