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Estimating the Economic Value of Mount Buffalo National Park with the Travel Cost and Contingent Valuation Models

Author

Listed:
  • Gamini Herath

    (School of Business, La Trobe University, Wodonga Campus, PO Box 821, Wodonga, Victoria 3689, Australia)

  • John Kennedy

    (School of Business, La Trobe University, Bundoora Campus, Bundoora, Victoria 3086, Australia)

Abstract

The Mount Buffalo National Park is the oldest national park in Victoria, Australia. There has been a rapid increase in the number of visitors to the park during the last decade and park management has been a concern, especially in the light of declining budgetary allocations and potential damage due to the increased visitor numbers. Policy options to increase park revenue remain unclear because of a lack of information on demand parameters and user costs. This study estimates the economic value of the park using the travel cost method (TCM) and the contingent valuation method (CVM). The TCM gives higher consumer surplus (CS) than the CVM. The CS shows that the economic value of the park is high and that there are opportunities to introduce innovative fee schemes to enhance its revenue. Present entry fee systems do not capture the economic value of the park.

Suggested Citation

  • Gamini Herath & John Kennedy, 2004. "Estimating the Economic Value of Mount Buffalo National Park with the Travel Cost and Contingent Valuation Models," Tourism Economics, , vol. 10(1), pages 63-78, March.
    • Handle: RePEc:sae:toueco:v:10:y:2004:i:1:p:63-78
    DOI: 10.5367/000000004773166529
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    References listed on IDEAS

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    2. Douglas A. Greenley & Richard G. Walsh & Robert A. Young, 1981. "Option Value: Empirical Evidence from a Case Study of Recreation and Water Quality," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 96(4), pages 657-673.
    3. Herath, Gamini, 1999. "Estimation of Community Values of Lakes: A Study of Lake Mokoan in Victoria, Australia," Economic Analysis and Policy, Elsevier, vol. 29(1), pages 31-44, March.
    4. Beal, Diana J., 1995. "A Travel Cost Analysis of the Value of Carnarvon Gorge National Park for Recreational Use," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 63(02), pages 1-12, August.
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