Using the Contingent Valuation Method to Estimate Tourist's Willingness to Pay to Reduce Congestion: The Case of Formentor in Mallorca

Abstract

[eng] This thesis assesses the economic value of reducing traffic congestion in Formentor, Mallorca, using the Contingent Valuation Method (CVM) to measure visitors' willingness to pay (WTP). The study aims to understand how much tourists are willing to contribute financially to improve traffic conditions. The findings reveal an average WTP of €13.56 per vehicle, demonstrating that tourists place significant value on reducing congestion and preserving the natural environment. Additionally, the analysis shows that gender, nationality, and perceptions of real-time traffic updates significantly influence WTP. These results offer important policy implications, suggesting that the implementation of traffic fees could fund sustainable transportation initiatives and address congestion issues in Formentor. The insights gained from this research can also inform broader efforts to manage traffic in other tourist destinations, contributing to sustainable tourism practices in Mallorca and beyond.