Measuring the economic impact of rural tourism membership on local economy: A Korean case study

Abstract

The implementation of rural tourism membership can aid in boosting economic growth in rural areas. This study examines households' preferences for rural tourism experience in association with sales of local agricultural products. Using a choice experiment method developed by experimental designs, this paper examines households' preferences to trade off purchasing costs of local agricultural products against various benefits provided by the rural tourism membership. The methods utilized in this paper represent an effective approach to evaluate the value of local tourism resources and the influence of these resources on the local economy. In empirical estimation we applied econometric approaches that allow for different preferences by incorporating income and residence effects into the models. Findings reveal that respondents place a premium on tourism attributes such as invitation seats and outdoor adventure tickets when choosing a tourism membership. We also find that the economic impacts associated with inducing higher-level tourism membership are substantial. This paper illustrates the potential for the development of a strategy associated with rural tourism management to enhance the local economy.