The recreational value of coral reefs in Okinawa Prefecture: A site choice model

The coral reef ecosystems provide many goods and services to coastal populations, such as tourism. Furthermore, they form a unique natural ecosystem, with an important biodiversity value as well as scientific and educational value. They also form a natural protection against wave erosion. However, they have been damaged due to red soil erosion and global warming. Therefore, the preservation of coral reefs has been an important policy issue. The cost-benefit analysis is important for choosing cost-effective policies. Although a few studies have evaluated the economic value of coral reefs in Okinawa Prefecture, Japan, most of them have applied the contingent valuation method. The purpose of this study is to employ the discrete choice travel cost method to estimate the value of coral reefs that is obtained by visitors to Okinawa prefecture. We conducted an on-site survey of visitors at Naha airport, New Ishigaki airport and Miyako airport on 8 November to 11 in 2013 and collected 410 responses. We applied the conditional logit model to tourist’s decision to select his/her destination and estimate the model using collected data. Based on the conditional logit model, the hypothesis of independence from irrelevant alternatives (IIA) cannot be rejected. We also tried to apply the mixed logit model to our data but there was no significant difference between random parameters and nonrandom ones. The main finding is that the marginal willingness to pay by a tourist for coral reefs is 4,754 yen/km2 per day and 16,544 yen/㎢ per trip.