WTP Level of Tourists to Cuc Phuong National Park


The disadvantage of this option is that the tourism business department is only a sub-unit in the National Park, while the National Park is a public service unit, leading to limited capital attraction and business organization activities.

NATIONAL PARK MANAGEMENT BOARD


ADMINISTRATIVE ORGANIZATION DEPARTMENT


SCIENCE DEPARTMENT

& International


ROOM

K. FINANCIAL PLANNING


FOREST RANGER


CONSERVATION RESCUE CENTER

HDQH Delegation


ENVIRONMENTAL EDUCATION AND ECOLOGY SERVICES COMPANY LIMITED


Diagram 4.3: Proposed model of national park organization - Option 1


- Option 2Establishment of a limited liability company for special-use forest management (National Park Management Company Limited...), the company's field of operation will include two parts: Public service activities are forest protection, ecosystem conservation and biodiversity and ecotourism business activities according to the Enterprise Law.

The advantage of this option is that the Company is proactive in tourism business, proactively calling for investment, exploiting tourism potential to create diverse sources of income for the National Park but at the same time still ensuring biodiversity conservation.

Disadvantages: However, according to this plan, there must be strict regulations and a clear distinction between the purposes of public activities and business activities, otherwise it will be deviated and affect biodiversity conservation.


1TV LLC

National Park

Functional Departments of Management and Conservation

Tourism and Education Business Departments


Diagram 4.4: Proposed model of national park organization - option 2


Regarding the operating mechanism: Although the National Parks can reorganize the model according to the 2 proposed options, in the period from now to 2020 to ensure the conservation of biodiversity, the construction and restoration of ecosystems, option 1 is relatively suitable according to current legal regulations.

National Parks are still established as a Management Board and in the organizational model of the National Park, there are two distinct areas of activity: conservation activities and ecotourism business activities. Conservation activities can establish functional departments such as forest rangers, science and international cooperation departments, conservation and rescue centers, etc. Ecotourism business activities are established as LLCs.

With the selected organizational model, the National Park is a revenue-generating public service unit, ensuring two main activities: public service activities through the management and conservation of biodiversity and ecosystems, and profitable business activities, which are ecotourism business activities.

The financial mechanism for the National Park needs to be clearly divided according to Decree 4/2006/ND-CP dated April 25, 2006 of the Government on Regulations on autonomy and self-responsibility for performing tasks, organizing apparatus, staffing and finance for public service units. Circular 71/2006/TT-BTC, dated April 9, 2006 of the Government on Regulations on autonomy and self-responsibility for performing tasks, organizing apparatus, staffing and finance for public service units.

2006 of the Ministry of Finance guiding the implementation of Decree No. 4/2006/ND-CP


dated April 25, 2006 of the Government regulating the right to autonomy and self-responsibility for performing tasks, organizing apparatus, staffing and finance for public service units. The financial mechanism for public service activities is taken from the state budget and paid by the state budget according to current regulations. The financial mechanism for LLCs doing ecotourism business is applied according to the Enterprise Law.

With the organizational model of the National Park as chosen to apply Decree 43, the National Park is a unit with a source of revenue that covers part of its regular operating costs, the rest is provided by the state budget (the public service unit covers part of its operating costs); The public service unit with service activities is allowed to borrow capital from credit institutions, mobilize capital from officers and civil servants in the unit to invest in expanding and improving the quality of public service activities, organize service activities in accordance with its functions and tasks, and is responsible for repaying loans according to the provisions of law.

The business results of the ecotourism business LLC after fully contributing to the state budget are set aside into 3 funds: Career development fund, Reward and welfare fund and Income stabilization reserve fund. The National Park uses these funds to encourage cadres, civil servants and employees to uphold their sense of responsibility, improve their lives to perform well their assigned functions and tasks...

Regarding labor, the National Park is proactive in planning and hiring labor according to the needs of the park's activities and the ecotourism business company.

Solutions for generating revenue for the National Park

Currently, the operating budget for national parks is mainly provided from the State budget. However, with the characteristics of resources and the role of national parks, the revenue sources for national park operations that can be exploited include: Entrance fees, environmental rental fees, resource usage fees, etc.

According to the results of activities at the National Parks, the main source of revenue from tourism activities at the National Parks is the entrance fee. Ecotourism activities at the National Parks are to create more revenue for the National Parks, but


At the same time, in order not to reduce the number of tourists coming to the National Park, determining an appropriate fee is very important. In this thesis, determining the entrance fee for visitors to the National Park is based on the method of estimating the demand curve of visitors' willingness to pay each time they visit the National Park to analyze the factors affecting the number of visitors to the National Park, thereby proposing an appropriate price.

The thesis uses data collected from interviews with domestic tourists visiting Cuc Phuong National Park and SPSS software for estimation.

● Estimate the willingness-to-pay demand curve

- Let p be the entrance fee (assumed), q is the number of tourists, calculated as a ratio

% of tourists willing to pay the corresponding entrance fees, depicted on the graph, shows the p, q relationship as shown below

Combining the above graph and reference documents, the exponential function form is chosen as the basis for estimating the demand curve regression:

q ce kp

Where c and k are model parameters ( c,k are positive numbers), e is the base of the natural logarithm (Euler's number).

Convert to linear form:

ln q ln c kp

Using the least squares method, the estimated result of the above regression function is as follows:

lnq = 3.4612 – 0.0074 wtp

(0.1094) (0.0022)

R 2 = 0.0534

(The numbers in parentheses are t-test values: The regression coefficients are all statistically significant at the 9% confidence level)

With the above estimated results, the price elasticity of demand at the current price (VND 20,000/person) in 2011 is:




0

5

10

qtl

15

20

100

150

200

50

0

Figure 4.1: WTP demand curve of tourists to Cuc Phuong National Park


Thus, if the ticket price increases to 1,000 VND, the quantity demanded will only decrease by 0.14% (the demand curve is very inelastic). This result shows that increasing the entrance fee does not significantly affect the number of visitors and therefore increasing the ticket price will increase the garden's revenue.

From the demand curve estimates, it can be deduced that the revenue-maximizing admission price (from admission tickets) is the price at which the price elasticity of demand is -1.

The revenue maximizing price will be:


(thousand dong)


The above price only takes into account the revenue from entrance tickets. If we assume that the goal of setting entrance prices is to maximize the revenue of the National Park, we must take into account the decrease in revenue from food and accommodation services when the ticket price increases. Therefore, the price that minimizes


The total revenue from tourists (including entrance fees and revenue from other services) must be at a price lower than the calculated level (VND 1,000) mentioned above.

● Factors affecting tourists' willingness to pay:

To provide additional information for analysis and forecasting when determining admission prices, quantify factors affecting visitors' willingness to pay with the main purpose of examining the impact of income on willingness to pay using regression functions. (Appendix 0)

Thus, in the independent variables income, there is statistical significance (with a 9% confidence level), which shows that when income changes by 1%, the willingness to pay for admission ticket prices will increase by 0.4423%.

However, the willingness to pay for entrance tickets may also depend on age and gender, so we can examine this dependence by regression function, showing that among the independent variables including income, age and gender, only the income variable is statistically significant (with a 9% confidence level). The estimated results from the survey sample show that, under other conditions being equal, if the average income of tourists increases by 1%, the willingness to pay for entrance tickets increases by approximately 0.411%.

From the survey data, it shows that out of 210 tourists interviewed with the question: " Are you willing to pay an extra amount for each trip to the National Park? ", only 2 (11.9%) tourists answered no, the remaining 1 (.1%) tourists agreed to pay extra for each trip to Cuc Phuong National Park. Out of 1 tourist who agreed to pay extra for each visit to the National Park, the willingness to pay extra was mostly less than 0,000 VND and the average willingness to pay extra for the entrance ticket to the National Park was about 26,000 VND.

From the survey data, it shows that out of 210 tourists interviewed with the question: " Are you willing to pay an extra amount of money for each trip to the National Park? ", only 2 (11.9%) tourists answered no, the remaining 1 (.1%) tourists agreed to pay extra money for each trip to Cuc Phuong National Park. Out of 1 tourist who agreed to pay extra money for each visit to the National Park, the willingness to pay extra was mainly


is less than 0,000 VND and the average willingness to pay extra for the entrance ticket to the national park is about 26,000 VND.


Table 4.1: Willingness to pay additional entrance fee to Cuc Phuong National Park



TT

Willingness to pay more

Number of people interviewed

Proportion

1

0

25

11.9

2

5,000 - 10,000

35

16.7

3

15,000 – 20,000

52

24.8

4

25,000 -30,000

36

17.1

5

35,000 - 40,000

21

10.0

6

45,000 - 50,000

39

18.6

7

> 50,000

2

1.0


Total

210

100.0

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WTP Level of Tourists to Cuc Phuong National Park

Source: compiled from survey results


From the research results on the willingness to pay of visitors to Cuc Phuong National Park and the current ticket price that the park is applying, the entrance ticket price for the National Park should be set at a ticket level greater than 46,000 VND and less than 1,000 VND.



Box 4.1. The contribution of entrance fees to protected areas - Studies from Zimbabwe, India and Indonesia


A study conducted by the International Institute for Environment and Development assessed the current and potential contribution of tourism in three national parks: Zimbabwe's Gonarezhou, India's Keoladeo and Indonesia's Komodo.

Although in the above cases tourism is the largest source of revenue, the actual financial contribution of national park entrance fees is minimal.



and in two of the three national parks the net contribution is negative. Government funding is a de facto tourism subsidy. Since entrance fees account for a significant portion of tourism revenues, this study recommends increasing entrance fees to ensure that they cover tourism costs and contribute to conservation. Surveys at Keoladeo National Park indicate that visitors are in fact willing to pay more and the study recommends increasing entrance fees as the best management option.

Tourism can contribute to conservation in protected areas, but it needs to be managed effectively. This study shows that economic impacts can also be assessed to identify opportunities for greater benefits.


(Megan Epler Wood,2002) [59]


In addition to capital from the State budget and local revenue at the National Park, the National Parks can:

- Seek financial support from domestic and foreign organizations for nature conservation and ecotourism development.

- Borrowing capital from banks to invest and develop tourism,

To ensure convenient conditions for welcoming guests to the National Park and creating conditions for visitors to feel right from the moment they arrive, the National Park needs to:

- Build a reception area system right at the entrance such as: rest houses for tourists, exhibition rooms for preserved artifacts, etc.

- Renovate and upgrade some old roads, open some roads through the forest with materials close to nature,

- Build rest houses on some routes.


Solutions for building ecotourism business policies for national parks

Market solution: Based on analysis, the target customers of the National Park are students, university students and researchers; and self-guided visitors.

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