Asia-Pacific Journal of Business (아태비즈니스연구)

KNU The Institute of Management & Economy Research (강원대학교 경영경제연구소)
권호 표지
DOI QR코드

DOI QR Code

A Study on the Estimation of the Value of Tourists' WTP by Payment Method: Focusing on the Gangwon State

  • Hee-Won Yang (Department of Innovative Growth Research, Research Institute for Gangwon) ;
  • Chang-Young Jeon (Department of Tourism Administration, Kangwon National University) ;
  • O-Young Kwon (Department of Decentralization Research, Research Institute for Gangwon)
  • Received : 2023.08.31
  • Accepted : 2023.09.21
  • Published : 2023.09.30
Download PDF
⟨ Previous Next ⟩

Abstract

Purpose - This study estimated the value of tourists' willingness to pay (WTP) to develop and promote regional tourism and minimize external effects using the contingent valuation method (CVM). Design/methodology/approach - To reduce exaggeration bias, a major issue of CVM, a pilot survey was conducted to categorize bid value. Additionally, the payment method was divided into a tourism fund and tourism taxes, and the respondents' answers were reaffirmed in two stages. Findings - As a result of the analysis, the tourists' WTP was estimated to be 5,132 KRW (3.60 USD) for the tourism fund and 1,036 KRW (0.73 USD) for tourism taxes. Research implications or Originality - The results of this study provide implications for securing financial resources and establishing policies in Gangwon province, which promotes special self-governing.

Keywords

References

  1. Afthanorhan, A., Awang, Z., & Fazella, S (2017). Perception of tourism impact and support tourism development in Terengganu, Malaysia. Social Sciences, 6(3), 106.
  2. Andersson, T. D., & Lundberg, E. (2013). Commensurability and sustainability: Triple impact assessments of a tourism event. Tourism Management, 37, 99-109. https://doi.org/10.1016/j.tourman.2012.12.015
  3. Armbrecht, J (2014). Use value of cultural experiences: A comparison of contingent valuation and travel cost. Tourism Management, 42, 141-148. https://doi.org/10.1016/j.tourman.2013.11.010
  4. Broberg, T (2010). Income treatment effects in contingent valuation: The case of the Swedish predator policy. Environmental and Resource Economics, 46(1), 1-17. https://doi.org/10.1007/s10640-009-9330-4
  5. Brunt, P., & Courtney, P (1999). Host perceptions of sociocultural impacts. Annals of Tourism Research, 26(3), 493-515. https://doi.org/10.1016/S0160-7383(99)00003-1
  6. Calero, C., & Turner, L. W (2020). Regional economic development and tourism: A literature review to highlight future directions for regional tourism research. Tourism Economics, 26(1), 3-26. https://doi.org/10.1177/1354816619881244
  7. Carson, R. T., & Hanemann, W. M (2005). Chapter 17 Contingent valuation. In; Valuing Environmental Changes K.-G. Maler & J. Vincent (Eds.); Elsevier B.B, 2, 821-936.
  8. Choi, Y., Lee, W. S., Lee, C. K., & Dattilo, J (2015). Valuation of mudflats in nature-based tourism: Inclusion of perceived value of festival experiences. Tourism Economics, 21(4), 833-851. https://doi.org/10.5367/te.2014.0370
  9. Choi, Yj, Lee, W. S., Moon, J., & Kim, K. B (2021). The value of preserving endangered folk games using the contingent valuation method. Current Issues in Tourism, 24(9), 1319-1330. https://doi.org/10.1080/13683500.2020.1800602
  10. Chou, M. C (2013). Does tourism development promote economic growth in transition countries? A panel data analysis. Economic Modelling, 33, 226-232. https://doi.org/10.1016/j.econmod.2013.04.024
  11. Cookson, R (2003). Willingness to pay methods in health care: A sceptical view. Health Economics, 12(11), 891-894. https://doi.org/10.1002/hec.847
  12. Duffield, J. W., & Patterson, D. A (1991). Inference and optimal design for a welfare measure in dichotomous choice contingent valuation. Land Economics, 67(2), 225-239. https://doi.org/10.2307/3146413
  13. Fornell, C., & Larcker, D. F (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39-50. https://doi.org/10.1177/002224378101800104
  14. Forsyth, P., Dwyer, L., Spurr, R., & Pham, T (2014). The impacts of Australia's departure tax: Tourism versus the economy?. Tourism Management, 40, 126-136. https://doi.org/10.1016/j.tourman.2013.05.011
  15. Gooroochurn, N., & Thea Sinclair, M. T (2005). Economics of tourism taxation. Annals of Tourism Research, 32(2), 478-498. https://doi.org/10.1016/j.annals.2004.10.003
  16. Hair, J. F., Jr., Black, W. C., Babin, B. J., & Anderson, R. E (2014). Multivariate data analysis, 10 (pp. 1-292). London: Pearson Education Limited. ISBN.
  17. Hanemann, W. M (1989). Welfare evaluations in contingent valuation experiments with discrete response data: Reply (Reply). American Journal of Agricultural Economics, 71(4), 1057-1061. https://doi.org/10.2307/1242685
  18. Hanemann, W. M (1994). Valuing the environment through contingent valuation. Journal of Economic Perspectives, 8(4), 19-43. https://doi.org/10.1257/jep.8.4.19
  19. Hassan, A. S., & Meyer, D. F (2022). Does countries' environmental, social and governance (ESG) risk rating influence international tourism demand? A case of the Visegrad Four. Journal of Tourism Futures.
  20. Hausman, J (2012). Contingent valuation: From dubious to hopeless. Journal of Economic Perspectives, 26(4), 43-56. https://doi.org/10.1257/jep.26.4.43
  21. Holden, A (2013), Tourism, poverty and development. Hoboken, NJ: Taylor & Francis.
  22. Hwang, Y. T., Moon, J., Lee, W. S., Kim, S. A., & Kim, J. (2020). Evaluation of firefly as a tourist attraction and resource using contingent valuation method based on a new environmental paradigm. Journal of Quality Assurance in Hospitality and Tourism, 21(3), 320-336. https://doi.org/10.1080/1528008X.2019.1663464
  23. Ioannides, D., & Zampoukos, K (2018). Tourism's labour geographies: Bringing tourism into work and work into tourism. Tourism Geographies, 20(1), 1-10. https://doi.org/10.1080/14616688.2017.1409261
  24. Jeon, C. Y., & Yang, H. W (2021). The impact of the covid-19 pandemic on tourists' wtp: Using the contingent valuation method. International Journal of Environmental Research and Public Health, 18(16), 8605.
  25. Ji, S., Choi, Y., Lee, C. K., & Mjelde, J. W. (2018). Comparing willingness-to-pay between residents and non-residents using a contingent valuation method: Case of the Grand Canal in China. Asia Pacific Journal of Tourism Research, 23(1), 79-91 https://doi.org/10.1080/10941665.2017.1399919
  26. Jin, M., Juan, Y., Choi, Y., & Lee, C. K. (2019). Estimating the preservation value of world heritage site using contingent valuation method: The case of the Li River, China. Sustainability, 11(4), 1100.
  27. Jung, K. S (2019). The construction of the Cold War landscape and tourism. Journal of Asian Sociology, 48(3), 287-320.
  28. Kim, H. K (2019). Exploring social innovation and time bank: Focus on the elderly healthcare in the Gangwon Province. Asian Journal of Innovation and Policy, 8(2), 208-237. https://doi.org/10.7545/AJIP.2019.8.2.208
  29. Kim, J. Y., & Lee, J. Y (2013). Development of local cultural resources based on the concept of ecomuseum-Focusing on Cheorwon, Gangwon Province. International Journal of Multimedia and Ubiquitous Engineering, 8(5), 297-302. https://doi.org/10.14257/ijmue.2013.8.5.29
  30. Kim, Y. G., & Li, G (2009). Customer satisfaction with and loyalty towards online travel products: A transaction cost economics perspective. Tourism Economics, 15(4), 825-846. https://doi.org/10.5367/000000009789955125
  31. Kim, Y. G., Woo, E., & Nam, J (2018). Sharing economy perspective on an integrative framework of the NAM and TPB. International Journal of Hospitality Management, 72, 109-117.
  32. Komlos, J (2018). Hollowing out of the middle class: Growth of income and its distribution in the US, 1979-2013. Challenge, 61(4), 303-324. https://doi.org/10.1080/05775132.2018.1524057
  33. Korean Law Information Center (2022). The Special Act on the Establishment of Gangwon Special Self-Governing Province. Retrieved from https://www.law.go.kr.
  34. Kronenberg, K., & Fuchs, M (2021). The socio-economic impact of regional tourism: An occupation-based modelling perspective from Sweden. Journal of Sustainable Tourism, 1-21.
  35. Lacher, R. G., & Oh, C. O (2012). Is tourism a low-income industry? Evidence from three coastal regions. Journal of Travel Research, 51(4), 464-472. https://doi.org/10.1177/0047287511426342
  36. Lee, C. K., & Han, S. Y (2002). Estimating the use and preservation values of national parks' tourism resources using a contingent valuation method. Tourism Management, 23(5), 531-540. https://doi.org/10.1016/S0261-5177(02)00010-9
  37. Lee, C. K., & W. Mjelde, J. W (2007). Valuation of ecotourism resources using a contingent valuation method: The case of the Korean DMZ. Ecological Economics, 63(2-3), 511-520. https://doi.org/10.1016/j.ecolecon.2006.12.011
  38. Lee, J. S (2015). Measuring the benefits of the intangible cultural heritage hall in Jeonju Korea: Results of a contingent valuation survey. Journal of Cultural Heritage, 16(2), 236-238. https://doi.org/10.1016/j.culher.2014.05.001
  39. Leon, C. J., & Arana, J. E (2016). The economic valuation of climate change policies in tourism: Impact of joint valuation, emotions, and information. Journal of Travel Research, 55(3), 283-298. https://doi.org/10.1177/0047287514559034
  40. Li, H., Chen, J. L., Li, G., & Goh, C (2016). Tourism and regional income inequality: Evidence from China. Annals of Tourism Research, 58, 81-99. https://doi.org/10.1016/j.annals.2016.02.001
  41. Mahadevan, R., Amir, H., & Nugroho, A (2017). How pro-poor and income equitable are tourism taxation policies in a developing country? Evidence from a computable general equilibrium model. Journal of Travel Research, 56(3), 334-346. https://doi.org/10.1177/0047287516641781
  42. Manski, C. F (1977). The structure of random utility models. Theory and Decision, 8(3), 229-254. https://doi.org/10.1007/BF00133443
  43. Mason, P., Johnston, M., & Twynam, D. (2000). The world wide fund for nature arctic tourism project. Journal of Sustainable Tourism, 8(4), 305-323. doi:10.1080/09669580008667366.
  44. Ministry of Culture, Sports and Tourism (2021). Korea national tourism survey (pp. 3-6). Seoul, Korea: Korea Culture & Tourism Institute.
  45. Mitchell, R. C., & Carson, R. T (2013). Using surveys to value public goods: The contingent valuation method. New York: Rff Press.
  46. Movono, A., Dahles, H., & Becken, S (2018). Fijian culture and the environment: A focus on the ecological and social interconnectedness of tourism development. Journal of Sustainable Tourism, 26(3), 451-469. https://doi.org/10.1080/09669582.2017.1359280
  47. Nawijn, J., & Mitas, O (2012). Resident attitudes to tourism and their effect on subjective well-being: The case of Palma de Mallorca. Journal of Travel Research, 51(5), 531-541. https://doi.org/10.1177/0047287511426482
  48. Ormond, M., Mun, W. K., & Khoon, C. C (2014). Medical tourism in Malaysia: How can we better identify and manage its advantages and disadvantages?. Global Health Action, 7(1), 25201.
  49. Park, J. H., & MacLachlan, D. L (2008). Estimating willingness to pay with exaggeration bias-corrected contingent valuation method. Marketing Science, 27(4), 691-698. https://doi.org/10.1287/mksc.1070.0321
  50. Ping, R. A (2004). On assuring valid measures for theoretical models using survey data. Journal of Business Research, 57(2), 125-141. https://doi.org/10.1016/S0148-2963(01)00297-1
  51. Portney, P. R (1994). The contingent valuation debate: Why economists should care. Journal of Economic Perspectives, 8(4), 3-17. https://doi.org/10.1257/jep.8.4.3
  52. Pratt, S (2015). Potential economic contribution of regional tourism development in China: A comparative analysis. International Journal of Tourism Research, 17(3), 303-312. https://doi.org/10.1002/jtr.1990
  53. Qiu, R. T. R., Park, J., Li, S., & Song, H (2020). Social costs of tourism during the COVID-19 pandemic. Annals of Tourism Research, 84, 102994.
  54. Rathnayake, R. M. W (2016). Pricing the enjoyment of "elephant watching"at the Minneriya National Park in Sri Lanka: An analysis using CVM. Tourism Management Perspectives, 18, 26-33. https://doi.org/10.1016/j.tmp.2016.01.002
  55. Ruijgrok, E. C. M. (2006). The three economic values of cultural heritage: A case study in the Netherlands. Journal of Cultural Heritage, 7(3), 206-213. https://doi.org/10.1016/j.culher.2006.07.002
  56. Sadiq, M., Adil, M., & Paul, J (2021). An innovation resistance theory perspective on purchase of eco-friendly cosmetics. Journal of Retailing and Consumer Services, 59, 102369.
  57. Seckelmann, A (2002). Domestic tourism-A chance for regional development in Turkey?. Tourism Management, 23(1), 85-92. https://doi.org/10.1016/S0261-5177(01)00066-8
  58. Seetaram, N., Song, H., Ye, S., & Page, S (2018). Estimating willingness to pay air passenger duty. Annals of Tourism Research, 72, 85-97. https://doi.org/10.1016/j.annals.2018.07.001
  59. Stanton, J. M (1998). An empirical assessment of data collection using the Internet. Personnel Psychology, 51(3), 709-725. https://doi.org/10.1111/j.1744-6570.1998.tb00259.x
  60. Uysal, M., & Sirgy, M. J (2019). Quality-of-life indicators as performance measures. Annals of Tourism Research, 76, 291-300. https://doi.org/10.1016/j.annals.2018.12.016
  61. Uysal, M., Sirgy, M. J., Woo, E., & Kim, H. L (2016). Quality of life (QOL) and well-being research in tourism. Tourism Management, 53, 244-261. https://doi.org/10.1016/j.tourman.2015.07.013
  62. Walsh, R. G., Loomis, J. B., & Gillman, R. A (1984). Valuing option, existence, and bequest demands for wilderness. Land Economics, 60(1), 14-29. https://doi.org/10.2307/3146089
  63. Webster, C., & Ivanov, S (2014). Transforming competitiveness into economic benefits: Does tourism stimulate economic growth in more competitive destinations?. Tourism Management, 40, 137-140. https://doi.org/10.1016/j.tourman.2013.06.003
  64. Yang, Y., & Fik, T (2014). Spatial effects in regional tourism growth. Annals of Tourism Research, 46, 144-162. https://doi.org/10.1016/j.annals.2014.03.007
  65. Zhou-Grundy, Y., & Turner, L. W (2014). The challenge of regional tourism demand forecasting: The case of China. Journal of Travel Research, 53(6), 747-759. https://doi.org/10.1177/0047287513516197