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Estimating the Effects of Different Admission Fees on Revenues for a Mega-Event Using a Contingent Valuation Method

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  • Choong-Ki Lee

    (Department of Tourism, Kyung Hee University, 1 Hoegi-dong, Dongdaemun-gu, Seoul 130–70, South Korea)

  • James W. Mjelde

    (Department of Agricultural Economics, Texas A&M University, College Station, Texas, USA)

  • Tae-Kyun Kim

    (Department of Agricultural Economics, Kyungpook National University, Daegu, South Korea)

Abstract

Estimates of the effect of different admission fees on revenues for the Expo 2012 Yeosu mega-event are provided. A national survey was conducted for the Korean population. The results indicate that the revenue-maximizing admission fee is approximately KRW 27,000, with an estimated 14.6 million visitors and KRW 388.3 billion for the best-guess scenario. With an eight million visitor capacity constraint, the admission fee should be KRW 39,000. Implications of admission pricing strategies are provided in the conclusion.

Suggested Citation

  • Choong-Ki Lee & James W. Mjelde & Tae-Kyun Kim, 2013. "Estimating the Effects of Different Admission Fees on Revenues for a Mega-Event Using a Contingent Valuation Method," Tourism Economics, , vol. 19(1), pages 147-159, February.
    • Handle: RePEc:sae:toueco:v:19:y:2013:i:1:p:147-159
    DOI: 10.5367/te.2013.0184
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    References listed on IDEAS

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    1. Lee, Choong-Ki & Mjelde, James W. & Kim, Tae-Kyun & Lee, Hye-Mi, 2014. "Estimating the intention–behavior gap associated with a mega event: The case of the Expo 2012 Yeosu Korea," Tourism Management, Elsevier, vol. 41(C), pages 168-177.

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