Estimation of the Use Value of Cheongwadae Using Contingent Valuation Method (CVM)

Purpose: This study employs a 2-stage dichotomous choice contingent valuation method (CVM), to evaluate the use value of Cheongwadae (the Blue House)--the former presidential office and residence of South Korea--which opened for tourist visits in May 2022. Methods: To minimize the hypothetical bias, hypothetical and actual scenarios (cash/card payment) were jointly used. Survey data of 400 Cheongwadae visitors were collected, and the data were analyzed using willingness to pay (WTP) estimation and logistic regression analysis. Results: Logistic regression analysis revealed that bid amount, landmark attributes (form, symbolism), experience factors (esthetic, escape), gender, age, marital status, visitor type, and political orientation significantly influenced respondents’ willingness to pay (WTP) for entry fees. The estimated per-person use value, based on the truncated mean WTP, was KRW 6,002 in the hypothetical scenario and KRW 2,347 in the actual scenario. This difference suggests that using an actual scenario and a truncated mean is more appropriate for minimizing hypothetical bias and estimating a more accurate value. Considering the total number of visitors in the past 12 months (3,381,664, May 2023), the total use value of Cheongwadae was calculated as KRW 7937.37 million. Conclusion: This study’s findings highlight Cheongwadae’s significant economic and cultural value as a landmark. The results can assist public awareness campaigns regarding Chengwadae’s socio-economic importance and guide government decisions for its preservation and development as a tourism attraction. Furthermore, the methodological insights on minimizing hypothetical bias in CVM studies can be applied to the future valuation of cultural heritage sites.