An economic valuation of Redang Island: towards sustainable tourism in small islands

Nurazura Sanusi, . and Suriyani Muhamad, . and Nik Fuad Nik Mohd Kamil, . An economic valuation of Redang Island: towards sustainable tourism in small islands. pp. 87-93. ISSN 1823-8556

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 of Terengganu 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 of beaches ought to be seriously considered in decisions affecting the allocation and use of such resources. Valuation of natural resources would therefore lead to better resource-management decisions in Malaysia.

Full text available from: Official URL: http://jssm.umt.edu.my/files/2012/05/12-An-Economi...

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 of Terengganu 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 of beaches ought to be seriously considered in decisions affecting the allocation and use of such resources. Valuation of natural resources would therefore lead to better resource-management decisions in Malaysia.

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Item Type:	Article
AGROVOC Term:	Islands
AGROVOC Term:	Tourism
AGROVOC Term:	Valuation
AGROVOC Term:	Economic value
AGROVOC Term:	Economic analysis
AGROVOC Term:	Cost benefit analysis
AGROVOC Term:	Resource allocation
AGROVOC Term:	Sustainability
AGROVOC Term:	Ecosystems
AGROVOC Term:	Natural resources
Depositing User:	Mr. AFANDI ABDUL MALEK
Last Modified:	24 Apr 2025 00:54
URI:	http://webagris.upm.edu.my/id/eprint/8739

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