Dynamic optimal joint policies for tourism promotion and environmental restoration

Research Article
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Abstract

Policies regarding tourism management can be separated into (1) tourism promotion policies and (2) environmental restoration policies. Because of the close relationship between the number of visitors and environmental quality, both policy types should be jointly designed and implemented. This paper studies the optimal use of these two policies in tourism management. In the case of Khao Laem Ya–Mu Koh Samet National Park in Thailand, the optimal policy balance requires the substantially higher restoration expenditure than the promotion expenditure at all time. With optimal policy balance, the number of visitors at the steady state increases more than twice, whereas the water quality remains unchanged. The implementation of the optimal policy balance would yield an additional benefit in terms of net present value of approximately $120 million over 50 years. The results from sensitivity analysis affirm the importance of restoration over promotion policy and suggest that improving effectiveness of restoration expenditure and reducing visitor impact on environmental quality can significantly increase benefits from tourism.

Keywords

Optimal joint policies Tourism management Promotion policy Restoration policy Optimal control 

JEL Classification

Q57 Q58 C61 

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Copyright information

© Society for Environmental Economics and Policy Studies and Springer Japan KK 2017

Authors and Affiliations

  • Phumthan Sirilersuang
    • 1
  • Sittidaj Pongkijvorasin
    • 2
  1. 1.BangkokThailand
  2. 2.Faculty of EconomicsChulalongkorn UniversityBangkokThailand

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