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Economic Valuation Of Cultural Heritage In Surakarta City, Central Java-Indonesia

Author

Listed:
  • Karnowahadi Karnowahadi

    (Department of Business Administration, Semarang Polytechnic State (Polines))

  • Indah Susilowati

    (Faculty of Economics and Business, Diponegoro University (UNDIP))

  • Purbayu Budi Santosa

    (Faculty of Economics and Business, Diponegoro University (UNDIP))

Abstract

Surakarta city has various types of cultural heritage, both physical and non-physical, and has a great potential in improving the tourism sector. Surakarta is located at the southern part of Central Java bearing economic functions as a surviving historic city of the country. Despite the great opportunities for cultural heritage in Surakarta, the city is currently facing threats of high traffic, excessive depletion of the natural environment in the city. This is due to underestimation on the market values of cultural heritage indevelopment decisions. Surakarta require an additional source of income for the maintenance and preservation of cultural heritage. The research of willingness to pay (WTP) of the visitor of the Surakarta cultural heritage is needed. Cultural heritage is something that must be preserved, because it is a public good that can carry the name of Surakarta city in the arena of world culture. The aim of this study is to estimate the economic benefit of cultural heritage in Surakarta city as the results would be able to provide insight to the value of this unique heritage society. The methods employed is contingent valuation method (CVM). The payment vehicle opted in this study is via accomodation, where a fixed heritage charge per night was included in the total accomodation bill in Surakarta. In CVM, the logit model was defined based on dichotomous choice method to estimate the WTP randomly with different starting bid value. A total of 225 respondents were interviewed in person, using random stratified sampling method. Utility preservation of cultural heritage Surakarta influenced by several factors, such as gender, age, level of visit frequent, type of work, and the amount of WTP. Gender, age, and type of work affect the utility respondent preservation of Surakarta cultural heritage is a significant positive. Level of visit frequent variable been negatively affect utility. WTP of respondents is greater than the status quo. Variable income, national origin, marital status, and education level influence the utility of Surakarta cultural heritage preservation is not significant. How to withdraw funds for the preservation of Surakarta cultural heritage can be done by adding to the hotel and restaurant taxes, adding to the ticket of admission, or added to the retribution.

Suggested Citation

  • Karnowahadi Karnowahadi & Indah Susilowati & Purbayu Budi Santosa, 2015. "Economic Valuation Of Cultural Heritage In Surakarta City, Central Java-Indonesia," Proceedings of International Academic Conferences 2704849, International Institute of Social and Economic Sciences.
    • Handle: RePEc:sek:iacpro:2704849
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    References listed on IDEAS

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    2. 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.
    3. Carson, Richard T & Wilks, Leanne & Imber, David, 1994. "Valuing the Preservation of Australia's Kakadu Conservation Zone," Oxford Economic Papers, Oxford University Press, vol. 46(0), pages 727-749, Supplemen.
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    Keywords

    economic-valuation; heritage; CVM; Surakarta;
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