THE VALUE OF TIGER SHARK DIVING WITHIN THE ALIWAL SHOAL MARINE PROTECTED AREA: ATRAVEL COST ANALYSIS   *,   †     † Abstract Using on-site survey data collected via the administration of a questionnaire to 197 respondents during the period stretching from January 2007 to December 2007 from the Aliwal Shoal Marine Protected Area, this study estimates and compares an ordinary least squares and two Poisson count data models of recreational tiger shark diving demand. The Poisson model corrected for endogenous stratification and truncation provided the best results. It was concluded that in 2007, the consumer surplus per person per tiger shark dive was R1,136, and the total consumer surplus per annum was R2,080,925. JEL Classification: Q2, Q26 Keywords: Tiger shark, recreational diving, travel cost method, ordinary least squares, count data models, endogenous stratification, truncation 1. INTRODUCTION The demand for opportunities to view and interact with marine animals in their natural habitat is growing worldwide (Orams, 1996; Wearing and Neill, 1999). Evidence of this is provided by recent estimates of the value of shark viewing in different parts of the world. For example, the ecotourism value, measured in terms of direct expenditure, of viewing whale sharks (Rhincodon typus) in Ningaloo Marine Park, Australia has been estimated at AUS$4.7 million per annum (Davis et al., 1997) and at US$4.99 million for a 14-week season in the Seychelles (Rowat and Engelhardt, 2007). In a travel cost analysis of whale shark viewing in the Seychelles, Cesar et al. (2003) estimated a total consumer surplus figure of US$2.02 million per annum. In the Maldives (Anderson and Ahmed, 1993) and the Bahamas (Hall, 1994), respectively, it was estimated that in excess of US$2.3 million and US$6 million were spent annually on shark viewing. In a contingent valuation study, White (2008) estimated the aggregate willingness-to-pay to dive with sharks by certified United States’ SCUBA divers to be US$42.4 million per annum. These opportunities also exist along the South African coastline. Shark diving, in particular, has developed into an important part of the international tourism market (Hall and Weiler, 1992). Current shark viewing activities are primarily based on the whale shark, ragged tooth shark (Carcharias taurus) and Zambezi shark (Carcharhinus leucas) in * Corresponding author: School of Economics, Development Studies and Tourism, P.O. Box 77000, Nelson Mandela Metropolitan University, Port Elizabeth, 6031, South Africa. Tel: +27 041 504 2795, Fax: +27 041 583 2644. E-mail: Mario.dupreez@nmmu.ac.za. † School of Economics, Development Studies and Tourism, Nelson Mandela Metropolitan University, Port Elizabeth, South Africa. The authors gratefully acknowledge the comments and inputs of the anonymous referees. South African Journal of Economics South African Journal of Economics Vol. 80:3 September 2012 © 2012 The Authors. Journal compilation © 2012 Economic Society of South Africa. Published by Blackwell Publishing Ltd, 9600 Garsington Road, Oxford OX4 2DQ, UK and 350 Main Street, Malden, MA 02148, USA. 387