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I. Introduction

II. Literature Review

III. Methodology

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Research Background

Lukang

Statements of Problem

Purposes of Research

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Distinct benefits of historical tourism include the

potential of a clean industry and a valuable

source of income and employment.

(Orbasli, 2000)

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Interpretation allows visitors to generate a better

understanding of the history and significance of

events, people, and objects with which the site is

associated.

(Alderson & Low, 1996)

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Interpretation is one of the key factors to a

sustainable tourism.

(Harris, Griffin, & Williams, 2002)

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Nearly 91% of the citizens traveled at least once

domestically in 2007, and the average number of

trips per person was 5.57.

(R. O. C. Tourism Bureau, 2008)

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The number of tourists who have visited historic

sites in 2008 was only 5% of the total number of

tourists who have visited the principal scenic

spots in Taiwan.

(R. O. C. Tourism Bureau, 2009)

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There are currently a total of 699 historic

monuments and 767 historic buildings in Taiwan.

(Headquarters Administration of Cultural Heritage)

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Primary historic heritage 1

Tertiary heritage sites 6

Valuable heritage sites 7

Designated Heritage Sites in Lukang

According to the survey of Visitors to the Principal

Scenic Spots in Taiwan by Month, more than

481,063 tourists visited Lukang in 2008.

(R. O. C. Tourism Bureau, 2009)

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Only few of the past studies have examined the

need for interpretative services and the value of

these services to visitors in heritage sites.

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By probing the visiting patterns and the

perceptions of the tourists, more could be

considered to increase satisfaction of the

tourists, and may further increase

revisitation.

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to use the contingent valuation method (CVM)

to elicit the willingness-to-pay (WTP) of the

tourists for personal interpretative service in

Lukang, and to analyze WTP determinants with

the application of a double-hurdle model

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To determine:

1. tourists’ demand on personal interpretative service in Lukang

2. the determinants of tourists’ willingness-to-pay for personal interpretative service in Lukang

3. the determinants of the level of WTP value for personal interpretative service in Lukang

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Interpretative Service

Contingent Valuation Method

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Determinants of WTP

Double-Hurdle Model

Interpretation is an educational activity which

aims to reveal meanings and relationships to

people about the places they visit and the things

they see, which in turn improves the quality of

visitor experience.

(Tilden, 1977)

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Interpretation is a mission-based communication

process that forges emotional and intellectual

connections between the interests of the

audience and the meanings inherent in the

resource.

(National Association for Interpretation, 2009)

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The goal of interpretation is to increase visitor

awareness, promote learning, appreciation and

understanding of places so that tourists develop

empathy towards heritage, conservation, culture

and landscape.

(Stewart, Hayward, & Devlin, 1998)

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Interpretation services benefit both the heritage

sites and tourists and draw public support by

enhancing visitors’ experiences and educating

visitors in appropriate behaviors to conserve the

historical sites.

(Hall & McArthur, 1993)

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Personal /

Attended

Non-personal /

Unattended

guided walks talks presentations drama special events activity programs

interpretative signs interpretative brochures exhibit center audio guide multi-media guide interpretative trail

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Personal Interpretative Service

diverse audience

needs

more interaction

entertaining and

memorable

notice problems

(Maslow, 1970)25

The contingent valuation method (CVM) is a

standard approach to measuring economic

values of non-market goods, such as recreation

resources, wildlife, and environmental quality

goods.

(Hanemann, 1994; Lee & Han, 2002) 26

Elicitation techniques:

bidding game approach

payment card approach

dichotomous choice approach (DC)

open-ended elicitation technique

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Possible biases:

starting-point bias

sequencing effect

information effect

hypothetical bias

strategic bias

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In travel expenditure studies, economic and

socio-demographic variables were commonly

analyzed. Others have incorporated travel-related

variables, constraint factors, and life cycle stages.

(Dardis, Soberon-Ferrer & Patro, 1994; Hong, Fan, Palmer

& Bhargava, 2005; Jang, Bai, Hong & O’Leary, 2004;

Jang & Ham, 2009; Weagley & Huh, 2004)29

Analysis of open-ended bids:

Ordinary least square (OLS) regressions

Tobit analysis

Double-hurdle model

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Many researchers went through the process

of the model selection tests, and justified the

double-hurdle model from their findings.

(Angulo, Gil & Gracia, 2001; Aristei, Perali &

Pieroni, 2008; Gebremedhin & Swinton, 2003;

Matshe & Young, 2004; Saz-Salazar & Rausell-

Koster , 2008)31

Log likelihood statistics and Hosmer-Lemeshow

statistics were used to confirm that the double-

hurdle model was good fit, and the findings

revealed differences in the variables influencing

travel participation and travel expenditure.

(Jang &Ham, 2009)

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Data Collection

Instrument

Estimation Methods

Data Analysis

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Sampling size estimation formula

n =

n : sample size Z : 95 % confidence interval ( Zα/2= 1.96 )

p : population proportion (½) e : tolerated error (5%)

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e2

Zα/22 p(1-p)

385

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ParticipantsTourists who have visited Lukang (on-site)

Questionnaire 410 copies

Time 5 minutes

Sampling convenience sampling

Elicitation approach

Open-ended

questionnaire survey

Part 4 Demographic Information

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Part 1Cognition of Personal Interpretative Services

Part 2 Lukang Traveling Experiences

Part 3Willingness-to-Pay for Personal Interpretative Service in Lukang

Main reasons for zero responses:

the survey period is too short for participants

to report any purchase (infrequency of

purchase)

participants are not willing to pay due to

personal preferences (abstention)

participants do not pay due to economic

reasons (corner solution)37

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ordinary least square (OLS) regression

biased and inconsistent

estimates of the parameters

Double-hurdle model

Cragg (1971)

considers the possibility of zero outcomes in the second hurdle

two stages of estimation

two sets of variables

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Tobit model

Tobin (1958)

all zero observations are interpreted as corner solutions

treats the decisions jointly

same set of variables

Heckman’s sample selection model

Heckman (1979)

there will be no zero observations in the second stage once the first stage selection is passed

two stages of estimation

two sets of variables

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1. The decision to pay for personal interpretative service (D):

Di* = Zi α ＋ ui , ui ~ N(0,1) (1a)

Di = 1 if Di* > 0

0 if Di* ≤ 0 (1b)

D* : latent selection variable Z i : vector of explanatory variables α : vector of parameters

u i : error term

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2. The level of WTP value (Y):

Yi* = Xi β ＋ υi , υi ~ N(0, σ2) (2a)

Yi = Yi* if Di = 1 and Yi* > 0

0 otherwise (2b)

Yi : answer to the open-ended valuation question Xi : vector of explanatory variables β : vector of parameters υi : error term

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Log-likelihood function:

(3)

ϕ(∙): standard normal density functionΦ(∙): standard normal cumulative distribution

functionφ(∙): density function

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Thank you for your attention!

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