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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 contribution
posted on 2023-05-20, 10:36 authored by Mustika, PLK, Natalie StoecklNatalie Stoeckl, Farr, MNature-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%.
History
Publication title
Tourism EconomicsVolume
22Pagination
484-504ISSN
1354-8166Department/School
College Office - College of Business and EconomicsPublisher
Sage Publications Ltd.Place of publication
United KingdomRights statement
Copyright 2014 The AuthorsRepository Status
- Restricted