Economics, wildlife tourism and conservation: Three case studies

This report presents the results of an economics component of the National Interdisciplinary Project (NIP) on wildlife tourism in Australia. The main objectives of the study were to outline and assess the role that economics can play in the valuation and management of wildlife-based tourism, undertake appropriate case studies to highlight the value of economics and its limits in assessing wildlife tourism in each case, take into account relevant environmental issues involved in wildlife tourism, and make future recommendations.

Endangerment and likeability of wildlife species: How important are they for proposed payments for conservation

Examines empirically the relative influence of the degree of endangerment of wildlife species and their stated likeability on individuals’ willingness to pay (WTP) for their conservation. To do this, it utilises data obtained from the IUCN Red List and likeability and WTP data obtained from two serial surveys of a sample of the Australian public who were requested to assess 24 Australian wildlife species in each of three animal classes: mammals, birds and reptiles. Between the first and second survey, respondents were provided with extra information about the focal species. This information resulted in the clear dominance of endangerment as the major influence on the WTP of respondents for the conservation of the focal wildlife species. Our results throw doubts on the proposition in the literature that the likeability of species is the dominant influence on WTP for conservation of wildlife species. Furthermore, our results suggest that the relationship between WTP for the conservation of wildlife in relation to their population levels may be more complex and different to that suggested in some of the literature on ecological economics.

Dynamic processes in contingent valuation: A case study involving the mahogany glider

This paper reports the results of an experiment involving a sample of 204 members of the public who were assessed on three occasions about their willingness to pay for the conservation of the mahogany glider. They were asked this question prior to information being provided to them about the glider and other focal wildlife species; after such information was provided, and finally after participants had had an opportunity to see live specimens of this glider. The mean willingness to pay of the relevant samples are compared and found to show significant variations. Theories are considered that help explain the dynamics of these variations. Serious concerns are raised about the capacity of information provision to reveal ‘true’ contingent valuations of public goods.

Public support for sustainable commercial harvesting of wildlife: An Australian case study

This paper surveys a sample of 204 members of the Australian public to determine their attitude to the sustainable commercial harvesting of wildlife generally, and considers their specific support for the sustainable commercial harvesting of each of 24 Australian native species. The general attitude of the sample to wildlife harvesting is related to their attitude to nature conservation. The relationship between respondents’ support for the sustainable commercial harvesting of each of the species and their degree of endangerment based on IUCN Red List rankings is established and found to be an inverse one. Support for the commercial sustainable use of each of the species is compared with the willingness of respondents to pay for their conservation. Support for sustainable commercial harvesting of species is found to be inversely related to the willingness of respondents to pay is for a particular species’ conservation. In turn, this willingness to pay is found to rise with the degree of endangerment of species. While the likeability of a species has some influence on whether there is support or not for its commercial harvesting, it does not seem to be the predominant influence— the degree of endangerment of a species appears to be the major influence here. Even so, this does not imply majority support for the harvest of all species that are not threatened; rather, majority support for harvest was observed only for some species known to be abundant. None of the species that appear in the Red List have majority support for harvesting. Implications are outlined of the results for the policy of promoting wildlife conservation by means of sustainable use.

Recreational fishing and fishing policies in the Netherlands and Australia: A comparative review

This article compares fisheries management, environmental problems and policies of the Netherlands and Australia. From this comparison lessons can be learned for countries that experience economic growth and on increase of leisure activity. In both countries, conflicts between the user groups, e.g. commercial and recreational fishers, are identified and the ways in which policymakers deal with these problems are outlined. Often suggested tools to address these problems are decision-making procedures based on a holistic framework in which economic, sociocultural, political/institutional, ecological aspects are included in the decision framework. Recreational fishing is today often the dominant factor in the resolution of these matters because of the relative economic, social and political power of recreational fishers as a group.

Antarctic tourists, wildlife and the environment: Attractions and reactions to Antarctica

Provides background on the development and nature of Antarctic tourism and associated environmental issues, as well as agreements and regulations affecting environmental management in Antarctica. Following an outline of the survey methodology and provision of information on the socioeconomic profiles of the respondents, results of a survey of Antarctic tourists on the Russian registered ship the ‘Akademik Ioffe’ are reported. The importance of Antarctic wildlife as an attraction for these Antarctic tourists is then given particular attention. The study considers amongst other things how important Antarctic wildlife was in convincing these tourists to undertake their trip to Antarctica, the importance to the tourists of seeing different species of wildlife and the relative importance of wildlife compared with other attractions of the tour to Antarctica. Views both prior to and following visits to Antarctica are given. The views of the tourists about selected environmental issues involving Antarctica were canvassed. These are reported and discussed. Amongst the subjects discussed is whether the sampled tourists favour an expansion in tourism to Antarctica and why. An overall assessment completes the study.

Can globalisation result in less efficient and more vulnerable industries?

Growing economic globalisation (a means of market extension) may increase the economic vulnerability of firms in modern industries, especially those in which firms experience substantial economies of scale. The possibility is explored that globalisation activates competitive pressures that forces firms into a situation where their leverage (fixed costs relative to variable costs, or overhead cost relative to operating costs or capital intensity) rises substantially. Consequently, they become increasingly vulnerable to a sudden adverse change in economic conditions, such as a collapse in the demand for their industry’s product. This is explored for monopolistically competitive markets and also for oligopolistic markets of the type considered and modelled by Sweezy using kinked demand curves. In addition, globalisation is hypothesised to induce firms to become more uniformly efficient. While this has static efficiency advantages, this lack of heterogeneity in productive efficiency of firms can make for economic inefficiency in the adjustment of the industry to altered economic conditions. It is shown that lack of variation in the economic efficiency of firms can impede the speed of market adjustment to new equilibria and may destabilise market equilibria.

Tourism as a contributor to development in Sri Lanka: An overview and a case study

General background is provided on the potential of tourism growth to contribute to economic development, paying particular attention to the experience of Sri Lanka. An overview of trends in inbound tourism to Sri Lanka is presented with particular consideration being given to its number of inbound tourist arrivals. Sri Lanka’s comparative position in international tourism markets, the composition of its tourist arrivals by area of origin, the extent of foreign earnings by the Sri Lankan tourism industry and variations in the amount of these earnings, and the extent of employment generation by this industry are examined. Regional aspects of the tourism industry in Sri Lanka are given special consideration, and this is followed by a report on the regional economic impact of tourism of Pinnawala Elephant Orphanage. This major tourist attraction near the edge of the Western Highlands of Sri Lanka is shown to make a significant contribution to economic decentralisation. A general discussion follows of tourism development in the Sri Lankan context. The main factors that have hindered tourism growth in Sri Lanka and its decentralisation are considered. Indications are that major impediment posed by civil disturbance and terrorism is at an end in Sri Lanka.