Economic Valuation of Recreational Benefits from Sim’s Park, The Nilgiris: A Travel Cost Approach

Abstract

This paper aims to evaluate recreation use value and to identify the factor that determines the recreation use value of the Sim's park. Finally to estimate consumer surplus of visitor and happiness among visitors in the park. The Sim's park which is located in Conoor, The Nilgiris district of Tamil Nadu was purposively selected for the research study. The study was conducted for the year 2016-17. Primary data was collected from 90 sample visitors employing simple random sampling technique. Analytical tools used for the study was Individual Travel cost method and Multinomial Logit model. The results of the study revealed that by using log-linear trip generating analysis factors such as that travel cost, location, the age of the respondent, family size, family income, mode of transport and park quality are those that determine the visits to the park. Estimates in the research indicate that the Individual consumer's surplus was calculated at Rs.1757.68, which translated into an annual aggregate value of Rs.111.97 crores in 2017. Multinomial logit estimated as travel cost increased the probability of being very happy and happy was decreased when compared with probability of somewhat happy visitors. This insists on the importance of conservation of such recreational sites and helps to construct the policies.