Estimating the Recreational Value of Mangrovetum, A Mangrove Park in Masbate City, Philippines, 2024

Date

6-2025

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Cenon D. Elca

Committee Member

Geny F. Lapiña, Maria Angeles O. Catelo

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For non-UP researchers, requests for access to this material may be directed to the CEM Library at cemlibrary.uplb@up.edu.ph or to the UKDR administrator at uscs-mainlib.uplb@up.edu.ph

Abstract

The Mangrovetum Ecopark is one of the most visited mangrove parks in Masbate City. It provides a natural attraction in the capital complemented with man- made structures such as hanging bridge, towering viewing spot, and relaxing hangout areas, enabling visitors to engage with nature through nature walks, mangrove planting, bird watching, and provision of relaxing hangout spots. However, the lack of additional investments in the site resulted in a steady decline of the visitors over the years. Moreover, the current access fee of the park was found to be solely based on focus group discussion of limited stakeholders, reflecting a small set of the actual visitors.

This study estimated the recreational economic value of Mangrovetum. The specific objectives were to: 1) estimate the economic recreational value of the site and construct a recreational demand curve based on individual travel cost; 2) determine the visitor’s maximum willingness to pay to access the site and construct a willingness to pay demand curve; 3) estimate the price elasticity of demand using the willingness to pay-based demand curve and determine the optimal price level that maximizes the total revenue; 4) and derive policy recommendations based on the results of the study.

To measure the recreational economic value of Mangrovetum, the travel cost method was employed. It was hypothesized that travel costs items and visitor characteristics influenced the number of times visiting the Park. Primary data were collected from 150 actual visitors of the site using a structured survey administered through an interview. The methods used in the study were descriptive analysis, consumer surplus estimation using truncated negative binomial regression coefficient, double log regression and midpoint formula to estimate the price elasticity of demand, and revenue maximization to determine the optimal pricing level of Mangrovetum.

The consumer surplus of the visitors visiting Mangrovetum was estimated to be PhP 182.87 per person per visit, with a 95 percent confidence interval of PhP 115.24.00 to PhP 442.64.00 per person per visit. The coefficient of the travel cost revealed that a one peso increase in the travel cost is associated with a 0.55 percent decrease in the number of visits to the Mangrovetum. The results of the double log regression revealed that the average price elasticity of demand was price elastic, meaning that changes in entrance fee or environmental user’s fee will lead to proportionally larger changes in demand. However, the midpoint formula revealed that the unit elastic price level lies between Php 20.00 and PhP 25.00. Thus, making price level PhP 20.00 the optimal price of Mangrovetum, generating the maximum total revenue. To conclude, the Mangrovetum provides a high economic value which is a great justification for further investments in the site and environmental user’s fee adjustments can be executed without deterring the number of visitors.

Based on the findings, the study recommends: adjusting the environmental user’s fee structure, marketing of the ecotourism value of Mangrovetum, capping the access fee increase at PhP 20.00, promotion of relaxation-focused facilities, and incorporating activities and promote tiered pricing on couple visitors.

Language

English

LC Subject

Mangrove ecology, Sustainable development—Philippines

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2025 A14 V55

Notes

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Document Type

Thesis

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