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Estimating Consumer Surplus and Elasticity of Demand of Tourist Visitation to a Region in North Queensland Using Contingent Valuation

Author

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  • Romy Greiner

    (CSIRO Sustainable Ecosystems, Davies Laboratory, PMB Aitkenvale, Townsville, Queensland 4814, Australia)

  • John Rolfe

    (Central Queensland University, PO Box 197, Emerald, Queensland 4720, Australia)

Abstract

The Daintree Rainforest is a prime attraction for Tropical North Queensland as a tourist destination. Visitation of the rainforest, specifically the Cape Tribulation section, has increased rapidly as impediments to self-drive access have been removed. This paper examines the potential for the local council to manage the volume of self-drive visitation to the Cape Tribulation region by price mechanisms. Access to the region is by river ferry only. The assessment is based on estimates of willingness to pay from a contingent valuation survey of self-drive tourists to the region, from which estimates of consumer surplus and price elasticity of demand are derived. It is concluded that increasing the price for ferry crossings could be an effective and efficient means of (a) reducing traffic volumes caused by self-drive visitors and thereby alleviating traffic-related social and environmental problems, and (b) significantly increasing the resource rent which the municipality can draw from tourism, with additional revenue from the ferry being available for the improved management of this prime tourist destination.

Suggested Citation

  • Romy Greiner & John Rolfe, 2004. "Estimating Consumer Surplus and Elasticity of Demand of Tourist Visitation to a Region in North Queensland Using Contingent Valuation," Tourism Economics, , vol. 10(3), pages 317-328, September.
    • Handle: RePEc:sae:toueco:v:10:y:2004:i:3:p:317-328
    DOI: 10.5367/0000000041895076
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    References listed on IDEAS

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    5. Marina Farr & Natalie Stoeckl & Rabiul Alam Beg, 2011. "The efficiency of the Environmental Management Charge in the Cairns management area of the Great Barrier Reef Marine Park," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 55(3), pages 322-341, July.
    6. Carmelo J. León & Jorge E. Araña & Matías González & Javier de León, 2014. "Tourists' Evaluation of Climate Change Risks in the Canary Islands: A Heterogeneous Response Modelling Approach," Tourism Economics, , vol. 20(4), pages 849-868, August.
    7. Maldonado, Jorge H. & Moreno-Sánchez, Rocío del Pilar & Espinoza, Sophía & Bruner, Aaron & Garzón, Natalia & Myers, John, 2018. "Peace is much more than doves: The economic benefits of bird-based tourism as a result of the peace treaty in Colombia," World Development, Elsevier, vol. 106(C), pages 78-86.
    8. León, Carmelo J. & de León, Javier & Araña, Jorge E. & González, Matías M., 2015. "Tourists' preferences for congestion, residents' welfare and the ecosystems in a national park," Ecological Economics, Elsevier, vol. 118(C), pages 21-29.
    9. Schiff, Aaron & Becken, Susanne, 2011. "Demand elasticity estimates for New Zealand tourism," Tourism Management, Elsevier, vol. 32(3), pages 564-575.
    10. Seetaram, Neelu & Song, Haiyan & Ye, Shun & Page, Stephen, 2018. "Estimating willingness to pay air passenger duty," Annals of Tourism Research, Elsevier, vol. 72(C), pages 85-97.

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