AbstractsBusiness Management & Administration

The Contingent Valuation Method (CVM) and the Travel Cost Method (TCM) are used to measure non-market transactions, such as recreational experiences in nature-based coastal recreational areas. The purpose of this study was to find mean Willingness to Pay (WTP) for an average recreational experience in a Puerto Rico beach, based on surveys conducted in eight beach facilities. Using the Logistic Regression Model, the odds of acceptance of the visitor to pay more for their recreational experience (based on a hypothetical increase in transportation costs) was determined. Mean WTP for all beaches surveyed using CVM was 66.30. It was also determined that mean WTP for Blue Flag beaches (73.37) was greater than that of beaches without this designation (53.82). Using TCM, the Negative Binomial Count Model was incorporated to predict the average number of visits within a 12 month period. TCM WTP proved to be 35.05. Based on the results of this study it is proposed that a business plan be developed for a Blue Flag beach in Northeast Puerto Rico operating at a loss, based on the recovery of marginal WTP or Consumer Surplus. The results of this study may be useful for managers of coastal recreational facilities and government agencies concerned with tourism economics in Puerto Rico.