Pricing Nature Based Activities at Taman Negara National Parkin Malaysia: A Contingent Valuation Method

Abstract

Taman Negara is the Malaysia's premier national park and the largest in the country covering over 434,300 hectares of primary forest. It is home to much wildlife and is a popular tourist attraction to both local and foreign tourists. This study attempts to determine the economic value of nature based activities provided by Taman Negara National Park by eliciting visitors' willingness to pay (WTP) using contingent valuation method followed by single bounded dichotomous choices. A stepwise backward binary multivariate logistic regression model was used to measure WTP for various nature based services provided by TNNP and to determine the factors that 'influence the variation in WTP. Primary data were obtained from 368 local and foreign visitors which have been interviewed in TN Park. Study found that both local and foreign visitors were willing to pay more than the current charges for entrance permit as well as all services provided by TN Park. This study found evidence that visitors are willing to pay for existing activities such as Canopy walkway, Hide, Camping arid Fishing, as a package whichis RM 52.5($17.5) per person. It is 110% more than the current charges of RM 25($8.3). The optimum pricing strategy should be a combination of policy objectives and information gathered from local and foreign visitors on WTP. In conclusion, the outcome of this study can be used as a tool for revising pricing policies on TN national park in Malaysia.