- The Fondazione Eni Enrico Mattei series on Economics, the Environment and Sustainable Development
Edited by Alessandro Lanza, Anil Markandya and Francesco Pigliaru
Chapter 11: A choice experiment study to plan tourism expansion in Luang Prabang, Laos
Sanae Morimoto 1. INTRODUCTION Tourism development is often a very important strategy for fostering economic growth in developing countries. Tourism generates a variety of economic beneﬁts such as foreign exchange earnings, employment, income and government revenues.1 However, the budget and human resources for tourism development are usually very limited in these countries, and eﬃcient planning is required. Planners of tourism development need to understand tourists’ demand for the destination and activity and mode of transport in order to plan eﬀective expansion. This chapter presents the potential use of choice experiment (CE), one of the stated preference (SP) approaches, in planning eﬀective tourism expansion. The advantage of the approach is that it makes it possible to analyse tourists’ preference for the bundle of attributes of tourism separately. For example, tourists may make their choice based on what to see, mode of transport and cost. Another advantage of this approach is that it allows analysts to investigate tourists’ preference beyond the existing set of alternatives, which cannot be done in revealed preference (RP) approaches. This chapter, therefore, applies the CE approach and also tries to plan the most preferable tour from the estimation results. As a case study, this chapter deals with the tourism development in Luang Prabang, Lao P.D.R. (Laos). Section 2 explains why this study uses the CE approach rather than other environmental valuation approaches by reviewing other studies. Section 3 contains a brief description of tourism in Laos. Section 4 sets out the methodology of...
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