Valuation of Recreational Benefits from Valley of Flowers National Park

Abstract

The Valley of Flowers National Park spread over an area of around 87.5 km² ensconced within the upper Himalayan ridges between the altitudes of 3,200 to 6,675 m is visited by on an average around 3,000 visitors annually from all over the country as well as from out side. The study was carried out to estimate recreational benefits derived from the national park by employing two valuation techniques, viz., travel cost method (TCM) and the contingent valuation method (CVM). Application of TCM estimated a recreational value of Rs. 194.68 per visit and when extrapolated to the total number of visitors, the total recreational benefits of Rs. 5,88,332 were obtained. The recreational value estimated by application of CVM gave an average willingness to pay of Rs. 1833.83 which when extrapolated to the total number of visitors become Rs. 55,41,834. The reason for significant higher value obtained by the CVM may be due to the hypothetical nature of this valuation technique and the strategic bias where the nature loving respondents tend to place a much higher value on a site like Valley of Flowers National Park. In view of the weighted average travel cost being a small fraction of the average income of the visitors, the authors recommend an increase in gate fee and utilization of these funds for improvement in the management of the park.