Publication Code: N66
Environmental Valuation: An Entrance Fee System for National Parks in Thailand
by Adis Israngkura
In this study, the contingent ranking method is used to measure the value of environmental benefits of three recreational areas in northern Thailand: Doi Inthanon national Park, Doi Suthep and Mae Sa Waterfall. These recreational values are then used to determine new entrance fees for these recreational areas.
The study finds that it is easier for respondents to indicate their preferences in the contingent ranking format than in the open-ended Willingness-To-Pay (WTP) format. The parameter estimates from the indirect utility function are used to calculate the welfare gains derived from visiting these recreational areas. These welfare gains are then used to determine the entrance fees.
The study recommends that the entrance fee for Doi Inthanon National Park be increased from 5 baht (US12 cent) per person to 40 baht (US$1) per person. This would increase park revenue from 5 million baht (US$125,000) per year to 40 million baht (US$1 million) per year. Additional user charges should be applied at environmentally sensitive sites around Doi Inthanon. The entrance fee for Mae Sa Waterfall should be increased from 5 baht (US12 cents) per person to 20 baht (US50 cents) per person. This would increase park revenue from 2 million baht (US$50,000) per year to 8 million baht (US$200,000) per year. As for Doi Suthep, the entrance fee should remain at zero given the difficulty of assessing the predominantly spiritual value of the site.
The study also recommends that special consideration be given to low-income visitors. For instance, a total waiver or partial reduction of entrance fees should be applied to school children on educational tours and to senior citizens, as well as to the general public during some public holidays. Certain parts for Doi Inthanon (such as the lower section of the park) might charge a lower entrance fee to facilitate access to low-income families, while full entrance fee could be charged for the middle and upper sections of the park.
This systematic adjustment in the entrance fees, together with special entrance fee reductions, should help increase revenue from the national parks with minimal negative impact on low-income visitors. This increased revenue will be useful for recreational management and will help ensure the continuity of recreational services provided by national parks in Thailand.
August 1998