Economic Valuation on Change of Tourism Quality in Rawapening, Indonesia: An Application of Random Utility Method

This study aims to determine the profit (loss) earned economic actors tourism activities if the condition or quality of tourism in Rawapening be improved (deteriorated). Change condition or quality can be seen by traveling expenses, natural environment, Japanese cultural performances, and traditional markets. The method used to measure changes in the economic benefits or economic loss with a random utility approach. The study was found that travel cost, natural environment, Japanese cultural performances, and traditional markets have significant factors about respondent preferences to choose the change of tourism condition. The value of compensation received by visitors as a result of changes in conditions improved by 2,932 billion, while the change in the condition worsens by 2,628 billion. Recommendation of this study is the local government should consider environmental factors in the formulation of tourism development in Rawapening.