Estimation of the Recreational Value of Tourist Destinations in Camotes Islands using Travel Cost Method

Abstract

Determining the recreational value of tourist destinations is important because natural resources provide services that possess non-market values. They are considered as public goods, whereby society tends to overexploit and overconsume. In this regard, the valuation of four selected tourist destinations in Camotes Islands, Cebu, Philippines was determined. This study specifically aims to (1) estimate the demand function and consumer surplus of tourists, (2) determine the factors affecting the number of visits of tourists in every destination, (3) determine the tourists’ willingness to pay for entrance fee for each destination and (4) provide policy implications for local policy-makers and resource managers. On-site surveys were conducted to gather primary data. A total of 125 respondents were interviewed after selection through consecutive sampling. Using pseudo Poisson maximum likelihood estimator, results reveal that the recreational value of Buho Rock Resort, Lake Danao Park, Santiago Bay White Beach and Bukilat Cave in a year is PhP 617,468,921.00; PhP 199, 094,291.80; PhP 113, 304, 987.20 and PhP 408,021,345.90, respectively. These values can be considered as high recreational values implying the relevance of preserving and protecting these sites from overexploitation. Given these high recreational value estimates, the local government units and resource managers are suggested to formulate scientifically sound policies that will ensure the preservation and protection of the tourist destinations from overexploitation.

Keywords: travel cost method, recreational value, pseudo Poisson maximum likelihood estimator