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The value of wildlife-viewing tourism as an incentive for conservation of


biodiversity in the Okavango Delta, Botswana

Article  in  Development Southern Africa · September 2007


DOI: 10.1080/03768350701445525 · Source: RePEc

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The value of wildlife-viewing tourism as an incentive for
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Okavango Delta, Botswana', Development Southern Africa, 24:3, 409 - 423
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Development Southern Africa Vol. 24, No. 3, September 2007

The value of wildlife-viewing tourism as


an incentive for conservation of
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biodiversity in the Okavango Delta,


Botswana
Natalie Mladenov, John R Gardner, Nicholas E
Flores, Joseph E Mbaiwa, Gagoitseope Mmopelwa &
Kenneth M Strzepek1
The Okavango Delta is a large wetland safari destination in north-western Botswana. Given that
future threats to its water supply may affect the biodiversity of this ecosystem, it was important to
elicit a value of the Delta from the tourism sector and assess how biodiversity influences that value.
This paper presents a valuation of visitors’ preferences for the preservation of the Okavango Delta
in 2001 and 2002 using contingent valuation (CV) and travel cost (TC) approaches. The results
showed that the quality of wildlife viewing was significantly correlated with willingness-to-pay
(WTP) for preservation and suggested that impaired biodiversity would negatively affect the
value of this ecosystem. The combined CV and TC values totalled US$285/visitor/annum.
Extrapolated to the annual pool of visitors to the Delta in 2002, this translates to US$23
million, a large reservoir of funds from the tourism sector that could be used for preservation.

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

important literature on tourism and biodiversity and, in particular, on issues of costing


environmental assets. It is assumed that this study will be of interest not only to scholars
or researchers of the Okavango Delta but also to a wider set of tourism scholarship. The
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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).

2.2 Survey design


The survey instrument used in this study was a two-page questionnaire (Mladenov, 2004)
and all the tourists taking the survey were given an explanation of its purpose and back-
ground information on the international water rights conflict involving the Okavango
River and Delta. They were informed that Botswana’s wildlife is ‘under threat from com-
peting water uses’ and that the size of the Delta could be significantly reduced should
there be a large-scale water withdrawal upstream of the Delta. The CV and TC questions
were presented first, followed by socio-economic questions, and finally open-ended
412 N Mladenov et al.
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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.

questions to elicit further comments. The CV question was structured as an open-ended,


hypothetical payment request. The first part of this question provided information about
the proposed upstream water withdrawals. Two possible uses of hypothetical donations
were specified: 1) to invest money toward the preservation of upstream water rights and
2) to fund research to identify the impacts from upstream water withdrawals. Respon-
dents were asked whether they were willing to contribute to this preservation fund for
the Delta and what amount they would be willing to contribute. They could choose
not to contribute or they could specify amounts for one-off contributions, contributions
per visit, or membership subscriptions.
To arrive at a direct valuation, the TC method generally estimates consumer surplus from
repeat visits to a site. Because some visitors to the Delta indicated that they would not
make repeat visits (not because they did not benefit from it but because it is an exotic,
isolated place that they were unlikely to visit more than once), we determined the con-
sumer surplus by asking each respondent: ‘What is the maximum amount of money you
would have paid to take the trip?’ The choices were from the present cost to three times
Wildlife-viewing tourism in the Okavango Delta, Botswana 413

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.

2.3 Survey administration and analysis


In our sampling strategy, we attempted to engage tourists taking all types of trips into the
Delta: high-end safaris, budget overland tours, boat tours and self-drive safaris. Many of
the respondents were intercepted at the Maun International Airport because this location
offered the opportunity to sample high-end and budget tourists, as they waited for their
flights to the next destination (high-end) or for their overland truck pick-up (budget). Any
persons who appeared to be waiting while at Maun Airport were approached and asked if
they had recently visited the Okavango Delta. Because one of the study goals was to
assess the effects of wildlife-viewing opportunities on WTP, only tourists who had
already visited the Delta were surveyed. Tourists were also surveyed at fishing camps
in the Panhandle and safari camps near Maun, and those who were self-driven were sur-
veyed at their campsites in Moremi Game Reserve (Figure 1). Translation in German and
Spanish was provided for visitors who did not speak English.
The surveys were administered during the tourist seasons of 2001 and 2002 (July to Sep-
tember) to 201 visitors. The number of respondents was constrained by the project
budget, interviewer work load, and difficulty in intercepting visitors before they departed
from Maun.

2.4 Analytical methods


Between 1994 and 1998, a 13 per cent annual growth rate in tourist arrivals was observed
in Botswana (Department of Tourism of Botswana, 2001c). Using the 13 per cent growth
rate and a 1998 estimate of 52 512 visitors to the Delta (Department of Tourism of Bots-
wana, 2001a), we projected the number of visitors to the Delta for the study period of
2001– 2002 to be 80 700.
Total willingness-to-pay (DONATE) was computed as the amount specified multiplied
by the number of times specified, where applicable. In certain instances where an
ongoing contribution structure was selected but no frequency of contribution was
given, a default of two trips or years was assumed. ‘No’ responses were counted as
zeros, and missing responses were excluded.
Consumer surplus, CSi, computed from the travel cost portion of the 2002 revised
surveys, was calculated as:
 
CTRANSPORT
CSi ¼ CDELTA þ  MULT
COUNTRIES
 
CTRANSPORT
 CDELTA þ (1)
COUNTRIES
414 N Mladenov et al.

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

Socio-economic Age 36 14.51 195


characteristics Gender (0 ¼ female, 1 ¼ male) 0.50 0.50 196
Income 43 456 52 691 127
European nationality 0.53 0.50 148
African nationality 0.20 0.40 148
North American nationality 0.19 0.39 148

Trip characteristics Total cost of trip (US$) 3 616 4 210 184


Cost of Okavango Delta portion (OKACOST) (US$) 1 122 2 162 163
Transport cost (US$) 896 1 463 120
Number of days away 41 60 195
Number of days lost from work 18 25 89
Number of days spent wildlife viewing in the Delta 4 4 179
(DAYSWILD)
Also visited South Africa as part of this trip 0.57 0.50 157
Also visited Zimbabwe as part of this trip 0.57 0.50 157
Also visited Namibia as part of this trip 0.57 0.50 157
Visited other countries as part of this trip 0.34 0.47 157
Also visited Chobe National Park as part of this trip 0.19 0.39 162
Also visited Makgadikgadi Pans as part of this trip 0.75 0.43 162
Also visited Tsodillo Hills as part of this trip 0.10 0.31 162
Lodge accommodation while in the Delta 0.20 0.40 196
(ACLODGE)
Campground accommodation while in the Delta 0.74 0.44 196
(ACCAMP)
Travelled by plane into the Delta (TRPLANE) 0.40 0.49 197
Travelled by overland truck into the Delta 0.11 0.32 197
Travelled by boat into the Delta 0.20 0.40 197
Self-driven into the Delta (TRSELF) 0.23 0.42 197

Quality ratings Rating of camp/lodge employees 3.54 1.49 159


Rating of guides 3.60 1.58 183
Rating of park officials 2.26 1.84 165
Rating of wildlife-viewing opportunities (RTWILD) 4.19 0.90 193
Would pay the same if wildlife-viewing 0.29 0.46 152
opportunities were diminished (PAYSAME)
Concerned with environmental impacts on the Delta 0.91 0.28 147
Would recommend the trip to others 0.98 0.14 194
Felt the trip was worth the money spent 0.86 0.35 163
Maximum amount (MAXPAY) visitor would have 1.17 0.34 171
spent on Delta trip (# of times the present cost)
Comment (0 ¼ negative, 1 ¼ positive) 0.58 0.50 60

(Table continued)
416 N Mladenov et al.

Table 1: Continued

Variable Mean d N
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Values Amount visitor is willing to donate (DONATE) to a 60 172 174


preservation fund for the Delta (US$/annum)
Consumer surplus (SURPLUS): difference between 225 744 168
maximum price and actual price paid (US$/
annum)


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.

3.2 Socio-economic analysis


Income may be an important determinant for both DONATE and SURPLUS, as indicated
by the low ‘p’ values (p , 0.05) in Table 2. However, the lower r2 values suggest that the
correlations are weak. As expected, higher income was significantly correlated with total
cost of the Delta trip (Table 2). Accommodation at lodges was significantly correlated with
income (Table 2), and visitors who stayed at lodges had higher incomes than those who
stayed in campgrounds (Table 3). Visitors who travelled into the Delta by plane had, on
average, higher incomes than those who were self-driven (Table 3).

3.3 Contingent valuation analysis


The average annual WTP for preservation (DONATE) was calculated from 174 valid
surveys at US$60 per person (Table 1). Multiplying the projected number of visitors

Figure 2: Histogram of visitors’ age (years) with normal distribution superimposed


Wildlife-viewing tourism in the Okavango Delta, Botswana 417
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Figure 3: Histogram of visitors’ income (US$) with normal distribution


superimposed

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).

3.4 Travel cost analysis


The average annual consumer surplus (SURPLUS) was calculated from Equation 1 for
168 valid surveys at US$225 per person (Table 1). Multiplying the projected number of

Table 2: Significant bivariate correlations between income and key variables

Correlation P value N

DONATE 0.208 0.028 112


SURPLUS 0.284 0.003 109
OKACOST 0.708 0.000 109
ACLODGE 0.404 0.000 127


Correlation is significant at the 10% level (p , 0.05).

Correlation is very significant (p , 0.001).
418 N Mladenov et al.

Table 3: Mean WTP for preservation (DONATE), consumer surplus (SURPLUS),


income for visitors who stayed in lodges (ACLODGE) and campsites (ACCAMP)
and visitors who travelled by plane (TRPLANE) and were self-driven (TRSELF)
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Mean ($) d ($) N

ACLODGE DONATE 99 204 41


SURPLUS 609 1 470 35
INCOME 77 700 73 299 32

ACCAMP DONATE 50 161 130


SURPLUS 129 312 128
INCOME 37 513 52 932 94

TRPLANE DONATE 68 161 70


SURPLUS 374 1 075 69
INCOME 56 987 65 162 58

TRSELF DONATE 119 277 42


SURPLUS 314 1 200 40
INCOME 39 784 52 163 32

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

Table 4: Significant bivariate correlations between amount willing to pay


(DONATE) and key variables
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Correlation P value N

RTWILD 0.223 0.004 167


OKACOST 0.231 0.006 141
DAYSWILD 0.165 0.032 168


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).

4.2 Implications of CV and TC values for management and preservation of the


Delta
The combined value of US$285 per person per annum (or US$23 million/annum) rep-
resents a significant sum. The WTP for preservation elicited from the CV method
(US$60 per person per annum) is significantly higher than the range of WTP values
reported by Turpie (2003) for the conservation of biodiversity in South Africa in 2001

Table 5: Significant bivariate correlations between consumer surplus (SURPLUS)


and key variables

Correlation P value N

DONATE 0.283 0.001 146


RTWILD 0.139 0.076 164
MAXPAY 0.480 ,0.001 166
OKACOST 0.301 ,0.001 148
DAYSWILD 0.492 ,0.001 153


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.

4.3 Effects of biodiversity on ecosystem value


The significant correlation between DONATE and RTWILD (Table 4) indicated that
biodiversity positively affects the preservation value of the Delta. Higher DONATE
amounts from visitors who spent more days in the Delta viewing wildlife (Table 3)
may also confirm the importance of biodiversity, especially if more time viewing wildlife
allows for more successful wildlife-viewing opportunities. The significant correlation
between DONATE and SURPLUS supports our view that the respondents provided con-
sistent use and non-use values.
Positive correlations between SURPLUS and DAYSWILD (Table 5) further support the
importance of biodiversity in the Delta. Taken as a proxy for recreation site quality (i.e.
more days viewing wildlife may correspond to greater wildlife-viewing opportunities
and more time to take in the safari experience), these results revealed that diminished
wildlife-viewing opportunities could decrease the recreational value of the Delta.

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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has important hydro-political implications. Diminished wildlife-viewing opportunities, a


likely consequence of decreased water supply to the Delta, will probably reduce the
amount tourists are willing to contribute for preserving the Delta.
The high value of the Delta, as shown in this study, prompts questions about natural
resource conservation and sustainable use of the wetland. Tourism activities in the
Delta have triggered a number of debates, suggesting the need to re-evaluate the benefits
of wildlife-viewing tourism (Mbaiwa, 2003, 2004b,c, 2005). For example, Mbaiwa
(2003) shows that the use of the Okavango Delta particularly by the wildlife based
tourism industry may not strictly adhere to conservation practices and may in turn
lead to unsustainable use of the natural resource. This is the case despite Botswana’s
high-cost, low-volume tourism policy, which was designed to reduce high tourist
numbers and activities so as to conserve the wetland. Further, in the light of our findings
of the high annual revenue generated from tourism spending on Delta safaris alone, the
leakage of tourism revenue to developed countries by foreign safari companies (Mbaiwa,
2005) also becomes an important issue. At a national level, ongoing plans, such as the
Okavango Delta Management Plan, should be developed so that overuse of natural
resources and resource conflicts, as observed by Darkoh and Mbaiwa (2005), are mini-
mised to promote sustainability. An approach that minimises resource conflicts has the
potential to sustain this high value of the Delta derived from the tourism sector. Such
an approach could also promote sustainable economic activities such as wildlife based
tourism in the Delta.
In order to draw further policy implications from valuations of the Delta, a rigorous study
with increased sample size (including visitors and non-visitors) and more effort to mini-
mise biases (using an improved payment structure and a more tangible payment vehicle,
such as a tax) would be needed. The socio-economic profiles and important correlations
determined in this study can be used to guide future survey design.

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