Valuing the nature-based recreational benefits of Iloilo river esplanade using the travel cost method

Abstract

This paper presents the assessment of the economic value of the Iloilo river esplanade, a recreational site in Iloilo City. The objective of the study is to evaluate the demand for the site or recreation therein using the travel cost method. Data was gathered through online surveys of 385 college students from five universities in Iloilo City who had visited the place. By employing a negative binomial model, the analysis resulted in an estimated economic value of Php 5,120.33 (US$ 93.9) per person per trip. Variables such as travel costs, age, distance, group size, sex, and the visitor’s civil status are significant factors on the number of trips to esplanade. Travel cost has a negative relationship with the trip’s frequency and distance is a factor affecting the number of visits undertaken, indicating that as the as the trip distance increases, the total number of trips decreases. The results presented in this study can improve the quality of the recreational and environmental services of the Iloilo river esplanade, as the findings can assist in identifying the variety of services that the place could offer based on the visitors’ demand. Further, the study can provide valuable inputs in resource and policy planning, as well as assist resource managers and the local government of Iloilo City in making crucial decisions to improve the overall experience for visitors to the Esplanade and ensure the continued preservation of the recreational site to maximize its nature- based and recreational benefits.