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Testing Significance of Multi-Destination and Multi-Purpose Trip Effects in a Travel Cost Method Demand Model for Whale Watching Trips

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  • Loomis, John
  • Yorizane, Shizuka
  • Larson, Douglas

Abstract

Inclusion of multi-destination and multi-purpose visitors has an appreciable influence on a standard count data travel cost model derived estimate of willingness to pay but the differences are not statistically significant. We adapt a more general travel cost model (TCM) of Parsons and Wilson (1997) that allows for inclusion of multi-destination visitors as incidental demand to allow estimation of an unbiased measure of single and multi-destination willingness to pay for whale viewing using a single pooled equation. The primary purpose trip values from the standard TCM and simple generalized TCM model are identical at $43 per person per day and neither are significantly different from the $50 day value from a generalized model that distinguishes between joint and incidental trips. The general models avoid underestimation of total recreation site benefits that would result from omitting the consumer surplus of multi-destination visitors.

Suggested Citation

  • Loomis, John & Yorizane, Shizuka & Larson, Douglas, 2000. "Testing Significance of Multi-Destination and Multi-Purpose Trip Effects in a Travel Cost Method Demand Model for Whale Watching Trips," Agricultural and Resource Economics Review, Cambridge University Press, vol. 29(2), pages 183-191, October.
    • Handle: RePEc:cup:agrerw:v:29:y:2000:i:02:p:183-191_00
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    References listed on IDEAS

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