Economic Benefits of Community Based Tourism (CBT) Case Study: The Red Lotus Lake, Udonthani

Abstract

An investigation of the financial cost-benefit analysis of boat services around the Red Lotus Lake shows a positive net present value (NPV), which means the boat service investment is worthwhile. The two most profitable piers are Baan Diem and Chiang Wae, which have more tourists than the rest of the piers. The boat service's payback period in Baan Diem Pier accounts for one year and eight months for a big-size boat, while the payback period for a small-size boat is five months shorter. The estimation of total economic benefits of the boat service around the red Lotus Lake is approximately 11,604,759 Baht per year, allocated through approximately 380 boat drivers. The empirical result shows that the Red Lotus Lake’s boat service has clearly generated an economic benefit for the lake's community.  However, the variance in the number of tourists and boats at different piers presents an investment risk that may cause differences in net income. Therefore, the community and the government sector should focus on the management of the Red Lotus lake as community-based ecotourism, with an emphasis on sustainable ecological care to ensure income and ecosystem sustainability go in a complementary direction.