Advanced Research in Economics and Business Strategy Journal
Volume 6, Numéro 1, Pages 87-100
2025-06-30
Domestic Tourists’ Willingness To Pay For Natural And Cultural Heritage Sites In Pokhara Valley, Nepal
Authors : Arjun K. Arjun K. . Kumar Bhattarai Kumar .
Abstract
This study analyzes domestic tourists’ willingness to pay for increased entrance fees at selected tourist sites in the Pokhara Valley, Nepal. The study was based on cross-sectional data collected from 130 domestic tourists visiting three purposively selected fee-paying sites in Pokhara. Survey was conducted by using quasi-random sampling technique. A structured questionnaire was administered on a rotational basis across the selected sites. A binary logistic regression model was employed to estimate the demand for entrance fees and identify its determinants. The study found that mean actual fee was Rs 63.3, while the mean WTP was Rs 101, resulting in mean consumer surplus of Rs 37.7 per visit. Regression results showed that age (45 years and above), monthly family income (Rs. 10,000-20,000 and Rs. 50,000-100,000) and frequency of recreational visits (2-3 times and 5 or more times in the past two years) significantly influenced domestic tourists’ WTP. The relatively inelastic demand for recreational sites suggests that policymakers and site managers have the flexibility to revise and potentially increase entrance fees at key tourist sites in the Pokhara Valley.
Keywords
Domestic tourists ; Fee paying sites ; Nepal ; Pokhara Valley ; Willingness to pay
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