=Paper= {{Paper |id=Vol-2030/HAICTA_2017_paper59 |storemode=property |title=Applying a Travel Cost Method to Evaluate the Thermal Tourism in Greece: Case Study of Loutraki Arideas Springs |pdfUrl=https://ceur-ws.org/Vol-2030/HAICTA_2017_paper59.pdf |volume=Vol-2030 |authors=Georgios Apostolidis |dblpUrl=https://dblp.org/rec/conf/haicta/Apostolidis17 }} ==Applying a Travel Cost Method to Evaluate the Thermal Tourism in Greece: Case Study of Loutraki Arideas Springs== https://ceur-ws.org/Vol-2030/HAICTA_2017_paper59.pdf
Applying a Travel Cost Method to Evaluate the Thermal
  Tourism in Greece: Case Study of Loutraki Arideas
                       Springs
                                  Georgios Apostolidis1
        1
         Department of Spatial Planning and Development, Faculty of Engineering,
                      Aristotle University of Thessaloniki, Greece,
                         e-mail: gapostolidis@plandevel.auth.gr


       Abstract. The Travel Cost Method employed in the present research comprises
       one of the most important methods belonging to the wider category of
       Revealed Preference Methods. The present study focused on the Pozar
       Thermal Springs area, located in the prefecture of Pella, Central Macedonia,
       Greece due to the fact that the organized thermal spa tourism in the Spa Center
       of Loutraki, Pozar contributes to a great extent on recreation. The purpose of
       the present study was to record and analyze the conditions of demand for
       thermal tourism regarding the operation of spas located in the area of Loutraki,
       in Aridea. The survey was conducted using an Individual TCM employing a
       face-to-face questionnaire survey (n = 323 guests). The results are expected to
       be used to sustainable tourism management in wider area.

       Keywords: Economic         Valuation,    TCM,     Environmental     Economics,
       Regression Analysis.




1 Introduction

It needs hardly be argued that the natural environment offers multiple benefits for
people and their quality of life (Costanza et al. 1997). Among them, an important
service offered by the environment is that it can provide recreational services to
people, having a pivotal role in shaping the tourism development of a region and the
potential for guest satisfaction in the area (Arabatzis and Grigoroudis, 2010). For the
future spatial organization of alternative tourism in Greece, regions with "growth
potential for special and alternative tourism" regarded as "poles of intensive growth
of special forms of tourism" are defined along the lines of the particular spatial
framework for tourism in the country (Greek Ministry of Environment, 2013).
    The study offers opportunities for the rational exploitation and management of
tourism in areas that can become poles of special forms of tourism since it provides a
potential for the design and implementation scenarios as well as interventions and
policies with a specific developmental objective. In particular, through the
application of TCM, the tourist recreational value and demand for recreation will
emerge. This demand function is critical to the design of the tourist development of a
region, as it may be used in order to assess the value of various ecosystem services -




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such as the aesthetic value of the landscape, as well as the tourist and recreational
value of the study area (Baseline Scenario). The final objective of this survey was to
estimate the recreational demand function (i.e. the recreational value) for the site
under consideration. Investigating the relevant literature showed that the application
of TCM is deficient in areas of hot springs and thermal natural resources. Therefore,
the present research is expected to provide the principle and basis for the
reconstruction and application of the method to thermal springs and natural resources
of other areas. The results are expected to be used (a) to achieve optimal organization
of the tourism in the study area, based on the principles of sustainable tourism
development and the directions of spatial planning (the Special Framework for
Spatial Planning and Sustainable Development-SFSPSD for tourism) and (b) to
promote the development of appropriate management techniques along with modes
for the protection of the natural environment.



2   Sampling and Statistical Methodology

Questionnaires aimed at the population of visitors to the Pozar Thermal Springs
during the winter period of 2015-2016 were used to conduct the present research. A
valuation study based on primary field research (questionnaires, surveys) was used to
explore the views of visitors to the research area under consideration. More
specifically, the Travel Cost Method (TCM) individual modeling was used. A face to
face questionnaire survey was conducted during the period January 2016 - March
2016. Furthermore, pre-sampling was employed in December 2015.
    The Haphazard Sampling Method was used and the definition of the total sample
size is provided by the following formula (Humphry, 2004; Thrusfield, 2005):
                                         ! ! ! !(!!!)
                                    n=                                            (1)
                                            !!
where: Ζ=value from standard distribution corresponding to desired confidence level
(Z=1.96 for 95% CI), P=estimated true proportion (prevalence)=0.3 and e=desired
precision=0.05.Therefore, the Total Sample Size calculated was: n= 323 participants.
    The processing of the results and the analysis of the data were realized by using
the statistic program IBM SPSS v.20. The tool used in this research is a structured
questionnaire, which comprised a combination of questions.



3 Field of Research

The selected research area is the Mountain Arc of Almopia (Mount Voras). The
mountainous region of Voras was selected because of its special environmental
significance since vast areas of the region are protected by the network Natura 2000,
while it also includes further protection areas, e.g., the game shelter (Greek Ministry
of Physical Planning and Public Works, 1995). In addition, it presents particular
scientific and research interest being a pole of intensive development of specific
alternative forms of tourism (Mountain-Climbing Tourism, Rural, Cultural, Spa-
therapeutic, and Wellness Tourism) being both a unique resort and a region with ski




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facilities (Skiing tourism). Tourism is one of the leading local economic
developmental pillars. Thus, the surrounding area becomes a tourist resort which
according to Special Framework for Spatial Planning and Sustainable Development -
SFSPSD for tourism can be considered as an intensive growth pole of special forms
of tourism. In particular, the area on which the analysis focuses (evaluation research)
is Pozar (Spa Natural Resource).



4 Results and Discussion

4.1 Sampling Descriptive Outcome

To assess the frequency of the visit, guests were asked if it is their first visit to the
area of Loutra or not. All guests of the sample, that is, 100% responded to the
question. However, of the total sample (n=323), 184 respondents, that is, 57%,
reported having visited Loutra in the past while only 139 visitors, that is, 43%, stated
that it is their first visit. Visitors in the sample, who did not come for the first time in
the area, visited the Thermal Springs 127 times last year. The visit frequency to other
Thermal Spas and regions was no visits for 281 respondents, 87% of the sample,
while a total of 42 respondents i.e. 13% visited other medicinal natural resources in
Greece and abroad, in Serres, Xanthi, Thessaloniki Greece, Turkey, Austria, etc. The
weekends seem to be more preferred for their visits for 74.9% of the sample (n= 242)
while the weekdays 25.1% (n=81). The origin and area of residence of the visitors in
the sample includes areas of both Greece and abroad. The duration of the journey
from the home area to the survey area ranged from 5minutes (minimum) and
1440minutes (maximum) with 167,60minutes (mean) and 184,087minutes (Std.
Deviation). All the participants, i.e. 100%, answered the question concerning the
investigation of the modes of transport used by the visitors to access the Thermal
Springs of Pozar. The analysis of the results reveals that in their vast majority, 89.5%
(n=289%) of the sample traveled to Pozar by car while 8.4% (n=27) used the bus,
only 0.9% (n=3) used motorbikes and other means of transport e.g. airplane 1.2%
(n=4). The people who traveled together with the individuals in the sample were in
total 1588 people over 18 years old and 164 less than 18 years old, while the
overnight stays in a village in the wider area were in total 501 for the whole sample.
The settlement, which was chosen mostly, was Loutraki at a rate of 61.30%. The
respondents were asked to reply whether the particular trip included overnights in
other areas as well so as to investigate multiple and thematic trips relating the
journey under consideration as well as the area to other destinations well. Following
the above questions, 82.66% (n=267) answered no while 17.34% (n=56) responded
positively. The areas they had decided to visit and stay overnight in combination with
their particular trip to the Thermal Springs were mostly Thessaloniki and the
settlement of Saint Athanasios in Kaimaktsalan as well as other parts of Greece, with
the number rising to 136 overnight stays.
    The response rate concerning the investigation of the reasons for visiting the
Thermal Baths of Pozar reached 100%. The main reasons for visiting the area were
identified in the following 6 categories, and the respondents had the option of




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identifying more than one reasons for visiting: a) medical purposes b) relaxation-
mental health c) getting to know the region d) potential for recreational activities e)
sightseeing and tour f) other reasons. Data processing revealed that: 87.6% (n=283)
of the sample visit the Thermal Springs of Pozar for relaxation-mental health
purposes, 7.7% (n=25) for medical uses, 20.4% (n=66) to get to know the region,
16.7% (n=54) for recreational activities, 25.4% (n=82) for sightseeing and touring in
wider area, while only 1.8% (n=6) for other reasons e.g. gatherings of dance clubs,
entertainment-nightlife, seminars, sex. All the guests who participated in the research
(n=326) were also asked to identify the reasons why they had chosen the Thermal
Springs of Pozar (response rate 100%). An analysis of the results shows that 62.8%
(n=203) of the visitors, chose the Thermal Springs of Pozar and not another region
for the beauty of the natural surroundings, 27.6% (n=89) for the healing properties of
thermal water in Pozar, 43.3% (n=140) because it is a short distance from their place
of residence, 28.8% (n=93) for its organized and sufficient hospitality infrastructure
(accommodation, food, entertainment), 15.8% (n=51) for recreational activities, 8%
(n=26) for the climate conditions, and 29.7% (n=96) for the combination with other
nearby travel destinations in the region (e.g. Kaimaktsalan Ski Resort, Agios
Athanasios traditional settlement). The duration the respondents spend in the Spas
facilities for Balneotherapy per trip reached 360minutes (maximum) and 0minutes
(minimum) with 91.89minutes (mean), while the time for massage and spa ranged
from 610minutes (maximum) and 0minutes (minimum) with 36.30minutes (mean).
These results demonstrate that almost all visitors spend time in the thermal water for
physical and mental therapy with massage therapy and spa comprising significant
additional peace of mind and well-being factors for the visitors. Table 1 shows the
financial investigation of the travel costs and daily consumer expenses in the region
(e.g. fuel, purchases, stay).

Table 1. Descriptive Statistics of the Travel Cost Parameters
                                  Ra Maxi                                 Std.
    Cost of Travel           N                     Sum      Mean                  Variance
                                  nge mum                               Deviation
Fuel                        323   399 400          15506        48.01    54.499   2970.143
Food/Drinks                 322   300 300          13962        43.36    52.940   2802.667
Fuel (in area)              323    65  65           4213        13.04    12.719    161.768
Food/Drinks (in area)       322   150 150          13041        40.50    26.014    676.731
Balneotherapy /
                            322 150       150      7002         21.75    20.500   420.234
Massage / Spa
Recreational Activities     321 140       140      3055          9.52    17.242   297.275
Further Expenses            322 110       110      9008         27.98    26.469   700.591

Last but not least, the social and economic characteristics of the visitor sample were
recorded, concerning the age of visitors, their family status, their level of education,
their occupation, their gender and their annual net income. Regarding gender as
indicated, women outweigh men slightly, presenting 57.59% (n=186) of the
population while men 42.41% (n=137). Considering an analysis of the results in
terms of age, it appears that 45.8% (n = 148) of the sample is 18-30 years old, 29.7%
(n=96) are 31- 40 years old, 18% (n = 58) is between 41 and 50 years old, 6.2% (n =
20) is 51 to 60 years old, and finally 0.3% (n=1) is> 60 years old. It is noteworthy,




                                             485
that the census included only people older than 18 years. The variable concerning the
family situation of the sample showed that 1/2 of the sample population, i.e. 49.5%
(n=160) of the visitors are bachelors, 44.9% (n=145) are married, 5.3% (n=17) are
divorced while 0.3% (n=1) are widowed. As shown by their family status, 32.8%
(n=106) of the visitors surveyed have children < 18 years old while 67.2% (n=217)
of them do not have children. As to the level of education of the sample, data
processing shows that 21.3% (n=101) are university graduates (Higher Education
Institution-AEI), 23.8% (n=77) are university graduates (Technological Education
Institution-TEI), 14.9% (n=48) have a technical vocational school diploma,
(Vocational Training Institutes), 15.8% (n=51) are senior high school graduates,
10.8% (n=35) hold a Master’s Degree, 2.5% (n=8) are junior high school graduates
while 3 respondents at are at the lowest level of education with a percentage of 0.9%.
The categories of professional status of the respondents received the following rates:
farmer 4% (n=13), household chores 2.2% (n=7), employee 33.7% (n=109), a civil
servant 17.3% (n=56), freelancer 22.3% (n=72), entrepreneur 5% (n=16), university
student 7.7% (n=25), unemployed, 6.2% (n=20), pensioner 1.5% (n=5). Towards the
end of the survey the respondents were asked to answer whether they are members of
an environmental organization - body in order to record their environmental
sensitization. The results revealed that 86.1% (n=278) of the sample do not belong to
an environmental club, whereas only 13.9% (n=45) of the visitors in the sample are
members of such an organization. Completing the anonymous research the
respondents were asked whether they wished to sincerely indicate their personal net
annual income. This question was not answered by 5.6% (n=18) however, a valid
response was provided by the rest of the sample at a rate of 94.4% (n=305).
Specifically, 18.9% (n=61) of the sample stated to have a personal net annual income
<€ 5,000, 28.5% (n=92) 5,001-10,000 €, 24.8% (n=80) 10,001-15,000 €, 11.1%
(n=36) 15,001-20,000 €, 4.3% (n=14) 20,001-25,000 €, 2.2% (n=7) 25,001-30,000€,
and finally, 4.6% (n=15)> 30,000 €.

4.2 Econometric Outcome

In this section, the econometric models, which are used to compute the Consumer
Surplus, are presented. The following tables present the econometric outcome of the
Poisson & Neg. Bi. Models with Log Function. From the tables below, we can
deduce that the intercept term is statistically significant at significance level α=0.05.
Furthermore, total cost, age, sex and the level of education variables are statistically
significant in Poisson Model at significance level α=0.05. The income is not
statistically significant at a standard level of statistical significance α=0.05. What is
more, the total cost and the level of education variables is statistically significant
(Neg. Bi. Model) at significance level α=0.05 and no other variable is not statistically
significant at standard levels of statistical significance. The information's from the
two models exhibits a high sampling adequacy and appropriateness of the model.




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Table 2. Poisson Model-Log Function
                                            Parameter Estimates
     Variables
                            β      Std. Error Wald Chi-Square             Df       Sig.
   (Intercept)           2.593       0.1927         181.016               1         0
   Total Cost            -0.003      0.0003          55.509               1         0
     Income              -0.015      0.0252           0.369               1       0.544
       Age               -0.123      0.0402           9.271               1       0.002
     Gender              -0.193      0.0678           8.126               1       0.004
Level of Education       -0.096      0.0246          15.437               1         0

Table 3. Negative Binomial Model-Log Function
                                             Parameter Estimates
       Variables
                             β        Std. Error  Wald Chi-Square          df     Sig.
     (Intercept)           2.373        0.3734          40.398             1       0
     Total Cost           -0.002        0.0006          12.065             1     0.001
       Income             -0.028        0.0491           0.320             1     0.571
         Age              -0.093        0.0730           1.609             1     0.205
       Gender             -0.148        0.1374           1.156             1     0.282
  Level of Education      -0.094        0.0515           3.308             1     0.001

Table 4. Information about the Poisson       Table 5. Information about the Negative
Model                                        Binomial Model
        Goodness of Fit Test                          Goodness of Fit Test
  Pearson Chi-          1288.694               Pearson Chi-            300.212
      Square            (df=299)                   Square             (df=299)
 Log Likelihood         -792.502              Log Likelihood          -670.802
       AIC              1597.004                    AIC               1353.605
      AICC              1597.286                   AICC               1353.887
       BIC              1619.326                    BIC               1375.927
      CAIC              1625.326                   CAIC               1381.927
           Omnibus Test                                  Omnibus Test
Likelihood Ratio Chi-Square 93.645           Likelihood Ratio Chi-Square    20.047
             Df                  5                        Df                   5
            Sig.                 0                       Sig.                0.001



5 Conclusions

According to the data emanated from this survey, the Consumer Surplus (CS) was
estimated at 333.333€ (Poisson Model) and 500€ (Negative Binomial Model). These
values are vital in order to calculate the total recreational demand for a tourism area.
To estimate the willingness to pay (WTP) for a visit to the Thermal Springs of Pozar
the actual cost of travel and accommodation at the Spa was used, which was analyzed
into seven components. The Tourist Value of Pozar Thermal Springs was estimated
at 85,650,666.67€ with the Poisson Model and 128,476,000€ with the Negative




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Binomial Model. These estimations are based on the number of tickets per day
during April 2015 to March 2016 according to official visitors’ data provided by the
Municipality of Almopia-Loutra Loutrakiou S.A. (Single Shareholder Municipal
Property Development Public Company Limited). Estimating the tourist recreational
value contributes to the better planning of sustainable tourism development with the
role of economic valuation of environmental resources emerging as the core factor of
management measures to monitor an area.


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