The Estimation of Willingness to Pay of Tourists for Conservation of Naghsh-e-Jahan Square in Esfahan and Analysis of Effective Socio-Economic Factors on Willingness to Pay (Application of Ordered Probit and Tobit models)

اقتصاد و توسعه منطقه ای

Article 5, Volume 20, Issue 6, January 2014   

Document Type: Research article

DOI: 10.22067/erd.v20i6.43090

Authors

nesa mousavi^* ; Mostafa Rajabi

Abstract

Abstract
Naghsh-e-Jahan Square with its complementary set of buildings as one of the important attractions of tourism and cultural heritage in Iran is considered. It is important to preserve this valuable heritage. Therefore, this research will discuss to estimate a visitor's willingness to pay (WTP) for preservation of Naghsh-e-Jahan, based on contingent valuation method (CVM) and analysis of effective socio-economic factors on visitor's willingness to pay. For analysis of affecting factors on visitor's willingness to pay Ordered Probit and Tobit models were employed. Required information from 550 completed questionnaires and confronting interview with visitors of Naghsh-e-Jahan Square in 2010 were collected.
The results indicate that 68.5% of visitors are willing to pay for preservation of Naghsh-e-Jahan Square. The average monthly amount of willingness to pay for preservation value of Naghsh-e-Jahan Square was estimated Rials 47790 and Rials 171251 per person and household, respectively.
According to the findings, Between the results of Ordered Probit model and Tobit was a great adaptation. Age, education, income and conservation of cultural heritage variables in Ordered Probit model were statistically significant and sex, education, income and conservation of cultural heritage variables in Tobit model were statistically significant. Other variables have the expected sign. The results indicate contingent valuation method and models used in this research are suitable.

Keywords: Cultural Heritage, Naghsh-e-Jahan Square, Willingness to pay, Contingent valuation method, Ordered Probit model, Tobit model

JEL Classification: Q57, Z11

Keywords

Cultural Heritage; Naghsh-e-Jahan Square; Willingness to pay; Contingent valuation method; Ordered Probit model; Tobit model