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Testing significance of multi-destination and multi-purpose trip effects in a travel cost method demand model for whale watching trips

Testing significance of multi-destination and multi-purpose trip effects in a travel cost method demand model for whale watching trips

Agricultural and Resource Economics Review 29(2): 183-191

A case study of whale watching off the Californian coast (USA, 1993) was used to investigate: the extent of difference in consumer surplus per day by including varying degrees of multi-destination visitors when estimating a negative binomial count data travel cost method (TCM); whether the difference between consumer surplus for primary purpose trips and consumer surplus for all trip purposes is statistically significant by comparing confidence intervals of the estimates; whether the consumer surplus from incorporating multi-destination visitors in the TCM demand specification will allow for calculating a separate but valid measure of consumer surplus for single purpose visitors. The primary purpose trip values from the standard TCM and simple generalized TCM model are identical at $43 per person per day and neither are significantly different from the $50 day value from a generalized model that distinguishes between joint and incidental trips. The general models avoid underestimation of total recreation site benefits that would result from omitting the consumer surplus of multi-destination visitors.

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Accession: 003578211

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DOI: 10.1017/s1068280500005311

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