Measuring the Economic Use Values of Recreation Resources in Protected Areas, Evidence from Nyerere National Park in Tanzania

Abstract

Natural recreation resources play a central role in tourism activities in most part of the world as they are main source of tourist attractions. Despite this, little is known on the economic use values of natural recreation resources in Tanzania. Little information on the economic use values of natural recreational resources is attributed by market failure issues embedded with these resources as they belong to non-market goods and services which normally do not have actual market prices. In most instances these resources are considered free gifts of nature and in case they are priced their values are usually under estimated. Environmental valuation techniques can quantify the economic use value of non market goods and services such as natural recreation resources. This study employed the Individual Travel Cost Method to measure the economic use value of recreation resources in Nyerere National Park (NNP). Specifically, the study measured the consumer surplus per tourist per trip and estimated the annual recreation use value of the park. The study involved 215 tourists who were grouped into resident and non-resident tourists. Data were analyzed using STATA version 14 and a Zero Truncated Poisson Regression Model was employed to estimate tourists’ demand function. The findings show that consumer surplus for resident, non-resident and when the two groups were combined together were $62.25, $490.48 and $517.01 respectively. The annual recreation use value for resident, non-resident and both resident and non-resident tourists were respectively $89,017.5, $4,255,404.48 and $7,251,661.36. The recreational value estimated in this study underscores the significance of conserving recreation resources in NNP. It also demonstrates that recreation activities can contribute significantly to the country economy like other economic activities thus natural recreation resources should not be underrated due to their embedded market failures. The study concludes that NNP has a significant economic value which calls for the responsible institutions in the country to properly manage the park so as to ensure a continuous flow of these benefits. Specifically, the Ministry of Natural Resources and Tourism and Tanzania National Parks could use the findings of this study to improve tourism activities in NNP and the country at large by designing sustainable nature based tourism strategies which meet tourists’ preferences and country tourism goals. This will attract more tourists in the country which will increase the recreation values of NNP and other natural recreation areas.