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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

Citation

Mustika, PLK and Stoeckl, N and Farr, M, 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, Tourism Economics, 22, (3) pp. 484-504. ISSN 1354-8166 (2016) [Refereed Article]

Copyright Statement

Copyright 2014 The Authors

DOI: doi:10.5367/te.2014.0433

Abstract

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%.

Item Details

Item Type:Refereed Article
Keywords:business and non-business visitors, visitor expenditure, Great Barrier Reef, hypothetical response bias, environmental degradation
Research Division:Economics
Research Group:Applied economics
Research Field:Tourism economics
Objective Division:Commercial Services and Tourism
Objective Group:Tourism services
Objective Field:Economic issues in tourism
UTAS Author:Stoeckl, N (Professor Natalie Stoeckl)
ID Code:137255
Year Published:2016
Web of Science® Times Cited:4
Deposited By:College Office - CoBE
Deposited On:2020-02-06
Last Modified:2020-04-30
Downloads:0

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