Travel Reference
In-Depth Information
A travel cost approach
M.A.R. Abdul-Samad
Faculty of Economics and Management, Universiti Putra Malaysia, Malaysia
S. Naim
School of Business and Economics, Universiti Malaysia Sabah, Malaysia
ABSTRACT: The estimation of economic values of Ulu Chepor Recreational Park (UCRP) is needed
because no study has been done so far in valuing this area. By applying the travel cost model, the travel
information is then used for the estimation of the recreational values in UCRP. The recreational value of
Willingness To Pay (WTP) per person derived is estimated at RM2.30 per visit. The total recreational net
benefit is estimated at RM33,120 for the year 2012. This implies that the significant economic values of
eco-tourism will be lost from any large scale development by degrading natural environment. On top of
that, the management of UCRP could generate more income and use it for maintenance purposes. For the
time being, visitors will be charged RM2 per car per entry. In fact, there is no charge for visitors that come
by motorcycle. Therefore, this finding is useful for them and can be used as a basis to change the current
practice for the future benefit of Ulu Chepor Recreational Park.
Keywords
:
Recreational values, eco-tourism, willingness to pay, economic valuation
1 INTRODUCTION
valuation techniques. TCM is predominantly used
in outdoor recreation modeling, with fishing,
hunting, boating and forest visits among the most
popular applications.
The objectives of this study are to i) examine
the determinant of tourist arrival at UCRP, ii) to
analyze the pricing policy made by the UCRP, and
iii) to investigate the consumer surplus value per
visit. This paper is divided into five sections; where
section one is the introduction, followed by sec-
tion two which describes the location of the study.
Section three the methodology and source of data
used in study. Empirical results are presented in
section four while the last section offers some dis-
cussion and concluding with regard to consumers'
willingness to pay assessment of the net benefit of
recreational resource in UCRP.
Ulu Chepor Recreational Park (UCRP) is located
in Chemor, Perak, Malaysia approximately about
10 km from the city of Ipoh. This area is on the
outskirts of Ipoh City and it is the upstream areas
being developed into tourist centres. This is evident
when UCRP area is included in Perak tourism map
as one of the tourist attractions in Perak. UCRP
has been commercialized and maintained by the
Ipoh City Council. On weekends, visitors arriving
by car are required to pay RM2 per car and RM
0.50 per motorcycle to the management of Village
Development and Security Committee (
JKKK
).
There is no fee charged on weekdays. There are
various facilities available in the UCRP such as
toilets, prayer room, food stalls and small huts for
shelter visitors. The path to this area is also in good
condition.
UCRP is one of the popular places for picnic
and other recreational activities. Besides the locals,
this area is also becoming more popular among
foreign tourists. Conditions of clean river water,
waterfalls and the tranquil ambience of UCRP
make it suitable for family recreation activities.
According to Smith (1993), travel cost method
(TCM) is an indirect market based approach
and claimed to be the oldest of the non-market
2 METHODOLOGY
In this study, the data were gathered through per-
sonally administered questionnaire. The primary
data for the study were gathered directly from
respondents in a face-to-face setting. This approach
is deemed appropriate as other methods, such as
mail or telephone interviews, could not allow the
interviewers to explain the actual issue in detail to
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