Willingness to Pay for Recreational Parks in Addis Ababa: An Empirical Investigation of the Application of Multivariate Analysis
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Willingness to pay is the maximum price at or below which a visitor will definitely buy one unit of product. This study examines the willingness to pay for recreational park services of two parks in Addis Ababa and to determine the attributes of willingness to pay of the recreational parks. The data were collected from a sample of 180 visitors in Addis Ababa recreational parks. The multivariate regression results obtained from this study indicated that travel costs, visitor’s income, and the number of years a visitor know the recreational parks were important determinants factors of the WTP of the sample visitors of Addis Ababa recreational parks. The coefficient of travel cost is negative and significant implying that an increase in travel cost reduces the number of visits of the site. Similarly, the coefficient of income variable is positive and significant implying that the demand for recreation increases as visitor’s income increases. The attractiveness and shortcoming of the recreational parks are identified in order to suggest for improvements of services to visitors. As the economic growth and awareness of the people increase, people will demand for better services and facilities or else willingness to pay will be affected. Thus, it is important for the private and public recreational parks to upgrade their services and facilities over time to fulfill the needs of the people.
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