Devising a pricing structure for admission to recreational woodland: The case of the `Royal wood of Capodimonte` in Naples, Italy
2004
Willis, Kenneth G.
Access to woodland recreation areas of government owned forests is typically free of charge. Privately owned woodland parks, in contrast, invariably charge an entry fee as the only feasible way of continuing to maintain the recreational facility. Occasionally an entry charge is made for public parks, such as the National Parks in the USA (Yosemite, Sequoia, etc)to defray high maintenance costs in an era of limited public funding. This study explores the feasibility of introducing an entry charge to the historic Bosco Di Capodimonte, or Royal Wood of Capodimonte, in Naples, Italy. It investigates different pricing options: a revenue maximising price, a discriminatory price structure to deal with equity concerns, a `sufficing` price to cover maintenance costs, and a welfare economic social optimal price. The analysis documents the effect of different entry charges on visit numbers and revenue collected, and includes a cost-benefit analysis of the admission price policy. Total consumer surplus is also calculated for the different entry price scenarios.
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