Essays on the economic value of wildlife-based recreation in developing countries

ESSAYS ON THE ECONOMIC VALUE OF WILDLIFE-BASED RECREATION IN DEVELOPING COUNTRIES By Keneilwe Ruth Kgosikoma Knowledge of the economic value of wildlife species and natural habitats in developing countries is essential for development of environmental policy for efficient pricing and conservation strategies to ensure sustainable use of wildlife resources and maximum returns from investment in the eco-tourism sector. Eco-tourism has the potential to be a major contributor to GDP for many developing countries with abundant wildlife resources. The first essay utilizes primary data obtained from the World Bank and Zambian Central Statistics Office to estimate the mean willingness to pay for entry to parks as they currently exist and entry to parks with improved amenities for four main national parks in Zambia (Mosi-oaTunya, South Luangwa, Lower Zambezi and Kafue) as well as tourists’ perceptions of selected park attributes. An ordered probit model was used to determine the drivers of willingness to pay for park entry fees at the four prominent parks in Zambia. On average, tourists’ willingness to pay for park entry fees given the status quo was estimated at 2005 USD28.42 (2012 USD33.41) and willingness to pay for park entry fees with park improvements was USD35.67 (2012 USD74.93). Both use values are well above the price that tourists paid which is an indication that park management authorities could increase park entry fees and, depending on the costs of improvement, realize positive returns on investments in the parks sector making public funding of parks worthwhile for the Zambian economy. Determinants of willingness to pay for park entry fees included gender and age of the respondent, region of nationality, tourists’ perception of wildlife diversity and congestion levels and the use and socio-economic benefits. Respondents who are retired (age 65 years and above) are less likely to be in the lowest willingness to pay category (0 ≤ WTP < 30), and more likely to be in the highest willingness to pay category (WTP ≥ 50) than respondents aged 18-24. Respondents from Europe and North America were found to be less likely to be in the lowest willingness to pay category as compared to those from Africa, and more likely to be in the high willingness to pay category. Respondents who perceived use and socio-economic benefits as important reasons for wildlife and natural habitat conservation are about 8 to 11 percent less likely to be in the low willingness to pay category, and are more likely to be in the high willingness to pay category by up to 10 percent, compared to those in the base category (non-use benefits). The second essay summarizes the willingness to pay for wildlife-based recreation in Africa and uses MA to explain the source of systematic variation in willingness to pay for wildlife and natural habitats. The mean willingness to pay was estimated as 47.73 in 2012 USD. A number of methodological variables were found to influence systematic variation in willingness to pay for wildlife and natural habitats in Africa. These included the survey method, payment mode, sample size, and the respondent unit. This highlights the importance of methodological variables in MA and the need for prudence in developing and administering contingent valuation method or choice modelling surveys. Overall, the research indicates great potential for developing countries to cash in on wildlife and natural habitats tourism or recreation, with relevant pricing strategies and investment for enhanced tourists’ experienced. Copyright by KENEILWE RUTH KGOSIKOMA 2016