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Dynamic optimal joint policies for tourism promotion and environmental restoration

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  • Phumthan Sirilersuang
  • Sittidaj Pongkijvorasin

    (Chulalongkorn University)

Abstract

Policies regarding tourism management can be separated into (1) tourism promotion policies and (2) environmental restoration policies. Because of the close relationship between the number of visitors and environmental quality, both policy types should be jointly designed and implemented. This paper studies the optimal use of these two policies in tourism management. In the case of Khao Laem Ya–Mu Koh Samet National Park in Thailand, the optimal policy balance requires the substantially higher restoration expenditure than the promotion expenditure at all time. With optimal policy balance, the number of visitors at the steady state increases more than twice, whereas the water quality remains unchanged. The implementation of the optimal policy balance would yield an additional benefit in terms of net present value of approximately $120 million over 50 years. The results from sensitivity analysis affirm the importance of restoration over promotion policy and suggest that improving effectiveness of restoration expenditure and reducing visitor impact on environmental quality can significantly increase benefits from tourism.

Suggested Citation

  • Phumthan Sirilersuang & Sittidaj Pongkijvorasin, 2018. "Dynamic optimal joint policies for tourism promotion and environmental restoration," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 20(2), pages 261-286, April.
    • Handle: RePEc:spr:envpol:v:20:y:2018:i:2:d:10.1007_s10018-017-0193-6
    DOI: 10.1007/s10018-017-0193-6
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    References listed on IDEAS

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    1. Kort, P.M. & Greiner, A. & Feichtinger, G. & Haunschmied, J.L. & Hartl, R.F. & Novak, A.J., 2002. "Environmental effects of tourism industry investments : An intertemporal trade-off," Other publications TiSEM dc61bc25-6bc7-4093-97dd-8, Tilburg University, School of Economics and Management.
    2. Burnett, Kimberly M. & D'Evelyn, Sean & Kaiser, Brooks A. & Nantamanasikarn, Porntawee & Roumasset, James A., 2008. "Beyond the lamppost: Optimal prevention and control of the Brown Tree Snake in Hawaii," Ecological Economics, Elsevier, vol. 67(1), pages 66-74, August.
    3. Lacitignola, D. & Petrosillo, I. & Cataldi, M. & Zurlini, G., 2007. "Modelling socio-ecological tourism-based systems for sustainability," Ecological Modelling, Elsevier, vol. 206(1), pages 191-204.
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    Cited by:

    1. Chenavaz, Régis Y. & Leocata, Marta & Ogonowska, Malgorzata & Torre, Dominique, 2022. "Sustainable tourism," Journal of Economic Dynamics and Control, Elsevier, vol. 143(C).

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    More about this item

    Keywords

    Optimal joint policies; Tourism management; Promotion policy; Restoration policy; Optimal control;
    All these keywords.

    JEL classification:

    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis

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