How Will the Cost Change after Transformation in Public Nature-Based Attractions? A Framework and Case Study

Financial viability is crucial for public nature-based attractions, especially in the context where many are seeking to transform their business model and goals in order to survive because of the heavy hit by COVID-19 and pressure from Chinese central government policies to lower entrance fees in state-owned attractions. However, there is little literature relating to the relationship between finance and transformation. To fill the gap, the framework “resource–function–transformation–cost” was proposed to explain the relationship between transformation and cost structure change by combining resource-based theory and function analysis. A case study of Shanghai Sheshan National Forest Park (SNFP) tested the framework and further revealed that (a) transformation happened because of the recombination of resources, followed by the change of functions, leading to capital expenditure being more prominent during the early stages and management costs more so in the latter stage. Further, we conclude that the elasticity of the cost structure is low; (b) the structure of functions tended to be stable over the years; and (c) the cost structure of the management, production and business, and tourism and leisure functions did not change much, while that of ecological protection functions changed significantly from capital expenditure to management costs.