Potential Economic Value of Water Resources for Sustainable Enviroment: a Case Study in Tahura Lati Petangis, Paser

Abstract

Water resources are an important asset in supporting environmental sustainability and local economic development. This study aims to analyze the economic value potential of water resources in the Lati Petangis Forest Park (Tahura), Paser Regency, East Kalimantan, in supporting environmental sustainability. The Individual Travel Cost Method (ITCM) was used to estimate the economic value of water resources for recreational purposes. The potential economic value of water use was calculated based on household water consumption. The ITCM model, using multiple linear regression, had an R-square value of 0.244 with a significance level of 0.00010584, indicating that the model could statistically significantly explain the variability in tourist visits. The variables of travel time (p-value 0.003), availability of substitutes (p-value 0.004), and income level (p-value 0.017) significantly influence tourist visitation levels. The consumer surplus generated reached Rp 150,543,646,200 with an economic value of Rp 23,189,633,151, indicating the significant economic benefits tourists derive from utilizing water resources in this area. The utilization of water resources as a source of clean water for the community generates an economic value of household utilization reaching Rp 333 million per year. The research findings indicate that water resources in Tahura Lati Petangis have significant economic potential in supporting sustainable ecotourism development and meeting the basic needs of the community. The high consumer surplus indicates that tourists derive substantial economic benefits from their visits, exceeding the costs incurred. This confirms that sustainable water resource management not only contributes to environmental conservation but also has the potential to become a sustainable source of economic income for local communities.