Use of Dichotomous Choice Contingent Valuation Method to Value the Manukan Island, Sabah

Abstract

This study presents the application of dichotomous choice contingent valuation method (CVM) to value outdoors-recreational resources in Manukan Island, Sabah. Both the logit and probit models are used to analyze the primary data obtained through personal interview. The maximum likelihood estimates of this model show that income and price are significant variables in determining one is willingness to pay (WfP). The WTP figure derived from the model shows that it is much higher than present fees charged to the visitors. This study has also estimated the revenue that could be derived is the fees were charged according to the WTP framework.