Economic Valuation of Borneo Orangutans at Kemaman Zoo and Recreation Park in Terengganu, Malaysia

Authors

1 Faculty of Business, Economics & Social Development, Universiti Malaysia Terengganu, Terengganu, Malaysia

2 Institute of Oceanography and Environment, Universiti Malaysia Terengganu, Terengganu, Malaysia

Abstract

The orangutan is a famous and unique species of big ape living in arboreal forests and can only be found in Borneo and Sumatra Island. The orangutans are divided into two subspecies; Borneo orangutan and Sumatra orangutan. They are critically endangered species due to uncontrolled, rapid development activities. In Malaysia, there is an estimation of 12,300 Borneo orangutans undergoing rehabilitation in Ulu Segama Forest Reserve, Sabah, and Lanjak-Entimau Wildlife Sanctuary, Sarawak. These parks are open to the public and have attractions like exotic plants and wildlife, and interesting activities like elephant riding. The introduction of entrance fees to these places may overcome the inadequacy of public funds for conservation and preservation efforts. This study determines the economic value of Borneo orangutans by obtaining an estimated value of willingness to pay (WTP) from visitors and identifies the factors affecting the ability to pay for the conservation of Borneo orangutans in Kemaman Mini Zoo at Terengganu. The method used is the Contingent Valuation Method (CVM) by asking visitors’ WTP using a questionnaire. Results show that visitors’ WTP is heavily influenced by the bid price, income, and age. Visitors put a higher value on the orangutan and the mini zoo compared to the current entrance fee. This value can be used by zoo operators to make decisions related to the threats of the extinction of endangered species.

Keywords


Arrow, K., Solow, R., Portney, P., Leamer, E., Radner, R., & Schuman, H. (1993). Report of the NOAA Panel on Contingent Valuation. Retrieved from https://edisciplinas.usp.br/pluginfile.php/4473366/mod_folder/intro/Arow_WTP.pdf
Boyle, K. J. (2003). Contingent valuation in practice (111-169). In A Primer on Nonmarket Valuation. New York: Springer.
Cameron, T. A., & Quiggin, J. (1994). Estimation using contingent valuation data from a" dichotomous choice with follow-up" questionnaire. Environmental Economic Management, 27, 218-234.
Carson, R. T. (2012). Contingent Valuation: a Practical Alternative When Prices Aren't Available. Journal of Economic Perspectives, 26, 27-42.
---------- (2000). Contingent Valuation: A User's Guide. Environmental Science & Technology, 34, 1413-1418.
Cummings, R. G., & Taylor, L. O. (1998). Does Realism Matter in Contingent Valuation Surveys? Land Economics, 74(2), 203-215.
Damigos, D., Tentes, G., Balzarini, M., Furlanis, F., & Vianello, A. (2017). Revealing the Economic Value of Managed Aquifer Recharge: Evidence from a Contingent Valuation Study in Italy. Water Resources Research, 53(8), 6597-6611.
Duffield, J. W., & Patterson, D. A. (1991). Inference and Optimal Design for a Welfare Measure in Dichotomous Choice Contingent Valuation. Land Economics, 67, 225-239.
Figueroa, F., Caro-Borrero, A., Revollo-Fernandez, D., Merino, L., Almeida-Lenero, L., Paré, L., Espinosa, D., & Mazari-Hiriart, M. (2016). “I Like to Conserve the Forest, but I Also Like the Cash”. Socioeconomic Factors Influencing the Motivation to be engaged in the Mexican Payment for Environmental Services Programme. Journal Forest Economics, 22, 36–51.
Haab, T. C., Interis, M. G., Petrolia, D. R., Whitehead, J. C. (2013). From Hopeless to Curious? Thoughts on Hausman’s “Dubious to Hopeless” Critique of Contingent Valuation. Applied Economic Perspectives and Policy, 35(4), 593-612.
Hanemann, W. M. (1989). Welfare Evaluations in Contingent Valuation Experiments with Discrete Response Data: Reply. American Journal of Agricultural Economics, 71(4), 1057-1061.
Hanemann, W. M. (1984). Welfare Evaluations in Contingent Valuation Experiments with Discrete Responses. American Journal of Agriculture Economics, 66(3), 332-341.
Hanley, N., Shogren, J., & White, B. (2013). Introduction to Environmental Economics. Oxford: Oxford University Press.
Johnston, R. J., Boyle, K. J., Adamowicz, W., Bennett, J., Brouwer, R., Cameron, T. A., & Tourangeau, R. (2017). Contemporary Guidance for Stated Preference Studies. Journal of the Association of Environmental and Resource Economists, 4, 319-405.
Kanninen, B. J. (1995). Optimal Experimental Design for Double-Bounded Dichotomous Choice Contingent Valuation. Land Economics, 69(2), 138-146.
Kemaman Zoo Map. (2020). Kemaman Zoo Official Website. Retrieved from https://www.zookemaman.my/visitors-info/kemaman-zoo-map/
Zander, K. K., Tyan Pang, S., Jinam, Ch., Alek Tuen, A. & Garnett, S. T. (2014). Wild and Valuable? Tourist Values for Orang-utan Conservation in Sarawak. Conservation and Society, 12(1), 27-42.
Loomis, J., & Ekstrand, E. (1998). Alternative Approaches for Incorporating Respondent Uncertainty When Estimating Willingness to Pay: the Case of the Mexican Spotted Owl. Ecological Economics, 27, 29–41.
Martín-López, B., Montes, B., & Benayas, J. (2008). Economic Valuation of Biodiversity Conservation: the Meaning of Numbers. Conservation Biology, 22, 624–635.
Meijard, E. (2011). Quantifying Killing of Orangutans and Human-Orangutan Conflict in Kalimantan, Indonesia. PLoS One, 6(11), 1-25.
Mitchell, R. C., & Carson, R. T. (1995). Current Issues in the Design, Administration, and Analysis of Contingent Valuation Surveys. In P. Johansson, B. Kriström and K. Mäler (Eds.), Current Issues in Environmental Economics. Manchester: Manchester University Press.
---------- (1989). Using Surveys to Value Public Goods: The Contingent Valuation Method. Washington, DC: Resources for the Future.
Sengkhamyong, X., Kyophilavong, P., Pommavong, P., Chanthasene, C., & Chanthanivong, T. (2018). A Study on Factors Influencing the Local People’s Participation in Wildlife Protected Area Program: A Case Study from the Phouchomvoy Protected Area, Bolikhamxay Province. Journal Biodiversity & Endangered Species, 7(1), 1-4.
Veronesi, M., Alberini, A., & Cooper, J. C. (2011). Implications of Bid Design and Willingness-to-pay Distribution for Starting Point Bias in Double-bounded Dichotomous Choice Contingent Valuation Surveys. Environmental Resource Economics, 49, 199-215.
World Wildlife Fund. (2021). Orang-utans. Retrieved from http://wwf.panda.org/knowledge_hub/endangered_species/great_apes/orangutans/
World Wildlife Fund. (2021). Bornean Orang-utan. Retrieved from https://www.worldwildlife.org/species/bornean-orangutan