An economic valuation of the coral reefs at Phi Phi Island : a travel cost approach

The purpose of this study was to estimate the recreational value of the coral reefs at Phi Phi Islands in Thailand. The thesis is based on economic theory. The travel cost method was used to fulfill the purpose of the study. Data about number of visits, travel costs, income and personal interests was collected through surveys. 100 interviews were conducted at Phi Phi Island. The data was used in a regression model to explain the relationship between the independent variables and the dependent variable, the number of visits to the coral reefs. The estimated demand function was then used to estimate the aggregated consumer surplus for the coral reefs at Phi Phi Islands. The calculated consumer surplus was estimated to US$ 110 millions if 75 percent of the visitors to Phi Phi Islands are assumed to visit the coral reefs. The economic value of conserving the coral reefs is therefore, according to this study, US$ 110 millions. However, when making policy-decisions whether to conserve or to develop, it has to be kept in mind that the travel cost method only captures the recreational value of the site, leaving other important values, such as the option and existence values, out. The total value of the coral reefs at Phi Phi Island is therefore likely to be larger than the estimated value in this study.Validerat; 20101217 (root