The pricing of protected areas in nature-based tourism: A local perspective

Abstract

This paper extends the literature on optimal pricing of recreation in protected areas by introducing price discrimination between groups of visitors and, given that the agency charges different prices to subsets of visitors, by including a distributional dimension that is particularly relevant for a national park agency receiving visitors from different origins. Other issues related to optimal entrance fees, including negative ecological impacts and positive spillover effects on local communities resulting from changes in visitation, are also discussed. Based on this model, the paper provides an estimation of optimal entrance fees and revenues for the Costa Rican system of protected areas.