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Samsom Mukanjari

Samson Mukanjari

Associate senior lecturer

Samsom Mukanjari

Recreation demand and pricing policy for international tourists in developing countries : evidence from South Africa

Author

  • Samson Mukanjari
  • Edwin Muchapondwa
  • Eyoual Demeke

Summary, in English

National park agencies in Africa often lack incentives to maximize revenue, despite the decline in conservation subsidies from the State. We explore the potential of pricing policy to generate funds for extensive conservation. We estimate recreation demand by international tourists for a popular South African park, calculate the consumer surplus and find the revenue-maximizing entrance fee. Our results suggest substantial underpricing and therefore significant forgone income. By charging low fees at popular parks despite increasing conservation mandates and declining conservation subsidies, national parks in developing countries are forgoing substantial revenue crucial for combating widespread biodiversity losses.

Publishing year

2021

Language

English

Pages

243-260

Publication/Series

Journal of Environmental Economics and Policy

Volume

10

Issue

3

Document type

Journal article

Publisher

Taylor & Francis

Keywords

  • benefit sharing
  • Entrance fee
  • non-market valuation
  • optimal pricing
  • recreation demand

Status

Published

ISBN/ISSN/Other

  • ISSN: 2160-6544