Tourists' Willingness to Pay for Recreation Services in Nyerere National Park, Tanzania: Are We Overvaluing or Undervaluing Our Nature Recreation Resources?

Abstract

This study estimated tourists' Willingness to Pay (WTP) per day for recreation services in Nyerere National Park (NNP) and compared these values with daily travel costs that are incurred by tourists to visit NNP in order to inform whether recreation resources in the park are overvalued or undervalued. The study revealed that tourists' WTP per day for recreation services was estimated at $237.4 and $1521 for resident and non-resident tourists, respectively. The estimated tourists' WTP values exceed the daily travel costs currently incurred by tourists, which are $201.04 and $1517.97 for resident and non-resident tourists, respectively. This indicates that tourists are willing to spend more to enjoy recreation services in NNP, which signifies that recreation resources in NNP are slightly undervalued. In addition, the findings disclosed that the largest share of tourist daily travel expenses is allocated to transportation services, and very little is paid to the park as a conservation fee. It was revealed that out of the daily travel expenses incurred by non-resident and resident tourists, only 4.62% and 2.23% are respectively paid directly to NNP as conservation fees. This study considers that allocation is not very fair; thus, NNP, in collaboration with TANAPA, needs to adjust the current entrance or conservation fee and reduce the transportation costs charged by tourist companies. The travel costs incurred by tourists, age, education, monthly income, site visited, substitute site, and quality of park were identified as significant factors in influencing tourists' WTP for recreation services in NNP. Thus, policies oriented to reduce tourists' transportation costs and improve the quality of national parks would attract more tourists to NNP.