Estimating the Economic Value of Unity Park, Addis Ababa, Ethiopia

Abstract

Wildlife resources, including those that exist in zoos modify landscapes, offer substantial benefits to humanity. However, the absence of proper economic valuation for these resources detrimentally impacts human well-being by limiting potential benefits. Economic valuation methods play a pivotal role in determining the economic values associated with zoo resources, particularly for non-market environmental commodities such as wildlife viewing. The aim of this study was to estimate the total economic value of Unity Park, employing environmental economic valuation tools. The Travel Cost Method (TCM) is utilized, drawing data from 381 on-site visitors to assess the value of wildlife viewing in Unity Park and to estimate the mean Willingness to Pay (WTP) for the use value of the park. The economic value of the Unity Park recreational services is estimated through two regression models—Zero Truncated Poisson and Zero Truncated Negative Binomial. The results revealed that travel cost, monthly income, and the relationship with wildlife (RSW) are crucial determinants of recreational demand of the Park. Additionally, the first bid price, monthly income, RSW, and age significantly influence the willingness to pay for the non-use value of wildlife. The study concludes that the potential annual value of Unity Park Zoo ranges from 685,080,000 to 688,080,000 ETB. The mean WTP for the zoo was 194.11 ETB, which is 35.3% higher than the current entrance fee of 300 ETB. This implies the potential impact on visitor numbers, as the current fee may deter a considerable portion of local visitors. The study's findings could be significance for policymakers, providing insights into strategies for attracting more visitors to Unity Park Addis Ababa.