By Nir Becker (nbecker@telhai.ac.il) and Yael Choresh, Department of Economics and Management, Tel-Hai College, Upper Galilee, IsraelThe recreational value of Biria forest, which is a non-market good, was estimated by the Travel Cost Method (TCM). We used three different models. The first two yielded a total value of the forest; the third one presented the values of different recreational attributes in the forest.
Based on the different models, it was concluded that the total recreational value of the Biria forest is between NIS1.6 and NIS12.9 million annually, with a geometrical mean of NIS7.25 million annually.
The most significant factors that affect visitors' decisions to visit the forest were the fortress and the income level of the visitors.
By comparing the annual benefit of the fortress with its operating and maintenance costs, we found that the annual net benefit of the fortress is NIS0.57 million. With respect to income, it was found that each NIS1.00 added to the average hourly income increases the value of the forest by NIS4,000 annually.
A Cost Benefit Analysis was also performed, with respect to other features, such as road development and observation sites. Ranking those net benefits is helpful to decision makers in sharing limited budgets, not only between forests but also between amenities within a given forest, enabling them to take its various attributes into account in order to maximize social welfare.
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