Willingness-to-Pay of Tourists for the Conservation of the Ifugao Rice Terraces

Margaret M. Calderon; Josefina T. Dizon; Asa Jose U. Sajise; Myranel G. Salvador; Ecosystems and Development Journal

Margaret M. Calderon Institute of Renewable Natural Resources, CFNR, UPLB, College, Laguna 4031, Philippines
Josefina T. Dizon College of Public Affairs and Development, University of the Philippines Los Baños, College, Laguna
Asa Jose U. Sajise University of the Philippines Los Baños
Myranel G. Salvador Institute of Renewable Natural Resources, CFNR, UPLB, College, Laguna 4031, Philippines
Ecosystems and Development Journal

Keywords: contingent valuation method, Ifugao, Rice Terraces of the Philippine Cordilleras, sustainable financing mechanism, willingness-to-pay

Abstract

The willingness-to-pay (WTP) of local and foreign tourists for the conservation of the Ifugao Rice Terraces, specifically the Rice Terraces of the Philippine Cordilleras, was estimated using the contingent valuation method. The terraces are found in four municipalities in the province of Ifugao in northern Philippines, and were inscribed in the UNESCO World Heritage List in 1995. In 2001, however, they were placed under the World Heritage in Danger List in 2001 owing to their deterioration. A contingent valuation survey was conducted among local (300 respondents) and foreign (250 respondents) tourists. Non-parametric (Turnbull) and parametric (Logit Regression) estimation were used to compute for their WTP to conserve the terraces. The estimated average WTP per visit for local and foreign tourists were PhP 440 (about USD 10) and PhP 3,124 (USD 71), respectively. These WTP estimates are much higher than the uniform fees collected by the municipalities from local and foreign tourists (about USD 0.20 and USD 0.60). For local tourists, the significant factors affecting WTP are gender (male), knowledge about the present condition of the terraces, and the bid amount, while for foreign tourists these are age, knowledge of UNESCO World Heritage Site status, and the bid amount. Adopting fees that are about 25% higher than the average WTP of local and foreign tourists can generate revenues that can cover about 20% of the cost requirement of implementing the master plan for the terraces. The contribution of tourism revenue can increase if higher fees will be collected, as the estimated average WTP for local and foreign tourists are much higher. Increasing the visitation rate can also have a positive effect on revenue, although this should consider the carrying capacity of the terraces so as not to compromise their integrity.