Economic Valuation of Payum Beach, Indonesia: A Travel Cost Method Approach
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Abstract
Payum Beach is located in the southern part of Merauke Regency, South Papua Province, along the Arafura Sea, offering diverse biodiversity and providing vital environmental services, including tourism and protection from erosion and abrasion. Assessing the economic value of these environmental services is important for understanding their contribution to local welfare and supporting sustainable development policies. This study aims to assess the economic value of Payum Beach in Merauke, Indonesia, using the Travel Cost Method (TCM). The sample was taken by randomly selecting respondents at the beach location during tourism activities. Group visitors must be at least 17 years old (adult). The target respondents were around 31 people, including local tourists and tourists from outside Merauke, Indonesia. The economic value of the coast along Payum Beach, with an estimated 6448 local tourists visiting the natural panorama, accounted for about 6 per cent of the total tourist visits along the coast of the Arafura Sea in 2016, at a minimum cost of Rp. 79,522. According to the TCM analysis, despite having a low or no entrance fee, Payum Beach generates substantial economic benefits through its recreational and environmental services. The findings demonstrate that the beach possesses significant economic value for visitors and should be recognized as an important natural asset. These results provide evidence for the Merauke Regency and South Papua Provincial governments to consider Payum Beach as a long-term investment and prioritize its sustainable management and conservation.
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