Evaluating visitors’ travel demand and recreational values in Kallar Kahar Lake, Pakistan

Abstract

The present study estimated the economic value of Kallar Kahar Lake in Pakistan. This is among the first-ever studies considering the impact of the visitors’ perception on the number of visits to the lake in South Asia. Individual travel cost method was employed. Variables on the perception of the visitors were significantly related to the number of visits to the recreational site. Results implied that improving environmental quality and other conditions of Kallar Kahar Lake could increase the number of visits made to the lake. Consumer surplus was US$18.76 per person per visit, and the total annual value of consumer surplus reached US$5.3 million. Low elasticity of demand for recreational site implied the feasibility of imposing the entrance fee. This study contributes its part by providing economic valuation of the benefits provided by Kallar Kahar to be useful for the policymakers and local authorities for efficient management.