ECOTOURISM SERVICE PROVISION AND INCOMES OF RURAL HOUSEHOLDS: THE CASE OF BEIJING IN CHINA

This study focuses on the choice of rural residents to provide ecotourism services and the effects on their household income as a path to alleviate urban-rural income discrepancy using survey data collected in villages located in Beijing Province in China. The empirical modelling of the decision to offer ecotourism services originated from the framework of the random utility model (RUM). The decision equation and income equation are estimated using the logit and ordered logit techniques, respectively. The calculated probability changes based on the estimated regression coefficients provide measures of the likelihood of choosing to provide services or factors related to the change in rural household income. Older residents, those with children in a household, and those having relatively more income are less likely to decide to provide ecotourism services. Factors affecting income are identified in another equation. Income increases if a rural resident completed high school, is married, or male, but decreases as resident age increases. The probability changes are largest for households with a relatively lower income (excluding any income from ecotourism services), although the specific probability changes vary by household income level. Improvement in income is possible for households engaged in ecoservice provision and is facilitated by enhancing education of residents. However, low income households are unlikely to engage in tourism services and appear to be run by older, less educated residents.