Willingness to Pay for Road Safety Improvement of Foreign Visitors in Thailand
- Chompoonuh Kosalakorn Permpoonwiwat, Faculty of Economics, Srinakharinwirot University, Bangkok, Thailand.
- Uthai Krawglom, Faculty of Business Administration, Rajamangala University of Technology Rattanakosin, Nakhon Pathom, Thailand. , *Corresponding author, E-mail: uthai.kra@rmutr.ac.th
Abstract
The objective of this research was to estimate the willingness to pay for insurance fees of foreign tourists who visited Thailand for road safety and to reduce the risk of road accidents occurring among visitors. The survey of 405 foreign tourists was conducted by using Contingent Valuation (CV) to calculate the value of Willingness to Pay (WTP) for travel fees of foreign tourists visiting Thailand. The study showed that 65% of the foreign tourists travel to Thailand by themselves without a tour guide or with their families and relatives while the other 35% visited the country by hiring travel agencies. Most of the foreign tourists, approximately 90%, had bought travel insurance before coming to Thailand with concerns about road safety. The results revealed that 47% of foreign tourists agreed to pay an insurance fee. On the other hand, 53% of foreign tourists who did not want to pay the insurance fee believed that the Thai government is inefficient or incompetent in improving road safety. Moreover, they were more certain of their home country’s travel insurance plan and coverage options. For the foreign tourists who were willing to pay an insurance fee for road safety development in Thailand, they thought of taking responsibility and being accountable to themselves. The willingness to pay value was estimated with the average amount of 331.28 Baht per person for 30 days. The range of 300-350 Baht, was accepted by involved government and private agencies to reduce the risk of Thailand road traffic accidents for foreign visitors.
Keywords: willingness to pay, Road Safety, Foreign Visitors
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