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Mladenov Okavango DSA 2007
Mladenov Okavango DSA 2007
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Dissonance in customary and Statutory water management Institutions in the Okavango Delta, Botswana View project
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1. INTRODUCTION
Wildlife-viewing tourism contributes to the Gross Domestic Product (GDP) of many
southern African countries, yet the environment that supports wildlife is quickly dimin-
ishing. This may soon be the case for the Okavango Delta, a large pristine wetland in
north-western Botswana. The Delta is one of the most frequently visited tourist desti-
nations in Botswana and home to many rare and endangered species of animals. With
an area of between 6000 and 13 000 km2 (Gieske, 1997), it is the largest Ramsar
Wetland of International Importance (Ramsar Convention on Wetlands, 1996). It is
also part of the Zambezian Flooded Savannahs Ecoregion, one of the World Wildlife
Fund’s top 200 ecoregions of global significance. The Okavango Delta has been recog-
nised by the Government of Botswana as a source of floral and faunal biodiversity.
1
Respectively, Research Associate, Institute for Arctic and Alpine Research, University of Colorado
and Department of Civil, Environmental and Architectural Engineering, University of Colorado;
Student, Department of Economics, University of Colorado; Professor, Department of Economics,
University of Colorado; Research Fellow, Harry Oppenheimer Okavango Research Centre,
University of Botswana; Research Fellow, Harry Oppenheimer Okavango Research Centre,
University of Botswana; and Professor, Department of Civil, Environmental, and Architectural
Engineering, University of Colorado.
The authors wish to thank May Lehmensiek of the University of Florida and Ariel Esposito and
Anthony Lane of the University of Colorado for voluntarily administering the visitor surveys;
May Lehmensiek and Ariel Esposito for translating the surveys for foreign visitors; Marnie
Norris for data entry; Sepopa Swamp Stop, Audi Camp, Crocodile Camp, Sitatunga Camp,
Maun International Airport and tourist respondents for their cooperation; and anonymous
reviewers for constructive comments on the manuscript. Funding was made possible by an inter-
national supplement to the NSF IGERT Grant # DGE 9987607. The research was also funded in
part by the Undergraduate Research Opportunities Program at the University of Colorado.
ISSN 0376-835X print/ISSN 1470-3637 online/07/030409-15 # 2007 Development Bank of Southern Africa
DOI: 10.1080/03768350701445525
410 N Mladenov et al.
Situated just north-west of the Kalahari Desert, the Okavango Delta is not unlike other
arid zone wetlands that are threatened by the growing need for water. It is important to
recognise that the Delta and its entire basin system, which has its origins in Angola and is
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shared by Namibia, is under threat from the socio-economic activities taking place
in these two countries and Botswana. Mbaiwa (2004a) argues that for the Delta to
remain a natural ecosystem that also supports wildlife resources for the tourism industry,
sustainable management measures need to be adopted at both the national and the inter-
national level by the basin states of Angola, Botswana and Namibia. Mbaiwa (2004a)
also notes that at the international level protocols such as the 2001 Revised Southern
African Development Community Protocol for Shared Watercourses encourage the
development of Integrated Management Plans for the basin and the formation of a
Secretariat for the Basin States to ensure their sustainable management.
Potential diminished water supply because of upstream water withdrawals (Andersson
et al., 2003; Mukumbira, 2003), such as the proposed hydropower project by Namibia
(Water Transfer Consultants, 2003), and other indirect causes, such as climate change
(Tyson, 1991; Arnell et al., 2003), may cause significant ‘shrinking’ of the Delta
(Andersson et al., 2003). It is likely that seasonally flooded areas of the Delta, where
most large mammals are found, will be severely affected if the Delta shrinks. Also,
given that safari camps and public campsites are located in seasonally flooded areas,
reduced water supply could have non-linear impacts on wildlife-viewing opportunities.
Such impacts could have ripple effects on Botswana’s tourism industry, which contrib-
utes 4.5 per cent to Botswana’s GDP, or 7 per cent of the non-mining sector GDP
(Mbaiwa, 2003).
While the biodiversity of the Delta clearly has intrinsic value, which is difficult to quan-
tify, it is important to demonstrate that these environmental assets are also of economic
value, which can be measured. Two methods that can be used to accomplish this are the
contingent valuation (CV) method and the travel cost (TC) method. A CV model
measures the amount a respondent is willing to pay for a good or for the maintenance
of that resource, for example, willingness-to-pay (WTP) for the preservation of the Oka-
vango River water rights. The contingent valuation method is one of the most popular
methods employed to determine non-use values (Folmer et al., 1997; Blomquist &
Whitehead, 1998; Oglethorpe & Miliadou, 2000) and has been used successfully in
developing countries (Navrud & Mungatana, 1994).
The amount that tourists are willing to spend in addition to the cost of the trip, or the
consumer surplus, can be measured using the travel cost method. The TC method is a
revealed preference economic valuation technique that uses information on travel
costs to recreation sites as a proxy for the benefit of those recreation sites (Kahn,
1997; Bateman et al., 1999; Garrod & Willis, 2000). The consumer surplus, the area
under the demand curve and above the price that visitors pay, represents the value of
the site to the individual (Kahn, 1997). According to the theory of decreasing marginal
utility of consumers, the marginal consumer surplus for subsequent visits is expected to
be smaller than that for the first visit (Garrod & Willis, 2000).
Previous studies on tourism in the Okavango Delta have dealt with the socio-economic
and environmental impacts of tourism development Mbaiwa (2004b,c; 2005) and
regional protocols and programmes that can lead to the conservation of the Okavango
River Basin (Mbaiwa, 2004a). To advance our understanding of the value of wetland
resources and of their conservation, this study seeks to contribute to a wider and
Wildlife-viewing tourism in the Okavango Delta, Botswana 411
study uses ecosystem valuation tools to better understand how changes to the biodiver-
sity of the ecosystem may affect the value of this safari destination and, ultimately, its
sustainable management. We begin by establishing socio-economic profiles and analys-
ing Delta visitors’ trip preferences. We hypothesise that the quality of the trip affects the
value of the Delta and that those tourists who take high-end safari trips will have a higher
WTP than budget safari tourists. We also hypothesise that diminished biodiversity and
decreased wildlife-viewing opportunities will have a negative impact on the value of
the Delta, which can be elicited through both CV and TC methods. To evaluate our
hypotheses, we present the results of a tourism survey that employs CV and TC
methods combined with socio-economic and trip characteristics questions to elicit a
value for the Okavango Delta as a safari destination. Therefore the goals of this study
are to:
1) provide socio-economic data, which can be used in a larger societal context to inform
management decisions;
2) estimate the value of the Delta for the tourism sector, which represents a reservoir of
funds that can be used for preservation;
3) determine whether decreased biodiversity affects the value of the Delta;
4) evaluate the differences in WTP from visitors taking high-end and budget high-end
and budget safari trips; and
5) use these results to inform sustainable management of the Okavango River Basin.
2. METHODS
2.1 The study site
Safari camps are mostly located in the seasonally flooded fringe areas of the Delta
(Figure 1), where the wildlife-viewing opportunities are greatest. Tourists are generally
transported to private safari camps from Maun International Airport by small plane or
four-wheel drive vehicle. Visitors to the Panhandle, at the upstream end of the Okavango
Delta (Figure 1), are often self-driven or part of an overland tour. From there, tourists can
taking fishing trips or be transported deeper into the Delta by motorboat or dugout canoe
(mokoro). Some safari camps and public campsites are located in Moremi Game
Reserve, a government-protected park within the Okavango Delta, where tourists can
enter via four-wheel drive vehicle or overland truck after paying the appropriate national
park and camping fees. In 1998, a survey by the Department of Tourism (2001a) esti-
mated that there were 52 512 visitors to the Okavango Delta, and a sizable portion of
these represented travel to Moremi Game Reserve (49 556 visitors).
Figure 1: Map of the Okavango Delta, showing safari camps and Moremi Game
Reserve.
Source: Adapted from Department of Tourism of Botswana, Okavango Delta map, 2001b.
the present cost in increments of 0.5. Visitors were also asked questions about trip
characteristics, such as trip cost, transport costs, countries visited, type of accommo-
dation and mode of travel into the Delta.
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Socio-economic data were collected to determine a profile of the type of tourist drawn to
the Delta and the effects of income, age, gender, and nationality on WTP. Because of the
already extensive length of the survey, socio-economic variables such as education and
size of household were omitted.
where CDELTA is the amount spent only during the Delta portion of the trip (many
visitors spent money travelling to other destinations in Africa or elsewhere), CTRAN-
SPORT is the amount spent on transport to the Delta from the point of departure,
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COUNTRIES represents the total number of countries visited during the trip, and
MULT is the proportion of the price paid that would have prevented the trip (ranging
from 1 to 3, in increments of 0.5), all for the ith individual.
Statistical analyses for the CV method were performed in SAS and Eviews, and for the
TC method in SPSS and Excel. T-tests and bivariate correlations were run to establish
initial patterns of WTP for preservation among visitors.
3. RESULTS
3.1 Descriptive statistics
Descriptive statistics (Table 1) indicate that most of the respondents were Europeans.
The respondents’ average age was 36 and their mean annual income was high, at over
US$43 000, which is just above the US median household income for 2001 (US$42
228) and 2002 (US$42 409, from the US Census Bureau, 2005). A more realistic
distribution of visitor profiles is shown by histograms of age and income (Figures 2
and 3). The 17 – 30 age group was the largest group (about 41 per cent) of
respondents, and incomes in the US$25 000 – 30 000 range were the most common
(about 45 per cent).
Most of the respondents (97 per cent) combined their Botswana trip with trips to other
countries, such as South Africa, Zimbabwe and Namibia. While they were in Botswana
they also travelled to the neighbouring Makgadikgadi Pans (75 per cent), Chobe National
Park (19 per cent) and Tsodillo Hills (10 per cent). While in the Okavango Delta, most
stayed in campground accommodation (74 per cent), though a significant number (20 per
cent) stayed in lodges. About 40 per cent travelled into the Delta by plane, and the
number of self-driven tourists was also high (at 23 per cent).
Average trip costs were also high (Table 1), with the cost of the Delta portion of the trip
(OKACOST) representing almost one-third of all trip costs. This portion included only
the safari costs (the cost of transport to the Delta from the departure city was not
included), and modes of travel ranged from budget self-driven trips to high-cost
safaris. The average annual tourist spending on safaris in the Delta, calculated by mul-
tiplying OKACOST (US$1122; Table 1) by the projected number of visitors to the
Delta for the study period of 2001 – 2002 (80 700), was US$90.5 million.
Overall, the respondents rated wildlife-viewing opportunities higher than the service
they received from the employees who staff the lodges and parks (Table 1). Only 29
per cent said they would pay the same amount for their trip if wildlife-viewing opportu-
nities were diminished and most (91 per cent) were concerned about potential negative
impacts on the Delta. Most (86 per cent) felt the trip was worth the money they had spent
and 98 per cent would recommend the trip to others. Approximately a third (60) of the
respondents provided written comments, and of these 58 per cent were positive. Gener-
ally, the wording of the negative comments reflected satisfaction with the Delta as a
whole, but displeasure with some aspect of the Delta visit. For example, there were
specific negative comments about the camping facilities in Moremi Game Reserve,
but positive ones about wildlife viewing in this reserve.
Wildlife-viewing tourism in the Okavango Delta, Botswana 415
Table 1: Descriptive statistics in the contingent valuation and travel cost models
(Abbreviations are shown in parentheses for specific variables used in subsequent
tables)
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Variable Mean d N
(Table continued)
416 N Mladenov et al.
Table 1: Continued
Variable Mean d N
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0 ¼ no and 1 ¼ yes, where value not specified.
For ratings, 0 ¼ lowest and 5 ¼ highest. For all other responses, 0 ¼ no and 1 ¼ yes.
to the Delta for the study period 2001 – 2002 (80 700) by DONATE, we calculated a sub-
stantial annual donation amount of US$4.8 million. Independent sample tests (Table 4)
indicated that DONATE was most highly correlated with rating of wildlife viewing
(RTWILD), cost of the Delta trip (OKACOST), and days spent viewing wildlife (DAY-
SWILD). However, each of these correlations only explained approximately 20 per cent
of the variation. DONATE was higher among respondents who had higher responses for
wildlife-viewing contributions to trip enjoyment (RTWILD) and also among those
who had spent more days in the Delta and those who had paid more for their trip
(Table 4).
Correlation P value N
Correlation is significant at the 10% level (p , 0.05).
Correlation is very significant (p , 0.001).
418 N Mladenov et al.
visitors to the Delta for the study period of 2001 –2002 (80 700) by the SURPLUS value,
we calculated a total surplus value of US$18.2 million from the tourism sector. The cor-
relation (p ¼ 0.001) between SURPLUS and DONATE (Table 5) was highly significant
and suggests consistency between the two valuation methods. However, the strength of
the correlation explained less than 30 per cent of the variation. The bivariate correlation
between SURPLUS and RTWILDH was just under significant (p ¼ .07). The number of
days spent viewing wildlife was significantly correlated with SURPLUS and the R value
explained just under 50 per cent of the variation (Table 5). Compared to visitors who
stayed in campground accommodation, those who stayed in lodges had a higher average
consumer surplus (US$609/person for lodge stays vs US$129/person for camping) and a
higher WTP for preservation (US$99/person vs US$50/person; Table 3).
4. DISCUSSION
4.1 Results from socio-economic profiles
A generalisation that can be made from the results of our survey is that the average visitor
to the Okavango Delta is a middle-aged, middle-income European, South African or
North American in his or her mid-thirties. However, the histograms showed that age
and, moreover, income were not best represented with a normal curve and that tourists
in the 20 to 30 age group and those with annual incomes of about US$27 000/annum
displayed the more common socio-economic profile. However, all the socio-economic
results should be interpreted cautiously because our study was restricted to the boreal
summer when many northern hemisphere residents are out of school or taking vacations.
This may influence age, income and nationality estimates.
Correlations between socio-economic data and trip characteristics suggested that
higher income visitors could be expected to contribute more to preservation and
pay more for trips than budget travellers. Generally, the higher income visitors
Wildlife-viewing tourism in the Okavango Delta, Botswana 419
Correlation P value N
Correlation is significant at the 10% level (p , 0.05).
Correlation is very significant (p , 0.001).
travelled by plane and stayed at lodges. Therefore, it is no surprise that visitors who
stayed in lodges also had a higher WTP for preservation and higher consumer
surplus values than visitors who camped (Table 3). The average trip cost had a
high standard deviation because of the varying length of stay and the wide range
of travel packages, from budget self-driven trips to high-cost safaris. Nevertheless,
the average annual amount (US$90.5 million) spent by tourists on safaris in the
Okavango Delta during the study period 2001 – 2002 indicates that tourism generates
significant revenue.
The relationship between annual income and DONATE is consistent with the findings of
other studies that show a positive correlation between income and WTP (Hadker et al.,
1997; Muriithi & Kenyon, 2002; Horton et al., 2003). In agreement with the findings of
the CV analysis, there is also a relationship between annual income and consumer
surplus, although it is weaker. This is consistent with findings that household income
does influence participation patterns for natural resource based trips (Leeworthy &
Bowker, 1997; Park et al., 2002).
Correlation P value N
Correlation is significant at the 10% level (p , 0.05).
Correlation is very significant (p , 0.001).
420 N Mladenov et al.
(from R5 to R100). However, the consumer surplus estimate (US$225 per person per
annum) is in the range reported by Turpie and Joubert (2001) for the Kruger National
Park (ranging from R554 to R9819 per person among foreign visitors in 2000). These
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results indicate that the tourism sector may offer a large reservoir of funds that could
be tapped for managing and preserving the Delta.
Moreover, the value of the Delta could be extrapolated to a much larger global popu-
lation that may have preservation and bequest values for this ecosystem without ever
having seen it. Although only Delta visitors were questioned in this survey so that the
effects of biodiversity on WTP could be assessed, in principle non-visitors also would
be able to reveal their maximum WTP for the trip within the same survey structure.
Non-visitors deciding to visit the Delta could make the decision only on the basis of
information not experience, while the visitors we surveyed had the advantage or bias
of experience. A sampling of both visitors and non-visitors would be recommended in
a future study to quantify and compare 1) WTP on the basis of expectation and uncorro-
borated by experience and 2) WTP after experiencing the recreational value of the site.
Consistent with previous research (Sellar et al., 1985; Haneman, 1994), direct use valua-
tions that were elicited using the TC method (US$225 per person per annum) exceeded
donation amounts elicited using the CV method (US$60 per person per annum). The high
average trip cost may have contributed to higher TC values. In addition, using an open-
ended CV question, which typically generates a lower WTP than an iterative bidding
question or a dichotomous choice question (Gren et al., 1994), may have contributed
to the lower average CV value. A preferred payment structure for future contingent
valuation studies is a payment ladder approach, which avoids starting point bias and
anchoring effects (Horton et al., 2003). Given that using an open-ended payment struc-
ture generates a low WTP, it is likely that our findings of visitors’ economic value for the
Delta are conservative.
5. CONCLUSION
The results of this study highlight a compelling financial incentive to invest in water
rights protection and preservation of the Okavango Delta’s biodiversity. Income was a
determinant both of WTP for preservation and of consumer surplus, suggesting that pres-
ervation value and the participation patterns for natural resource based trips are both
Wildlife-viewing tourism in the Okavango Delta, Botswana 421
influenced by personal income. However, the strength of correlation was low and further
study would be necessary to verify this preliminary result. The other important finding of
this study, that WTP was influenced by the quality of the wildlife-viewing opportunities,
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