Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/142530 
Year of Publication: 
2008
Series/Report no.: 
EERI Research Paper Series No. 19/2008
Publisher: 
Economics and Econometrics Research Institute (EERI), Brussels
Abstract: 
One of the basic assumptions of the travel cost method for recreational demand analysis is that the travel cost is always incurred for a single purpose recreational trip. Several studies have skirted around the issue with simplifying assumptions and dropping observations considered as non-conventional holiday-makers or as non-traditional visitors from the sample. The effectof such simplifications on the benefit estimates remains conjectural. Given the remoteness of notable recreational parks, multi-destination or multi-purpose trips are not uncommon. This paper examines the consequences of allocating travel costs to a recreational site when some trips were taken for purposes other than recreation and/or included visits to other recreational sites. Using a multi-purpose weighting approach on data from Gros Morne National Park, Canada, we conclude that a proper correction for multi-destination or multi-purpose trip is more of what is needed to avoid potential biases in the estimated effects of the price (travel-cost) variable and of the income variable in the trip generation equation.
Subjects: 
Travel cost method
multi-purpose trips
multi-destination trips
count data
consumer surplus
endogenous stratification
JEL: 
Q26
C24
Document Type: 
Working Paper

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