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

Figures & data

Table 1. Summary statistics of variables used in the econometric model (n = 300).

Variable Description	Mean	SD	Min	Max
Number of recreation days spent at KNP on current trip (RDAYS)	3.23	3.04	1	27
Total trip cost including travel in US$	4 207	2 399	980	25 200
Round-trip travel cost in US$	1 584	898	335	8 500
Round-trip travel cost per day in US$ (travcost) $\left(\phi =1/3\right)$	430	431	38	2 988
On-site expenses per day in US$ (expenses) $\left(\phi =1/3\right)$	705	505	179	3 305
Round-trip travel cost per day in US$ (travcost) $\left(\phi =3/4\right)$	525	504	46	3 372
On-site expenses per day in US$ (expenses) $\left(\phi =3/4\right)$	929	507	314	3 437
Age^a	41	16	16	81
Mid-point of household income brackets in US$ (income)	96 917	57 912	25 000	250 000
Accompanying household members (party size)	1.73	1.67	0	8

US$ – United States Dollars.

^aIt can be argued that adults are more realistic in their personal valuations of their recreational experiences given their budget constraints, because only adults have income. However, we believe that children also have preferences for recreational value. Navrud and Mungatana (1994) argue that excluding children would result in underestimation of the recreational value of the park.

Table 2. Negative Binomial Estimates.

	(I)	(II)	(III)	(IV)
	TSNB	GTSNB	TSNB	GTSNB
Travcost	–2.181***	–2.221***	–2.037***	–2.079***
	(0.337)	(0.341)	(0.293)	(0.304)
Expenses	–0.328*	–0.301	–0.160	–0.126
	(0.199)	(0.197)	(0.171)	(0.173)
Age	–0.011	–0.012	–0.009	–0.010
	(0.017)	(0.017)	(0.016)	(0.016)
Age squared	0.0002	0.0002	0.0002	0.0002
	(0.000)	(0.000)	(0.000)	(0.000)
Gender (1 if male)	–0.198*	–0.143	–0.199*	–0.154
	(0.112)	(0.131)	(0.111)	(0.129)
Income	0.183**	0.236**	0.167**	0.216**
	(0.085)	(0.116)	(0.084)	(0.105)
College certificate/diploma	–0.051	–0.064	–0.048	–0.058
	(0.153)	(0.155)	(0.148)	(0.149)
Undergraduate degree	0.023	0.019	0.037	0.032
	(0.152)	(0.156)	(0.150)	(0.153)
Postgraduate degree	–0.038	–0.064	–0.026	–0.050
	(0.161)	(0.166)	(0.158)	(0.162)
Wildlife interest: interested	–0.029	–0.048	–0.034	–0.056
	(0.168)	(0.166)	(0.167)	(0.166)
Wildlife interest: greatly interested	0.205	0.189	0.196	0.179
	(0.155)	(0.157)	(0.153)	(0.156)
Satisfaction: better than expected	0.001	0.001	0.007	0.006
	(0.119)	(0.120)	(0.116)	(0.117)
Satisfaction: much better than expected	0.317**	0.319**	0.325**	0.325**
	(0.141)	(0.144)	(0.138)	(0.141)
Package (1 if on tour package)	–0.539***	–0.528***	–0.533***	–0.523***
	(0.111)	(0.109)	(0.107)	(0.106)
Party size	–0.071***	–0.075***	–0.069***	–0.073***
	(0.027)	(0.028)	(0.026)	(0.027)
Constant	1.662***	1.686***	1.684***	1.720***
	(0.409)	(0.454)	(0.405)	(0.443)
α	0.158***		0.150***
	(0.057)		(0.054)
Age		0.021		0.023
		(0.023)		(0.025)
Gender		–0.442		–0.400
		(0.876)		(0.882)
Income		–0.374		–0.358
		(0.746)		(0.680)
Constant		–2.248		–2.437
		(1.822)		(1.915)
AIC	1000	1005	995	1000
BIC	1063	1079	1058	1074
Chi-squared	189	168	191	178
Log lik.	–483	–483	–481	–480
Observations	300	300	300	300

Note: Dependent variable is RDAYS. TSNB – Truncated and endogenously stratified negative binomial, GTSNB –Generalized truncated and endogenously stratified negative binomial. The parameter $\alpha$ shows the presence of overdispersion. Columns I and II show results when the opportunity cost of recreation time is taken as 1/3 while columns III and IV use 3/4. Robust standard errors in parentheses. *, ** and *** denote significance at 10%, 5% and 1% level, respectively. The variable income is divided by 100 000 while the variables travcost and expenses are divided by 1000 to avoid too many zeros on the regression coefficients.

Table 3. Negative Binomial Estimates.

	(I)	(II)	(III)	(IV)
	TSNB	GTSNB	TSNB	GTSNB
TCOST	–1.02***	–1.01***	–0.92***	–0.92***
	(0.147)	(0.150)	(0.117)	(0.120)
Age	–0.010	–0.0094	–0.0058	–0.0039
	(0.017)	(0.017)	(0.017)	(0.018)
Age squared	0.00018	0.00017	0.00011	0.000099
	(0.000)	(0.000)	(0.000)	(0.000)
Gender (1 if male)	–0.16	–0.066	–0.15	–0.048
	(0.113)	(0.142)	(0.113)	(0.139)
Income	0.23**	0.29**	0.23**	0.27**
	(0.093)	(0.130)	(0.095)	(0.123)
College certificate/diploma	–0.075	–0.090	–0.085	–0.095
	(0.166)	(0.168)	(0.165)	(0.167)
Undergraduate degree	–0.055	–0.049	–0.066	–0.052
	(0.160)	(0.161)	(0.160)	(0.161)
Postgraduate degree	–0.11	–0.14	–0.13	–0.15
	(0.171)	(0.173)	(0.170)	(0.171)
Wildlife interest: interested	0.059	0.056	0.076	0.075
	(0.170)	(0.167)	(0.171)	(0.170)
Wildlife interest: greatly interested	0.31*	0.30*	0.33**	0.32**
	(0.161)	(0.161)	(0.161)	(0.161)
Satisfaction: better than expected	–0.0069	–0.0027	0.000085	0.0053
	(0.129)	(0.127)	(0.129)	(0.127)
Satisfaction: much better than expected	0.26*	0.27*	0.25*	0.27*
	(0.152)	(0.150)	(0.152)	(0.150)
Package (1 if on tour package)	–0.52***	–0.51***	–0.50***	–0.50***
	(0.115)	(0.113)	(0.115)	(0.112)
Party size	–0.064**	–0.065**	–0.063**	–0.062**
	(0.030)	(0.031)	(0.030)	(0.031)
Constant	1.57***	1.46***	1.69***	1.53***
	(0.426)	(0.493)	(0.431)	(0.503)
α	0.181***		0.192***
	(0.059)		(0.060)	0.0021
Age		0.0044
		(0.019)		(0.019)
Gender		–0.58		–0.59
		(0.823)		(0.783)
Income		–0.36		–0.23
		(0.763)		(0.707)
Constant		–1.27		–1.05
		(1.464)		(1.365)
AIC	1017.2	1022.3	1018.3	1023.5
BIC	1076.4	1092.7	1077.6	1093.8
Chi–squared	175.4	144.8	179.2	148.4
Log lik.	–492.6	–492.2	–493.2	–492.7
Observations	300	300	300	300

Note. Dependent variable is RDAYS. TSNB – Truncated and endogenously stratified negative binomial, GTSNB – Generalized truncated and endogenously stratified negative binomial. The parameter α shows the presence of overdispersion. Columns I and II show results when the opportunity cost of recreation time is taken as 1/3 while columns III and IV use 3/4. Robust standard errors in parentheses. *, ** and *** denote significance at 10%, 5% and 1% level, respectively. The variable income is divided by 100 000 while the variable TCOST are divided by 1 000 to avoid too many zeros on the regression coefficients.

Table 4. Consumer surplus (US$) per day estimated from recreation-demand models.

	$\phi =1/3$			$\phi =3/4$
Model	Mean CS	Lower 95% CI	Upper 95% CI	Mean CS	Lower 95% CI	Upper 95% CI
TSNB	459	352	658	491	383	684
GTNSB	450	346	644	481	374	674
Access value (Millions US$)	536	412	767	573	445	803

US$ – United States Dollars.

Note. This table presents the consumer surplus (CS) when the opportunity cost of recreation time is taken to be either 1/3 or 3/4. The 95% confidence intervals (CI) are also presented and are calculated as $1/\left[{\widehat{\text{β}}}_{tc}\pm 1.96\left(se\right)\right]$. The table also presents the access value for the preferred generalized truncated and endogenously stratified negative binomial models. TSNB – Truncated and endogenously stratified negative binomial; GTSNB – Generalized truncated and endogenously stratified negative binomial.

Navrud, S., and E. Mungatana. 1994. “Environmental Valuation in Developing Countries: The Recreational Value of Wildlife Viewing.” Ecological Economics 11 (2): 135–151.

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