Evaluating the Economic Value of Hemis Cultural Heritage Festival Using Contingent Valuation Methods

Abstract

The Contingent Valuation Method (CVM) is an economic tool used to estimate the value of non-market goods like cultural heritage by assessing people's willingness to pay (WTP) in hypothetical scenarios. To ensure accuracy and minimize overestimation, limitation of CVM, respondent’s answers were carefully verified through a two-stage confirmation process. The study result suggests that WTP was positively related to cultural uniqueness the more distinctive the heritage, the more people valued it and 98% of participants agreed that the Hemis Cultural Heritage Festival (HCHF) plays a vital role in boosting Ladakh’s economy. Using a Logit model, the CVM findings highlight how promoting HCHF through tourism campaigns can amplify its cultural and economic impact. This not only preserves Ladakh’s unique traditions but also reinforces their irreplaceable value. Such insights are crucial for policymakers and researchers, helping them recognize the true economic and social worth of safeguarding cultural heritage for future generations.