Assessing the economic value of a world heritage site and willingness-to-pay determinants: A case of Changdeok Palace

The main objective of this study is to estimate use value of a World Cultural Heritage in Korea using the contingent valuation method (CVM). The type of question used in this study was closed-ended (or dichotomous choice). Based on the results of the pre-test, 10 price offers were given. The logit models in both linear and logarithmic forms were employed to identify determinants from the dichotomous question. The mean WTP values were 5706 Won ($5.70) in a log-linear model and 6005 Won ($6.00) in a log-logit model. Taking into account only domestic visitors, aggregate use value from the log-linear model was estimated to be approximately 1.93 million dollars, while aggregate use value from the log-logit model was estimated as 2.01 million dollars. The results from this study revealed the economic value of the World Heritage site to users or tourists in levels exceeding its monetary benefits.