Abstract

Coastal resources are crucial and important to support life in the planet. Benefits derived from coastal resources are well known and widely recognized. Pigeon Island National Park is one of the best remaining coral reefs with high live coral cover in Sri Lanka and is an ideal location for scuba diving and snorkelling. The objective of this research was to explore the recreational value of the Pigeon Island. A sample of hundred participants including both foreigners and locals were selected using systematic sampling and every fifth person who passes the entry point was interviewed. Contingent valuation method was used in the analysis in the study. The result revealed that majority (92%) of foreigners who visited the island were non- Asians. Almost all the foreign visitors participated in Scenic visit, diving visit, whale watching and Sunbath. Both locals and foreigners ranked diving as the most preferred activity. Average cost for boating was Rs. 1,300 per hour for foreign visitors, average cost for diving was Rs. 3470 per person per hour which were nearly twice the value that of local visitors. Foreign visitors’ mean willingness to pay for diving was Rs.3670 and, for whale watching was Rs.1510. But for local visitor’s willingness to pay for diving visit was Rs.1240, for whale watching was Rs.919.00. Average willingness to pay of the foreign visitors for entrance fee was Rs.1560 and the average willingness to pay of the local visitors for the entrance fee was Rs 644.00. Results of the T test presented that significant difference between foreign visitors and local visitors for total and entrance fee willingness to pay, hours of spending, costs for boating, for diving and for whale watching. Chi square analysis showed that there was a high significant association between the total willingness to pay by the local visitors and the education level of the respondent (X2=76.75, p < 0.01). A significant association was observed between the total willingness to pay by the local visitors and the cost for boating in the Pigeon Island (X2=36.52, p < 0.01). In addition, total willingness to pay was significantly affected by age, hours of spending, number of the group members and expenses for meals. The study revealed that the current entrance fees do not capture the economic value of the Pigeon Island.

Keywords: Pigeon Island, Recreational value, Travel cost method, Willingness to pay