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A Hybrid Individual—Zonal Travel Cost Model for Estimating the Consumer Surplus of Golfing in Colorado

Author

Listed:
  • John Loomis

    (Colorado State University, jloomis@lamar.colostate.edu)

  • Omer Tadjion

    (Colorado State University)

  • Philip Watson

    (University of Idaho)

  • Josh Wilson

    (Management and Engineering Technologies International, Inc)

  • Stephen Davies

    (Colorado State University)

  • Dawn Thilmany

    (Colorado State University)

Abstract

Although golf is a popular activity and significant industry, there is little known about the price elasticity of demand for golf, nor the benefits received by the golfers themselves. Using a survey of Colorado golfers at 19 golf courses and a relatively novel hybrid individual observation and zonal travel cost model, the authors find the demand for golf is quite price inelastic with respect to transportation costs (−.433) and green fees (−.115). The typical golfer spends $8 on transportation and $49 on green fees/ carts. The price inelastic demands translate into a consumer surplus of $18.44 per round of golf at Colorado golf courses. The annual net economic value to golfers in Colorado for the 7.8 million rounds of golf is $143.8 million. The authors find a ``U'' shaped quadratic relationship between age and golf demand, such that retirement age golfers take about 30% more trips than middle age golfers.

Suggested Citation

  • John Loomis & Omer Tadjion & Philip Watson & Josh Wilson & Stephen Davies & Dawn Thilmany, 2009. "A Hybrid Individual—Zonal Travel Cost Model for Estimating the Consumer Surplus of Golfing in Colorado," Journal of Sports Economics, , vol. 10(2), pages 155-167, April.
    • Handle: RePEc:sae:jospec:v:10:y:2009:i:2:p:155-167
    DOI: 10.1177/1527002508320136
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    References listed on IDEAS

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    2. Chun-Chu Yeh & Cheng-Shen Lin & Chin-Huang Huang, 2018. "The Total Economic Value of Sport Tourism in Belt and Road Development—An Environmental Perspective," Sustainability, MDPI, vol. 10(4), pages 1-14, April.

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