Price Responsiveness in the Developing Country Nature Tourism Context: Review and Costa Rican Case Study

Abstract

Research on user fees recently has increased in the US in response to legislative changes expanding imposition of such fees. Parallel developments have occurred in developing countries, though much of the research has focused on valuation rather than price responsiveness per se. This article reviews estimates of willingness-to-pay, revenue maximizing fees, and price elasticities in developing countries. It then uses actual price and visitation data to estimate price elasticities for three national parks in Costa Rica. Based on a $1 increase from a $5 fee, estimated elasticities for Poás, Irazú, and Manuel Antonio are, respectively, -0.051, -0.296, and -0.238. These estimates are substantially different from those based on a recent stated preference study at the same parks.

KEYWORDS:

• Fees
• price elasticity
• developing countries