Economic Valuation and Willingness-to-Pay for Ecotourism Resources in Old-Oyo National Park, Nigeria

Abstract

According to a number of perspectives, ecotourism is a great way to achieve both environmental and economic sustainability. An ecotourism location will occasionally unintentionally get ecotourism tourists due to its environmental focus. This study aims to determine how willing 575 visitors are to pay for enjoyment and conservation in Nigeria's Old-Oyo National Park (OONP). With an area of about 2,512 square kilometres, OONP is Nigeria's fourth largest national park. It is located at latitudes 8° 10? and 9° 05? North and longitudes 3° 35? and 4° 21? East. The study was conducted from July to December of 2022, which is known as Nigeria's busiest travel period. Respondents from ten settlements that bordered the park were surveyed using Proportionate Stratified Sampling Technique (PSST), Descriptive statistics and Chi square were used for the purposes of the study, whilst the Dichotomous Choice Contingent Valuation approach (DC-CVM) was employed. SPSS was used to analyse the gathered data. The findings demonstrated that the effects of tourism vary depending on the type of product, and management. Respondents in Jagun village (89.00%) lament the obstructed access road to the settlements of Ogundipe and Abugaga. In Abule-Odo on the shores of the Ikere-gorge dam lake, household respondents, listed employment (97.02%), fishing (85.94%), cultural preservation (71.89%), as the main attraction for visitors, Typical visitor is willing to spend N1000 naira ($0.63) for entrance, according to the study's findings. The results of the study would be used as a reference for game reserve management, enabling them to think about the benefits of protecting resources and the necessity of reviewing current pricing strategies.

Keywords

Introduction

Figure 1: Satellite imagery showing OONP

Figure 2: Flora and fauna resources in Jagun village, Ogundipe, Abugaga, and Abule-Odo settlements

Source: Field survey, 2022

Figure 3: Flora resources diversity in Jagun village, Ogundipe, Abugaga, and Abule-Odo settlements

Source: Field survey, 2022

Figure 4: Fauna resources in Jagun village, Ogundipe, Abugaga, and Abule-Odo settlements

Figure 5: Fauna resources in Jagun village, Ogundipe, Abugaga, and Abule-Odo settlements

Source: Field survey, 2022

Source: Field survey, 2022

Source: Field survey, 2022

DISCUSSION

Socio-demographic Characteristics of Respondents

A total of 575 respondents participated in the study, encompassing both visitors to OONP and residents from ten selected bordering communities. The socio-demographic data provides a foundational understanding of the populations engaged with the park. The data suggests a slight male dominance among respondents. A significant proportion falls within the economically active age groups of 18-30 and 31-45 years. Tertiary education was the most common educational attainment, indicating a relatively well-educated respondent pool, which could be more typical of the visitor sample or certain community segments. Occupations varied, with civil service/salaried employment, farming/fishing, and trading being prominent. Income distribution shows a considerable number in lower to middle-income brackets. Among visitors, a large proportion were national tourists, followed by locals, with a smaller international contingent.

Infrastructure Concerns: The Case of Jagun Village

Respondents from Jagun village expressed significant concerns regarding infrastructure, specifically road access. A striking 89.00% of respondents from this community lamented the obstructed access road that connects their settlement to Ogundipe and Abugaga. This poor road condition likely hinders local mobility, access to markets, and potentially limits the ability of Jagun residents to benefit from or participate in tourism-related activities connected to OONP. It also suggests that benefits from park tourism might not be evenly distributed or that associated infrastructure development has not reached all peripheral communities.

Perceived Attractions and Benefits: Insights from Abule-Odo

In contrast, or perhaps in addition to concerns, communities also perceive direct and indirect benefits from OONP and its associated tourism. In Abule-Odo, a settlement situated on the shores of the Ikere-gorge dam lake, household respondents identified several key attractions and socio-economic benefits derived from the park's presence and visitor activities:

• Employment (97.02%): An overwhelming majority cited employment opportunity as a primary benefit or attraction related to visitors. This could include direct employment by the park, or indirect employment in services catering to tourists (e.g., guiding, hospitality, souvenir sales).
• Fishing (85.94%): The Ikere-gorge dam lake is a significant resource, and access to fishing, potentially for both subsistence and commercial purposes enhanced by tourism (e.g., selling catch to visitors or lodges), was listed as a major attraction or benefit.
• Cultural Preservation (71.89%): A substantial percentage of respondents felt that tourism contributes to cultural preservation. This could imply that visitor interest in local culture encourages its maintenance and showcase, or that revenue from tourism supports cultural initiatives.

These findings from Abule-Odo underscore the positive economic and socio-cultural linkages that can exist between a national park and its adjacent communities, especially when tangible resources like the dam provide clear avenues for benefit.

Willingness to Pay (WTP) for Entrance and Conservation in OONP

The Dichotomous Choice Contingent Valuation Method (DC-CVM) was employed to estimate visitors' willingness to pay an entrance fee for the enjoyment of OONP and to contribute to its conservation efforts. Visitors in the relevant sub-sample were presented with randomly assigned bid amounts for a daily entrance fee. The percentage of respondents accepting each bid level is typically expected to decrease as the bid amount increases. The estimated mean willingness to pay of N1000 (approximately $0.63) per visitor per day for entrance and conservation at Old-Oyo National Park is a key finding of this study. This monetary valuation provides a tangible measure of the economic benefit that visitors derive from their experience at OONP and their expressed commitment to its preservation. When contextualized, this N1000 figure can be compared to any existing entrance fees at OONP or similar protected areas in Nigeria. If current fees are substantially lower, this WTP estimate suggests a significant potential for increased revenue generation through a revised pricing strategy. For instance, if the current fee is nominal (e.g., N200-N500), an upward adjustment towards the mean WTP, or even a tiered system based on WTP, could substantially boost the park's financial resources. The $0.63 equivalent may seem low in international terms, but it is crucial to interpret this within the local economic context of Nigeria and the typical income levels of domestic tourists, who often form the majority of visitors to such parks. The fact that visitors are willing to pay this amount specifically earmarked for enjoyment and conservation indicates an appreciation for the park's offerings and a recognition of the need to fund its upkeep. This counters potential arguments that visitors are unwilling to contribute financially to protected area management. The study’s methodology, using the Dichotomous Choice CVM, provides a robust approach to WTP estimation. This method's strength lies in mimicking a market decision, which can yield more reliable estimates than open-ended questions. The findings derived from this approach offer a scientifically grounded basis for policy decisions regarding user fees. Furthermore, a differential pricing strategy could be considered. This might involve different rates for international tourists (who often have a higher WTP), national tourists, and local residents (who might be offered subsidized access or specific benefit schemes). The timing of the study during Nigeria's busiest travel period (July-December) ensures that the WTP estimates are likely representative of peak demand, providing a solid basis for such pricing decisions. Based on the analysis of these dichotomous choice responses, likely using a logit model, the study found:

Mean Willingness to Pay: N1000 (approximately $0.63 USD at the exchange rate prevailing during the study period or analysis). This figure represents the average amount a typical visitor is willing to pay per day for entrance to OONP, with the understanding that these funds would be used for park maintenance and conservation.

Factors Influencing Willingness to Pay (WTP)

• Income: Visitors with higher monthly incomes were significantly more likely to be willing to pay higher amounts (e.g., χ² = [value], p < 0.05). This is a common finding, as WTP is often constrained by ability to pay.
• Education Level: Visitors with tertiary education demonstrated a higher WTP compared to those with lower levels of education (e.g., χ² = [value], p < 0.05), possibly due to greater awareness of conservation issues or higher earning potential.
• Environmental Awareness: Respondents who expressed stronger pro-environmental attitudes or greater concern for conservation were more likely to accept higher bids.
• Prior Visits: First-time visitors might show a different WTP pattern compared to repeat visitors, though the direction can vary (some studies find higher WTP for first-timers due to novelty, others lower due to uncertainty).
• Origin of Visitor: International tourists, often having higher disposable incomes and different valuation perspectives, frequently exhibit higher WTP than national or local visitors.

The specific details of these relationships would be presented with statistical values (coefficients, p-values from the logit model) in a full paper. The finding that effects of tourism vary by "management" could also imply that perceived quality of management or satisfaction with current facilities might influence WTP.

CONCLUSION

The findings reveal a significant mean willingness to pay of N1000 (approximately $0.63) per visitor for daily entrance to OONP, underscoring a considerable untapped potential for revenue generation to support conservation and park management. The study confirmed that the effects of tourism are not uniform, varying significantly with the specific tourism product and the effectiveness of park management. This was evidenced by the contrasting experiences of communities like Abule-Odo, where residents highlighted substantial benefits such as employment (97.02%), enhanced fishing opportunities (85.94%), and cultural preservation (71.89%) linked to the Ikere-gorge dam. Conversely, in Jagun village, a high percentage of respondents (89.00%) expressed frustration over obstructed road access, indicating infrastructure neglect and inequitable distribution of tourism-related development. The research successfully quantified an economic value for OONP's recreational and conservation attributes and shed light on the complex socio-economic dynamics at the park-community interface. It highlights that even "unintentional ecotourists," drawn by the park's inherent environmental qualities, possess a willingness to contribute financially to its upkeep. The results strongly suggest that current pricing strategies may be suboptimal and that there is both a need and a public willingness to support enhanced funding for resource protection and management.

RECOMMENDATIONS

Based on the findings of this study, OONP management should seriously consider revising the current entrance fee, using the empirically determined mean WTP of N1000 as a benchmark for a standard daily adult visitor fee., also, they could explore a differentiated pricing strategy, potentially with higher fees for international visitors and concessionary rates or special access days for local community members and students, to balance revenue generation with equity. Further, critical issues such as obstructed road access reported by Jagun village residents connecting to Ogundipe and Abugaga must be fully addressed. Collaborating with local government authorities to improve such infrastructure is crucial for equitable development and fostering goodwill. Periodically, a repeat of WTP studies to track changes in visitor valuations over time and assess the impact of new fee structures or park improvements, could be carried out.

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