Mustika, Putu Liza Kusuma, Stoeckl, Natalie, and Farr, Marina (2016) The potential implications of environmental deterioration for business and non-business visitor expenditures in a natural setting: a case study of Australia's Great Barrier Reef. Tourism Economics, 22 (3). pp. 484-504.

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Abstract

Nature-based tourism can be an important source of income for regional economies, but relies on a healthy environment. Using data collected from business and non-business visitors to Australia's coast adjacent to the Great Barrier Reef, the authors generate estimates of the potential financial impact of environmental degradation, demonstrating a novel way of testing and controlling for hypothetical response bias. More than 90% of non-business visitors and 67% of business visitors came to the region for at least one nature-related reason. Average daily expenditure was similar for both visitor segments (about $190), but the determinants of expenditure varied. All visitors reacted much more negatively to the prospect of environmental degradation than to a 20% increase in (local) prices, although business visitors were much less responsive than non-business visitors. Adjusting for hypothetical response bias, the authors estimate that substantial environmental degradation could reduce visitor expenditures (and thus local tourism incomes) by at least 17%.

Item ID:	36843
Item Type:	Article (Research - C1)
ISSN:	2044-0375
Keywords:	business and non-business visitors, visitor expenditure, Great Barrier Reef, hypothetical response bias, environmental degradation
Funders:	National Environmental Research Program Tropical Ecosystems Hub
Date Deposited:	23 Jan 2015 03:51
FoR Codes:	38 ECONOMICS > 3801 Applied economics > 380116 Tourism economics @ 100%
SEO Codes:	90 COMMERCIAL SERVICES AND TOURISM > 9003 Tourism > 900301 Economic Issues in Tourism @ 100%
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