Estimating Consumer Surplus and Elasticity of Demand of Tourist Visitation to a Region in North Queensland Using Contingent Valuation

Romy Greiner and John Rolfe
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Romy Greiner: CSIRO Sustainable Ecosystems, Davies Laboratory, PMB Aitkenvale, Townsville, Queensland 4814, Australia
John Rolfe: Central Queensland University, PO Box 197, Emerald, Queensland 4720, Australia

Tourism Economics, 2004, vol. 10, issue 3, 317-328

Abstract: The Daintree Rainforest is a prime attraction for Tropical North Queensland as a tourist destination. Visitation of the rainforest, specifically the Cape Tribulation section, has increased rapidly as impediments to self-drive access have been removed. This paper examines the potential for the local council to manage the volume of self-drive visitation to the Cape Tribulation region by price mechanisms. Access to the region is by river ferry only. The assessment is based on estimates of willingness to pay from a contingent valuation survey of self-drive tourists to the region, from which estimates of consumer surplus and price elasticity of demand are derived. It is concluded that increasing the price for ferry crossings could be an effective and efficient means of (a) reducing traffic volumes caused by self-drive visitors and thereby alleviating traffic-related social and environmental problems, and (b) significantly increasing the resource rent which the municipality can draw from tourism, with additional revenue from the ferry being available for the improved management of this prime tourist destination.

Keywords: contingent valuation; traffic management; recreation use fees; consumer surplus; elasticity of demand; Daintree rainforest (search for similar items in EconPapers)
Date: 2004
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Citations: View citations in EconPapers (12)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:toueco:v:10:y:2004:i:3:p:317-328

DOI: 10.5367/0000000041895076

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