AN ECONOMIC VALUATION OF REDANG ISLAND
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Date
2012
Journal Title
Journal ISSN
Volume Title
Publisher
Journal of Sustainability Science and Management
Abstract
In Malaysia, the demand for island-based recreation is increasing rapidly, especially among foreign tourists. This study attempts to capture the non-market value of services provided by the ecosystem as a basis for arguing that island and beach resources in Malaysia are undervalued. Consequently, they are not considered seriously in decisions affecting resource use and allocation. This study estimates the economic value of Redang Island, using an environmental valuation technique - the Travel Cost Method (TCM). The recreational service flows of Redang Island, a popular destination located in the state ofTerengganu, were estimated through the consumer surplus generated by the visitors during May and June, 2010. Annual consumer surplus per individual was
estimated as USD747 (RM2,286) while annual total benefit was USD57.89 mil (RM177.24 mil).
The relatively high value of recreation suggests that the recreational functions ofbeaches ought to
be seriously considered in decisions affecting the allocation and use ofsuch resources. Valuation of
natural resources would therefore lead to better resource-management decisions in Malaysia.
Description
Keywords
Economic valuation, Travel Cost Method, Consumer surplus, Annual net benefit JEL Classification: Q26, Q51