Estimating the economic value of recreation at the Kakum National Park, Ghana

Successive governments of Ghana have developed areas with major flora and fauna attractions into national parks for the use and benefit of society. These parks promote community development and generate revenues for the regional and national economies. Economic analysis can contribute to effective management of these conservation areas and are critical to influencing resource policy decisions. However, such studies are nonexistent, or at best, limited for most developing countries. This Chapter uses the Kakum National Park (KNP) as a case study to demonstrate the application of the travel cost method (TCM) for estimating the recreational benefits of conservation areas in Ghana. The TCM methodology was applied using survey data of 156 visitors to the KNP in February, 2009. The recreation demand function was specified as a truncated Poisson distribution model and estimated using maximum likelihood estimation techniques. Average per trip consumer surplus was estimated as US$16,420. Based on a projected 128,000 visitors in 2009 to the KNP, the economic value from recreation was extrapolated to be about US$2.10 billion. The KNP has the potential to contribute significantly to the local and national economies. Tourism policy in Ghana should focus on strategies to develop tourism sites that are close to each other, increase length of stay of visitors, encourage repeat visits, and reduce congestion at tourist sites.