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

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.

[img] PDF (Published Version) - Published Version
Restricted to Repository staff only

View at Publisher Website: http://dx.doi.org/10.5367/te.2014.0433
 
9


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 (Refereed Research - C1)
Keywords: business and non-business visitors, visitor expenditure, Great Barrier Reef, hypothetical response bias, environmental degradation
ISSN: 2044-0375
Funders: National Environmental Research Program Tropical Ecosystems Hub
Date Deposited: 23 Jan 2015 03:51
FoR Codes: 14 ECONOMICS > 1402 Applied Economics > 140216 Tourism Economics @ 100%
SEO Codes: 90 COMMERCIAL SERVICES AND TOURISM > 9003 Tourism > 900301 Economic Issues in Tourism @ 100%
Downloads: Total: 9
More Statistics

Actions (Repository Staff Only)

Item Control Page Item Control Page