Value of Preserving Cultural Heritage
Attributes
Medium: Health and/or Human Capital
Country: Vietnam
Analytical Framework(s): Contingent Valuation, Other
Unit(s): Mean WTP
Study Date: 2005
Publication Date: 2006
Major Result(s)
| Category | Resource/Environmental Good | VND (2005) |
VND (2014)1 |
USD (2014)2 |
|---|---|---|---|---|
| CV | Mean WTP for preserving the My Son sanctuary from foreign visitors to My Son | 125,496.00 | 234,157.97 | 10.96 |
| CV | Mean WTP for preserving the My Son sanctuary from Vietnamese visitors to My Son | 26,295.80 | 49,064.28 | 2.30 |
| CV | Mean WTP for preserving the My Son sanctuary from Vietnamese visitors to the area | 39,837.40 | 74,331.01 | 3.48 |
| CV | Mean WTP for preserving the My Son sanctuary from local residents | 33,224.10 | 61,991.52 | 2.90 |
| CE | WTP to change from status quo to the preservation plan (per adult foreign visitor) | 97,782.70 | 182,448.83 | 8.54 |
| CE | WTP to change from status quo to the preservation plan (per local household in Quangnam province) | 33,696.40 | 62,872.76 | 2.94 |
About the Inflation Adjustment: Prices in Vietnam (VND) changed by 86.59% from 2005 to 2014 (aggregated from annual CPI data), so the study values were multiplied by 1.87 to express them in 2014 prices. The study values could be expressed in any desired year (for example, to 2025) by following the same inflation calculation and being sensitive to directional (forward/backward) aggregations using your own CPI/inflation data.
Study Note: This study estimates the value of the preservation of a World Heritage Site in Vietnam, the My Son Temple complex in Quanguam province. Despite its designation, the site is in poor repair and is in danger from the ravages of the weather and from the pressure of visitor numbers. Two complementary approaches - the Contingent Valuation (CV) method and the Choice Experiment (CE) method - were used to gauge the value that foreign and local visitors placed on the temple's preservation.
Study Details
Summary: A substantial percentage of the United Nation's World Heritage Sites (WHSs) are found in developing countries. Unfortunately, many of these are in bad repair and there is an urgent need for numerous restoration and preservation programs. Thus, there is also a need to document the social benefits of these WHSs - which are global public goods - in order to justify the costs of conserving them. However, only about 50 valuation studies have been carried out on cultural heritage sites worldwide. This is a small number compared to the 5,000-plus environmental valuation studies that have been undertaken (Navrud and Ready 2002; Noonan 2002; Mourato and Mazzanti 2002). The majority of the cultural heritage valuation studies that have been carried out are from developed countries and most are Contingent Valuation (CV) studies. However, recently, there have also been a few applications of the Choice Experiment (CE) approach. This study adds to the scarce valuation literature on cultural heritage in two key ways: It considers cultural heritage in a developing country and applies both the CV and CE approaches. Thus, it contributes both to methodological development and helps to reduce the uncertainty surrounding benefit transfers from developed to developing countries. The study used the two different Stated Preference (SP) methods, CV and CE, to estimate some of the economic benefits that would be produced by a restoration and preservation plan for the WHS of My Son sanctuary in Vietnam. In particular the study looked at how much people would be willing to pay for preserving the site. The study focused on the following agents: (i) foreign visitors to My Son; (ii) Vietnamese visitors to My Son; (iii) Vietnamese visitors to the area surrounding My Son, who do not visit the WHS; and (iv) local residents. Interviews of 1,413 people were conducted in the summer of 2005, out of which 967 were for the CV study and 446 for the CE study. The study found that if the optimal entrance fee regime was imposed, it would yield substantial annual revenue that could be used to finance the required preservation measures. This move would also reduce congestion at My Son and so achieve the twin goals of revenue generation and heritage preservation. However, this pricing regime would not reduce the congestion problem due to Vietnamese visitors. The idea of imposing a pricing structure with seasonal differentiations to reduce the number of Vietnamese visitors in the high season is feasible. The study recommends that a larger differential pricing policy between foreign visitors and Vietnamese visitors at My Son would increase the fee revenues and possibly secure greater social equity. Results also show that if funding were only based on entrance charges, then this would lead to a level of preservation for My Son that would not be optimal for the site or best for society. The inclusion of benefits derived from non-visitors are needed to argue for increased preservation investment. The CBA results show that the preservation project for the My Son cultural heritage seems to be an economically viable proposition.
Site Characteristics: The My Son sanctuary dates back to the 4th century and was a flourishing cultural center until the 13th century. It is considered one of the main Hindu temple complexes in Southeast Asia and is the sole example of its kind in Vietnam. Located in Quangnam province in central Vietnam, the My Son sanctuary represents the height of Cham architectural achievement. It is a large complex of temples and originally comprised more than 70 structures, 25 of which remain today.
Comments: The two methods produced very similar results and this can be interpreted as a test of convergence validity. A pooled analysis of the findings shows that the CV and CE data had the same underlying preference structures.