1. The Economic Benefit of National Park Yann-Jou Lin*, Bau-Show Lin, Ting-Ju Lin, Wen-Chin Huang Professor, Dept. of Horticulture Science, National Taiwan University 0 2007/01/20

2. Introduction As with most National Parks of the world, National Parks in Taiwan are established for the purposes of (1) protecting the natural and cultural resources of the nation and (2) providing quality recreational opportunities. As with most National Parks of the world, National Parks in Taiwan are established for the purposes of (1) protecting the natural and cultural resources of the nation and (2) providing quality recreational opportunities.

3. Total value of National Park

4. The total economic value of National Park includes market and non-market values, and the economic valuation is more than financial benefit. The total economic value of National Park includes market and non-market values, and the economic valuation is more than financial benefit.

5. Economic valuation Economic benefit evaluation Economic benefit evaluation Contingent Valuation Contingent Valuation Hedonic Pricing Hedonic Pricing Travel Cost Method Travel Cost Method Damage Function Damage Function Opportunity Cost Opportunity Cost Benefit Transfer Benefit Transfer Economic impact assessment Economic impact assessment Input-Output Analysis Input-Output Analysis Money Generation Model Money Generation Model

6. Case study of Taroko National Park The total economic value of Taroko National Park The total economic value of Taroko National Park The economic impact of visitors’ expenditures on Taroko National Park. The economic impact of visitors’ expenditures on Taroko National Park.

7. Taroko National Park

8. Taroko National Park is famous for its beautiful marble gorge, ecological resources, and aboriginal culture. Taroko National Park is famous for its beautiful marble gorge, ecological resources, and aboriginal culture. The various values are associated with Taroko National Park. The various values are associated with Taroko National Park.

9. The total economic value of Taroko National Park

10. Methods Contingent valuation method was used to measure the total economic value of Taroko National Park. Contingent valuation method was used to measure the total economic value of Taroko National Park. According to the average household income level, this study chose Taipei and Hualien as sampling sites. According to the average household income level, this study chose Taipei and Hualien as sampling sites. Visitors were sampled too at visitor center of Taroko National Park. Visitors were sampled too at visitor center of Taroko National Park.

11. Taroko National Park Species Conservation Program In the view of conservation goal of Taroko NP and motivation that people want to get close to nature, we hypothesized that people will more easy to encounter hot species by conducting Taroko National Park Species Conservation Program. In the view of conservation goal of Taroko NP and motivation that people want to get close to nature, we hypothesized that people will more easy to encounter hot species by conducting Taroko National Park Species Conservation Program. This study used a payment card as the elicitation method and donation as the payment vehicle. This study used a payment card as the elicitation method and donation as the payment vehicle.

12. The willingness to pay question Following a description of the “Taroko National Park Species Conservation Program”, respondents were asked what is the most they would be willing to donate if they were asked to make a donation to Taroko National Park Species Conservation Program Following a description of the “Taroko National Park Species Conservation Program”, respondents were asked what is the most they would be willing to donate if they were asked to make a donation to Taroko National Park Species Conservation Program The reasons that respondents are willing /or not willing to donate were also asked. The reasons that respondents are willing /or not willing to donate were also asked.

13. Face to face interview was conducted during 20/07/2005~01/08/2005, and got 930 respondents. Face to face interview was conducted during 20/07/2005~01/08/2005, and got 930 respondents. Protest respondents (n=47) were selected based on the reasons they were not willing to donate. Protest respondents (n=47) were selected based on the reasons they were not willing to donate. Government should pay the money. Government should pay the money. I do not believe the money would be used as described. I do not believe the money would be used as described. I can not afford to donate at this time. I can not afford to donate at this time. After removing protest respondents, 883 respondents were used to evaluate the total economics value of Taroko National Park by interval model. After removing protest respondents, 883 respondents were used to evaluate the total economics value of Taroko National Park by interval model.

15. WTPmean= exp (3.915+0.149Concern- 0.026Nap1+0.179Nap2- 0.125Nap3+0.167 Nap4-0.163Nap5- 0.021Nap6+0.492Donate- 0.040Volunteer-0.487Age2- 0.971Age3+0.266Education+0.365Incom e+0.197Nep2+0.443 Nep3 + sigma 2 /2)

16. The total economic value of Taroko National Park Mean WTP of household (95% Confidence Interval) 1252 (1186, 1317) Total household number 7,054,332 Total WTP 8,830,189,537 95% Confidence Interval Lower value 8,369,753,288 Upper value 9,290,625,787

17. Economic impacts of Taroko National Park

18. Economic impacts of tourism Direct effect Direct effect The money received directly from tourists. The money received directly from tourists. Secondary effect Secondary effect The initial effects of expenditures generates income and there will be secondary effects as that income generates further expenditure. The initial effects of expenditures generates income and there will be secondary effects as that income generates further expenditure.

19. Input-output analysis Input-output analysis Following the pioneering work of Wasily W. Leontief, input-output models deal with interindustrial dependence within the economy. Following the pioneering work of Wasily W. Leontief, input-output models deal with interindustrial dependence within the economy. I-O Table ( Transactions Table ) I-O Table ( Transactions Table ) Input-output coefficient table Input-output coefficient table Impact Coefficients Table Impact Coefficients Table The impact coefficients table is also known as the Leontief Inverse or Interindustry Interdependence Coefficients Matrix. The impact coefficients table is also known as the Leontief Inverse or Interindustry Interdependence Coefficients Matrix. Input-output analysis is used to estimate the economic impact of tourism on Taroko National Park. Input-output analysis is used to estimate the economic impact of tourism on Taroko National Park. Methods

20. The tourists visiting Taroko National Park were chosen as sample. The tourists visiting Taroko National Park were chosen as sample. The survey was conducted on-site with tourists at three major scenic spots of Taroko National Park in August 2006. The survey was conducted on-site with tourists at three major scenic spots of Taroko National Park in August 2006. The questionnaire was designed to classify tourist two categories – individual and group. Respondents were asked to state per capita expenditure in terms of accommodation, transportation, food and beverage, entertainment, and miscellaneous items. The questionnaire was designed to classify tourist two categories – individual and group. Respondents were asked to state per capita expenditure in terms of accommodation, transportation, food and beverage, entertainment, and miscellaneous items.

21. Results Direct effect Direct effect The expenditure of tourists The expenditure of tourists Expenditure Sector TransportationShopping Food & Accom. Amusement & Recreation Individual traveler N=46595.9%492.296.91286.785.3 Group traveler N=204.1%1664.8549.14484.9338.7

22. The Leontief inverse matrix The Leontief inverse matrix represents the direct and secondary effects throughout the economy resulting from one unit change in final demand. The input-output transaction table is obtained from the report of 2001 Input-Output Tables, Taiwan Area, The Republic of China. The 49×49 sectors from the transaction tables were aggregated into a 30×30 sector matrix. In this matrix tourism- related sectors included transportation, retail trade, food and hotel services, and recreation services.

23. Total Impact- Individual Traveler TransportationRetail Trade Food & Hotel Services Recreation Services Total Impact Tourist Expenditure (NTD) 492.2494696.939781286.6903285.348391961.22796 Agriculture & Fisheries 0.047260.009694.585760.041314.68402 Minerals 0.927400.072127.963330.090389.05323 Food Products 0.066450.0137710.213750.0784410.37240 Fabrics Products 0.609400.2511721.373210.2564722.49026 Leather Products 0.034950.003390.090070.007080.13549 Wood & Products 0.216590.093261.645680.083132.03865 Paper & Printed Matter 5.761782.0873133.501562.8617344.21237 Chemical 2.809270.6482419.219290.7048923.38169 Chemical Manufactures 5.902071.5371751.148511.5713560.15911 Plastic Products 56.166161.8779222.614870.9442981.60324 Misc. Non ‑ Metallic 0.858480.139887.748450.219868.96667 Metal 3.949320.301875.455570.5480210.25478 Metal Products 1.743550.192815.187940.414287.53858 Machinery 2.134890.189913.328670.267745.92120 Electrical Products 3.237520.545679.131642.4116015.32644

24. TransportationRetail Trade Food & Hotel Services Recreation ServicesTotal Impact Tourist Expenditure (NTD) 492.2494696.939781286.6903285.348391961.22796 Transport Equipment 19.653550.343171.996940.4776922.47136 Other Manufactures 0.756100.164803.636191.167655.72473 Construction 5.058360.7857011.712741.0102718.56706 City Electricity 7.858272.1368440.856282.2866553.13805 gas 0.159980.0460529.160260.0897929.45608 Water 0.668970.1197210.245920.1556811.19028 Transportation * 520.071891.8969213.542420.91101536.42224 Communication Services 8.539052.8728121.639561.7436734.79509 Retail Trade * 11.2178798.1140230.526731.81442141.67304 Finance Services 43.8766611.79389116.862368.67703181.20993 Food & Hotel Services * 1.272460.217051288.326990.164641289.98114 Services for Business 24.729636.2426372.404646.19851109.57541 Social Services 0.716720.566132.470450.118463.87175 Recreation Services * 2.164420.520575.0875793.67284101.44540 Undistributed Services 18.589313.2525234.8319910.7462267.42004 Sum 749.79832137.036991886.50932139.735112913.07974 Multiplier 1.485

25. Total Impact- Group Traveler TransportationRetail Trade Food & Hotel Services Recreation Services Total Impact Tourist Expenditure (NTD) 1664.83781549.110224484.91770338.656947037.52267 Agriculture & Fisheries 0.159820.0549115.984250.1639116.36289 Minerals 3.136550.4085427.757160.3586431.66089 Food Products 0.224750.0779735.601280.3112336.21523 Fabrics Products 2.061071.4227474.498971.0176679.00045 Leather Products 0.118200.019220.313940.028110.47948 Wood & Products 0.732530.528245.736210.329857.32683 Paper & Printed Matter 19.4869311.82344116.7738011.35517159.43934 Chemical 9.501233.6719066.991222.7969782.96131 Chemical Manufactures 19.961418.70724178.284456.23501213.18811 Plastic Products 189.9596610.6373678.826913.74690283.17084 Misc. Non ‑ Metallic 2.903480.7923727.008170.8723831.57640 Metal 13.356991.7099319.016052.1745236.25749 Metal Products 5.896861.0921818.083191.6438426.71606 Machinery 7.220401.0757111.602481.0623720.96096 Electrical Products 219.3373915.30755154.536819.50000398.68175

26. TransportationRetail Trade Food & Hotel Services Recreation ServicesTotal Impact Tourist Expenditure (NTD) 1664.83781549.110224484.91770338.656947037.52267 Transport Equipment 66.470311.943856.960591.8954677.27022 Other Manufactures 2.557190.9334912.674384.6331720.79822 Construction 17.107874.4505440.826214.0086866.39330 City Electricity 26.5774712.10404142.409599.07330190.16440 gas 0.541070.26083101.641690.35627102.79986 Water 2.262510.6781535.713400.6177139.27178 Transportation * 1758.9361110.7449947.203763.614821820.49968 Communication Services 28.8799416.2728875.427356.91876127.49893 Retail Trade * 37.93999555.76160106.404677.19951707.30577 Finance Services 148.3953266.80585407.3381634.42990656.96923 Food & Hotel Services * 4.303611.229464490.622510.653274496.80885 Services for Business 83.6381235.36105252.3752924.59530395.96976 Social Services 2.424003.206808.611040.4700614.71191 Recreation Services * 7.320292.9487217.73336371.68784399.69022 Undistributed Services 62.8709418.42375121.4112140.22647242.93236 Sum 2744.28202788.455296698.36810551.97706 10783.08247 Multiplier 1.532

27. Income Effect- Individual Traveler Total Impact Income Coefficient Income Effect Agriculture & Fisheries 4.68402 0.374501.75416 Minerals 9.05323 0.378873.43003 Food Products 10.37240 0.113271.17490 Fabrics Products 22.49026 0.201234.52574 Leather Products 0.13549 0.152100.02061 Wood & Products 2.03865 0.256140.52219 Paper & Printed Matter 44.21237 0.2399510.60854 Chemical 23.38169 0.068831.60944 Chemical Manufactures 60.15911 0.1916111.52679 Plastic Products 81.60324 0.053584.37238 Misc. Non ‑ Metallic 8.96667 0.184051.65027 Metal 10.25478 0.106261.08972 Metal Products 7.53858 0.211671.59572 Machinery 5.92120 0.208961.23726 Electrical Products 15.32644 0.128261.96575

28. Total Impact IncomeCoefficient Income Effect Transport Equipment 22.47136 0.179584.03541 Other Manufactures 5.72473 0.206141.18009 Construction 18.56706 0.254614.72727 City Electricity 53.13805 0.102965.47093 gas 29.45608 0.107503.16662 Water 11.19028 0.315503.53051 Transportation * 536.42224 0.33880181.73985 Communication Services 34.79509 0.249948.69654 Retail Trade * 141.67304 0.4832668.46548 Finance Services 181.20993 0.1774832.16032 Food & Hotel Services * 1289.98114 0.51589665.48321 Services for Business 109.57541 0.4229846.34799 Social Services 3.87175 0.695372.69229 Recreation Services * 101.44540 0.3141631.86999 Undistributed Services 67.42004 0.4352729.34612 Sum2913.079741135.99611

29. Income Effect- Group Traveler Total Impact IncomeCoefficient Income Effect Agriculture & Fisheries 16.362890.374506.12788 Minerals31.660890.3788711.99549 Food Products 36.215230.113274.10215 Fabrics Products 79.000450.2012315.89734 Leather Products 0.479480.152100.07293 Wood & Products 7.326830.256141.87672 Paper & Printed Matter 159.439340.2399538.25667 Chemical82.961310.068835.71050 Chemical Manufactures 213.188110.1916140.84791 Plastic Products 283.170840.0535815.17258 Misc. Non ‑ Metallic 31.576400.184055.81148 Metal36.257490.106263.85288 Metal Products 26.716060.211675.65510 Machinery20.960960.208964.37990 Electrical Products 398.681750.1282651.13428

30. Total Impact IncomeCoefficient Income Effect Transport Equipment 77.270220.1795813.87619 Other Manufactures 20.798220.206144.28732 Construction66.393300.2546116.90407 City Electricity 190.164400.1029619.57876 gas 102.799860.1075011.05129 Water39.271780.3155012.39017 Transportation * 1820.499680.33880616.78529 Communication Services 127.498930.2499431.86657 Retail Trade * 707.305770.48326341.81541 Finance Services 656.969230.17748116.59594 Food & Hotel Services * 4496.808850.515892319.84073 Services for Business 395.969760.42298167.48650 Social Services 14.711910.6953710.23016 Recreation Services * 399.690220.31416125.56628 Undistributed Services 242.932360.43527105.74190 Sum10783.082474124.91037

31. Economic impacts of Taroko National Park The results showed that average expenditures in Hualien are 1,961 NTD and 7,038 NTD respectively for every individual traveler and group traveler. On average, each individual traveler bring 2,913 NTD and each group traveler bring 10,783 NTD economic impact to the local economy. The results showed that average expenditures in Hualien are 1,961 NTD and 7,038 NTD respectively for every individual traveler and group traveler. On average, each individual traveler bring 2,913 NTD and each group traveler bring 10,783 NTD economic impact to the local economy. As the result, tourists of Taroko National park in 2006 bring 4.95 billion NTD economic impacts to Hualien. As the result, tourists of Taroko National park in 2006 bring 4.95 billion NTD economic impacts to Hualien. Total tourist expenditures also generate 1.91 billion NTD income effect to Hualien. Total tourist expenditures also generate 1.91 billion NTD income effect to Hualien.

32. Conclusion

33. Conclusion The total economic value of Taroko National Park is 8.83 billion NTD annually. It reveals that Taroko National park is valuable for people. The total economic value of Taroko National Park is 8.83 billion NTD annually. It reveals that Taroko National park is valuable for people. The direct use of Taroko National Park brings 4.95 billion NTD, and generates 1.91 billion NTD income effects. The direct use of Taroko National Park brings 4.95 billion NTD, and generates 1.91 billion NTD income effects.