REVIEW ARTICLE

ASSESSING THE PRICING POLICY AT ELEPHANT TRANSIT HOME IN SRI LANKA: A TRAVEL COST METHOD APPROACH

Abstract

This paper investigates the consumer surplus (CS) an economically feasible entrance fee to visit Elephant Transit Home (ETH) at Udawalawe in Sri Lanka, which is the first Elephant Transit Home in the world. There is a ‘niche market’ for observing ’feeding baby elephants’ and a fee is charged from visitors without conducting a proper study. The travel cost method was applied and the economic values were estimated to assess the pricing policy at ETH. The recreational value of the ETH is SLR 12.39 million per annum (I USD = SLR 131), and at present the CS is SLR 9.612 million per annum. The calculated CS per person is SLR 105.58, and estimated optimum entrance fee to ETH is SLR 98.50. The present value of benefits at ETH is SLR 96.12 million per annum at the discount rate of 10%. The results shed light on important policy directions to earn more revenue for conserving orphaned baby elephants reducing annual allocation for feeding elephants at ETH increasing the entrance fee. The maximum reduction of annual allocation could be 49.92%, which is at the entrance fee of SLR 98.50. Further, at the optimum entrance fee, the calculated CS is 19.95% of the annual investment and operation expenditures of the ETH.

Keywords: Elephant Transit Home, Sri Lankan elephant,

How to Cite: Rathnayake,R.M.W,Ranasinghe,R.L.K.R, (2015). ASSESSING THE PRICING POLICY AT ELEPHANT TRANSIT HOME IN SRI LANKA: A TRAVEL COST METHOD APPROACH.WILDLANKA, 3(3):Pages 169-183

Published On:2015-10-31

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