Economic Valuation of Tourism’s Environmental Impacts at Ha Long Bay: Implications for Entrance Fee Policy and Sustainable Tourism Management

Abstract Ha Long Bay, a UNESCO World Heritage Site in Vietnam, faces mounting environmental pressure from mass tourism, accommodating over 17.1 million visitors between 2015-2019 with 12% annual growth. This rapid expansion necessitates sustainable financing mechanisms balancing tourism development with environmental conservation. This study quantifies tourists’ WTP for environmental protection and evaluates entrance fee increases as conservation financing strategy. A contingent valuation method (CVM) survey was conducted with 245 tourists from April-June 2024, employing open-ended WTP elicitation with perception assessments across five environmental domains: solid waste, water pollution, air quality, biodiversity loss, and landscape degradation. Multiple regression analysis identified payment willingness determinants. Findings indicate 88.2% of respondents supported establishing an Environmental Protection Fund, with 68.6% expressing WTP additional entrance fees. Mean WTP was VND 97,327 per trip (USD 4.0), with domestic tourists reporting higher willingness (VND 99,086) than international visitors (VND 90,104). Significant predictors included income (β = 0.204, p < 0.01), education (β = 0.206, p < 0.01), water pollution perception (β = 0.161, p < 0.01), biodiversity impact awareness (β = 0.210, p < 0.01), and environmental protection importance (β = 0.161, p < 0.05). Total annual economic value was estimated at VND 254.65 billion (USD 10.5 million). Strong tourist support suggests viable prospects for conservation financing through entrance fee reforms. Policy recommendations include phased implementation, transparent fund management, and targeted interventions addressing visitor concerns. This investigation represents the first comprehensive economic valuation of tourism environmental impacts at a Vietnamese natural World Heritage Site, providing empirical evidence for marine heritage conservation financing aligned with Vietnam’s 2020 Law on Environmental Protection Article 138, offering a replicable framework for other heritage destinations confronting similar conservation challenges.