Travel Cost Demand Research Articles

A crowdsourced valuation of recreational ecosystem services using social media data: An application to a tropical wetland in India

Online social media represent an extensive, opportunistic source of behavioral data and revealed preferences for ecosystem services (ES) analysis. Such data may allow to advance the approach, scale and timespan to which ES are assessed, mapping and valued. This is especially relevant in the context of developing regions whose decision support tools are often limited by a lack of resources and funding. This research presents an economic valuation tool for recreational ES, suitable at wide spatial scales, relying on crowdsourced metadata from social media with a proof of concept tested on an Indian tropical Ramsar wetland. We demonstrate how geotagged photographs from Flickr can be used in the context of a developing country to (i) map nature-based recreation patterns, (ii) value recreational ecosystem services, and (iii) investigate how recreational benefits are affected by changes in ecosystem quality. The case-study application is the Vembanad Lake in Kerala, India, and the adjacent backwaters. Geographic Information Systems are implemented to extract 4328 Flickr photographs that are used to map hot spots of recreation and infer the home location of wetland visitors from within Kerala state with good accuracy. An individual, single-site travel cost demand function is generated and estimated using both Poisson and Negative Binomial regressions, which results in mean consumer surplus estimates between Rs. 2227–3953 ($34–$62) per visit and annual domestic recreation benefits of Rs. 7.53–13.37 billion ($115.5–$205 million) in the investigated wetlands. Improvement in water quality to a level that supports wildlife and fisheries is projected to result in a Rs. 260 million ($4 million) annual increase in recreational benefits, while restoring previously encroached lake area would result in almost Rs. 50 million ($760,000) in yearly value increase.

Valuation approaches to ecosystem goods and services for the National Botanical Garden, Bangladesh

Abstract The main attractions of national parks include their scenic beauty, security, wildlife and trees. For preserving and maintaining national parks, an appropriate pricing policy can be used. The current study focuses on using the travel cost method (TCM) and contingent valuation method (CVM) as a non-market valuation technique to value the National Botanical Garden in Bangladesh, a developing country where little or no previous works of this kind has been conducted before. The main objective of the paper was to suggest an appropriate entrance fee for the park by assessing the willingness to pay (WTP) from the TCM and CVM; by determining a revenue maximizing entrance fee from the CVM; and by considering socio-demographics, the characteristics of visits and the motivation of the visitors to preserve the National Botanical Garden. The study sampled 100 visitors. These visitors participated in a survey which consisted of closed questions followed by a semi structured in-depth interview. For data processing, SPSS and Microsoft Excel were used. Based on the travel cost demand function using the TCM, the study found that the amount respondents were willing to pay for entrance was 0.955 US dollars and yearly consumer surplus was 593634.5 USD. From the CVM, it was estimated that the WTP was 0.225 USD for the entrance and revenue maximizing entrance fee was 0.376 USD. Finally, the entrance fee suggested for National Botanical Garden was around 0.225 USD.

Challenges and Solutions for Applying the Travel Cost Demand Model to Geographically Remote Visitor Destinations: A Case Study of Bear Viewing at Katmai National Park and Preserve

ABSTRACTRemote and unique destinations present difficulties when attempting to construct traditional travel cost models to value recreation demand. The biggest limitation comes from the lack of variation in the dependent variable, defined as the number of trips taken over a set time frame. There are various approaches that can be used for overcoming limitations of the traditional travel cost model in the context of remote destinations. This study applies an adaptation of the standard model to estimate recreation benefits of bear viewing at Katmai National Park and Preserve in Alaska, which represents a once-in-a-lifetime experience for many visitors. Results demonstrate that visitors to this park’s Brooks Camp area are willing to pay an average of US$287 per day of bear viewing. Implications of these findings for valuing recreation at other remote destinations are discussed.

Determinants of Demand for Foreign Tourism in Indonesia

This study aims to analyze the determinants of foreign tourists visiting Indonesia. Tourism sector is important in Indonesian economy because it is one of potential sources of foreign exchange and promotes economic growth. Decrease in number of domestic tourists is not as important as foreign ones since the later can be a potential source of foreign exchange. Model of travel cost demand for tourism is estimated using panel data, consisting of 34 countries across the globe during 2004-2013. Data were compiled from Indonesian Statistical Agency and the World Bank database. The result shows that distance is a one of significant factors that reduces the number of foreign tourists coming to Indonesia. Bomb attack reduced the number of foreign tourists. Tourists from western and ASEAN countries were more likely to visit Indonesia than others. Indonesian policy should guarantee with security to tourists to attract more arrivals

Estimating the Recreation Value of Homestay Based Ecotourism in Western Ghats of India

This study estimated the recreation value of homestay based ecotourism in Kodagu district, India. Travel cost demand estimated using the Poisson regression showed that the variables such as education, gender and family are positively associated with the visitor-days. While travel cost and lodging expenses exerted negative influence on the visitor days. The consumer surplus for visiting homestays was estimated at INR 4295 per visitor. The results justify that given the ecotourism activities and associated nature conservation endeavors undertaken through these homestays, a specific policy with support from the government is essential for sustainable development of homestay based ecotourism in Western Ghats.

An on-site versus a household survey approach to modelling the demand for recreational angling: Do welfare estimates differ?

This paper compares recreational fishing travel cost demand modelling results from an on-site angler intercept survey to results from a household survey where the respondents represent the same underlying population of interest. We employed a Poisson and negative binomial count data model with and without the econometric corrections for the on-site sampling issues of endogenous stratification and truncation as the onsite modelling approach and use Poisson and negative binomial count data hurdle specifications to control for excess zeros in the household modelling approach. We find that welfare estimates differ substantially across the two samples and argue that the underlying samples may represent two different types of anglers.

Factors determining the demand for water recreation in the Middle Olifant Sub- Basin: A case study of Loskop Recreation Centre in South Africa

The aim of the study was to estimate the parameters determining the demand for water recreation and the relationship between the number of trips and the costs to the Loskop Dam recreation site of the Middle Olifant Sub-Basin. Simple random sampling was used to select 48 respondents from the study site and data were collected from the sampled respondents using a structured questionnaire. Factors that determine the number of visits to the middle Olinfant Sub-Basin and the relationship between the number of trips and the cost to the recreation site were identified and quantified using the Poisson Regression and Travel Cost Demand Models, respectively. The analysis revealed that there are factors determining the demand for water recreation in the Loskop Dam recreation center and these factors are gender, race of the respondent, and income of the respondent among others. The analysis further revealed that there is a negative relationship between the number of trips and the cost to the recreation center. The aforementioned findings suggest that the Department of Water Affairs and Forestry and Department of Eco- tourism should consider issues around water recreation when distributing water and its resources. The study recommends that the water recreation policy in South Africa should also be effective in order to encourage more developments in water recreation and to stimulate growth of the tourism sector. Key words: Water recreation demand, Middle Olifant, Poisson regression, travel cost demand model,tourists.

How Well Do Travel Cost Models Measure Competition Among Hospitals?

Health plans create competition among hospitals by threatening to “steer” patients to preferred facilities. Mergers can reduce this competition and economists have begun using travel cost demand models to predict their effects. In this paper, we document an anomaly in estimation: for any plausible estimate of the opportunity cost of time, the price of hospital service is several orders of magnitude larger than the estimated value that patients place on the service. This anomaly raises questions about how well travel cost models measure demand for medical care, competition among hospitals, and the increase in bargaining power created by merger.

Willingness‐to‐pay for steelhead trout fishing: Implications of two‐step consumer decisions with short‐run endowments

Choice of the appropriate model of economic behavior is important for the measurement of nonmarket demand and benefits. Several travel cost demand model specifications are currently in use. Uncertainty exists over the efficacy of these approaches, and more theoretical and empirical study is warranted. Thus travel cost models with differing assumptions about labor markets and consumer behavior were applied to estimate the demand for steelhead trout sportfishing on an unimpounded reach of the Snake River near Lewiston, Idaho. We introduce a modified two‐step decision model that incorporates endogenous time value using a latent index variable approach. The focus is on the importance of distinguishing between short‐run and long‐run consumer decision variables in a consistent manner. A modified Barnett two‐step decision model was found superior to other models tested.

The Economic Value of Novel Means of Ascending High Mountain Peaks: A Travel Cost Demand Model of Pikes Peak Cog Railway Riders, Automobile Users and Hikers

In addition to hiking trails, some peaks have alternative transportation routes such as cog railways, trams or roads to reach the summit. The authors use a count data travel cost model to estimate the recreational demand for traditional and novel means of ascending Pikes Peak in Colorado. Their analysis shows statistically significant differences in the demand curve slopes and in the net willingness to pay (consumer surplus) for three categories of recreationists who take alternative means to ascend the mountain. The more exotic or unique the means of ascent, the higher the visitor benefits are. Cog railway and automobile users and those ascending by hiking receive consumer surpluses of US$98, US$54 and US$31, respectively, per day trip.

Comparing Recreation Benefits from On-Site versus Household Surveys in Count Data Travel Cost Demand Models with Overdispersion

On-site surveys of tourists often lead to overestimates of annual tourism because tourists who are frequent repeat visitors are more likely to be sampled. This unrepresentative sample leads to statistical problems known as ‘truncation’ and ‘endogenous stratification’ in widely used travel cost demand models. Further, wide variation in the number of on-site visits among tourists can lead to overdispersion in the dependent variable of count data travel cost models. The authors present the first real-world data correction for all three problems and compare the corrected estimates with the ideal household survey. Correcting for truncation and endogenous stratification in a count data specification allowing for overdispersion (negative binomial specification) lowers the demand and benefit estimate to a mean value not significantly different from the household estimate. If tourism researchers wish to develop visitor use estimates from on-site surveys consistent with household level surveys, the authors' improved demand estimators would allow them to do so with some confidence in the results.

Comparing the economic effects of fire on hiking demand in Montana and Colorado

We conducted surveys on 33 trails within National Forests in Colorado and Montana to test whether forest fires affected recreation demand. Data were collected on actual and intended number of visits. A count data travel cost demand model was estimated by pooling actual and intended visitation responses in both states. Results indicate that Montana hikers take more trips yet have lower net benefits ($12/trip) than do Colorado visitors ($55/trip). The annual value of trips taken decreases in both states as areas recover from crown fires providing support for the National Fire Plan in terms of fire prevention and suppression.

Travel cost demand model based river recreation benefit estimates with on‐site and household surveys: Comparative results and a correction procedure

Past recreation studies have noted that on‐site or visitor intercept surveys are subject to over‐sampling of avid users (i.e., endogenous stratification) and have offered econometric solutions to correct for this. However, past papers do not estimate the empirical magnitude of the bias in benefit estimates with a real data set, nor do they compare the corrected estimates to benefit estimates derived from a population sample. This paper empirically examines the magnitude of the recreation benefits per trip bias by comparing estimates from an on‐site river visitor intercept survey to a household survey. The difference in average benefits is quite large, with the on‐site visitor survey yielding $24 per day trip, while the household survey yields $9.67 per day trip. A simple econometric correction for endogenous stratification in our count data model lowers the benefit estimate to $9.60 per day trip, a mean value nearly identical and not statistically different from the household survey estimate.

Quantifying recreation use values from removing dams and restoring free‐flowing rivers: A contingent behavior travel cost demand model for the Lower Snake River

A travel cost demand model that uses intended trips if dams are removed and the river restored is presented as a tool for evaluating the potential recreation benefits in this counterfactual but increasingly policy relevant analysis of dam removal. The model is applied to the Lower Snake River in Washington using data from mail surveys of households in the Pacific Northwest region. Five years after dam removal, about 1.5 million visitor days are estimated, with this number growing to 2.5 million annually during years 20–100. Using the travel cost method model estimate of the value of river recreation, if the four dams are removed and the 225 km river is restored, the annualized benefits at a 6.875% discount rate would be $310 million. This gain in river recreation exceeds the loss of reservoir recreation but is about $60 million less than the total costs of the dam removal alternative. The analysis suggests this extension of the standard travel cost method may be suitable for evaluating the gain in river recreation associated with restoration of river systems from dam removal or associated with dam relicensing conditions.

Benefit Transfer via Preference Calibration: “Prudential Algebra” for Policy

This paper proposes a new approach to benefit transfer. The method assumes a specific form for preferences and uses available benefit information to identify and calibrate the preference parameters to match the existing benefit estimates. This approach assures economic consistency of the transfers. Benefit measures can never be inconsistent with household income. The logic also offers a series of potentially observable ‘‘predictions’’ that can be used to gauge the plausibility of benefit transfers. When multiple benefit estimates from different methods are available such as hedonic property value, travel cost demand, and contingent valuation, the framework uses the definition of the benefit concept from each method in a single preference function to reconcile differences. It provides a specific way to take account of baseline conditions and scope effects (i.e., the size of the proposed change) consistently in the transfer. The method is illustrated using estimates for benefit measure changes in water quality from three studies: travel cost demand, hedonic property value, and contingent valuation analysis.Q26

The dynamic path of recreational values following a forest fire: a comparative analysis of states in the Intermountain West

This analysis examines the dynamic path of recreational values following a forest fire in three different states in the intermountain western United States. The travel cost demand analysis found that annual recreation values after a fire follow a highly nonlinear intertemporal path. The path is S-shaped, providing a range of benefits and losses in the years following a fire. While the results discourage the use of a single value throughout the Intermountain West, they do provide a range of likely values that public land managers can apply to fire-affected areas in their jurisdictions.

Estimating the Recreation Demand and Economic Value of Mountain Biking in Moab, Utah: An Application of Count Data Models

This paper reports the results of both standard and truncated count data travel cost demand models for estimating demand for and the economic value to participants in mountain biking in the Moab, Utah, area. The empirical estimates for average trip demand per person per season were 2.25 and 2.53 trips under truncated Poisson and truncated negative binomial models, respectively. Consumer surplus per person per trip for both models was approximately US $585. The total annual use value for mountain biking in the Moab area was US $1.33 million. This value suggests that this recreation has a higher value than most other activities in the area and that public land managers should be aware of the relative value of mountain biking as they make allocation decisions.

A Travel Cost Demand Model for Recreational Snapper Angling in Port Phillip Bay, Australia

A travel cost demand model was estimated for recreational angling for snapper Pagrus auratus in Port Phillip Bay based on an on-site expenditure survey conducted during the 1996–1997 season. The model explaining angling trip frequency was initially based on exploratory analysis and Fisher tests on variables including trip-specific expenditure and nonexpenditure factors. A final preferred Poisson count model was then estimated and used to calculate the annual angler surplus (Aus$7,100 per boat party) and the total benefits to the angling population ($128,000,000). The recreational and commercial sectors of the Port Phillip Bay snapper fishery are neither monitored by the same statistics nor valuated by the same methods. Considerable socioeconomic research is needed to calibrate the sectors in support of equitable harvest allocations.

VALUING CAMPSITE CHARACTERISTICS: A GENERALIZED TRAVEL-COST MODEL OF DEMAND FOR RECREATIONAL CAMPING

The multiple-site travel cost demand model of Vaughan and Russell is extended to apply to recreational camping. Unlike previous applications, particular attention is paid to the detection and correction of groupwise heteroscedasticity which is likely to arise in multiple-site models. A semi-log demand model estimated in the context of 48 provincial parks in the Province of Onario, Canada, suggests that recreational camping is likely to be an inferior commodity. Also, the consistent significance of the substitute-site variable implies that the demand parameter estimates are likely to be biased in its absence. The model is also used to obtain estimates of the social values of various campsite characteristics in terms of average and marginal consumer surplus. © 1997 John Wiley & Sons, Ltd.

Closely Related Good Prices in the Travel Cost Model

AbstractThis travel cost demand study included prices for closely related goods such as money and time costs of on‐site time, on‐site purchases, and other trip activities. A disequilibrium labor market model was estimated. The sample was mainly composed of persons who did not substitute earned income for leisure time. The few persons who had the capability to substitute time for money were excluded from the sample. Consumer surplus was estimated to be $@@‐@@69 per trip using the expanded model. A model using only the conventional travel cost variables resulted in estimated surplus per trip of $@@‐@@45.