ECONOMIC VALUATION OF NGORONGORO CONSERVATION AREA: A Travel Cost Approach

Lusajo Mwankemwa

Working Papers from African Economic Research Consortium

Abstract: The purpose of this study is to estimate the recreational value of Ngorongoro Conservation Area (NCA) in Tanzania. To be able to give an estimate of the recreational value an economic valuation technique -the Travel Cost Method (TCM) is applied. The method will give rise to a demand function which can be applied in a regression model to estimate the relationship between the number of visits and the variables like travel cost, individual Income and educational level. This made it possible to derive the consumer surplus which is the value used to represent the recreational value of the NCA. The data used in the study is based on a sample of 240 visitors to the NCA. The study found the annual consumer surplus for NCA in 2008 to be about 507 229 USD (2008 prices) for the whole sample collected from the survey. However, the recreational value of NCA has been estimated to about 169.1 USD per visit. It is also important to note that the estimated value only represents one part of total economic value (recreational use value); the other values of the site's total economic value have not been estimated in this study.

Date: 2009-09-01
Note: African Economic Research Consortium
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