A Travel Cost Analysis of the Value of Special Events: Gemfest in Central Queensland

Abstract

Special events play an important part in tourism and recreation choices in Australia, and many receive funding from various levels of government. However, the economic case for funding special events often focuses on estimates of expenditure, employment and indirect impacts rather than estimates of economic benefit or consumer surplus. The study discusses the application of the travel cost method for estimating consumer surplus associated with a special event. The event studied is the annual four-day 'Gemfest' in the sapphire fields of Central Queensland. Surveys were conducted in 1998 and 2002, and the derivations of the appropriate models, welfare calculations and comparisons over time are outlined.

The recreational value of Lake McKenzie, Fraser Island: An application of the travel cost method

“…In all there is a strong case for not including time costs at all and this is the approach taken here. This is consistent with that of a number of other practitioners including Siderelis and Moore (1995), the aforementioned Whitten and Bennett (2002) and Prayaga et al(2006).…”

User value for Kumasi zoological garden, Ghana

“…Several functional forms have been tested in literature when applying the OLS method. In particular, studies by Prayaga, Rolfe and Sinden (2006) and Gillespie (1997) have tested the linear, semi-log and the double log functions, and then selected the most appropriate functional form. A similar approach has been adopted in this study with respect to student respondents.…”

The efficiency of the Environmental Management Charge in the Cairns management area of the Great Barrier Reef Marine Park*

“…In this study, we used socio-economic data (based on Australian postcodes) from the ABS (2006) Census. There are no definitive 'rules' for how best to calculate travel costs: some studies have estimated TC as a function of the distance and the average cost of operating a vehicle per mile or km (Carpio et al 2008;Fleming and Cook 2008); others have included entry fees (Beal 1995a;Prayaga et al 2006), length of trip (Driml 2002;Poor and Smith 2004), the opportunity cost of time (Cesario 1976;Coupal et al 2001;Bin et al 2005) and on-site costs including the cost of food and accommodations (Chen et al 2004;Herath and Kennedy 2004). Arguably, some of the most difficult issues confronting applied travel cost researchers are how to measure the opportunity cost of time and how to deal with multiple-site visitors.…”

“…• One can try to estimate the opportunity cost of time, for example, using some fraction of the wage rate (Cesario 1976;Coupal et al 2001;Bin et al 2005); or • One can ignore the opportunity cost of time altogether (Beal 1995c;Whitten and Bennett 2002;Prayaga et al 2006;Fleming and Cook 2008).…”