Zonal Travel Cost Method (ZTCM)

The Zonal Travel Cost Method (ZTCM) is a quantitative approach to measuring the economic value of recreational activities at a specific destination. This method uses surveys to determine the visitor's willingness to pay in monetary terms for travel costs (such as gasoline, lodging, and food). It also accounts for the time and effort spent on the trip, and the costs associated with it. The ZTCM allows for the calculation of how much a given visitor is willing to pay for recreational activities and thus measures the economic value of the recreational activities at a specific destination. It is an important tool for assessing the economic benefits of conservation and land protection initiatives. This method has been used to estimate travel costs in the United States, Mexico, the United Arab Emirates, and elsewhere.

Step 1: Divide area around the site into different zones. Step 2: Collect data on origins of visitors to the site. Step 3: Obtain data on population in each zone and calculate visitation rate ( = R). Step 4: Estimate travel cost from each zone to the site. Step 5: Use (3) and (4) to construct demand curve for site. Step 6: Calculate total value (consumer surplus = area underneath demand curve) from the site.