M6 the benefits values of tourism and outdoor recreation
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M6 The Benefits Values of Tourism and Outdoor Recreation. The Benefits Values of TOR. Demand and Participation of TOR Pm and participation means the TOR contribute the benefits Same as Pm or consumption of other goods

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The benefits values of tor
The Benefits Values of TOR

  • Demand and Participation of TOR

    • Pm and participation means the TOR contribute the benefits

    • Same as Pm or consumption of other goods

    • Individual choose TOR compared to other goods means; TOR provide higher benefits or values than other goods

    • Individual or users are willing to sacrifice the output from other goods when he/they choose TOR


M6 the benefits values of tourism and outdoor recreation

The Benefits Values of TOR

  • Why the TOR development is based on the subjective benefits?

    • Interpretation problem of TOR

    • The problem which related to personal benefits

    • The problem which related to non-market goods structure of TOR


M6 the benefits values of tourism and outdoor recreation

The Benefits Values of TOR

  • Interpretation problem of TOR

    • A basic need to fulfill the ‘leisure time’

    • Lack of knowledge to convert or express the TOR benefits

    • Related to the cultural, society and socio-economics; rural vs urban people

    • Appreciation level of TOR experience, benefits and values; developing and developed counties

    • TOR Program development & orientation; small scale to international; social development


M6 the benefits values of tourism and outdoor recreation

The Benefits Values of TOR

  • The problem which related to personal benefits

    • Personal satisfaction; ‘hand on experience; varies among individuals

    • Personal satisfaction; converted the experience values is not equal to the actual experience (intangible value loss)

    • Related to physical and social values; more on self development and well being


M6 the benefits values of tourism and outdoor recreation

The Benefits Values of TOR

  • The problem which related to non-market goods structure of TOR

    • NMG are not exchanged in markets

    • But clearly provide great value to society

    • Difficulties to estimates; monetary assessment to policies development

    • Lack of consideration during policies development and decision making


M6 the benefits values of tourism and outdoor recreation

The Benefits Values of TOR

  • The problem which related to non-market goods structure of TOR

    • Benefits Assessment; TEV (use value; actual or option and non-use; existence or bequest)

    • Environmental goods and services (example)

      • Water supply (watershed protection, erosion)

      • Waste treatment (pollution controlling)

      • Recreational activities (ecotourism, sport fishing)

      • Cultural & heritage (non-commercial uses)

      • Biological & ecosystem (biodiversity conservation)


M6 the benefits values of tourism and outdoor recreation

The Benefits Values of TOR

  • The benefits of TOR must be measure in economics perspective

  • Economic studies; human behaviour and choice

    • Human behaviour; study the human behaviour or attitudes on their choice for a good and after their making choice

    • Choice; related to subjective evaluation; give a value for the good

  • Choose TOR means; the TOR has a value

    • Value of TOR; A willingness to pay to get the satisfaction from the last unit of the good

    • The benefits of TOR are subjective; objective of the economic valuation is to measure the differences in the subjective benefits

    • Economic and economic valuation; give a quantitative value; financial value as a measurement


M6 the benefits values of tourism and outdoor recreation

The Benefits Values of TOR

  • The benefits of TOR must be measure in economics perspective;Why should be?

  • TOR resources

    • Limited source of inputs (land, forest, air, manpower, water etc)

    • Source of inputs of TOR also playing a role and important for other development activity (agriculture, housing, industrial, manufacturing, timber etc)

    • Comparing the limited resources (TOR resource VS other activity); justification of the TOR benefits are requires; measurement the TOR benefits are equal to other activity; must be measure in quantitative terms

    • Development of TOR are require to sacrifice of other development profits; opportunity cost


M6 the benefits values of tourism and outdoor recreation

The Benefits Values of TOR

  • Market goods

    • The price can be use to determine the value of benefits from the consumption of the good

    • The point on Pm curve means the maximum satisfaction obtained; views of satisfaction level of willingness to pay for the good

  • Non-market goods

    • The area under Pm curve mean the total of satisfaction; ”consumer surplus”

    • Consumer surplus is a measure of the net benefit to consumer above the price

    • Example?


M6 the benefits values of tourism and outdoor recreation

The Benefits Values of TOR

  • The benefits or satisfaction of participation in TOR can be obtained into five phases:

    • Planning

    • On the way to the destination

    • Participation at the site

    • On the way back from the destination

    • Recall the experiences from the participation


M6 the benefits values of tourism and outdoor recreation

The Benefits Values of TOR

  • Participation and Consumption

    • Are the participation can be happen if have no demand in TOR facilities and services?

    • Are the participation can be happen if have no supply in TOR facilities and services?

    • Why we need to make a difference between participation and consumption from the demand?


Participation and consumption of tor
Participation and Consumption of TOR

  • Example:

    • Let say 100 users uses of UPM swimming pool per day; Total annual consumption were 25,500 people (100x255)

    • Is there show a demand for UPM swimming pool?

    • The Sri Serdang community used a UPM swimming pool because of that facilities is available in Seri Serdang

    • The Sg.Besi community are not be able to use a swimming pool because of unavailable that kind of facilities and services in Sg Besi

    • In reality; both communities have a demand for the swimming pool because if the entrance fee has been change the quantity of visit will be changed


Participation and consumption of tor1
Participation and Consumption of TOR

  • Participation and consumption elaborate an interaction of demand and supply

  • If the participation only is considered as indicator of Pm the measurement will be;

    • The additional development will provide at the area which already have the TOR facilities and services

    • No additional development or development will provide at the area which have no TOR facilities and services;

    • This situation; imperfect or in-efficient of resources allocation

  • Participation characteristics

    • No change in price

    • A change in consumption is require a change in demand and supply

    • Participation or consumption function;

      • = ƒ (P (no change), Pm (determinants), Pn (determinants)