The Economic Benefit of National Park

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The Economic Benefit of National Park

• Yann-Jou Lin, Bau-Show Lin, Ting-Ju Lin,
  Wen-Chin Huang
• Professor, Dept. of Horticulture Science,
  National Taiwan University
• 2007/01/20

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Introduction

• As with most National Parks of the world,
  National Parks in Taiwan are established for the
  purposes of (1) protecting the natural and
  cultural resources of the nation and (2)
  providing quality recreational opportunities.

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Total value of National Park
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• The total economic value of National Park
  includes market and non-market values, and the
  economic valuation is more than financial
  benefit.

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Economic valuation

• Economic benefit evaluation
• Contingent Valuation
• Hedonic Pricing
• Travel Cost Method
• Damage Function
• Opportunity Cost
• Benefit Transfer
• Economic impact assessment
• Input-Output Analysis
• Money Generation Model

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Case study of Taroko National Park

• The total economic value of Taroko National Park
• The economic impact of visitors expenditures on
  Taroko National Park.

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Taroko National Park
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Taroko National Park

• Taroko National Park is famous for its beautiful
  marble gorge, ecological resources, and
  aboriginal culture.
• The various values are associated with Taroko
  National Park.

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• The total economic value of Taroko National Park

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Methods

• Contingent valuation method was used to measure
  the total economic value of Taroko National Park.
  
• According to the average household income level,
  this study chose Taipei and Hualien as sampling
  sites.
• Visitors were sampled too at visitor center of
  Taroko National Park.

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Taroko National Park Species Conservation Program

• In the view of conservation goal of Taroko NP and
  motivation that people want to get close to
  nature, we hypothesized that people will more
  easy to encounter hot species by conducting
  Taroko National Park Species Conservation
  Program.
• This study used a payment card as the elicitation
  method and donation as the payment vehicle.

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The willingness to pay question

• Following a description of the Taroko National
  Park Species Conservation Program, respondents
  were asked what is the most they would be willing
  to donate if they were asked to make a donation
  to Taroko National Park Species Conservation
  Program
• The reasons that respondents are willing /or not
  willing to donate were also asked.

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• Face to face interview was conducted during
  20/07/200501/08/2005, and got 930 respondents.
• Protest respondents (n47) were selected based
  on the reasons they were not willing to donate.
• Government should pay the money.
• I do not believe the money would be used as
  described.
• I can not afford to donate at this time.
• After removing protest respondents, 883
  respondents were used to evaluate the total
  economics value of Taroko National Park by
  interval model.

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• WTPmean exp (3.9150.149Concern-0.026Nap10.179Na
  p2-0.125Nap30.167 Nap4-0.163Nap5-0.021Nap60.492D
  onate-0.040Volunteer-0.487Age2-0.971Age30.266Educ
  ation0.365Income0.197Nep20.443 Nep3 sigma2
  /2)

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The total economic value of Taroko National Park
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• Economic impacts of Taroko National Park

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Economic impacts of tourism

• Direct effect
• The money received directly from tourists.
• Secondary effect
• The initial effects of expenditures generates
  income and there will be secondary effects as
  that income generates further expenditure.

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Methods

• Input-output analysis
• Following the pioneering work of Wasily W.
  Leontief, input-output models deal with
  interindustrial dependence within the economy.
• I-O Table ( Transactions Table )
• Input-output coefficient table
• Impact Coefficients Table
• The impact coefficients table is also known as
  the Leontief Inverse or Interindustry
  Interdependence Coefficients Matrix.
• Input-output analysis is used to estimate the
  economic impact of tourism on Taroko National
  Park.

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• The tourists visiting Taroko National Park were
  chosen as sample.
• The survey was conducted on-site with tourists at
  three major scenic spots of Taroko National Park
  in August 2006.
• The questionnaire was designed to classify
  tourist two categories individual and group.
  Respondents were asked to state per capita
  expenditure in terms of accommodation,
  transportation, food and beverage, entertainment,
  and miscellaneous items.

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Results

• Direct effect
• The expenditure of tourists

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• The Leontief inverse matrix represents the direct
  and secondary effects throughout the economy
  resulting from one unit change in final demand.
• The input-output transaction table is obtained
  from the report of 2001 Input-Output Tables,
  Taiwan Area, The Republic of China. The 4949
  sectors from the transaction tables were
  aggregated into a 3030 sector matrix. In this
  matrix tourism-related sectors included
  transportation , retail trade , food and hotel
  services , and recreation services.

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Total Impact- Individual Traveler
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Total Impact- Group Traveler
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Income Effect- Individual Traveler
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Income Effect- Group Traveler
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Economic impacts of Taroko National Park

• The results showed that average expenditures in
  Hualien are 1,961 NTD and 7,038 NTD respectively
  for every individual traveler and group traveler.
  On average, each individual traveler bring 2,913
  NTD and each group traveler bring 10,783 NTD
  economic impact to the local economy.
• As the result, tourists of Taroko National park
  in 2006 bring 4.95 billion NTD economic impacts
  to Hualien.
• Total tourist expenditures also generate 1.91
  billion NTD income effect to Hualien.

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• Conclusion

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Conclusion

• The total economic value of Taroko National Park
  is 8.83 billion NTD annually. It reveals that
  Taroko National park is valuable for people.
• The direct use of Taroko National Park brings
  4.95 billion NTD, and generates 1.91 billion NTD
  income effects.