The potential implications of environmental deterioration for business and non-business visitor expenditures in a natural setting: a case study of Australia's Great Barrier Reef
Journal Publication ResearchOnline@JCUAbstract
Nature-based tourism can be an important source of income for regional economies, but relies on a healthy environment. Using data collected from business and non-business visitors to Australia's coast adjacent to the Great Barrier Reef, the authors generate estimates of the potential financial impact of environmental degradation, demonstrating a novel way of testing and controlling for hypothetical response bias. More than 90% of non-business visitors and 67% of business visitors came to the region for at least one nature-related reason. Average daily expenditure was similar for both visitor segments (about $190), but the determinants of expenditure varied. All visitors reacted much more negatively to the prospect of environmental degradation than to a 20% increase in (local) prices, although business visitors were much less responsive than non-business visitors. Adjusting for hypothetical response bias, the authors estimate that substantial environmental degradation could reduce visitor expenditures (and thus local tourism incomes) by at least 17%.
Journal
Tourism Economics
Publication Name
N/A
Volume
22
ISBN/ISSN
2044-0375
Edition
N/A
Issue
3
Pages Count
21
Location
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Publisher
IP Publishing
Publisher Url
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Publisher Location
N/A
Publish Date
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Url
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Date
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EISSN
N/A
DOI
10.5367/te.2014.0433