SOCIO-ECONOMIC DETERMINANTS OF WILLINGNESS TO PAY FOR RECREATIONAL VALUE OF GREGORY LAKE IN NUWARA ELIYA

Abstract

In highly developed nations, urban natural spaces are extremely crucial in the ecological equilibrium, leisure and social well-being. This paper looks at socio economic factors of the willingness to pay (WTP) to recreational value of Gregory Lake, Nuwara Eliya in Sri Lanka. The convenience sampling technique was used to sample 158 respondents comprising of local residents and visitors. Descriptive statistics, chi-square analysis, and binary logistic regression analysis were used to assess the factors that have a significant effect on WTP. Study findings indicate that 85 percent of the participants were ready to invest in lake conservation as it is an important area of the environment and recreation. Age, gender, employment, income, familiarity, and distance had a positive effect on WTP, whereas education had a negative effect. The WTP was higher in older, employed and moderately familiar people. Results highlight the importance of the socio-economic and spatial in the valuation of urban natural resources. The paper suggests the adoption of fair payment-of-ecosystem-services programs, participatory and community-based planning, focused awareness creation and sustainable tourism policies to help in conserving and managing Gregory Lake and other urban ecosystems like those in Sri Lanka in the long-term.