Explain how the travel cost method might be used to determin

Explain how the travel cost method might be used to determine the value visitors place on their right to visit a national park?

Solution

Travel cost method is a approach is to valuate the economic value by cost benefit approach for things which are not available in maeket like national parks, etc.

So the traveller using TCM to calculate value associated with his visit to national park will follow few steps. To get the past data the sample of few travelers visiting the national park are to be selected. The national park will be divided into zones with respect to the distance from central facility. The detail of travellers will be divided into these zones. The costs associated will be calculated with respect to distance and time. With all these data the prediction equation will be made through regression analysis. Then the economic benefit will be calculated and compared to the predicted costs(including, entry fee, food, accomodation, etc.).