M6 The Benefits Values of Tourism and Outdoor Recreation

1. M6 The Benefits Values of Tourism and Outdoor Recreation

2. The Benefits Values of TOR • Demand and Participation of TOR • Pm and participation means the TOR contribute the benefits • Same as Pm or consumption of other goods • Individual choose TOR compared to other goods means; TOR provide higher benefits or values than other goods • Individual or users are willing to sacrifice the output from other goods when he/they choose TOR

3. The Benefits Values of TOR • Why the TOR development is based on the subjective benefits? • Interpretation problem of TOR • The problem which related to personal benefits • The problem which related to non-market goods structure of TOR

4. The Benefits Values of TOR • Interpretation problem of TOR • A basic need to fulfill the ‘leisure time’ • Lack of knowledge to convert or express the TOR benefits • Related to the cultural, society and socio-economics; rural vs urban people • Appreciation level of TOR experience, benefits and values; developing and developed counties • TOR Program development & orientation; small scale to international; social development

5. The Benefits Values of TOR • The problem which related to personal benefits • Personal satisfaction; ‘hand on experience; varies among individuals • Personal satisfaction; converted the experience values is not equal to the actual experience (intangible value loss) • Related to physical and social values; more on self development and well being

6. The Benefits Values of TOR • The problem which related to non-market goods structure of TOR • NMG are not exchanged in markets • But clearly provide great value to society • Difficulties to estimates; monetary assessment to policies development • Lack of consideration during policies development and decision making

7. The Benefits Values of TOR • The problem which related to non-market goods structure of TOR • Benefits Assessment; TEV (use value; actual or option and non-use; existence or bequest) • Environmental goods and services (example) • Water supply (watershed protection, erosion) • Waste treatment (pollution controlling) • Recreational activities (ecotourism, sport fishing) • Cultural & heritage (non-commercial uses) • Biological & ecosystem (biodiversity conservation)

8. The Benefits Values of TOR • The benefits of TOR must be measure in economics perspective • Economic studies; human behaviour and choice • Human behaviour; study the human behaviour or attitudes on their choice for a good and after their making choice • Choice; related to subjective evaluation; give a value for the good • Choose TOR means; the TOR has a value • Value of TOR; A willingness to pay to get the satisfaction from the last unit of the good • The benefits of TOR are subjective; objective of the economic valuation is to measure the differences in the subjective benefits • Economic and economic valuation; give a quantitative value; financial value as a measurement

9. The Benefits Values of TOR • The benefits of TOR must be measure in economics perspective;Why should be? • TOR resources • Limited source of inputs (land, forest, air, manpower, water etc) • Source of inputs of TOR also playing a role and important for other development activity (agriculture, housing, industrial, manufacturing, timber etc) • Comparing the limited resources (TOR resource VS other activity); justification of the TOR benefits are requires; measurement the TOR benefits are equal to other activity; must be measure in quantitative terms • Development of TOR are require to sacrifice of other development profits; opportunity cost

10. The Benefits Values of TOR • Market goods • The price can be use to determine the value of benefits from the consumption of the good • The point on Pm curve means the maximum satisfaction obtained; views of satisfaction level of willingness to pay for the good • Non-market goods • The area under Pm curve mean the total of satisfaction; ”consumer surplus” • Consumer surplus is a measure of the net benefit to consumer above the price • Example?

11. The Benefits Values of TOR • The benefits or satisfaction of participation in TOR can be obtained into five phases: • Planning • On the way to the destination • Participation at the site • On the way back from the destination • Recall the experiences from the participation

12. The Benefits Values of TOR • Participation and Consumption • Are the participation can be happen if have no demand in TOR facilities and services? • Are the participation can be happen if have no supply in TOR facilities and services? • Why we need to make a difference between participation and consumption from the demand?

13. Participation and Consumption of TOR • Example: • Let say 100 users uses of UPM swimming pool per day; Total annual consumption were 25,500 people (100x255) • Is there show a demand for UPM swimming pool? • The Sri Serdang community used a UPM swimming pool because of that facilities is available in Seri Serdang • The Sg.Besi community are not be able to use a swimming pool because of unavailable that kind of facilities and services in Sg Besi • In reality; both communities have a demand for the swimming pool because if the entrance fee has been change the quantity of visit will be changed

14. Participation and Consumption of TOR • Participation and consumption elaborate an interaction of demand and supply • If the participation only is considered as indicator of Pm the measurement will be; • The additional development will provide at the area which already have the TOR facilities and services • No additional development or development will provide at the area which have no TOR facilities and services; • This situation; imperfect or in-efficient of resources allocation • Participation characteristics • No change in price • A change in consumption is require a change in demand and supply • Participation or consumption function; • = ƒ (P (no change), Pm (determinants), Pn (determinants)