Effects of Improving Public Services for Tourism Developments in Islands: The Case of Remote Islands in Nagasaki, Japan

Growths of numbers of tourists who stay long-term in tourism sites are an important policy for local governments in islands due to their locations that are far from urban areas. However, many tourists hesitate to stay long-term in islands owing to not only the expensive travel costs but also the lack of public services in islands. The purpose of this study is to examine effects of improving public services in islands for tourists’ willingness to pays (WTPs) and non-tourists’ attitudes for long-term stays. Data on tourism activity for islands, Nagasaki, Japan were used. Respondents were asked about their WTPs for long-term stays and their needs for public services of islands; reductions of costs for rent or purchasing houses for long-term stays and travel costs, easy to take a vacation, to enhance medical services, educational services and job search services. The logit model was used for estimations. Median and mean values of WTPs (per year) were calculated JPY 151,629 (USD 1184) and JPY 242,110 (USD 3008). Positive effects on five public services (without travel costs) were confirmed. For example, the median values of WTPs were increased to JPY 478,369 (USD 5943) when the medical services were improved, and JPY 1,484,704 (USD 18,446) when all public services were improved. The results showed that improvement of public services have the effect 1) to improve tourists’ benefits and 2) to change many non-tourists’ attitudes from the rejection of staying long term in islands to the acceptance. Thus, results indicate that it would be better for central and/or local governments in islands to enhance islands’ public services.