ABSTRACT
Direct expenditure analysis is a firmly established method to estimate the direct market economic values associated with surf tourism. However, surfing also produces significant non-market economic values that are not captured by any kind of expenditure studies. These non-market values fall into one of three categories: non-use value, which is non-consumptive or indirect, and consumer surplus and capitalized real-estate value, both of which are consumptive and direct. The most common type of non-market value studied in surfing is consumer surplus, and this is commonly estimated using the Travel Cost Method (TCM). The consumer surplus represents the aggregate willingness-to-pay above and beyond what people are currently paying to get to the surf location. The Hedonic Price Method (HPM) estimates the independent contribution of different home characteristics to the overall home value, and can be used to value backyards, ocean views, or even clean air, school quality, and proximity to natural resources such as surf breaks.
