Economic Valuation of Tourism in Rangamati: A Travel Cost Method

Abstract

In this paper, an economic valuation of Rangamati is done using the zonal travel cost method. Data collected for the study has been done through on-site sampling in Rangamati and the socio-economic background of the visitors has also been included as an important part of the survey. The travel cost has been estimated by doing the summation of all the relevant costs incurred during the trip as well as the opportunity cost of the time spent for visitation in Rangamati. The visitation rate has been calculated as a ratio of the actual number of visitors and the potential number of visitors on a yearly basis. The regression is conducted and then the consumer surplus or their maximum willingness to pay for visiting the site has been calculated. This maximum willingness to pay for the site is also the value addition to the domestic economy. Future research in this field could get guidance and implications from the results yielded by this study and help policy makers formulate more effective policies in maximizing the utility and thus increasing the economic benefits which could be obtained likewise.