Domestic Tourists’ Willingness to Pay for Natural and Cultural Heritage Sites in Pokhara Valley, Nepal
Abstract
This study investigates the willingness to pay of domestic tourists for increased entrance fees at selected tourist sites in the Pokhara Valley, Nepal. The study was based on cross-sectional data collected from 130 domestic tourists visiting three purposively selected fee-paying sites in Pokhara. The survey was conducted by using a quasi-random sampling technique. A structured questionnaire was administered on a rotational basis across the selected sites. A binary logistic regression model was employed to identify the factors influencing domestic tourists’ willingness to pay. The study found that the mean actual fee was Rs 63.3, while the mean WTP was Rs 101, resulting in a mean consumer surplus of Rs 37.7 per visit. Regression results showed that age (45 years and above), monthly family income (Rs. 10,000-20,000 and Rs. 50,000-100,000), and frequency of recreational visits (2-3 times and 5 or more times in the past two years) significantly influenced the willingness to pay of domestic tourists. The relatively inelastic demand for recreational sites suggests that policymakers and site managers have the flexibility to revise and potentially increase entrance fees at key tourist sites in the Pokhara Valley.
Downloads
References
Baral, N., Stern, M. J., & Bhattarai, R. (2008). Contingent valuation of ecotourism in Annapurna conservation area, Nepal: Implications for sustainable park finance and local development. Ecological Economics, 66(2-3), 218-227. https://doi.org/10.1016/j.ecolecon.2008.02.004
Barros, C. P., Botti, L., Peypoch, N., & Solonandrasana, S. (2011). Managerial efficiency and hospitality industry: The Portuguese case. Applied Economics, 43(2), 2895–2905. https://dx.doi.org/10.1080/00036840802600145
Bardecki, M., & Wrobel, C. (2012). Protected Areas in Nepal: The Case for Higher Entry Fees. Economic Journal of Nepal, 35(2), 84–99. Retrieved from https://www.nepjol.info/index.php/EJON/article/view/13418
Belloumi, M. (2010). The relationship between tourism receipts, real effective exchange rate, and economic growth in Tunisia. International Journal of Tourism Research, 12, 550–560. https://dx.doi.org/10.1002/jtr.774
Barnes, J. I. (1999). Tourist Willingness to Pay for Wildlife Viewing and Wildlife Conservation in Namibia. Retrieved from https://citeseerx.ist.psu.edu/document?repid=rep1&type=pdf&doi=de106adb3d0ae77147951373d8977e25e0955bf6
Bhatt, R. (2025). Effectiveness and significance of Nepal tourism years. Brixton Scholarly Review, 2, 113–134. https://doi.org/10.3126/bsr.v2i1.78175
Bhattarai, K. (2019). Consumers’ willingness to pay for organic vegetables: Empirical evidence from Nepal. Economics and Sociology, 12(3), 132-146. https://doi.org/10.14254/2071-789X.2019/12-3/9
Bhattarai, K., & Karmacharya, R. (2022). Impact of tourism on the economic growth of Nepal: Is the tourism-led growth hypothesis valid for Nepal? The Gaze Journal of Tourism and Hospitality, 13(1), 93–110. https://doi.org/10.3126/gaze.v13i1.42081
Bhattarai, K., Pathak, B., & K. C., B. (2017). An analysis of households’ demand for improved solid waste management in Birendranagar Municipality, Nepal. International Journal of Energy Economics and Policy, 7(4), 83-89. https://www.econjournals.com/index.php/ijeep/article/view/5354
Cochran, W. G. (1977). Sampling techniques. John Wiley & Sons.
Duran-Roman, J. L., Cardenas-Garcia, P. J., & Pulido Fernandez, J. J. (2021). Tourists’ willingness to pay to improve sustainability and experience at destination. Journal of Destination Marketing and Management, 19, 1-12. Durán-Román, J. L., Cárdenas-García, P. J., & Pulido-Fernández, J. I. (2021). https://doi.org/10.1016/j.jdmm.2020.100540
Font, X. and Cochrane, J. and Tapper, R. (2004) Tourism for Protected Area Financing: Understanding Tourism Revenues for Effective Management Plans. Retrieved from https://scholar.google.com/
Getzner, M, & Thapa, K. (2015). Preferences of international tourists for conserving ecosystem services at Langtang National Park (Nepal). Environment and Natural Resources Research, 5(2), 66-80. Retrieved from https://www.researchgate.net/publication/277619752_Preferences_of_InternatioPulido-Fernannal_Tourists_for_Conserving_Ecosystem_Services_at_Langtang_National_Park_Nepal
Jurado-Rivas, C. & Sánchez-Rivero, M. (2019). Willingness to pay for more sustainable tourism destinations in world heritage cities: The case of Caceres, Spain. Sustainability, 11, 58-80. https://doi.org/10.3390/su11215880
Khan, H., Ali, F., Khan, H., Shah, M., & Shoukat, S. (2014). Estimating willingness to pay for recreational services of two public parks in Peshawar, Pakistan. Economics, 5(2), 21-26. Retrieved from https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/5676/ee_2014_01_Khan.pdf
Moran, D. (1994). Contingent valuation and biodiversity: Measuring the user surplus of Kenyan protected areas. Biodiversity and Conservation, 3, 663–684. Retrieved from https://link.springer.com/article/10.1007/BF00126859
Parajuli, B.K. & Paudel, Y.R. (2014). Impact of “Nepal Tourism Year 2011” on Tourist Arrival in Pokhara. Himalayan Journal of Sociology and Anthropology, 6, 22–50. https://doi.org/10.3126/hjsa.v6i0.10687
Pedroso, R. & Kugnu, J. (2019). Tourists’ willingness to pay for upstream restoration and conservation measures. Journal of Sustainable Tourism, 27(8), 1107–1124. https://doi.org/10.1080/09669582.2019.1593991
Saleh, A. S., Assaf, A. G., Ihalanayake, R., & Lung, S. (2015). A panel cointegration analysis of the impact of tourism on economic growth: Evidence from the Middle East region. International Journal of Tourism Research, 17, 209-220. https://doi.org/10.1002/jtr.1976
Thapa, A. K. (2013). Recreational Demand for Fewa Lake: An Application of Travel Cost Method. Economic Literature, XI, 49-54. https://doi.org/10.3126/el.v11i0.14867
Witt, G. (2019). Tourists’ willingness to pay increased entrance fees at Mexican protected areas: A multi-site contingent valuation study. Sustainability, 11, 1–22. https://doi.org/10.3390/su11113041
This work is licensed under a Creative Commons Attribution 4.0 International License.
