Determinants of Local Residents' Willingness to Pay for Ecotourism Services: Evidence from Katavi National Park, Tanzania

Abstract

Purpose: This study investigates the factors that determine residents’ willingness to pay (WTP) for ecotourism services in communities surrounding Katavi National Park, Tanzania. Further, the study aims to identify socio-demographic, economic, and institutional factors that influence residents’ decisions to support ecotourism initiatives financially. Methods: A cross-sectional survey was conducted using structured questionnaires administered to 100 randomly selected residents near Katavi National Park. An Ordered Probit Model was applied to analyze how variables such as education, employment, environmental awareness, perceived benefit, direct benefits, membership in local environmental groups, and distance to the park affect WTP. Findings: The results indicate that education level, distance from the park, trust in park management, perceived fairness in benefits, direct benefits received, and membership in local environmental groups significantly influence willingness to pay (WTP). In contrast, variables such as age, gender, and employment status were not statistically significant. Originality: This study provides a unique contribution to the existing body of knowledge by focusing on Katavi National Park which is understudied. Further, the use of Ordered Probit Model enhances the methodological rigor of the study by appropriately analysing ordinal WTP responses. This makes this study different in both its context and analytical approach. Practical Implications: Strengthening institutional trust and supporting community-based environmental groups is also crucial to enhance local engagement in ecotourism, policies should promote inclusive governance, transparent benefit-sharing mechanisms, and environmental education programs.