Using Discrete Choice Analysis to Determine Beachgoer Preferences for Beach Management: A South African Case Study

D.E. Lee and M. du Preez

Studies in Economics and Econometrics, 2017, vol. 41, issue 2, 45-68

Abstract: Beaches are areas of high economic value derived largely from high demand for recreational goods and services. These outdoor recreational resources are likely to succumb to considerable health pressures and trade-offs in the allocation of scarce local government level funding. An area of coastline where the recreational experience is being compromised due to high levels of tourist demand is the Nelson Mandela Bay area, South Africa. The primary objective of this paper is to inform policy makers on key public preferences regarding the use of beaches in Nelson Mandela Bay that can be used as inputs to the complex coastal resource allocation process. The application of a choice experiment, based on the concept of random utility theory, revealed that the presence of dogs on beaches and the level of public safety are very important predictors of public choice and should receive immediate attention as far as beach management is concerned.

Date: 2017
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DOI: 10.1080/10800379.2017.12097312

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