Valuing visitor benefits at Maehu Picchu

Abstract

This paper shows how the application of economic valuation techniques could assist decisionmakers in managing the unique archaeological site of Machu Picchu in a more efficient way. These techniques demonstrate that the current admission fee is very low compared with the typical tourist's willingness to pay. Raising the admission charge to 40 would not reduce the revenue raised and would, at the same time, reduce maintenance costs and damage to the site caused by high visitor numbers. Site managers should consider practising price discrimination whereby foreign tourists pay a fee substantially higher than that charged to Peruvian nationals.