Value and Demand Determinants for Recreational Area: The Case of Ajora Water Fall, Boloso Bombe Woreda, Wolaita Zone, Southern Nations Nationalities and Peoples’ Regional State, Ethiopia

Abstract

Environmental and natural resources such as parks, water fall and forests give many services to human beings. Recreation is an activity that increases visitors’ satisfaction. However, the absence of market for these resources hides theie benefits. The objective of the study was to estimate the economic value of Ajora recreational area which is found in Southern Nations, Nationalities and Peoples Regional State in Boloso Bombe Woreda of Wolaita Zone. This study used the Individual Travel Cost Method (ITCM) to estimate the economic value of recreational area. Data was collected from 130 randomly selected sample visitors in the recreational area. Truncated Poisson model were employed for data analysis using SPSS V16 softwares. The regression result indicated that travel costs, visitors’ income, age, level of education and other substitute sites were major determinants of visits to the site. The result of this study also showed that the potential annual use value of the recreational area was estimated to be 2,006340 ETB which is higher than the revenue currently collected from visitors to the site. We therefore recommend for the park management to be revisited in view of the estimated economic value and the significant determinants this study identified.

Keywords: Ajora, Recreation, Travel, Truncated, Valuation