Research on World Agricultural Economy

Economic Valuation of Saysed National Park in Saudi Arabia Using the Travel Cost Method

Reem A. Alqahtani

Department of Economics and Finance, College of Business Administration, Taif University, P.O. Box 11099, Taif 21944, Saudi Arabia

DOI: https://doi.org/10.36956/rwae.v6i1.1550

Received: 2 December 2024 | Revised: 31 December 2024 | Accepted: 6 January 2025 | Published Online: 4 March 2025

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Abstract

This research assesses the economic value of Saysed National Park, a non-market recreational site in Taif, Saudi Arabia, utilizing the Individual Travel Cost Method (ITCM). The study’s primary objective is to analyze recreational demand, suggesting a negative relationship between the number of annual visits and travel costs. Moreover, it investigates the impact of various socioeconomic factors—such as gender, income, education level, and family size—on visitation patterns. The model also incorporates a dummy variable to capture the effects of substitute recreational sites on demand. The findings estimate the annual economic value of the park at SR 4,208,879.70 (approximately $1,122,367.90), calculated through a zero-truncated Poisson regression model. This valuation represents the annual consumer surplus generated by the park, underscoring its significance as a valuable social and economic resource. The results offer practical insights for policymakers and stakeholders, highlighting the importance of aligning development and management budgets with the park’s estimated economic value to ensure expenditures do not exceed this figure. To the researcher’s knowledge, this research, the first of its kind in Saudi Arabia, thoroughly analyzes recreational benefits, establishes a methodological framework for assessing similar sites, and contributes to the advancement of sustainable tourism and resource management practices.

Keywords: Travel Cost Method; Economic Value; Recreational Sites; Recreational Demand

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