Estimating the Recreational Value and Setting Entrance Fees during Early Development of Ecotourism Sites: the Case of Bataan Natural Park

Abstract

Ecotourism sites are established to provide “sustainable tourism,” bring economic opportunities to the local communities, and can potentially augment funding for conserving protected areas by charging entrance fees. A dilemma, however, faced by managers during the early stages of the development of ecotourism sites is the uncertain effect of increasing entrance fees on demand. This creates an apprehension to use entrance fees as a sustainable financing mechanism for conservation. This study used a combination of revealed and stated preference approaches to provide information on the recreational benefits and empirical guidance in setting entrance fee surcharges for proposed improvements in two eco-tourism sites of Bataan Natural Park – specifically, Ambon-Ambon and Lumutan Eco-trail and Tala River. Count data regression models were used to estimate the consumer surplus of visitors for the current conditions. In contrast, the contingent behavior method was used to measure the visitors’ willingness to pay (WTP) for improvements in the site attributes. Results of the count data models indicate the total consumer surplus from the ecotourism sites in their current state is significantly higher than the site's cost of improvement and maintenance. Furthermore, tourists are willing to pay more than the currently charged entrance fees. Protest and uncertainty corrected mean WTP for the improved condition are approximately PHP 130.90 for a visit to the eco-trail and PHP 108.50 for a visit to the river. The optimal and revenue-increasing entrance surcharge is estimated to be within PHP 15–76 for the Tala River and PHP 15–114 for the Falls. The results may have implications on providing alternative financing for protecting and conserving other natural parks and protected areas in their early stages of development in the Philippines.