Willingnessto Payfor Historic Structures Preservation: An Empirical Studyof Vat Phouat Champasak Province, Lao PDR

8 Development Economic Review Development Economic Review
Volume 11 No.1 (January 2017)
Willingness to Pay for Historic Structures

Preservation: An Empirical Study of Vat Phou at
Champasak Province, Lao PDR
Kaysone Chansina* and Udomsak Seenprachawong**
Abstract
This paper presents an empirical study of willingness to pay for the historic structures preservation
project at Vat Phou and Associated Ancient Settlements within the Champasak Cultural Landscape
by those Lao citizens living in Vientiane capital. A Dichotomous choice contingent valuation
(DCCV) survey have been conducted in Vientiane capital to assess the magnitude of Lao
citizens willingness to donate to historic structures preservation project at Vat Phou. The study
found that the mean willingness to pay of respondents was LAK 36,239.75 or around US$ 4.8.
With the logit model, factors that strongly affecting individuals willingness to pay were the bid
amount, the income and the age of respondents. The willingness to pay analysis here is
important for policymakers in deciding how to preserve the structures efficiently.
Keywords: Historic Structures Preservation, Willingness to Pay, Vat Phou

* Deputy Director, Faculty of Political Economics and Business Management, National Academy of Politics and Public
Administration (NAPPA), Thagnone Village, Xaythany District, Vientiane, Lao PDR - E-mail: k.chansina@gmail.com
** Associate Professor of Economics, Graduate School of Development Economics, National Institute of Development
Administration Serithai Road, Klong-Chan, Bangkapi, Bangkok, Thailand 10240 - E-mail: sudomsak@yahoo.com

Development Economic Review
9
11 1 ( 2560)
* **

Dichotomous Choice Contingent Valuation (DCCV)

36,239.75 ( 4.8)

: , ,
* - , , .
- E-mail: k.chansina@gmail.com
** -
10240 - E-mail: sudomsak@yahoo.com
10 Development Economic Review
1. Introduction
The contingent valuation method (CVM) is a survey-based methodology that has been employed
for eliciting values people place on goods, services, and amenities. It utilizes a hypothetical
market where an individual can bid on the market goods. The first CVM study was conducted
by Davis (1963) to estimate the benefits of outdoor recreation, specified in value of big game
hunting in Maine Park by personal interview of 121 hunters and recreationists (Boyle, 2003:
111-169). Davis results discovered that willingness to pay values were a function of the users
income, length of stay, and acquaintance with the area. Davis technique was quickly applied
to other economic studies. Hammack and Brown (1974) employed CVM in valuing waterfowl
hunting, using different technique. Application of CVM estimated values found were commonly
compared to values estimated with other non-market techniques (travel cost method). In 1979,
Water Resources Council (1979) published a document that set federal guidelines for evaluation
techniques, which CVM listed as one of three methods to be used. In the late 1980s and early
1990s, the US Army Corp of Engineers (ACOE) adopted the CVM and published a series of
handbooks that described the appropriate framework for the CVM procedure (Moser & Dunning,
1986; Hansen & Badger, 1991; Hansen et al., 1990 and Mills et al., 1993).
Several CVM studies have been presented in a number of literatures in regard to historical site
preservation. Pollicino and Maddison (2001: 131-148) applied CVM technique to value the
benefits of cleaning Lincoln Cathedral, by randomly asking WTP questions to inhabitants of the
city of Lincoln and the surrounding area. The hypothetical proposals were the willingness to pay
for a change in the frequency of a cleaning cycle from 40 years to 10 years. The change was
illustrated by photographs which showed the same aspects of the Cathedral half-way through
the two cleaning cycles. Individuals were also asked questions regarding their attitudes towards
air pollution in general and its impact on the Cathedral in particular. As a results of their study
income and a variable indicating distance from the site were best factors predicting household
willingness to pay. The mean willingness to pay has ranged from 15 to 23 per household per
annum for those living in Lincolnshire. It indicated that aggregating these values over the number
of households in Lincolnshire suggests the annual damage inflicted by air pollution on the
appearance of the building so far as soiling is concerned was valued between 0.4m and 0.6m.
They concluded that different solutions to the problem of starting point bias were explored and
are shown to yield similar estimates of willingness to pay.
Development Economic Review 11
An online database form Environmental Valuation Reference Inventory (EVRI), a large online
database (EVRI, 2011: 2) indicated that there were 2015 studies based upon stated preferences,
860 studies based upon revealed preferences, and 640 studies based upon actual market
pricing method.
CVM technique can include open-ended WTP question formats (direct calculation) or double-bounded
close-ended WTP questions (indirectly using a statistical model). Open-ended question formats
tend to produce numerous non-responses and protest bids (Desvousges et al. 1983). It requires
the respondent to answer a series of dichotomous-choice bid formats until an upper-bid amount
is reached. While a dichotomous bidding response is used to help improve the biases associated
with the open-ended question format. The former question format was first developed by
Hanneman (1984: 332-341). While the latest format was developed by Bishop and Hellerstein
(1979: 620-630). They have improved a dichotomous bid format and made the elicitation process
easier for the respondents. From then on, a dichotomous bidding format known as single-bounded
dichotomous-choice question format. This technique used one bid question (Yes or No to single
bid amount) that was easier for the respondent but required a much larger sample size (Hanneman
et al. 1991: 1255-1263).
CVMs survey formats are dependent on what information is a needed and budget constraint
of the survey agency (Pollock et al. 1994). Types of CVM surveys generally are conducted in
three formats: face-to-face, mail or telephone. The most commonly used was a combination of
an on-site face-to-face survey formats, followed by a telephone or mail surveys. Each survey
format has its strengths and weaknesses that researchers must consider during their survey
design as the CVM questions often involve complex and intricate scenarios that likely benefit
from visual aids and careful description. Fist, on-site face-to-face interview survey provides
motivation to the interviewee to complete the survey and providing opportunity for necessary
descriptions and visual aids. The presence of the interviewer also allows any unclear scenarios
to be discusses and reduces the amount of unusable data collected. In contrast on-site face-to-face
surveys are expensive, requiring many man-hours to obtain proper sample sizes. Second,
telephone and mail surveys are less expensive technique and use less numbers of man-hours
compared to the previous technique.
Seenprachawong (2006: 13-22) used a CVM with close-end technique to value ten historic
temples in the central region of Thailand. The payment vehicles used were the amount of a
one-time surcharge in income tax and a one-time voluntary contribution (donation). Furthermore,
the research explored respondents choice whether they are able to identify their values for two
temples versus their values for ten temples. As a result of the study, respondents did pass the
scope test so that respondents wish to pay more for a greater number of restored temples. An
individual is willing to pay THB214 for a one-time income tax surcharge and THB243 for a
voluntary donation to finance the preservation program of ten historic temples. In relation to the
socio-economic variables, income and education level were significant with the economic theory
such that respondents with a higher income had a higher WTP than a respondents with lower
income, and respondents with a higher education pay more than those with lower ones.
Tuan (2006: 1, 18 - 25) applied a single bounded dichotomous choice of CVM to estimate the
economic value of a World Heritage Site of My Son Sanctuary in Vietnam by proposing a restoration
and preservation plan for the site. The payment vehicle for this study was an entrance fee for
visitors and tax for non-visitors. As a result of the study, the mean WTP estimates vary among
groups of respondents such that foreign visitors to My Son would be willing to pay USD 8.78
per person and Vietnamese visitors mean WTP was $1.67 per person.
This research has decided to employ CVM for valuing Vat Phou, the WH cultural landscape in
Champasak Province, Lao P.D.R, regardless of some drawbacks of CVM. First CVM is the
improvement of the valuation techniques themselves. Second, the development of the cultural
CVM literature presents important background information about the value of different cultural
goods. It also points to trends and suggests future directions for research in the economic
valuation of cultural goods. Finally, it indicates some of the methodological issues that are
particular to the cultural context, and how some of these have been addressed in practice
(Noonan, 2002: 2).
Vat Phou was adopted by UNESCO as the second world heritage site of Laos in 2001. The
site covers a total of 390 square kilometers. The whole site is a unique and precious symbol of
the Lao cultural landscape. Vat Phou is valued for its cultural and natural landscape. The
inscription of the site include the sacred mountain of Phou Kao, the Hong Nang Sida Temple
and the City of Lingapura, the ancient roadway that once led to Angkor, Thao Tao, Tham Lek,
Vat Oubmung, the Tomo temple, the ancient city of Shrestrapura, Champasak and the Island
of Don Deng (Figure 1).
Figure1: Map
Figure 1: Map of
of World
WorldHeritage
HeritageSiteSite
of Vat PhouPhou
of Vat Property
Property
Source: UNESCO
Source: (1999) (1999)
UNESCO
Vat Phou is a highlight tourists destination in Champasak province and it is a highly popular tourist
Vat Phou is a highlight tourists destination in Champasak province and it is a highly popular
site in Laos, which is placed higher up the ranking than other sites in the country (Figure 2). From
tourist site in Laos, which is placed higher up the ranking than other sites in the country (Figure
2002 to 2012, the number of tourists visiting Champasak where Vat Phou is located ranked as forth in
2).theFrom 2002
list for to 2012,
tourist arrivalstheto number of tourists
Laos. Whilst the first,visiting Champasak
the second and the where Vat Phouofis tourist
third destinations located
ranked
arrivalsastoforth
Laosinare
theVientiane
list for tourist
Capital,arrivals to Laos.
Savannakhet and Whilst theProvince
Vientiane first, therespectively.
second andHowever,
the third
destinations of tourist
since the first arrivals
three cities are to
theLaos
mainare Vientiane
gates into Laos,Capital, Savannakhet
either by land and by andair, itVientiane Province
is not surprising
respectively. However,
that the numbers since
of tourist theare
arrivals firsthigher
threethan
cities
otherareprovinces.
the main gates into Laos, either by land
and by air, it is not surprising that the numbers of tourist arrivals are higher than other provinces.
In addition, the average growth rate of visitors visited Vat Phou from 2002 to 2012 was about 27.45%
In per
addition, the average
year (Tourism growth rate
Development of visitors2012:
Department, visited
16).Vat
ThePhou
site from 2002 tomanaged
is vertically 2012 was by about
the
27.45% per year
Department (Tourism
of World Development
Cultural Heritage, the Department, 2012: 16).Culture
Ministry of Information, The site
and is vertically
Tourism managed
(MICT), and
by the Department of World Cultural Heritage, the Ministry of Information, Culture and Tourism
horizontally managed by the local government authority.
(MICT), and horizontally managed by the local government authority.
FigureFigure
2: Tourists Numbers
2: Tourists of Top
Numbers five Provinces
of Top in Laos
five Provinces (2002-2012)
in Laos (2002-2012)
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
-
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Champasak Luang Phrabang Vientiane Capital Vientiane province Savannakhet
Source: Department of Tourism Development, 2009

Source: Department of Tourism Development, 2009
The site meets specific criteria which give this site a greater value and priority over other
The site meetssites
historical specific criteria
in Laos. which site
Vat Phou givemanagement
this site a greater
progressvalue and priority
has fallen behind over other historical
if compared to
sites the otherVat
in Laos. heritage
Phou sites in Laos. The progress
site management main major hasarea
fallenconsidered
behind if tocompared
have contributed
to the otherto this
heritage
sites lack in management
in Laos. The mainprogress
major are
areanotconsidered
sustainable tofor have
the supportive fundstoforthis
contributed the lack
site preservation
in management
and are
progress lacknot
of evidence
sustainable on for
public
the financial
supportivesupportive
funds forbehavior toward their world
the site preservation and lackheritage site. on
of evidence
publicAlthough
financialVat Phou is behavior
supportive operated toward
under government financial site.
their world heritage support and inter-governmental
Although Vat Phou is operated
funding like other sites in Laos, budget constraints limit the possibility of preserving the historical
under government financial support and inter-governmental funding like other sites in Laos, budget
structures in the site. Vat Phou suffers from a limited budget which restricts site preservation.
constraints limit thebudget
The national possibility of preserving
allocated for Vat Phou the management
historical structures
has been in the
verysite.
smallVatasPhou suffers from
it competes
a limited budget
with other which restricts
development programs,sitesuch
preservation. The improvement,
as infrastructure national budget allocated
education, forhealth
public Vat Phou
management has been
care, or even militaryvery small Each
spending. as it year,
competes
the sitewithneeds
otherto development
receive the budget programs, such as
from the
infrastructure
government improvement,
to be managed education, public the
and preserve health
sitecare,
of aboutor even militarymillion
LAK 1,800 spending.
per year. Each year, the
site needs to receive the budget from the government to be managed and preserve the site of about
Severalmillion
LAK 1,800 projectperproposals,
year. which focus on preserving individual sites, have been submitted to
UNESCO, but they do not address the issue of financial impact to the local or national economy
or value
Several benefits.
project According
proposals, whichto the officeonofpreserving
focus the UNESCO Regionalsites,
individual Advisorhavefor Culture in Asia to
been submitted
and the Pacific (2010), currently, there are still a number of projects for which funding is being
UNESCO, but they do not address the issue of financial impact to the local or national economy or
sought, namely the project of Interpretation and Site Enhancement at Vat Phou, the Interpretation
and Site Enhancement at Tomo Temple, the Interpretation and Site Enhancement at Nang Sida
Temple, the Interpretation of the Champasak Cultural Landscape, the project of Historic Structures
Inventory, the project of HATCH Program Development: Support for Traditional Crafts, and the
Heritage Booklet for Lao School Children. Each project has an identified specific cost for its
implementation by the office of the UNESCO Regional Advisor for Culture in Asia and the
Pacific. The amount of each project is USD 4,500; USD 3,300; USD 3,200; USD 3,000; USD
8,500; USD 1,850; USD 10,000 respectively, a total of USD 34,350. However, the estimation
of the benefits of these projects, including the recreational use value and the motivation of
financial support from non-use value of the site has not been addressed.
Inter-agency and Lao government projects under the preservation and protection plan do not
consider strategically the long-term impacts or sustainability once financial support has been
withdrawn. The question of how much local residents have been involved in project consultation
and how much they will support the continuance of projects once project funding terms are
completed remains unanswered. This paragraph outlines some of the projects and activities.
There has been increasing activity within the Vat Phou preservation and protection plan, which
targets the preservation of art, architecture, monuments, religious heritage, social interaction
and lifestyle of local people in the geographical region. For example, the training project in
Museology in the Exhibition Hall, the project of archaeological maintenance and management
surrounding the site, the on-site conservation project, the project for the development of inter-
pretive strategies, and the project of updating the action plan (UNESCO, 2010). These activities
are included in the overall project and co-financed by inter-governmental agencies and the Lao
government, and are co-funded by international and local organizations such as:
(1) the co-financed project between Italian-Japanese-Lao governments on the

restoration of the principal monuments of the Vat Phou archaeological sites aimed
at preventing the loss of architectural material and damage by water erosion, the
conduct of archaeological research on the monuments, enhance visibility, and to
conduct training in the conservation of stone artifacts and mapping;
(2) the coordination and cooperation between the site managers of the protected site
and the policy-makers and administrative officials in on-site training on archaeological
maintenance and management;
(3) the cooperation of the Asian Development Bank (ADB) and the National Tourism
Authority of Lao PDR on the reproduction of promotional materials and construction
of a visitor center at Vat Phou which aims to enhance the understanding of the
integrated value of the Champasak Cultural Landscape and promote cultural
tourism experiences for Lao and international communities;
(4) the UNESCO and ADB projects on the interpretive video aims to provide visitors
with an overall sense of the cultural landscape using a digital flyover technique
as well as the use of a 3-D model for the Vat Phou temple to provide a high
level of understanding of both the overall landscape and the temple. The project
also includes an interpretive model, a heritage trail, heritage signage and dedicated
website. However, from a long-term development perspective, it is still unclear
how residents view and support the sustainability of such protection projects,
cultural and ecological integrity in relation to future generations who would live in
their adopted area.
Thus, based on the existing evidence it is found that although Vat Phou has advantages over
the other sites in Laos in terms of tourist numbers and the growth rate of tourism. The issues
that can be found in Vat Phou WHS can be summarized into two major areas: (1) limitation and
unsustainability of supportive funds for the site preservation and conservation; (2) lack of
evidence on public financial supportive behavior toward WHS.
As a consequence it is questioned, whether the site of Vat Phous worth to the public, particu-
larly to Lao citizens in order to receive continuing support from them. While options to increase
sites revenues remain unclear because of the lack of information on demand parameters and
user costs. This information is relevant and useful for decision makers, especially at the local
level. In addition, if it is, what is an appropriate way to promote fund raising from the public to
preserve Vat Phou as a national project and what factors influence public motivation to support
their unique WHS as Vat Phou.
The objective of this study is to obtain in-depth information from Lao citizens, first to estimate
their willingness to pay for the historical structures preservation at Vat Phou, second is to de-
termine the factors affecting their willingness to pay and third is to understand why individuals
were or were not willing to pay to preserve historical structures at Vat Phou.
To fulfill the objective of the study, the research questions are (1) How much would individuals
be willing to pay as a one-time payment in their income to finance this project? (2) What are
the key factors influencing an individuals payment to this preservation project? (3) What are
the reasons for an individuals decision to contribute or not contribute a part of their income to
the preservation project?
This study had defined the population as Lao citizents, who are currently working, and who
have been working in both government and private sectors in Vientiane, regardless of where
they originally came from. In this respect, nine organisations were randomly chosen as sample
respondents. These nine organisations had been randomly drawn from 17 organisations. They
are two government organizations, two state-owned enterprise, three educational institutions,
and two textile factories.
It is expected that the outcome of this study will not only contribute to the cultural economic
literature of Laos, but also provide information to the local government officials and site
administrators, including the central government of Laos on the total individual resident-value
of the world heritage site. It is highly expected that using the outcomes of this study, researchers
will be able to provide more informed guidance to the government in order to improve
decision-making on the management of World Heritage Sites such Vat Phou.
The Historic Structures Preservation project is one of the preservation projects for Vat Phou
that has not yet been implemented due to the limitations of the government budget and
supporting funds from the public. The objective of the project was to determine, evaluate and
preserve historical buildings and the standing vernacular historic structures within the site as
potential contributing components to the cultural landscape of the Champasak Heritage and
Cultural Landscape Protection Zone.
It would be difficult to predict precisely the effects of the Action Plan. However, the consequenc-
es of the project are expected to make some improvement:
A. All traditional wooden Lao houses, temples and other buildings 50 or more years old
in the town of Champasak will be mapped, photographed and recorded descriptively.
B. There would be historical information about each structure
C. The information about each structure will be incorporated into the projects GIS and
database
D. Those structures will then be subject to the protective restrictions of the Champasak
Heritage Management Plan
E. Some seriously at risk structures will be then renovated by retaining the same structures.
This project has an identified specific cost for implementation by the office of the UNESCO
Regional Advisor for Culture in Asia and the Pacific (2005). The estimation of project cost is
about USD 34,350. Thus in all likelihood there would be a cost to the Lao population in Laos
in implementing this Protection Plan. Financial support from different groups of Lao would be
necessary to help finance this plan through donations.
To implement the Action Plan, a Vat Phou Trust Fund should be established. The citizens of
Laos would be asked to pay a one-time donation into the Trust Fund. The only purpose of the
Vat Phou Trust Fund would be to finance the implementation of the action plan.
The Fund would be managed and administered by a Board of Governors comprising various
government sectors so as to minimize any possible conflicts of interest. The board would
consist of the Governor of Champasak province, representatives of the Ministry of Culture and
Tourism, the Vat Phou Authority Management, the Mayor of Champasak district, and representatives
of the Cultural office of Champasak district. The board would also include community groups
from villages in Champasak district as well as local residents of the Vat Phou area. The activities
of the board would be completely transparent. An independent auditing of the board would be
performed annually, and made public. A summary of the total financial transactions would be
widely and publicly available.
Figure 3:Risk Structures at Vat Phou
Figure
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as follows:
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= Ui (Yi=0,1 j, Zj, ij), where
i=0,1
(1)
(1) (1)
, j,ij),Zj,where
Uij = UiUij(Y= j,UiZj(Y ij), where
i=0,1 i=0,1 (1) (1)
ijis a component ijis

ijisofaacomponent
componentofpreferences
unobserved ofunobserved
unobserved preferences
ofpreferences ofof the Since
the respondents. respondents.
there is Since therefrom
a change is astate
change0 from
change from state 0
ijis aijcomponent
is a state
component0 to state 1, there will be another attribute called the quality of the historic structures0Q, 0
of unobserved
of unobservedpreferences of
preferences the
ofrespondents.
the respondents.Since there
Since is
therea change
is a from
change state
from state
to state
to state 1, there 1,another
will be there willattribute
be another calledattribute called
the quality the historic
of the quality ofstructures
the historic structures
Q, which Q, which should
should
to state 1,which
to state there
1, will
there be
will
shouldThus, another
be attribute
another
inbetheincluded called
attribute the
called quality
the of
qualitytheof historic
the structures
historic Q,
structures which
Q, should
which should
be included in be theincluded
model. utilityinThus,
model.
the the model. Thus,
the utility
function in both the utility
function
states function
in both
can be statesincan
rewritten both states
asbefollows: can as
rewritten befollows:
rewritten
be included asinfollows:
be included theinmodel.
the model.Thus,Thus,
the utility function
the utility in both
function statesstates
in both can be canrewritten as follows:
be rewritten as follows:
U0j = U0 (Yj, Zj, QU0,0j=ij)U0 (Yj, Zj, Q0, ij) (2) (2)
U0j = UU00j (Y ==jU, UZ0 j(Y Qj,0,Z, Zj, ij,Q)Q0 , , ij) ) (2) (2)
, (Y
U1j = U
(Y , Zj, Q1,1jij) 1 j j 1 ij
U1j1 = Uj 11j (Y , Qj,1Z, j, ijQ) 1, ij)
= jU, Z1 j(Y
Supposing thatSupposing
respondentsthat are asked whether
respondents are askedthey whether
are willingtheyto pay Aj to change
are willing to pay from
Aj to state
change0 from
to state
state 1; if the0answer
to stateis 1;
Yes, theiranswer
if the utility isin Yes,
state 1
theirmust be inhigher
utility state than that inbestate
1 must higher0than
as shown
that in state
in the equation0below.
as shown in the equation below.
U1j (Yj -Aj, Zj, 0j) > U0j (Yj, Zj, 0j) (3)(3)
The probability for answering Yes is the probability that respondents think they will be better off in
state 1 although they have to pay Aj.
U1j-Aj,
U1j (Yj (Yj -Aj, 0j)
Zj, Zj, >0Uj) 0jU>(Yj,
U0j (Yj, 0j) 0j)j)U>1j U
Zj, Zj, Zj,0j)00j)j)> >U0jU(Yj, (3)0j)
(3)Zj,Zj,
1j (Yj -Aj, Zj, U0 1j (Yj
(Yj (Yj,
-Aj,Zj,Zj,
U1j0j-Aj,
(Yj -Aj, Zj,UU1j1j(Yj0j) >
0jU(Yj,
(Yj, Zj,0j)>>UU0j)Zj,(Yj, Zj,> U(3) (3)(3)(3)
(Yj -Aj,
-Aj, 1j 00j)j)-Aj,
Zj,
Zj,
0jU
(Yj 0j)Zj,
0j0j (Yj, 00j0j)j)(Yj, Zj, 0j) (3)
(3)
Uwering
ing
00jj)
(Yj, Zj, 0j)
0j) Yes Yes (3)
(3) that
20 probability
is the Development Economic
respondentsReview
think (3) U1j (Yj -Aj, Zj, 0j) > U0j (Yj, Zj, 0j) (3)
is the probability
The that respondents
probability think theythey
will will be better
be better off inoff in
forfor answering Yes isisfor
obabilityThe for
The answering
probability probability The
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probability
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The probability
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answering isthe
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answering probability isis the the that
Yes
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probability
probability
respondents
respondents
is the they
respondents that
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probabilitywillrespondents
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be
respondents better
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that
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respondents inbebebe
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will
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ve
1nk have
bability to
although pay to pay
state
for A .
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they A
j 1j have . although Yes
to pay they is A the
.have to
probability pay A .
that respondents think they will be better off in
dents
k they theythink state
willstate
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they
bebetter The although
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they
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have.
j Yes
j
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have . pay Aj. that respondents think they will be better
.jto
although theyoffhave to pay A .
in state 1 although they have to pay Aj.
j
Pr(Yes Pr(Yes j) =Pr{U j) =Pr{U 1j (Yj1j-A (Yj,j Z-Aj, j,Z0jj), >0jU) 0j>(YUj0j, Pr(Yes (Y, j,Z0jj)}, )=Pr{U 0j)} ,Zj,Z(4) (4)> U0j (Yj, Zj, 0j)}(4)
Pr(Yesj) =Pr{U1jPr(Yes (YZjjPr(Yes-Aj,j)Z=Pr{U j j, )=Pr{U 1jU(Y
) >Pr(Yes
(Y j -A
-A(Y ,,Zj=Pr{U ,j,Z0j0j,)0j)}>)(Y U))>0j=Pr{U (Y
Uj,j0j,j,ZZ(Y
Z,,j,j,(Y Z0j,)}>>0jU,U)}Z (Y j,j0j, Z)Zj>,j, U0j0j)})}(Y(4)
(4)(4)
j 0j 1jPr(Yes 1j0jj (Yjjj)jj)-A jj,Pr(Yes
=Pr{U j 1j1j0j(Y j j j -A -A j j1j 0j0j)jj)-A j 0j0jj,(Y j, Zj, 0j)} (4)
(4)

j,j0j,Z)Zj,>j,U0j0j0j)})}(Yj, Zj, 0j)} (4) Pr(Yes ) =Pr{U
(4) his/her utility function U with certainty, it(Y -A , Z , ) > U (Y , Z , )} (4) (4)
>Ahat,
isalUj,U0jZthat,
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although A crucial the individual
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as: as: can be written as:
ity of saying Yes can be written as:
Pr(Yes Pr(Yes j) = Pr{V j) = Pr{V 1j (Yj1j-A -Aj,Zj,
(Yj,j Zj, 0)j)= >Pr{Vj)0j>(Yj,
0V V0jPr(Yes
(YZj,
(Yj,Zj, 0j)} 0Pr{V j)} (Y -A , (5) Zj,0(5) 0(5)j)} (5)(5)(5)
Pr(Yes 1jPr(Yes j -Aj,) Zj,
Pr(Yes =j) =jPr{V
) =0j)Pr{V >(Y1jVj0j-A j(Yj,
1j (Yjj)jj)-A
j Zj,
, =Zj, Zj,j)001jj)}
j,Pr{V
j) >V 0jV (Yj,
1j>(Y j) >-APr{V 0jV(Yj, Zj,Zj,
(Yj, (Y0 Zj, >> jV,0Vj)}
0j)} Zj,> V00j0j)}j)}(Yj, (5)
Pr(Yes
Pr(Yes = Pr{VPr(Yes 0(Y
j) j=j -A j,j,0jZj,
Zj, 1j 0j)jj)-A 0j0j (Yj,
Zj, 0j)Zj,
(Yj, Zj, 0j)} (5) (5)
j 1j
0j)Zj,Zj,>V00jj)} Zj, 0j)} (5) Pr(Yes ) = Pr{V (Y -A , Zj, j) > V (Yj, Zj, j)} (5)
A>Vj,V0jZj,
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ingfunction that is
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ng that the utility function is linear, we can write:
V1j(YVj 1j-(YAjj, -ZAj)j, Zj) = 1=VZ j +1Z j 1+(Yj 1(YAjj)(6) (6)j Z- A+j, Zj)(Y A= )(6)
AV(Y j1j) (Y 1Z+j + (Y1 (Yj A(6)A) (6) ) (6)
1j(Yj - Aj, Zj) V1j= Vj1j-(Y 1Ajj,- ZAj)j, 1ZV j)Vj1j1j(Y
=(Yj--=1AZA j,, 1ZV Z ))
j (Y+1 - =
j 1A(Y
= ,
jZ j)Z jA
Z ) (6)
j jj++ =11(Y j j1ZjAA+j)j)(6)
(Y (6)
1(Y
V0j(YVj,0jZ(Yj)j,= Zj)0= Zj +0Zj 0+Y Yj V (Y , Z ) = V Z (Y +
- A Y , Z ) = Z + (Y A
j j
) (6)
j j j j
1j j j 1 1
j
Aj)A+,j=)j)Z
V
j 0(Y , Z ) = Z V+ (Y Y
, Z ) = Z + Y
j +0j,j,
-j A-)Zj)(6)
0 j 0j V0j (Y j j , Z ) 0= j 1j Z(Y j j j Yj
0ZZj j,++Z Yj j 0Zj +10jYj j
0j j j 0 j 0 j
-AAj,j,ZVZj)Vj1j)(Y(Yj V- =-A=(YAj , Z,1-ZZj1)Z
Aj)j+,-+Z V)=1(Y
(Y Vj,j1ZZ(Y
-1(Y )1=(Y(
(6)
(6)
(
0j j j
+)Z+(Y (YA )-A) -Y0j Yj j VV00j0j(Y ZZj)j0) = =
jV0j0(Y j) 0=0Y
1 j
V V(Y
,(YZV(Y A)- =A,- ZA,()Z,+-)ZV
--V)V
V(Y (YZ,+)Z ) =(Y(- A- ))Z- )Z + (Y(Y A A) -) - Y Y
V (Y - A , Z )V- V(Y ,)Z-(Y
= -Y(Y
V)Z, (Y ,Z
Z+))Z)-Y==V+(
j 1j jj jj j 0j j 0j j j j 1 10 j 0 j 1 j 1 jj j0 j 0 j
-- AA, ,=,ZZVZ(
1j
1j j )))=(Y
--( A- , (
(Y -,(Y
Z))Z
-
j j 0j 0j1jj 1jj jj1j j j jj 0j jjj j1 j 0j0 0j0j j0j jj j j j j1 1j 1 1 j0 0 j 0 j0 j j 1 1 j 1 j j j j j 0 0j 0j j
(Y
1j1j j j j j j j1j j 0j0j jj j jj j VV- (Y
(Y +)+-- (Y
=)ZA(
0j 11j j 00 j j 1 11 0j j j j j
Y )Z AA+))--
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(Y00YjYj j Aj) - 0Yj
V (Y - A , Z ) - V (Y , Z ) = ( - )Z + (Y A ) - Y
--1(Y0the j) - 0Yj utility of income is constant between state 0 and state 1,
Y0jYjj Amarginal 1j j j j 0j j j 1 0 j 1 j j 0 j
hat
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marginal With utility of income is constant between state 0 and isstate 1, between
With thethe
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ismarginal
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ofincome
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utility
utility
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of
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and state
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constant
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and
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state
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and
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state
state state 1,
1,state
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ve:
lsassumption
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have: the , so we
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ntn state
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10equalsso we 0have:
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en state 0 0 10 and1,
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s 0, so we have:
V1j -VV1j0j-=V( - 10-)Zj 0V)ZA
0j =1 ( j j Aj Aj j (7) (7) (7)
1j - V0j = (1 - V1jV0)Z-1jVVj-1j0jV- A -1 VV-1 0-)Z
=0jV=0j(j=(1( 0)Z j
j 0)ZA VA 0j00)Z - j j 0)Zj Aj (7)(7) (7)
(7)
1j1j 0j0j (
-- VV ==
j ( 1j11 --jV j A
=)Zj( 1A (7)
(7)
V1j - V(7) 0j = (1 - 0)Zj Aj (7)
Denoting Denoting = ( 1=- ( 0) -, we)(7) (7)
can
we1 -rewrite the equation as follows:
Denoting
Denoting 1 0 =, ( can
0) ,,rewrite
we
we cancanthe equation
rewrite
rewrite the as follows:as follows:
the equation
equation
V1j VV0j = Z
j A (8)
(8)
1j V0j = Z V1j jj VA
0j =j Zj Aj
(8) (8)
The The
probability for answering
The
probability probability Yes
for answering will be:
for answering
answering
Yes Yes
willYes willbe:
be: will be:
The probability for
Pr(YesPr(Yes
j) = Pr(Z j - Aj -+A
j>0)
+ >0) j = 1j - 0j (9) (9)
) = Pr(Z j Pr(Yesj j) = Pr(Z
j j j - Aj + j>0) j = 1j - 0jj = 1j - 0j (9) (9)
To estimate the random

To estimate utilityutility
the random modelmodel
with with
a linear utility function,
a linear we estimated a logit modelmodel
with
To estimate the random utility model with utility function,
a linear we estimated
utility function, a logit
we estimated a logitwith
model with
Yes/No responses
Yes/No responses to the WTP
to the WTPquestion as
question the dependent
as the dependent variable, and the bid
variable, variable, and
and the bid other household
Yes/No responses to the WTP question as the dependent andand
the other household
bid and other household
characteristics as
characteristicsthe explanatory
as the explanatory variables as follows:
variables variables
as follows:as follows:
characteristics as the explanatory
Pr(Yesj) = Pr(Zj - Aj + j>0) j = 1j - 0j (9)
To estimate the random utility

To estimate model utility
the random with amodel
linearwith
utility function,
a linear utilitywefunction,
estimated a logit model
we estimated withmodel
a logit
Yes/No responses to the WTP
with Yes/No question
responses as WTP
to the the dependent
question asvariable, and thevariable,
the dependent bid and and
otherthehousehold
bid and other
characteristicshousehold
as the explanatory variables as follows:
characteristics as the explanatory variables as follows:
Pr(Yesj) = a0 + a1bid + aiXi (10)

(10)
2.2. Variables
The variables 2.2 Variables
to reflect WTP of Lao citizens for historic structures preservation at Vat Phou included
The variables to reflect WTP of Lao citizens for historic structures preservation at Vat Phou
the socio-economic variables of the respondents; the information about respondents Plan knowledge,
included the socio-economic variables of the respondents; the information about respondents
Media and Certainty; and the respondents attitude towards preservation of historic structures. Five
Plan knowledge, Media and Certainty; and the respondents attitude towards preservation of
variables werehistoric
included to account
structures. for thesewere
Five variables attitudes:
included(i)to the respondents
account opinion regarding
for these attitudes: the
(i) the respondents
importance ofopinion
preserving historicthestructures;
regarding importance(ii)ofthepreserving
respondents opinion
historic regarding
structures; therespondents
(ii) the change of the opinion
historical, cultural and symbolic value of Vat Phou by preserving historic structures;
regarding the change of the historical, cultural and symbolic value of Vat Phou by preserving (iii) the
respondents opinion regarding the
historic structures; (iii) change of the value
the respondents of WHS
opinion for recreational
regarding the changeuse associated
of the value of with
WHS for
preserving historic structures;
recreational use (iv) the respondents
associated opinionhistoric
with preserving regarding the reality
structures; (iv) theof the trust fund opinion
respondents to
implement theregarding the reality
action plan; (v) theof the trust fund toreasons
respondents implement the action plan;
for determining their(v)maximum
the respondents
amountreasons
to
donate to the for determining
action plan was their
also maximum
included inamount
the survey to donate to the action plan was also included in the
questionnaire.
survey questionnaire.
Knowledge of previous studies has found that income, education, and household size have impacts on
Knowledge
WTP for historic resourcesof (Carrot,
previous1996:
studies423-430;
has found that income,
Whitehead, education,
Chambers and household
& Chambers, 1998: size
137-have
impacts on WTP for historic resources (Carrot, 1996: 423-430; Whitehead, Chambers & Chambers,
154; Garrod & Willis 2002: 44-67; Mourato, Kontoleon, & Danchev 2002: 68-104; Riganti & Willis 2002:
1998: 137-154; Garrod & Willis 2002: 44-67; Mourato, Kontoleon, & Danchev 2002: 68-104;
142; SantagataRiganti
& Signorello 2002: 142;
& Willis 2002: 238-246). A general
Santagata conclusion
& Signorello 2002:drawn from Athegeneral
238-246). studiesconclusion
in Navruddrawn
from the studies in Navrud and Ready (2002: 3) indicate that positive values for historic resources
are typically held by wealthier and more educated segments of the population. Thus, education
and individual income were expected to increase WTP for preserving the historic structures of
Vat Phou. With individual income, a positive relationship also supports the theoretical validity
of a WTP model (Whitehead, Chambers & Chambers, 1998: 137-154).
Whitehead, Chambers and Chambers (1998: 137-154) have found that WTP had an inverse
relationship with family size, suggesting that less disposable income is available for donating
to historic preservation. On the other hand, variables such as sex and age were expected not
to have an effect on predicted WTP (Noonan, 2002: 14).
According to Navrud and Ready (2002: 9) knowledge of historic resources, previous donations
made to preservation organizations, interest in cultural heritage, and belief that historic places
According to Navrud and Ready (2002: 9) knowledge of historic resources, previous donations made
22 Development
to preservation organizations, interest
Economic in cultural heritage, and belief that historic places should be
Review
preserved are often important factors in cultural valuation studies. Thus, in this study, respondents
should be attitudes,
knowledge, preservedand arebehavior
often important factorstoininfluence
were expected cultural valuation
their WTP.studies. Thus, in this study,
respondents knowledge, attitudes, and behavior were expected to influence their WTP.
Table 1: Variable Descriptions and Expected Signs
Table 1: Variable Descriptions and Expected Signs
Variables Descriptions Expected signs
WTP Willingness to pay
Gender Dummy variable (1= male, 0=female) +
Income Monthly income of respondents -
Status Dummy variable (1=married, 0=others) +
Age Age of a respondents -
Education Dummy variable (1=postgraduate and higher, 0=others) + or -
Occupation Dummy variable (1=government staff, 0=others) + or -
Family member Number of respondents family member + or -
Working member Number of working people in the family + or -
Bid Bid amount -

2.3 Questionnaire Design and Sampling.
The CVM questionnaire used in this study had four main parts. The first part was the personal
information of the respondents such as gender, age, educational background, occupation and
monthly income as well as the number of members in the family. The second part asked for
information related to the standing of Vat Phou consisting of three questions (Have the respondents
ever seen Vat Phou in their life?, Have they visited Vat phou in the past 12 months? and will
they ever visit Vat Phou in the future); two questions related to Vat Phou and the media. Part
three of the survey questions asked about the charitable habits of respondents. The last section
of the questionnaire was designed to obtain WTP information to the proposed project of preserving
Vat Phou. In this part, information about the cost of the action plan and the plan implementation
was also provided. Respondents were asked to assume making a once-only donation for the
project to a trust fund established for the implementation of the action plan, administered by a
board of governors comprising various and reputable interest groups so as to minimize any
possible conflict of interest.
The survey question in this part included a dichotomous choice question to prevent the future
loss of the historic structures, a level of certainty of respondents which stated their WTP intention;
followed by a question asking them for maximum willingness to contribute to the project if they
refuse the DC question. The DC question was If you were asked to donate____________ LAK
to the Vat Phou Trust Fund to support the significant historic structures preservation at Vat
Phou, a World Heritage Site, would you willing to contribute?
The twelve bids used in the WTP question were obtained through pretests. A pretest was held
in Vientiane with four different income groups ranging from no income to high income earners.
Each group was made up of 30 people. The bids were then revised and finalized for use in the
questionnaire. The final twelve bids were: LAK 20,000; 30,000; 40,000; 50,000; 60,000; 80,000;
100,000; 120,000; 150,000; 200,000; 250,000; 300,000 in which US$ 1.00 is approximately LAK
7,550.00
Follow-up questions were asked to assess the respondents judgment of support of residents
for the action plan, the feasibility of reaching the target of the action plan, the change of the
historical, cultural and symbolic value of the site with the protection of its cultural historical
structure, and their confidence in the trust fund management and in the implementation of the
action plan. There were total of 32 questions in this survey.
In order to construct a sample of individuals in the capital city of Laos, we firstly selected 17
organizations from different sectors, including government agencies, state-owned enterprises,
and private companies, by sending a request letter to the head of each organization to ask for
participation in this academic survey. The letters were also sent to educational institutions, where
short-term training courses for general staff and government officers from different parts of the
country are conducted. We did this in order to capture as much as possible a variety of respondents.
In the request letter, we explained the purpose of the study, its significance and the reasons
why we approached them including a sample of the questionnaire and the instructions for how
to answer the questions. In the last section of the letter, we requested they inform us about the
number of staff wishing to participate in the survey and the due date for response to the request
letter. Within two weeks, we received responses from nine organizations. The organizations that
wished to participate in the survey included the National Academy of Politics and Public
Administration, the Ministry of Labor and Social-Welfare, Sengsavanh Business College,
Lao-Singapore Business College, the Com-Center Educational Institute, Lao Telecommunications
Ltd., Enterprise Telecommunication Lao (ETL), and two textile manufacturers.
In this empirical study, a mail survey was employed as the questionnaire including a long de-
scription of the project and respondents needed to have sufficient time to read and complete
the questions. Although, this system of surveys generate relatively lower response rates and
less reliable information than do personal interviews (Boyle, 2003: 112), mail surveys can present
better descriptive information than by using other types of survey instruments such as telephone
and internet surveys. This study was not considered to conduct personal interviews due to its
prohibitive cost, although it was advocated by Mitchell, Carson (1989: 902) and NOAAs Blue
Ribbon Panel (NOAA, 1993: 38) as an instrument which generates greater reliability. This study
was considered inappropriate as an Internet or telephone survey; again due to expense and
the likelihood it would not be representative of the general population because of lack of Internet
access (Dillman, 2000: 9).
As a result of the acceptant letters with the number of participants from each organization, a
total of 1,212 surveys were mailed to the nine organizations on 2 April 2013. To improve the
response rate, a pen was included for each sample to the same address as an incentive to
return the survey. A short note on the contact persons, the collection date and time was also
pen was included for each sample to the same address as an incentive to return the survey. A short
included in each envelope.
note on the contact persons, the collection date and time was also included in each envelope.
3. 3. Analysis
Analysis andandResults
Results
The surveys to determine the WTP for the preserving project at Vat Phou were completed at
thesurveys
The end oftoMay 2013. the
determine A total
WTPoffor1,115 surveys project
the preserving were returned,
at Vat Phouof were
whichcompleted
1,099 could
at thebeendused for
ofthe
Mayanalysis
2013. A oftotal of 1,115
WTP. Amongsurveys were returned, nearly
the respondents, of whichhalf 1,099
werecould be used
females for the
(43.95 analysisanswering
percent) of
WTP.
the Among the respondents,
questionnaires (Figurenearly half finding
4). This were females
can be (43.95 percent)by
explained answering
the factthethatquestionnaires
the proportion of
(Figure 4). This finding can be explained by the fact that the
females working in an organization is equivalent to the male number. proportion of females working in an
organization is equivalent to the male number.
Figure 4: Respondents Gender
Figure 4: Respondents Gender
700
600
500
400
300 616
483
200
100
0
Males Females
Theaverage
The average ageagewaswas 32.84
32.84 yearsyears
old, old,
whilewhile
the the biggest
biggest proportion
proportion of respondents
of respondents age wasagein was in
between
between 26 to2635toyears
35 years old, accounting
old, accounting for 38.58%for 38.58%
(Figure (Figure
5). The highest5).percentage
The highest percentage of
of respondents
arerespondents are government
government agencies agenciesforstaff,
staff, accounting 51.32accounting for 51.32
percent, of which 8.46percent, of which
percent belong 8.46 percent
to military
belong
forces; to military
followed forces;
by staff followed
working by organizations,
in private staff workingand in private organizations,
staff working and enterprise
in state-owned staff working in
state-owned
agencies, enterprise
accounting agencies,
for 13.01 percent accounting for 13.01
and 12.19 percent percent and
respectively 12.19
as well as percent
those whorespectively
are
as well as those who are working as laborers, accounting for 10.46 percent (Figure are
working as laborers, accounting for 10.46 percent (Figure 6). About 52 respondents 6). About
businesspersons, accounting for 4.73 percent, 46 respondents are students,
52 respondents are businesspersons, accounting for 4.73 percent, 46 respondents are students, accounting for 4.19
percent and only
accounting for174.19
people are housewives,
percent and only 17andpeople
26 people were indicatedand
are housewives, as others, accounting
26 people for
were indicated
2.37
as percent
others,ofaccounting
the total sample (Figure
for 2.37 6). of the total sample (Figure 6).
percent
Figure 5: Respondents Age

Figure
Figure 5:
5: Respondents
RespondentsAge
Age
450 424
424
450
400
400
350
350 295
300 295
300 254
254
250
250
200
200
150 120
150 120
100
100
50 6
50 6
0
0
From 16 to 25 From 26 to 35 From 36 to 45 From 46 to 55 Older than 55
From
year16 to 25 From
olds year 26 to 35 From
olds year 36
oldsto 45 From 46 to 55 Older
year olds than 55
years
year olds year olds year olds year olds years
Figure
Figure 6: Respondents
6: Respondents Occupation
Occupation
Figure 6: Respondents Occupation
Others 26
Others 26
Unemployment 2
Unemployment 2
Students 46
Students 46
House wife 17
House wife 17
Worker 115
Worker
Retired 115
0
Retired
Business men 0 52
Business men
Military 52 93
Military
Private staff 93 143
Private staff
Stated-enterprise staff 134143
Stated-enterprise staff
Government staff 134 471
Government staff 471
0 50 100 150 200 250 300 350 400 450 500
0 50 100 150 200 250 300 350 400 450 500
Respondents who hold Bachelor Degrees made up the largest proportion, accounting for 33.58
Respondents
Respondents
percent, followed whobywho
hold
thoseBachelor
hold holdDegrees
Bachelor
who Degrees
Diplomas,made
made up up
College the
andthelargest
largestproportion,
Masters proportion,
Degrees, accounting forfor19.75
accounting
accounting for33.58
33.58
percent, followed
percent,
percent, by
19.38followed those
percent,byand who
those hold
8.28who Diplomas, College
hold Diplomas,
percent and
respectively.College Masters
Those and Degrees,
who Masters accounting for
Degrees, accounting
hold a Secondary 19.75
certificates for
percent, 19.38
19.75 percent,
accounted percent,
for 8.55 19.38 and 8.28
percentpercent, percent
of totaland respectively.
8.28 percent
respondents, Those who
and respectively.
63 people whole hold a Secondary
ThosePostgraduate certificates
who hold adegrees,
Secondary
accounted
accounting for
certificates 8.55
for 5.73 percent
accounted
percent for of
of 8.55 total respondents,
percent Only
respondents. of total and 63
ninerespondents, people
people held and whole
63 people
Doctoral Postgraduate
Degreeswhole degrees,
Postgraduate
accounting for
accounting
0.82degrees, for 5.73
percent ofaccounting percent of respondents.
for 5.73andpercent
total respondents, Only nine
of respondents.
2 others, people
accounted for 0.18 held Doctoral
Onlypercent
nine people Degrees
(Figureheld accounting
7). Doctoral Degrees for
0.82accounting
percent of total respondents,
for 0.82 percent and 2 others,
of total accounted and
respondents, for 0.18 percentaccounted
2 others, (Figure 7). for 0.18 percent
(Figure 7).
Figure 7: Respondents Educational Background

Figure 7: Respondents Educational Background
Others 2
PhD 9
Master degree 91
Post graduated degree 63
Bachelor degree 369
Diploma degree 217
College degree 213

Secondary school 94
Primary school 41
0 50 100 150 200 250 300 350 400
The The
average number
average of family
number members
of family membersof respondents was about
of respondents 5 persons
was about per family,
5 persons and the
per family, and
average number of members who earn an income was 1.38 people (Table 2). In respect
the average number of members who earn an income was 1.38 people (Table 2). In respect to to income,
the income,
average the
individual
averagemonthly income
individual of theincome
monthly respondents is approximately
of the respondents LAK 2,880,008
is approximately LAKor2,880,008
around
US$or366.
around US$ 366.
TableTable
3 shows that about
3 shows 10.28%10.28%
that about of respondents indicatedindicated
of respondents that they that
had they
neverhad
heard aboutheard
never events at
about
Vat events
Phou onatTV,
Vatradio
Phouor on
in the
TV,newspaper
radio or ininthe
thenewspaper
previous 12inmonths. While 42.13
the previous percentWhile
12 months. had heard
42.13
a fewpercent
times had
(1 toheard
5 times),
a few times (1 to 5 times), 29.12 percent had heard several times (6 tohad10
29.12 percent had heard several times (6 to 10 times), 8.46 percent
seentimes),
or heard many
8.46 times had
percent (11 toseen
20 times) and 8.83
or heard manypercent
times of(11respondents
to 20 times)had and
heard8.83
morepercent
than 20of
times.
respondents had heard more than 20 times.
MoreMore
thanthan
half half
of theof respondents havehave
the respondents nevernever
heardheard
aboutabout
the preservation
the preservationprojectproject
at Vat atPhou. Only
Vat Phou.
24 percent
Only 24ofpercent
respondents have heard have
of respondents aboutheard
the project.
about This is reflected
the project. Thisin isthereflected
limitationinofthe
thelimitation
project
planoftothe
the project
public. plan to the public.
Among
Among the sample
the sample respondents,
respondents, morehalf
more than thanof half
themof(52.5
thempercent)
(52.5 percent) have donated
have donated to officialtocultural
official
cultural preservation
preservation projects
projects in Laos. Onlyin24.57
Laos.percent
Only 24.57
have percent
donated have donated
to NGO to NGO
projects, projects,
and 50.5 and
percent
50.5 percent have donated to government projects. It is interesting to note that there is rarely
an official request for donations from the general public for government and NGO projects. Thus,
Lao people are not familiar with being asked to donate to government projects and NGO
organizations, especially with a set price amount. They are usually faced with requests for
cultural restoration and construction, but with the amount being voluntary. Some wish to donate
donations from the general public for government and NGO projects. Thus, Lao people are not familiar
with being asked to donate to government projects and NGO organizations, especially with a set price
amount. They are usually faced with requests for cultural restoration and construction, but with the
amount being voluntary.
considerable amountsSome wish totodonate
of money considerable
Buddhist Temples, amounts
as they of moneybelieve
strongly to Buddhist
in theTemples,
merit
as they strongly believe in the merit gained by donating money
gained by donating money or items to support their religion.or items to support their religion.
Table 2: Summary
Table of Respondents
2: Summary Characteristics
of Respondents by Income
Characteristics and Family
by Income members
and Family members
No Characteristics Frequency
1 Monthly Income (in LAK):
Maximum amount 100.000.000
Minimum amount 0
Mean 2.880.008
2 Number of family members:
Biggest family 15
Smallest family 1
Mean 4,99
3 Number of working members in a family
Biggest family 9
Smallest family 0
Mean 1,38
Relation to the changes in historical, cultural and symbolic values of Vat Phou by preserving its
Relationstructures,
historical to the changes in historical,believe
most respondents culturalthat
andwith
symbolic
the Vat values
Phouof protection
Vat Phou action
by preserving
plan, the
its historical structures, most respondents believe that with the Vat Phou protection
historical structures, cultural and symbolic value of the site as well as the quality of Vat Phou action plan,for
the historical
recreational use structures, cultural and
would be improved. Thesymbolic value of that
results indicated the site as well
32.21% as the qualitystated
of respondents of Vatthat
Phou
there for be
would recreational useimprovement
a significant would be improved. The results
by implementing this indicated that 11.28%
project. Only 32.21%indicate
of respondents
that there
stated that there would be a significant improvement by implementing this project. Only 11.28%
would be no change in the value of historical structures. Over half of the respondents (51.59%) stated
indicate that there would be no change in the value of historical structures. Over half of the
that despite this project, there would be little improvement in cultural and structure value, while others
respondents (51.59%) stated that despite this project, there would be little improvement in
(25.11%) indicate that there would be no change in the structural value. Only four respondents
cultural and structure value, while others (25.11%) indicate that there would be no change in
(0.36%) believe that
the structural structural
value. Only value would be significantly
four respondents (0.36%)worsened
believe thatby implementing this preservation
structural value would be
project.
significantly worsened by implementing this preservation project.
Table 3: Summary of Respondents Characteristics by Categories

Table 3: Summary of Respondents Characteristics by Categories
No Description Categories Number %
1 Hearing the News Never 113 10,28
A few times (1-5) 463 42,13
Several times (6-10) 320 29,12
Many times (11-20) 93 8,46
More than 20 times 97 8,83
2 Hearing preservation plan A little bit 555 50,50
A lot 264 24,02
No 280 25,48
3 Culture donate YES 577 52,50
NO 522 47,50
4 NGO donate YES 270 24,57
NO 829 75,43
5 Project donate YES 555 50,50
NO 544 49,50
More importantly, the survey questionnaire included questions about the ability of the trust fund
More importantly, the survey questionnaire included questions about the ability of the trust fund
management to collect money from respondents and appropriately fund the action plan if it were
management to collect money from respondents and appropriately fund the action plan if it were to be
to be implemented only by the government.
implemented only by the government.
The results show that more than half (56.41 percent) of respondents agree there would be no
The resultscollecting
problem show thatpublic
moredonations,
than half (56.41
while percent)
over oneofquarter
respondents
(27.84agree thereindicate
percent) would bethatnothere
problem
collecting
would bepublic
somedonations,
problems,while over itone
but that wasquarter (27.84 percent)
still possible indicate
to collect. Only that there
a few would(15.74
people be some
problems, but that
percent) state thatit there
was still
willpossible
be a lottoofcollect.
problemsOnlyand
a few
thatpeople (15.74of percent)
the intent the fundstate that there will
is unrealistic.
be a lot of problems and that the intent of the fund is unrealistic.
Few respondents (about 10.83 percent) state that it would be very easy to reach the target of
Few respondents
implementing this(about 10.83while
action plan, percent)
morestate than that
a thirdit (35.85
would be very indicated
percent) easy to reach
that it the
wouldtarget
be of
implementing
easy to reachthis
theaction
targetplan, while more than
of implementing a thirdplan,
this action (35.85 percent)proportion
a similar indicatedtothat it would
those who werebe easy
toambivalent
reach the target
about oftheimplementing this action
ease of reaching plan, aofsimilar
the target proportion
the action to thosepercent).
plan (34.39 who were ambivalent
However,
a number
about of respondents
the ease of reachingindicated that ofit would
the target be difficult
the action plan to reachpercent).
(34.39 the targetHowever,
of implementation
a number of
(13.74 percent),
respondents whilethat
indicated a further 2.64bepercent
it would difficult ofto respondents
reach the targetstateofthat it would be very
implementation (13.74difficult.
percent),
Of the remainder, 2.55% could not decide whether or not it would be easy to implement the
action plan.
In addition, the results of the survey shown that only 7.46 percent of respondents firmly believe
the governing board could manage implementation of the plan well, 8.10 percent state a lack
of confidence in the board, and 2.2 percent gave no opinion to the question. While almost half
(47.41 percent) expressed a degree of confidence in the boards ability, and 34.12 percent
stated a neutral opinion. It is interesting to note that there were zero respondents indicating that
the governing board of the trust fund could definitely not do a good job in managing the
implementation of the action plan. Last but not least, among respondents, only 7.37 percent
state that the action plan can be definitely implemented, 43.37 percent indicate that it can
probably be implemented. Few (8.46 percent) indicate that the action plan would probably not
be finally implemented, while one-third (37.22 percent) state a neutral position to the question.
Lastly, we found that 61.6 percent of respondents wish to have more information related to the
action plan before making a decision on how much they might donate. Most of the information
that they would like to obtain amounts to a detailed appraisal of the merits of the project, the
rationale of the project, a feasibility study, detail of the preservation plan, project objectives, the
projects action plan, the planned outcome of the project, the provision of infrastructure, the
names of the major funding agencies, assurances that the implementation of the project would
be transparent, photographic evidence of progress at each stage, details of financial planning,
and a plan for monitoring, controlling and evaluating the outcome of the project. Some 74.61
percent of respondents indicate that it would be easier for them to make a decision on their
willingness to donate to the action plan if more information on the concerns listed above could
be provided.
3.2 Willingness to Pay Analysis

This subsection demonstrates the distribution of Yes and No responses relating to amounts
which might be donated and the estimation of mean WTP for the preservation project.
Table 3 shows a relationship between the bidding prices and willingness to pay of the respon-
dents. Potential bids range from LAK 20,000.00 (or about USD 3.00) to LAK 300,000.00 (about
US$ 33.00). We found that the response size of each bid is nearly the same (averaging 91.58
percent). Yes responses decreased continuously as the bid price increases. Conversely, No
answers increase as the bid price increases. The average Yes response was about 62.69
percent, while the remaining 37.31 percent stated No. As a result, it can be stated that demand
for the project has a negative relationship with the price of the bid.
the bid price increases. The average Yes response was about 62.69 percent, while the remaining
relationship with stated
37.31 percent the price
No.of As
the abid.
result, it can be stated that demand for the project has a negative
relationship with the price
30 Development of the bid.Review
Economic
Table 3. Distribution of Responses by Bid Amount (in LAK)
Table3.3. Distribution
Table Distribution ofofResponses
Responsesby by
BidBid Amount
Amount (in LAK)
(in LAK)
Bid Total Not
Amount
Bid Total Survey Responses
Total WTP WTP (%) Not WTP WTP (%)
Not
20,000 Total101Survey Responses
Amount 91 84
WTP WTP92.31
(%) Not WTP7 WTP (%)7.69
20,000
30,000 101
101 91
89 84
82 92.31
92.13 77 7.697.87
30,000
40,000 101
101 89
86 82
71 92.13
82.56 7 15 7.8717.44
40,000
50,000 101
101 86
94 71
71 82.56
75.53 1523 17.44
24.47
50,000
60,000 101
101 94
93 71
70 75.53
75.27 2323 24.47
24.73
60,000
80,000 101
101 93
80 70
61 75.27
76.25 23 19 24.73
23.75
80,000
100,000 101
101 80
91 61
59 76.25
64.84 19 32 23.75
35.16
100,000 101 91 59 64.84 32 35.16
120,000 101 95 57 60.00 38 40.00
120,000 101 95 57 60.00 38 40.00
150,000 101 91 48 52.75 43 47.25
150,000 101 91 48 52.75 43 47.25
200,000 101 89 34 38.20 55 61.80
200,000 101 89 34 38.20 55 61.80
250,000
250,000 101
101 101
101 16
16 15.84
15.84 8585 84.16
84.16
300,000
300,000 101
101 99
99 10
10 10.10
10.10 8989 89.90
89.90
Total
Total 1212
1212 1099
1099 663
663 61.31
61.31 436436 38.69
38.69
The
The model used
used for the the logit regression
regression is as follows:
Themodel
model usedfor for the logit
logit regression isis asasfollows:
follows:
Pr(Yes)=a
Pr(Yes)=a0 +0 +aa1bid
1bid++aa22gender
gender + a 3age
age ++ aa44status
status++aa5edu
5edu+ +a6ajob
6job
+ a+7income
a7income
+ a+8hhsize
a8hhsize
TheThe
The results
results
results (Table
(Table
(Table 4)4)show
4)show
show thatthat
that socio-demographic
socio-demographic
socio-demographic characteristics
characteristics such
suchas
characteristics asgender,
such gender, status,
as gender, education,
status, education,
status,
occupation,
occupation, the number
education,theoccupation,
number ofthe of family
family
number members
members and the
andmembers
of family number
the number of working
andoftheworking people
numberpeople per household
per household
of working have
people perhave no no
effect
effect ononthetheprobability
household probability
have no effectofof Yes
Yes responses,
probabilitywhile
on theresponses, while the
of Yesthebid,
bid,age
ageofofrespondents,
responses, the bid,and
respondents,
while and
age monthly income
ofmonthly
respon- income
werewere
dents, statistically
and monthly
statistically significant.
incomeInInwere
significant. addition, the
the signs
statistically
addition, ofofthe
thecoefficients
significant.
signs In addition,were
coefficients the as
were asexpected.
signs TheThe
higher
of the coefficients
expected. the the
higher
bid,bid,thethelower
were aslower thetheprobability
expected. probability
The higher ofof aa Yes
Yes response.
the bid, the lower
response. Older thepeople
Older however
probability
people of aareYes
however aremore willing
response.
more to contribute
willing Older
to contribute
to
to people the preservation
however are
the preservation project. Respondents
more Respondents
project. who
willing to contribute already have families,
to the preservation
who already have families, and
project. those who
and Respondents work
those who work in the
who in the
government
already have sector paid and
families, less those
attention whoto work
the preservation
in the project and
government were
sector paidlessless
willing to contribute
attention to the to
government sector paid less attention to the preservation project and were less willing to contribute to
it.preservation project and were less willing to contribute to it.
it.
Table
Table4.4. Logit
Logit Regression
RegressionResults
Results
Variables Description Coefficient P-value

Bid Bid -9.94e-07*** 0.000
Gender Gender of respondent .153669 0.334
Age Age of respondent .0297939*** 0.007
Status Marital status of respondent -.0920575 0.635
Edu Education level of respondent .3101195 0.136
Job Occupation of respondent .0110386 0.953
Income Monthly income of respondent 1.61e-07*** 0.001
Hhsize The number of family members .0252793 0.540
Adult The number of working people per family .0653725 0.303
Cons Constant -1.045354 0.002
Note:
Note:***significant
***significantat at 1 percent,
1 percent, **significant
**significant at 5 percent,
at 5 percent, *significant
*significant at 10 percent
at 10 percent
Themean
The meanWTP
WTPwas
wasestimated
estimatedbyby using
using thethe following
following formula:
formula:
Where the mean WTP calculated in the logit regression was LAK 36,239.75 or 1.26 percent of
Where the
average meanincome
monthly WTP calculated in the logit regression was LAK 36,239.75 or 1.26 percent of
of respondent.
average monthly income of respondent.
There were many reasons given for being willing to donate to the preservation project. Among the
There were many reasons given for being willing to donate to the preservation project. Among
respondents who answered Yes to the WTP question, most of them wanted to preserve the cultural
the respondents who answered Yes to the WTP question, most of them wanted to preserve
structures of Laos for young generations (24.51 percent) and for the structures to attract foreign
the cultural structures of Laos for young generations (24.51 percent) and for the structures to
visitors (19.52 percent) to visit the unique cultural structures on the site. Some (13.01 percent) wish to
attract foreign visitors (19.52 percent) to visit the unique cultural structures on the site. Some
preserve them as Lao traditional symbolic structures.
(13.01 percent) wish to preserve them as Lao traditional symbolic structures.
There
Thereare
areaavariety
varietyofofreasons
reasonsthat
thatrespondents
respondentsarearewilling
willingtotodonate
donatetotothe
theproject;
project;forforexample,
example,they
wish
theytowish
donate becausebecause
to donate they want
theyto want
be a part
to beofathe
partcultural
of thepreservation project (7.72
cultural preservation percent),
project (7.72they
percent), they wish to see the social benefits as a whole by preserving their cultural structures
(8.32 percent), and to be proud of a nation that is rich in cultural structures (9.53 percent).
However, nearly 39 percent of respondents are not willing to support the project (Table 3).
Among the respondents answering No to the WTP question, most of them indicated that they
earn limited income (36.30 percent). Other reasons included the uncertainty about the projects
implementation (12.33 percent), uncertainty about the projects transparency (7.08 percent), and
not trusting the management team (6.62 percent). Some (13.24 percent) thought that it should
be the governments responsibility since the site is governed by the government board. Others
(6.39 percent) indicate that they already pay an entrance to the site, and that income should
be utilized in the preservation project at Vat Phou.
Most of the comments from the respondents agreed with the purpose of the project. Respondents
generally believe that it would be useful if the project could be implemented and they wish to
continue supporting the project. Some have suggested the project should include consideration
of community involvement in the project, and that any document promoting the project should
be well prepared in order to elicit public interest in supporting the project. The project leader
should announce the action plan widely through the media in order to attract more general
public participation in the project. In addition, a number of respondents state that preservation
projects are the only way to help conserve or maintain cultural structures for younger and future
generations. They also propose that it would be very attractive site to tourists if the project
covers all types of cultural structures of Lao tradition and become a special zone for tourists.
Only one respondent disagreed with the project, especially the point relating to donations from
the public. He believes that this type of project should be proposed to the organization involved
in Vat Phou management such as the government of Laos. He also argued that the amount of
donations should be provided to the government agency to be managed, then whenever the
project needs that money, they should budget it through the Lao National Assembly in order for
transparency of the use of funds. The project should be in the government action plan (Argument
from one respondent during the survey conducted).
Since this empirical study is about the preservation of cultural structures by asking public
willingness to pay, the survey included questions about the certainty of respondents in stating
the amount they are willing to donate. The results found that 32.67% of respondents were very
certain of their statements, 30.48% are moderately certain and 27.66% are neutral. Only 1.73%
of respondents are very uncertain as to the amount they might donate, and the remainder of
respondents (1.82%) did not provide their thoughts on this question.
4. Conclusion and Policy Implications

Vat Phou has great value in terms of the cultural landscape and historic structures. Particularly,
the site has significant historic value to the Lao people. This study estimated the willingness to
pay of individuals in Vientiane Capital for the preservation of historic structures at Vat Phou,
investigated why people were willing or unwilling to donate to that preservation. From this analysis,
some policy implications can be drawn to support the preservation project on the site. The study
employed the CVM with the single-bounded dichotomous choice question format. The sample
comprised 1,099 individuals, living in the capital city of Laos. The study found that the mean
WTPs estimated by logit regression were LAK 36,239.75 or 1.26% of average monthly income
of respondents.
There were many reasons why people were willing or unwilling to donate to a preservation fund.
Generally, most of them wanted to preserve the cultural structures of Laos for younger and
future generations. Individuals who were not willing to contribute to the fund thought that it was
the governments responsibility since the property belongs to the government sector. Many did
not trust the management team to handle the fund.
In the logit regression model, an individuals willingness to pay was negatively dependent on
the bid and positively related to the monthly income and ages at the 90% level of confidence.
Other socio-economic variables of respondents such as status and occupation have statistically
affected their WTP at the 90% and 95% level of confidence respectively. However, it is interesting
to note that respondents gender, education, household size and number of working people in
a household have not affected their WTP. The signs of these coefficients were negative related
to the dependent variable.
Although this study does not give the total value of Vat Phou, it shows the great value of the
site in terms of individuals willingness to contribute towards a preservation project and is therefore
useful information for governments in deciding how to preserve the sites efficiently. The only
concern resulting from the study is there is a proportion of unwilling to pay of respondents (12.33
percent) due to their uncertainty about the projects implementation and uncertainty about the
projects transparency (7.08 percent), and not trusting the management team (6.62 percent).
Thus, the policy implications resulting from the research concerning the uncertainty of the
respondents, it is necessary to form a Trust fund for Vat Phou in order to overcome the
uncertainty of respondents. The main goal of the Vat Phou Trust fund should focus on helping
to strengthen the work concerning the site preservation and the specific strategies given by the
Central and Local government to protect World Heritage site of Vat Phou.
The partners of the Trust fund shall include the representatives of the site management team,
the local government authorities, the representative of the District authorities, the leaders of the
communities, and the representative of mass organizations in the area. The board of directors
of the Trust can be appointed from the representatives from all the above mentioned parties.
The memorandum of association for the Trust fund regulates the function of the trust fund which
should act as an independent body under Lao law.
The Trust fund shall also focus it activities by supporting and facilitating the heritage management
and contributing to innovative projects at the site; mobilize funds from bi-and multilateral sources
to secure transparency and visibility, and facilitate assistance for the site preservation efforts.
Finally, since the Trust is one of the basic elements of understanding cooperation and conflict
among stakeholders in the heritage preservation process and it is the glue which holds
communities and societies together, the trust fund shall have sustainability plans for the site
projects. Trust is a collective attribute based on the relationships between people within a
larger social system rather than just the individual recipients, thus, in order to operate the Thrust
fund in Vat Phou it requires a sufficiently common set of values between stakeholders. The
Trust fund shall act as a center, supporting the follow up of the government strategy in the site
management
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8 Development Economic Review Development Economic Review

Volume 11 No.1 (January 2017)

Willingness to Pay for Historic Structures

Kaysone Chansina* and Udomsak Seenprachawong**

Keywords: Historic Structures Preservation, Willingness to Pay, Vat Phou

Champasak Luang Phrabang Vientiane Capital Vientiane province Savannakhet

Source: Department of Tourism Development, 2009

(1) the co-financed project between Italian-Japanese-Lao governments on the

The indirect The function

ijis a component ijis

To estimate the random

Development Economic Review 21

To estimate the random utility

Pr(Yesj) = a0 + a1bid + aiXi (10)

Figure 5: Respondents Age

Figure 7: Respondents Educational Background

College degree 213

0 50 100 150 200 250 300 350 400

Table 3: Summary of Respondents Characteristics by Categories

3.2 Willingness to Pay Analysis

Variables Description Coefficient P-value

4. Conclusion and Policy Implications

Boyle, Kevin J. (2003).Boyle, Kevin J.valuation

Seenprachanwong, U. (2006). Economic valuation of cultural heritage: A case study of historic

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