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  I.  Introduction   II.  Literature Review III.  Methodology
Research Background Lukang Statements of Problem Purposes of Research
<ul><li>Distinct benefits of historical tourism include the potential of a  clean industry  and a valuable source of  inco...
<ul><li>Interpretation allows visitors to generate a better understanding of the  history  and  significance  of events, p...
<ul><li>Interpretation is one of the key factors to a  sustainable tourism . </li></ul><ul><li>(Harris, Griffin, & William...
<ul><li>Nearly  91%  of the citizens traveled at least once domestically in 2007, and the average number of trips per pers...
<ul><li>The number of tourists who have visited historic sites in 2008 was only  5%  of the total number of tourists who h...
<ul><li>There are currently a total of  699  historic monuments and  767  historic buildings in Taiwan.  </li></ul><ul><li...
Primary historic heritage 1 Tertiary heritage sites 6 Valuable heritage sites 7 Designated Heritage Sites in Lukang
<ul><li>According to the survey of Visitors to the Principal Scenic Spots in Taiwan by Month, more than  481,063  tourists...
<ul><li>Only few of the past studies have examined the  need  for interpretative services and the  value  of these service...
<ul><li>By probing the visiting patterns and the perceptions of the tourists, more could be considered to  increase satisf...
<ul><li>to use the contingent valuation method (CVM) to elicit the willingness-to-pay (WTP) of the tourists for personal i...
<ul><li>To determine: </li></ul><ul><li>tourists’  demand  on personal interpretative service in Lukang </li></ul><ul><li>...
Interpretative Service Contingent Valuation Method Determinants of WTP Double-Hurdle Model
<ul><li>Interpretation is an  educational  activity which aims to reveal meanings and relationships to people about the pl...
<ul><li>Interpretation is a mission-based communication process that forges  emotional and intellectual connections  betwe...
<ul><li>The goal of interpretation is to increase visitor  awareness , promote  learning ,  appreciation  and  understandi...
<ul><li>Interpretation services benefit both the heritage sites and tourists and draw  public support  by enhancing visito...
<ul><li>guided walks </li></ul><ul><li>talks </li></ul><ul><li>presentations </li></ul><ul><li>drama </li></ul><ul><li>spe...
<ul><li>Personal Interpretative Service </li></ul>diverse audience needs more interaction entertaining and memorable notic...
<ul><li>(Maslow, 1970) </li></ul>
<ul><li>The contingent valuation method (CVM) is a standard approach to measuring economic values of  non-market goods , s...
<ul><li>Elicitation techniques: </li></ul><ul><li>bidding game approach </li></ul><ul><li>payment card approach </li></ul>...
<ul><li>Possible biases: </li></ul><ul><li>starting-point bias </li></ul><ul><li>sequencing effect </li></ul><ul><li>infor...
<ul><li>In travel expenditure studies,  economic  and  socio-demographic  variables were commonly analyzed. Others have in...
<ul><li>Analysis of open-ended bids: </li></ul><ul><li>Ordinary least square (OLS)  regressions </li></ul><ul><li>Tobit an...
<ul><li>Many researchers went through the process of the  model selection tests , and justified the double-hurdle model fr...
<ul><li>Log likelihood statistics and Hosmer-Lemeshow statistics were used to confirm that the double-hurdle model was goo...
Data Collection Instrument Estimation Methods Data Analysis
<ul><li>Sampling size estimation formula </li></ul><ul><li>n  =   </li></ul><ul><li>n  : sample size </li></ul><ul><li>Z  ...
Participants Tourists who have visited Lukang (on-site) Questionnaire 410 copies Time 5 minutes Sampling convenience sampl...
<ul><li>questionnaire survey </li></ul>Part 4 Demographic Information Part 1 Cognition of Personal Interpretative Services...
<ul><li>Main reasons for zero responses: </li></ul><ul><li>the survey period is too short for participants to report any p...
ordinary least square (OLS) regression biased and inconsistent estimates of the parameters
Double-hurdle model Cragg (1971) considers the possibility of zero outcomes in the second hurdle two stages of estimation ...
<ul><li>1. The decision to pay for personal interpretative service ( D ): </li></ul><ul><li>D i * = Z i  α  +   u i   ,  u...
<ul><li>2. The level of WTP value ( Y ): </li></ul><ul><li>Y i * = X i  β  +   υ i   ,  υ i  ~  N (0,  σ 2 )  (2a) </li></...
<ul><li>Log-likelihood function: </li></ul><ul><li>(3)  </li></ul><ul><li>ϕ (∙): standard normal density function </li></u...
<ul><li>Thank you for your attention! </li></ul>
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Proposal Defense (Final)

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Proposal Defense (Final)

  1. 1.
  2. 2. I. Introduction II. Literature Review III. Methodology
  3. 3. Research Background Lukang Statements of Problem Purposes of Research
  4. 4. <ul><li>Distinct benefits of historical tourism include the potential of a clean industry and a valuable source of income and employment . </li></ul><ul><li>(Orbasli, 2000) </li></ul>
  5. 5. <ul><li>Interpretation allows visitors to generate a better understanding of the history and significance of events, people, and objects with which the site is associated. </li></ul><ul><li>(Alderson & Low, 1996) </li></ul>
  6. 6. <ul><li>Interpretation is one of the key factors to a sustainable tourism . </li></ul><ul><li>(Harris, Griffin, & Williams, 2002) </li></ul>
  7. 7. <ul><li>Nearly 91% of the citizens traveled at least once domestically in 2007, and the average number of trips per person was 5.57 . </li></ul><ul><li>(R. O. C. Tourism Bureau, 2008) </li></ul>
  8. 8. <ul><li>The number of tourists who have visited historic sites in 2008 was only 5% of the total number of tourists who have visited the principal scenic spots in Taiwan . </li></ul><ul><li>(R. O. C. Tourism Bureau, 2009) </li></ul>
  9. 9. <ul><li>There are currently a total of 699 historic monuments and 767 historic buildings in Taiwan. </li></ul><ul><li>(Headquarters Administration of Cultural Heritage) </li></ul>
  10. 10.
  11. 11.
  12. 12. Primary historic heritage 1 Tertiary heritage sites 6 Valuable heritage sites 7 Designated Heritage Sites in Lukang
  13. 13. <ul><li>According to the survey of Visitors to the Principal Scenic Spots in Taiwan by Month, more than 481,063 tourists visited Lukang in 2008. </li></ul><ul><li>(R. O. C. Tourism Bureau, 2009) </li></ul>
  14. 14. <ul><li>Only few of the past studies have examined the need for interpretative services and the value of these services to visitors in heritage sites . </li></ul>
  15. 15. <ul><li>By probing the visiting patterns and the perceptions of the tourists, more could be considered to increase satisfaction of the tourists, and may further increase revisitation . </li></ul>
  16. 16. <ul><li>to use the contingent valuation method (CVM) to elicit the willingness-to-pay (WTP) of the tourists for personal interpretative service in Lukang, and to analyze WTP determinants with the application of a double-hurdle model </li></ul>
  17. 17. <ul><li>To determine: </li></ul><ul><li>tourists’ demand on personal interpretative service in Lukang </li></ul><ul><li>the determinants of tourists’ willingness-to-pay for personal interpretative service in Lukang </li></ul><ul><li>the determinants of the level of WTP value for personal interpretative service in Lukang </li></ul>
  18. 18. Interpretative Service Contingent Valuation Method Determinants of WTP Double-Hurdle Model
  19. 19. <ul><li>Interpretation is an educational activity which aims to reveal meanings and relationships to people about the places they visit and the things they see, which in turn improves the quality of visitor experience. </li></ul><ul><li>(Tilden, 1977) </li></ul>
  20. 20. <ul><li>Interpretation is a mission-based communication process that forges emotional and intellectual connections between the interests of the audience and the meanings inherent in the resource. </li></ul><ul><li>(National Association for Interpretation, 2009) </li></ul>
  21. 21. <ul><li>The goal of interpretation is to increase visitor awareness , promote learning , appreciation and understanding of places so that tourists develop empathy towards heritage, conservation, culture and landscape. </li></ul><ul><li>(Stewart, Hayward, & Devlin, 1998) </li></ul>
  22. 22. <ul><li>Interpretation services benefit both the heritage sites and tourists and draw public support by enhancing visitors ’ experiences and educating visitors in appropriate behaviors to conserve the historical sites. </li></ul><ul><li>(Hall & McArthur, 1993) </li></ul>
  23. 23. <ul><li>guided walks </li></ul><ul><li>talks </li></ul><ul><li>presentations </li></ul><ul><li>drama </li></ul><ul><li>special events </li></ul><ul><li>activity programs </li></ul><ul><li>interpretative signs </li></ul><ul><li>interpretative brochures </li></ul><ul><li>exhibit center </li></ul><ul><li>audio guide </li></ul><ul><li>multi-media guide </li></ul><ul><li>interpretative trail </li></ul>Personal / Attended Non-personal / Unattended
  24. 24. <ul><li>Personal Interpretative Service </li></ul>diverse audience needs more interaction entertaining and memorable notice problems
  25. 25. <ul><li>(Maslow, 1970) </li></ul>
  26. 26. <ul><li>The contingent valuation method (CVM) is a standard approach to measuring economic values of non-market goods , such as recreation resources, wildlife, and environmental quality goods. </li></ul><ul><li>(Hanemann, 1994; Lee & Han, 2002) </li></ul>
  27. 27. <ul><li>Elicitation techniques: </li></ul><ul><li>bidding game approach </li></ul><ul><li>payment card approach </li></ul><ul><li>dichotomous choice approach (DC) </li></ul><ul><li>open-ended elicitation technique </li></ul>
  28. 28. <ul><li>Possible biases: </li></ul><ul><li>starting-point bias </li></ul><ul><li>sequencing effect </li></ul><ul><li>information effect </li></ul><ul><li>hypothetical bias </li></ul><ul><li>strategic bias </li></ul>
  29. 29. <ul><li>In travel expenditure studies, economic and socio-demographic variables were commonly analyzed. Others have incorporated travel-related variables, constraint factors, and life cycle stages. </li></ul><ul><li>(Dardis, Soberon-Ferrer & Patro, 1994; Hong, Fan, Palmer </li></ul><ul><li>& Bhargava, 2005; Jang, Bai, Hong & O’Leary, 2004; </li></ul><ul><li>Jang & Ham, 2009; Weagley & Huh, 2004) </li></ul>
  30. 30. <ul><li>Analysis of open-ended bids: </li></ul><ul><li>Ordinary least square (OLS) regressions </li></ul><ul><li>Tobit analysis </li></ul><ul><li>Double-hurdle model </li></ul>
  31. 31. <ul><li>Many researchers went through the process of the model selection tests , and justified the double-hurdle model from their findings . </li></ul><ul><li>(Angulo, Gil & Gracia, 2001; Aristei, Perali & Pieroni, 2008; Gebremedhin & Swinton, 2003; Matshe & Young, 2004; Saz-Salazar & Rausell-Koster , 2008) </li></ul>
  32. 32. <ul><li>Log likelihood statistics and Hosmer-Lemeshow statistics were used to confirm that the double-hurdle model was good fit, and the findings revealed differences in the variables influencing travel participation and travel expenditure. </li></ul><ul><li>(Jang &Ham, 2009) </li></ul>
  33. 33. Data Collection Instrument Estimation Methods Data Analysis
  34. 34. <ul><li>Sampling size estimation formula </li></ul><ul><li>n = </li></ul><ul><li>n : sample size </li></ul><ul><li>Z : 95 % confidence interval ( Z α/2 = 1.96 ) </li></ul><ul><li>p : population proportion (½) </li></ul><ul><li>e : tolerated error (5%) </li></ul>e 2 Z α /2 2  p (1- p ) 385
  35. 35. Participants Tourists who have visited Lukang (on-site) Questionnaire 410 copies Time 5 minutes Sampling convenience sampling Elicitation approach Open-ended
  36. 36. <ul><li>questionnaire survey </li></ul>Part 4 Demographic Information Part 1 Cognition of Personal Interpretative Services Part 2 Lukang Traveling Experiences Part 3 Willingness-to-Pay for Personal Interpretative Service in Lukang
  37. 37. <ul><li>Main reasons for zero responses: </li></ul><ul><li>the survey period is too short for participants to report any purchase ( infrequency of purchase ) </li></ul><ul><li>participants are not willing to pay due to personal preferences ( abstention ) </li></ul><ul><li>participants do not pay due to economic reasons ( corner solution ) </li></ul>
  38. 38. ordinary least square (OLS) regression biased and inconsistent estimates of the parameters
  39. 39. Double-hurdle model Cragg (1971) considers the possibility of zero outcomes in the second hurdle two stages of estimation two sets of variables Tobit model Tobin (1958) all zero observations are interpreted as corner solutions treats the decisions jointly same set of variables Heckman’s sample selection model Heckman (1979) there will be no zero observations in the second stage once the first stage selection is passed two stages of estimation two sets of variables
  40. 40.
  41. 41. <ul><li>1. The decision to pay for personal interpretative service ( D ): </li></ul><ul><li>D i * = Z i α + u i , u i ~ N (0,1) (1a) </li></ul><ul><li>D i = 1 if D i * > 0 </li></ul><ul><li>0 if D i * ≤ 0 (1b) </li></ul><ul><li> D* : latent selection variable </li></ul><ul><li> Z i : vector of explanatory variables </li></ul><ul><li> α : vector of parameters </li></ul><ul><li>u i : error term </li></ul>
  42. 42. <ul><li>2. The level of WTP value ( Y ): </li></ul><ul><li>Y i * = X i β + υ i , υ i ~ N (0, σ 2 ) (2a) </li></ul><ul><li>Y i = Y i * if D i = 1 and Y i * > 0 </li></ul><ul><li>0 otherwise (2b) </li></ul><ul><li>Y i : answer to the open-ended valuation question </li></ul><ul><li>X i : vector of explanatory variables </li></ul><ul><li>β : vector of parameters </li></ul><ul><li>υ i : error term </li></ul>
  43. 43. <ul><li>Log-likelihood function: </li></ul><ul><li>(3) </li></ul><ul><li>ϕ (∙): standard normal density function </li></ul><ul><li>Φ (∙): standard normal cumulative distribution function </li></ul><ul><li>φ (∙): density function </li></ul>
  44. 44. <ul><li>Thank you for your attention! </li></ul>

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