Economic Valuation of the Recreational Use Value of Babogayya Lake (Bishoftu Town): Application of the Individual Travel Cost Method (ITCM)
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Date
2014-06
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Addis Ababa University
Abstract
There are many tourist attraction sites in Ethiopia. Bishoftu town, is located in Oromia Region,
Eastern Shewa Zone, on the way from Addis Ababa to Adama and some 50 km away from Addis
Ababa.
This study analysis & shed light on the economic valuation of the use value of the Babogayya
Lake (Bishoftu town) outdoor recreational by using the travel cost method.
Both primary & secondary data types were used. For collection of the data both structured
questionnaires’ and interviews were used.
For analysis of collected data both Descriptive Statistical and Econometric analysis (count data
regression model (Poisson model) were employed.
The study estimated that the individual outdoor recreational demand (LnVrate= 0.5366-
0.000028tc), total annual recreational benefit of the site ($90,811,935.5959) and total annual
consumer surplus of the site ($39,231,916.3559).
Based on the study results possible policy implications were also provided
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Keywords
Travel cost method, Poisson regression model, Total economic benefit