Estimating the Economic Value of Ichan Kala Using the Contingent Valuation Method (CVM)

Abstract

The objective of this study is to estimate the use-value of Ichan Kala, a historical city located in Khiva, Uzbekistan, that is listed on the UNESCO World Heritage List. It also investigates the visitors’ willingness-to-pay (WTP) for the economic value of Ichan Kala. The survey was collected from 391 samples, and the factor analysis was done based on the results. After extracting two factors from 11 questions (variables), those factors were used as independent variables to check their impact on WTP. This study involved the contingent valuation method (CVM) to evaluate travelers’ WTP for using Ichan Kala. The outcomes of this research are in line with economic theory, which remarks that visitors’ willingness-to-pay declines as the suggested bid amount increases. In addition, the identity of cultural worldview (ICW) and tangibility of cultural worldview (TCW) showed a positive and significant effect on the WTP, while travel expenses did not remarkably affect the WTP. The results of this study provide practical implications for the government of the city or region when deciding on the entrance fee for using Ichan Kala. Moreover, this study makes an important contribution to the existent study since it is one of the few endeavors to estimate the WTP of the Central Asian inhabitants regarding the travel destination. Previous studies have estimated the use-value of destinations from Europe, the USA, and East Asia, but those studies mostly observed travelers from parallel countries. This research is therefore distinctive because both the travel site and survey sample was taken from Central Asia, specifically from Uzbekistan. This study reports the mindsets of Central Asian people towards paying the charge of using a travel destination; it may thereby function as a baseline study from which forthcoming studies may compare the behaviors of people living in this region with people living in other regions in terms of the estimation of non-market assets.

1. Introduction

The architectural monument complex of Ichan Kala is the creation of the architects of the ancient Khorezm, XVIII–XIX century [1]. UNESCO included the region of Ichan Kala in Khiva in the World Heritage List in 1990. Uzbekistan’s Ichan Kala fortress in Khiva was designated as a Khiva State Architectural Reserve of Khiva in 1967 [2]. Ichan Kala consists of distinctive architectural constructions that are encircled by a high defensive wall and four gates that face in different directions: the Ota gate, Polvon Gate, Stone gate and Garden gate. The wall has a perimeter of around 2200 m, a height of 7–8 m, and a foundation thickness of 5–6 m. Ichan Kala is constructed as a rectangle that is 26 hectares in size and 650 m long by 400 m broad. Museums in Ichan Kala exhibit samples of ‘ganch’ carving art from the late 1800s and early 1900s, cocktail mixtures from masters and potters, jewelry, and weapons. Special significance is also given to leather items, textile patterns, national costumes, and marble slabs and columns with varied designs and inscriptions [3]. A variety of open green spaces have been created for locals and sightseers, and work is still being done to upgrade surroundings and historic locations. Recently, however, Ichan Kala has witnessed some troubles that threaten the preservation of this landmark. Therefore, there is a need for financial allocation in order to maintain the historical tourist site for future usefulness. In some cases, government funding is not sufficient for the preservation expenditures of such immense travel destinations. In such circumstances, entry charges can be implemented to make some cash with which to supplement funds. Setting adequate and appropriate prices for use of the site is essential as it should consider both the preservation costs and the perceived value of visitors. Until now, there has been no previous study conducted on estimating the use-value of Ichan Kala. In light of this, this study represents the first attempt to analyze visitor willingness-to-pay (WTP) and factors impacting the WTP using the contingent valuation technique (CVM), which has been widely used to estimate use and non-use-values of other types of non-financial facilities [4,5].

It is conceivable to presume that WTP is at least partially influenced by visitors’ ability to pay [6,7,8]. Both demographic and other psychographic factors can have an impact on WTP. A few studies have notified gender differences in WTP associated with other socioeconomic variables, but the results have been uncertain [7,8,9].

Another influential factor that affects WTP is cultural worldview (CW). Tourists’ CW influences their decisions and demeanor. Several studies explored the influence of visitors’ CW on their WTP [10,11,12].

The CVM is a variation of the stated-preference approach that determines willingness-to-pay (WTP) for environmental goods using a fictitious market system [13]. Before asking respondents how much they are ready to pay, WTP values were computed using a speculatory market circumstance [8].

This study examines the shifting curve of WTP toward the bid amount. In addition, it investigates the influence of three additional independent variables—identity of cultural worldview (ICW), tangibility of cultural worldview (TCW), and travel expenditures on tourists’ WTP along with demographic variables (nationality, age, gender, monthly income, and education).

2. Literature Review

2.1. Ichan Kala

The protracted history of Uzbekistan has been characterized by its position as an important Silk Road node between China and Europe [14,15]. Its strategic location along the Great Silk Road adds to its historical and cultural significance. Uzbekistan is home to considerable historical, cultural, and architectural treasures, all remarkable landmarks. Apart from this, there is much more evidence of Uzbekistan’s huge prospect in the global tourism market. Six of Uzbekistan’s 7500 historic locations are on the World Heritage List (WHL), including Ichan Kala (Figure 1), the Historic Centre of Bukhara, Samarkand–Crossroads of Cultures, and the Historic Centre of Shakhrisabz, as well as Western Tien-Shan [16]. According to statements, the Bukhara, Samarkand, Khorezm (Khiva), and Kashkadarya (Shakhrisabz) regions, as well as the capital city Tashkent, accounted for 43.9% of total tourist visits to the country in 2021 [15,17,18].

For caravans traveling to Persia, Ichan Kala has been the final resting place before transiting the desert to Persia, encountered in the Khorezm region of Uzbekistan, south of the Amu Darya River. The architecture of Ichan Kala represents the Central Asian Muslim tradition; however, only a small proportion of the ancient monuments have been preserved. Khorezm is located at the core of the ancient Great Silk Road and is one of Uzbekistan’s most tourist-friendly locations. The inclusion of Khiva on the UNESCO World Heritage List and its global assignment as an “open-air museum city” will demonstrate a strong foundation for both the Khorezm region and Uzbekistan in the global tourism market [3,19].

By the nineteenth century, Khiva city had separated into two sections: Ichan Kala (inner city) and Dishan Qala Rabot (outer city). Ichan Kala is a one-of-a-kind architectural structure surrounded by a high wall with a circumference of about 2200 m, a height of 7–8 m, and a foundation thickness of 5–6 m. Ichan Kala is rectangular in shape, 650 m long and 400 m wide, and 26 hectares in size, with four gates fronting each of the four directions. The Ichan Fortress’s walls have been vandalized and revamped several times over time [20].

Khiva State Museum-Reserve “Ichan Kala”, one of Uzbekistan’s oldest museums, features 54 historical monuments, some of which can be seen in Figure 2. This historic city today has 375 houses and a population of 2610 people. The Ichan Kala State Historical and Architectural State Museum Reserve’s 19 permanent expositions reflect Khorezm’s history since ancient times. The UNESCO Committee for Cultural Heritage inscribed the Ichan Kala region of Khiva on the World Heritage List on 12 December 1990. [21].

Ichan Kala’s architectural complex of monuments is the work of old Khorezm’s XVIII–XIX century architects and includes various constructions such as the madrasahs Alla-Kuli Khan (1835), Tash-Hauli (1832), Amir-Tura (1870), Muhammad-Amin Khan (1871), ancient masonry city wall (1780), and others [1].

As described by Sultanova [21], The Khiva State Museum “Ichan Kala” maintains the most distinctive folk-art monuments that are a crucial component of our national culture. Mavlyanova et al. [1] found that in antique times, there were two palaces, more than 60 madrasahs, small mosques, and a cathedral mosque in the region together with caravans, sheds, baths, and apartments for the Khan’s retainers, officials, clergy, and wholesalers.

Ichan Kala has four darvazas (gates), as shown in Figure 3. Ata Darvaza, located near Kunya Ark, is the city’s youngest gate, having been constructed 50 years ago after the previous gate was rescinded during the opening of the city to motor traffic. Bagcha Darvaza in the north leads to Urgench city; Palvan Darvaza in the east leads to Hazarasp city and the Amu Darya River; and Tash Darvaza in the south leads to Karakum Desert. After the city was offloaded during Soviet Russia, Ichan Kala is now inhabited mainly by craftsmen and their families [22].

According to the decision of the Communist Party of Uzbekistan’s Council of Ministers on 30 November 1967 “About the preservation, improvement, design, and construction of historical and architectural monuments in Khiva,” Ichan Kala was established as a Khiva State Architectural Reserve. Additionally, Ichan Kala’s artistic and historical architectural monuments were protected, preserved, and restored over a while [2].

Almost every visitor to the Khorezm region came to see the Ichan Kala fortress in Khiva. It is intriguing that compared to prior years, the number of visitors climbed quickly in 2017. In that year, the total number of visitors to Ichan Kala increased by 24% compared to 2013 [23].

There have been gradual improvements to existing streets in Ichan Kala, which have mostly been paved with natural stone, and outdoor furniture has been installed near prominent monuments. Additionally, several public green spaces have been built for residents and visitors, and new electric, gas, and sewage networks were built in residential neighborhoods.

However, lately, Ichan Kala has been facing maintenance issues that endanger the glory of this sightseeing. First, due to severe termite infestations in Ichan Kala, several traditional houses were collapsed or demolished because of dilapidated conditions and safety concerns. Termites in old structures continue to be one of the most serious threats in Ichan Kala. The characteristics of traditional construction methods contribute to the permanent risk of termite infestation; traditional houses are constructed with timber frames, while older brick buildings or structures are braced with timber to improve seismic resistance. This is especially important in the preservation of historic structures. Dry wood termites cause structural failure in historic and traditional buildings, injuring their occupants. These structures must eventually be demolished, as previously happened in some cases in Ichan Kala, where entire mahallas had to be demolished due to massive termite infestation. Termites were recently discovered in the field and steppe zones, cemeteries, and other open spaces covering an area of 1082 hectares. Termites cause severe damage to objects with wood carvings in 33 historical monuments protected by UNESCO, and the historical complex of Ichan Kala is included in the World Heritage List. In particular, the Juma Mosque and Pakhlavon Makhmud Mausoleum were severely damaged by termites.

Second, erosion, which is a naturally occurring phenomenon, is more severe on ancient monuments made of mud brick and baked brick. Preservation and restoration works are carried out regularly on monuments affected by erosion. Historic monuments are also at risk due to soil salinization and aquifer salinization.

Third, neither the water supply nor sewage networks are connected to the residential buildings in Ichan Kala. This condition can have a detrimental influence on people’s health as well as catastrophic damage to cultural artifacts. The absence of modern water and sewage infrastructure causes humidity and salinity to rise in old structures [24].

In order to solve these problems and renovate the Ichan Kala for future service for visitors, a well-planned budget is demanded. Government funds for preservation are lacking. Therefore, it is crucial to set an acceptable use fee for the site. An effective entrance charge can provide additional cash to lessen the financial shortfall encountered by historical places in Uzbekistan.

For nearly 150 years, investigators have been examining and gathering Ichan Kala’s epigraphy. However, they have viewed the records as “material” that identifies the date of the memorial and rarely publish the results of their research. So far, no comprehensive study of Khiva’s records has been conducted.

2.2. Contingent Valuation Method (CVM)

A variety of methods are available to estimate the use and non-use-value of intangible non-market goods, including the travel cost method (TCM), the hedonic property price (HPP), and the contingent valuation method (CVM) [25]. First attempted by Clawson and Knetsch [26], the travel cost method is the oldest method of estimating willingness-to-pay (WTP) for environmental resources. Accordingly, this method estimates an individual’s willingness-to-pay for an environmental resource by using information about the time and cost required to reach the area. The hedonic property price is a method of indirectly estimating value from property value, while the contingent valuation method is a method of estimating personal payment (WTP: willingness-to-pay) [25]. Studies conducted in the past mainly compared TCM and CVM [27], resulting in CVM being widely used for value evaluation since it supplements TCM’s limitations described below [27,28,29,30,31]. First, unlike TCM, CVM measures economic value from both actual users and non-users, as well as estimating the non-use-value of non-market goods (e.g., preservation-value, heritage value, choice-value) [28,29,31,32]. Second, TMC is an evaluation method of tourism resources within one region, while CVM may be applied to a variety of tourist destinations [29,33,34]. Third, unlike the TCM, which indirectly evaluates value from factors such as the cost of travel and the number of visitors, the CVM is able to directly assess value of the virtual resources by conducting a survey with the setting of a scenario and measuring the effects of quantitative and qualitative changes [30,34].

The contingent valuation method (CVM) has been one of the most commonly used techniques for the economic valuation of non-market assets, such as recreation resources, wildlife, historical assets, and environmental quality assets [29,35,36]. According to Mitchell and Carson [37], this approach explicitly asks respondents what value they would assign to a facility if there were a market for it. Prior to asking respondents how much they would be willing to pay, respondents were given a description of a hypothetical market condition or scenario on which the WTP values were based. The scenario was designed to influence WTP values by describing market conditions and the amenities under consideration, in this case, the preservation of a historical travel site for future use.

The contingent valuation method (CVM) was used by Hindsley [38] to investigate the influence of cultural worldview on people’s willingness to support and value environmental policies with varying underlying causes. The results suggest that willingness-to-pay for management actions can be (1) affected by cultural worldviews and (2) dependent on the cause of environmental degradation.

The CVM raises challenges and is not without critics. The possibility of hypothetical bias and strategic conduct are the primary objections of CVM. When discussing hypothetical bias, it is important to determine whether respondents’ responses are a good indication of how they would act if the good had a market. Respondents engage in strategic conduct when they purposefully try to sway the amount of a future payment or the provision of an item by under- or overstating their WTP [8,37].

According to Loomis et al. [39], it is easier to ask customers whether a specific price for a product is acceptable than to set a price directly. When customers are presented with products and their prices, they can be asked to give a preference rating, rank preferences, or make their preferred choice [40,41].

A survey with a dichotomous choice (DC) questionnaire is preferred by many researchers to measure individuals’ WTP [5,42,43,44,45]. Bishop and Heberlein [46] employed the DC method for the first time in their well-known study on the economic impact of geese hunting. In the DC method, respondents are requested to accept or reject a suggested price in a fictitious market scenario. They are only required to answer “yes” or “no” when presented with a price.

Because of its ability to estimate total values and its ease of use, the contingent valuation method (CVM) has become more popular than other techniques for estimating the value of non-market goods, such as endangered species. Several research works on outdoor recreation use the term “user fees” with a broad meaning; that is, they may contain costs for both facilities and services.

2.3. Willingness-to-Pay (WTP) and Factors Affecting WTP

There is a substantial quantity of material on WTP for many sorts of outdoor leisure facilities. It should be emphasized that the environment of WTP research varies widely, making comparison problematic in many circumstances. ‘User fees’ is a term that is frequently used in studies on outdoor leisure. (i.e., they may contain both facility and service-related costs). Additionally, some studies examine the implementation of new fees, while others examine price hikes. However, for simplicity, the economic dynamics underpinning these various types of fee schemes are considered to be substantially the same [8]. According to economic theory, WTP decreases when the bid amount increases [29,47]. Moreover, WTP is influenced by demographic and psychological variables in addition to bid price [4,48,49,50,51,52,53,54,55].

Some studies found that there is a relationship between visitors’ WTP and their monthly income [5,6,7,8]. It is reasonable to suppose that the WTP will be influenced, at least in part, by visitors’ capacity to pay. It becomes problematic when low-income people nevertheless value a visit highly. Although the influence of money on WTP has been thoroughly debated, the answer remains elusive. Several studies on outdoor leisure have indicated that low-income users are more responsive to price adjustments than high-income users [6,7,8]. Williams et al. [56] found that charging entrance fees has little effect on the distribution of different income groups associated with natural resources because the income level of those who visit natural sites tends to be high [8].

Travel features such as travel distance, trip purpose, length of the journey, and travel costs also impact the decision of the visitors. It has been shown that individuals are more inclined to pay extra for admission to a location if they have gone a considerable distance to that destination [8,57]. Furthermore, Klislinar et al. [40] investigated if customer’s willingness-to-pay, which reflects their purchase intent, may differ depending on the type of carrier, journey purpose, and length of the journey. Sekar et al. [58] analyzed how travel expenses affect revisit intention and travel frequency. Cantillo et al. [59] studied the impact of travel expenses on willingness-to-pay for bikeways.

Until now, the impact of the travel cost on travel destination utility has always been studied based on the travel cost method (TCM) [26,46,60,61]. Although few studies estimate the relationship between trip purpose, trip duration, type of travel mode, and WTP based on the CVM approach [40], the effects of the travel cost on bid amount have not been studied by using travel cost as an independent variable in the CVM method.

In tourism, CW is a paradigm used to analyze culture through tourists’ evaluations of a specific site based on their shared ideas and values [11,62,63]. Choi et al. [10] developed and validated the CW scale by first looking at how Australians’ cultural beliefs and values relate to one another. Throsby [64] defined multidimensional cultural values as guiding principles for societies and communities as the foundation of CW [12]. These values guide one’s worldview, which is produced through a series of interconnected processes including objects and symbolic embodiment. Tourists’ CW influences their decision-making and behavior [10,11,12].

Choi et al. [10] claimed that CW offers a set of cultural values to gauge tourists’ experiences and interactions. Kang et al. [11] supported this claim by identifying three CW factors among foreign visitors to Korea, namely “identity/preservation,” “tangible attachment,” and “understanding/concerns.” Findings from the studies showed that Western respondents are more strongly associated with the CW element “identity/preservation” than their Asian counterparts; while Asian travelers strongly identified with the CW dimension “understanding/concerns” as being the most significant. Wei et al. [65] recently investigated the relationships between CW and cultural experiences in natural tourism sites and proposed further research into tourist experiences in various cultural heritage sites [12].

To investigate the effect of tourists’ cultural values on their behavioral intention in the context of Korean traditional homes (Hanoks), Lee et al. [12] used Kang et al. [11]’s CW variables in tourist behavior model. Based on the positive correlation between CW perceptions and behavioral intention, he contends that the CW of visitors can be a significant factor in predicting the intents of heritage tourists to behave in a certain way.

Choi et al. [66] investigated the relationship of the CW scale developed by Choi et al. [10] with WTP for the conservation of cultural heritages. He divided CW indicators into four main groups: “Intercommunity and intergenerational linkages”, “Recognition of cultural values”, “Preservation of traditions and customs” and “Awareness of cultural loss”, and tested their impact on WTP for the maintenance of cultural heritages. After confirming the relationship between the CW scale and WTP, he suggested that the CW scale can be used to discern significant motivations (variables) for WTP.

A three-fold approach was used to explore the role of cultural worldviews: (1) perceptions that two different sources of degradation (sewage discharge or warming waters due to global environmental change) pose a threat to natural coral reef systems in the Florida Keys; (2) the willingness-to-pay for the establishment of an artificial reef to mitigate the degradation of the natural reef system in the Florida Keys; and (3) the perceived consequence of the referendum-style contingent valuation tool used to measure willingness-to-pay for the establishment of artificial reefs [38].

In terms of other socioeconomic variables, a few studies have reported gender differences in WTP, but the results have been inconclusive [7,8,9]. Few studies have looked at differences in WTP among different nationalities. For instance, it was discovered that nationality has a considerable impact on WTP for whale watching at an Australian marine park [8,67]. There is also evidence that people with high levels of education and younger people are more likely to support fee-based policies for natural attractions, while age appears to be negatively related to WTP [8,68].

In this respect, this study first investigates the changing curve of the WTP toward bid amount. In addition, because it is impossible to account for every relevant variable, it is crucial to choose important factors that accurately reflect the study’s context. Therefore, this study also examines the effects of three independent variables—identity of cultural worldview (ICW), tangibility of cultural worldview (TCW), and travel expenditure, as well as demographic variables (nationality, age, gender, monthly income, and education) on tourists’ WTP for the entrance fee of Ichan Kala.

The proposed hypotheses for the effect of the variables to the WTP are as follows:

H1: 

The identity of cultural worldview (ICW) positively affects the WTP of Ichan Kala visitors.

H2: 

The tangibility of cultural worldview (TCW) positively affects the WTP of Ichan Kala visitors.

H3: 

Travelers’ travel expenditure positively affects the WTP of Ichan Kala visitors.

3. Methodology

3.1. Model Specification

As discussed earlier, this study used DC-CVM. The DC-CVM, as proposed by Hanemann [35], collects data with only two replies—‘yes’ or ‘no’—when an individual is randomly presented with a specified amount (USD X) for their willingness-to-pay. It is a method for assessing changes in consumer welfare by converting data to a model, estimating a function of willingness-to-pay, and applying utility theory to it. In this study, when an entrance fee of USD X is collected from an individual to enter the Ichan Kala, the individuals choose whether to pay the entrance fee (USD X) while maintaining the previous utility level, or not to pay the amount and give up on visiting the travel destination. The above scenario is expressed as follows [31]:

$$U=v\left(j, Y;s\right)+ {\epsilon }_j j=0, 1$$

(1)

where, U—utility; $v$—the respondents’ indirect utility function; Y—income level, j = 1—entering the Ichan Kala while paying the entrance fee of USD X; j = 0—giving up on visiting the Ichan Kala without paying the entrance fee of USD X, s —socioeconomic variables such as ICW, TCW, and travel expenses; ${\epsilon }_j$—random variable with a mean of 0.

To maximize their utility, individuals will select one of the two options for Equation (1) above. In this scenario, if an individual pays the entrance fee for visiting the Ichan Kala, the indirect utility function becomes $v$ (1, Y − A; s); however, if they forego visiting the destination without paying the entrance fee, the indirect utility function becomes $v$ (0, Y; s). In this situation, the utility v1 for taking the entrance fee will be larger than or equal to the value v0 for giving up the entrance fee [31,35].

$$\mathsf{\Delta }v=v\left(1, Y-A;s\right)-v\left(0, Y;s\right)+\left({\epsilon }_1-{\epsilon }_0\right)$$

(2)

3.2. Logit Model and Willingness-to-Pay (WTP)

The continuous data of the independent variable, Ichan Kala’s utility difference ($\mathsf{\Delta }v$), in this research model is the choice between paying USD X and taking advantage of Ichan Kala Fortress or choosing not to spend USD X and giving up its utility. The maximum likelihood estimation method is employed with the logit model, where the dependent variables are made up of discrete data for 0 and 1. Three methods are included in the estimation of Ichan Kala’s use-value for measuring WTP. The first approach is the mean WTP, which evaluates the value using the following numerical integration from 0 to infinity. [31,45]:

$$WT{P}_{\mathit{mean}}={{\displaystyle \int }}_0^{\infty }{F}_{\eta }\left(\mathsf{\Delta }v\right)\mathit{dA}= \frac{1}{\beta }\ln [1+\exp \left(\alpha \right)]$$

(3)

where $F_{\eta }$— the cumulative distribution function of the standard logistic variant; $\alpha$— the estimated constant plus the sum of the coefficients of the variables in the estimated logit model multiplied by their means except the coefficient associated with the offered amount; and $\beta$—coefficient of the bid price.

The second measuring technique may be derived as follows, assuming that the random amount of USD X may be $\underset{B\to 0}{\lim }{F}_B<1$ [69,70]:

$$WT{P}_{\mathit{overall\; mean}}={{\displaystyle \int }}_0^{\infty }{F}_{\eta }dB-{{\displaystyle \int }}_{-\infty }^0\left(1-F_{\eta }\right)dB= -\frac{\alpha }{{\beta }_1}.$$

(4)

The third method is the truncated mean WTP, which estimates the value by numerical integration from 0 to the maximum entrance fee amount (USD X) [11,31]:

$$WT{P}_{\mathit{truncated} }{{\displaystyle \int }}_0^{\mathit{Max.B}}{F}_{\eta }\left(\mathsf{\Delta }v\right)\mathrm{dB}= \frac{1}{\beta }\mathit{ln}\left[\frac{1+\mathit{exp}\left(\alpha \right)}{1+\mathit{exp}\left(\alpha +\beta \mathit{Max.B}\right)}\right].$$

(5)

The truncated mean WTP fits the requirements of conformity with theoretical restrictions, statistical efficiency, and capacity to aggregate better than the other two measurement techniques discussed above [36,71].

Estimation of parameters of logistic regression is executed by using maximum likelihood estimation method (MLE). Generally, MLE is the method that estimates parameters by maximizing the probability of observations [72].

3.3. Study Sample and the Survey

Ichan Kala Fortress is selected as the objective destination of this study. Ichan Kala is the inner city (protected by 10 m high brick walls) of the old Khiva oasis, which was the last stop for caravans before crossing the desert to Iran. The area of this city is 26 hectares. Ichan Kala is home to 51 ancient monumental structures and 250 dwellings and displays remarkable types of architectural ensembles such as the Djuma Mosque, Oq Mosque, madrasahs of Alla-Kulli-Khan, Muhammad Aminkhon, Muhammad Rakhimkhon, mausoleums of Pahlavon Mahmoud, Sayid Allavuddin, and Shergozikhon, as well as caravanserais and markets [24]. The annual visitor count is expected to be about 200,000 [16].

The population for the study was selected from Uzbekistan residents, both with the ethnicity of Uzbek and non-Uzbek (people with Russian, Tajik, Choseon Korean, Karakalpak, Tatar, and Kazakh ethnicity), over 16 years of age. The simple random sampling method was used for the selection of respondents. Simple random sampling is a method of sampling subjects and participants such that all individuals in a population have an equal chance of being selected and are selected using sampling with replacement [73].

The survey was conducted in two steps. First, a pre-test was carried out to clarify the price category for the survey questions. For this, 50 participants among Uzbekistan citizens were asked the following question: “How much are you willing to pay as an ‘entrance fee’ for visiting Ichan Kala?”. Then the lowest and the highest price of the responses were taken as the beginning and ending points of the price category. The other six prices were distributed accordingly by the researcher. As a result, the price categories were as follows: USD 1, USD 3, USD 5, USD 10, USD 15, USD 20, USD 35, and USD 50.

Next, a questionnaire was made in Google Forms. The questionnaire consisted of five parts: five questions about the identity of cultural worldview [12], six questions about the tangibility of cultural worldview [12], one question about travel expense [8], one scenario with a question for estimating willingness-to-pay [12], and seven descriptive questions.

This study employed both online and on-site survey methods. A survey link was sent to the selected people and asked to complete the survey. It also employed personal interviews, which is the most commonly used method at touristic sites [74]. A 5-point Likert scale (1-strongly disagree, 5-strongly agree) was used to evaluate both the identity and tangibility of the cultural worldview of the respondents. The survey was conducted from 15 May 2022 to 5 June 2022.

DC-CVM method was used to identify the willingness-to-pay (WTP) of the entrance fee. First, information about Ichan Kala was given.

Ichan Kala (Fortress) is the largest and most unique architectural monument in Central Asia, its history is closely linked with the historical and cultural development of Khorezm, which is the oldest cultural oasis in the world. The results of archeological excavations in Khiva show that the “Ichan Kala” territory appeared in the V century BC [16].

The Ichan Kala is located in Khiva city, the first city in Central Asia to be inscribed on the World Heritage List by the decision of the 14th session of the United Nations Educational, Scientific and Cultural Organization (UNESCO) on 12 December 1990. On 12 December 1990, the Ichan Kala as a part of Khiva was also inscribed on the World Heritage List by UNESCO. The Ichan Kala State Historical and Architectural Museum-Reserve is located on an area of 26 hectares and is surrounded by the ancient walls of the Ichan Kala. On the territory of the museum reserve, there are 54 eternal monuments of historical memory, 360 apartments, and 2600 inhabitants [19].

Then, the participants were provided with the following scenario. At the end, they were asked if they were willing to pay the X amount as an entrance fee to Ichan Kala.

In general, it is very difficult to evaluate the satisfaction of visitors at Ichan Kala by the amount. However, for scientific research, it is necessary to evaluate the amount. We would like to ask you about the amount in the name of the ‘entrance fee’ for measuring the value of the pleasure of visiting Ichan Kala. We would like to inform you that your response is intended to be used only for economic valuation and does not mean that you actually pay the entrance fee. You are going to feel a lot of satisfaction from watching the historical constructions, exploring new traditional elements such as traditional clothes, carpets, pottery items, etc., getting to know the local people’s life, and many more by visiting Ichan Kala. It is assumed here, that the price of this satisfaction is paid as an ‘entrance fee’. In this term, would you be willing to pay USD X per person as an entrance fee for Ichan Kala?

• Yes               • No

4. Results

4.1. Descriptive Statistics

In total, 411 responses were collected by conducting both online and on-site surveys; however, only 391 were used for analysis; 20 were eliminated from the analysis due to the missing data. The majority of the respondents were Uzbek people (88.7%). Of the respondents, 60.1% were males and 39.9% were females. The respondents aged between 16 and 20 and between 20 and 29 accounted for more than half of the total respondents—31.5% and 34.8%, respectively. Educational levels ranged widely from middle school to graduate levels. Respondents with an educational level of high school and university degrees made up more than 80% of all respondents, showing a relatively high educational level. Furthermore, 63.7% of the sample were single and 36.3% were married. The monthly income of the respondents was very diverse. People with more than USD 200 of monthly income were over 50%, while almost 30% of the respondents received a monthly income of USD 0 to 50 (

Table 1. Demographic characteristics of respondents.

Characteristics		Number of Respondents	Percentage	Characteristics		Number of Respondents	Percentage
Nationality	Uzbek	347	88.7	Education	Middle school	67	17.1
	Non-Uzbek	44	11.3		High school	139	35.5
Gender	Male	235	60.1		University	179	45.9
	Female	156	39.9		Graduate	6	1.5
Age	16–19	123	31.5	Monthly income	$0–50	108	27.6
	20–29	136	34.8		$51–99	33	8.4
	30–39	69	17.6		$100–199	36	9.2
	40–49	35	9.0		$200–299	55	14.1
	50–59	22	5.6		$300–399	60	15.3
	60 and more	6	1.5		$400–499	16	4.1
Marital Status	Single	249	63.7		$500 and more	83	21.2
	Married	142	36.3
Total		391	100.0	Total		391	100

).

4.2. Results of Factor Analysis and Summary Statistics

An exploratory factor analysis (EFA) method was used to test the validity of the identity of cultural worldview (ICW) and tangibility of cultural worldview (TCW) in relation to the use-value of Ichan Kala. The gathered data were found to be suitable for factor analysis [5]. As shown in

Table 2. Results of exploratory factor analysis and mean values of factor items.

Variables	Mean	Standard Deviation	Indices of Factors
			$\mathit{\lambda }$	EV	VE
Identity of cultural worldview a (ICW) (Cronbach’s$\alpha$ = 0.928)				3.89	77.71
1. We must protect our cultural heritage.	3.84	1.136	0.892
2. We must learn about our traditional culture.	3.64	1.162	0.893
3. Our traditional culture has a special meaning.	3.55	1.239	0.896
4. Our culture helps my identity.	3.49	1.236	0.852
5. Our traditional houses, buildings, and museums should be preserved.	3.83	1.162	0.874
KMO: 0.886, Barlett’s test of Sphecivity: $\chi$2 = 1514.120 (p < 0.001)
Tangibility of cultural worldview a (TCW) (Cronbach’s$\alpha$ = 0.923)				4.33	72.24
1. I want to know about traditional clothes.	3.36	1.249	0.833
2. I want to know about traditional constructions.	3.48	1.246	0.848
3. I want to know about traditional pottery and carpets.	3.34	1.238	0.856
4. Traditional clothing is important to me.	3.28	1.253	0.858
5. Traditional Construction is important to me.	3.43	1.221	0.854
6. Traditional Pottery and carpets are important to me.	3.31	1.187	0.851
KMO: 0.905, Barlett’s test of Sphericity: $\chi$2 = 1618.990 (p < 0.001)

^a The range of the measurement of identity of cultural worldview and tangibility of cultural worldview scales was 1 (strongly disagree) through 5 (strongly agree).

, EFA results demonstrate that ICW and TCW are delineated into one factor each. Each factor is valid based on KMO (≥0.6), Bartlett’s yest of sphericity (p < 0.001), factor loadings (≥0.6), and Cronbach’s alpha (≥0.7), all of which exceed the required standards [75]. Both factors were named consistent with the names of the independent variables suggested in the literature review (identity of cultural worldview and tangibility of cultural worldview).

4.3. Probability Distribution of WTP of the Entrance Fee for the Ichan Kala Fortress

The probability distributions of WTP for the given scenario are presented in Figure 4. The probability distribution of WTP was found to decrease as the BID amount increased. A total of 64.7% (n = 253) agreed to pay the entrance fee in all price categories. Only 36.0% of the respondents agreed to pay USD 50 as the entrance fee, whereas 90.5% of the respondents were willing to pay USD 1 as the entrance fee to visit the Fortress.

4.4. Estimated Logit Models

Using IBM SPSS, the logit models were calculated using the maximum likelihood estimation (MLE) approach. Identity of cultural worldview and tangibility of cultural worldview, as shown in

Table 3. Estimation results of the logit models for WTP for visiting the Ichan Kala.

Variable	$\mathit{\beta }$	SE	Wald	p-Value
BID amount	−0.055	0.009	35.625	0.000 **
ICW	0.819	0.197	17.238	0.000 **
TCW	0.685	0.202	11.452	0.001 **
Travel expense	0.073	0.076	0.928	0.335
Nationality	−0.736	0.430	2.205	0.087 *
Gender	−0.448	0.302	3.015	0.138
Age	−0.240	0.138	3.469	0.083 *
Education level	−0.412	0.221	1.700	0.063 *
Marital status	0.475	0.365	0.214	0.192
Monthly income	−0.032	0.069	2.205	0.644
Constant	−1.528	0.825	3.433	0.064
Model $\chi$2	162.364
−2 Log likelihood	345.348
Cox and Snell R2	0.340
Nagelkerke R2	0.467
Correction predicted	76.0

Note: * p < 0.1; ** p < 0.05. Nationality (0 = Uzbek, 1 = non-Uzbek), Age (1 ≤ 20, 2 = 20–29, 3 = 30–39, 4 = 40–49, 5 = 50–59, 6 = over 60), Gender (0 = Male, 1 = Female), Education (1 = Middle School, 2 = High school, 3 = University, 4 = Graduate), Marital status (0 = Single, 1 = Married), Monthly income (USD 0–50, USD 51–199, USD 100–199, USD 200–299, USD 300–399, USD 400–499, USD 500 and more), Travel Expense (1 = USD 0–5, 2 = USD 6–10, 3 = USD 11–20, 4 = USD 21–30, 5 = USD 31–40, 6 = USD 41–50, 7 = USD 51, and more).

, were shown to have a significant positive impact on travelers’ WTP for visiting the Ichan Kala Fortress at the significance of p < 0.05. This supports the H1 and H2. However, the travel expenses showed a positive but not significant effect on visitors’ WTP for visiting the Ichan Kala. Thus, H1 and H2 are accepted whereas H3 is rejected.

Other descriptive variables such as nationality, age, and education show a negative relationship with bid amount (p < 0.1). On the other hand, the relationship between monthly income and the WTP of visitors was not significant. The entrance fee amount coefficient was negative, which suggests that the greater (lower) the entrance fee, the lower (higher) the likelihood of paying the entrance fee and visiting the destination. This outcome is consistent with economic theory.

4.5. Results of Use-Value

The estimation of the travelers’ use-value of the Ichan Kala is shown in

Table 4. Estimations of the use-value of the Ichan Kala for Uzbekistan residents.

Measurement		Amount (USD)
One-time per person	WTP mean	36.7
	WTP overall mean	34.1
	WTP truncated mean	30.4

. According to the results, WTP (mean) was USD 36.7 per person as a one-time entrance fee, whereas WTP (overall mean) was USD 34.1. Lastly, WTP (truncated) of the travelers’ use-value of this Fortress was less than 2 other WTP amounts being equal to USD 30.4.

5. Discussion

Since being designated a UNESCO World Heritage site, the Ichan Kala Fortress has attracted much attention from both local and foreign visitors [20]. However, the total number of tourists at Ichan Kala has significantly increased since new tourism policies were enhanced in 2017, such as simplification of visa procedures and improvement of the service quality in hotels, transportation, and restaurants [23]. Since recent environmental dangers such as termites harming the ancient sites in Ichan Kala, the Uzbekistan government and the municipal of the Khorezm region have been concerned about the preservation and maintenance of the Ichan Kala (Official news of Uzbekistan: https://daryo.uz/2022/04/29/ichan-qaladagi-33-ta-tarixiy-obidaga-termitlar-jiddiy-zarar-yetkazayotgani-malum-qilindi/?utm_source=@daryo (accessed on 5 June 2022)). For this reason, it is critical that the Sightseeing Administration establish an acceptable entrance fee to financially maintain the Fortress in good condition. Nevertheless, a proper study has not been undertaken to identify the WTP of use-value of the Ichan Kala.

This study has been the first attempt to estimate the use-value of the Ichan Kala. The objective of this research was not only to determine the acceptable use-value of a tourist location, but also to discover the link between the identification of cultural worldview (ICW), the tangibility of cultural worldview (TCW), nationality, age, and educational level of Uzbekistan residents. The Ichan Kala’s use-value was estimated by DC-CVM as USD 30.4. The findings are consistent with economic theories stating that WTP is inversely related to the bid amount.

The study hypothesized that sightseeing visitors’ WTP would be positively associated with their identity of cultural worldview (ICW), tangibility of cultural worldview (TCW), and travel expenditures. The outcome of this study found that only ICW and TCW of tourists had a positive and significant influence on WTP, whereas there was a positive but not significant relationship between the travel expenditures and the visitors’ WTP. This might be because tourists interested in culture and its various facets are more likely to be willing to pay a higher price for something they value highly. There was no significant relationship between the travel costs and WTP, indicating that if the purpose of the trip is travel, no matter how much money they pay for the trip, they still agree to pay an entrance fee and visit the tourist destination.

Nationality also had a significant impact on WTP, meaning that the Uzbek people are more likely to pay the entrance fee than non-Uzbek people (i.e., Russian, Kazakh, Tatar, Tajik, and other nationalities). The reason that WTP is negatively affected by age may be that younger people are more accustomed to the idea of having to pay entrance fees to travel sites [8]. Lastly, the educational level was also shown to have a negative correlation with WTP. This contradicts the results of previous research that found a positive relationship between the educational level and WTP [68]. This may be because the lower the educational level, the lower the age of respondents, and the young population tends to spend their parents’ or guardians’ money, not their own. So, they can easily agree on paying the entrance fee, because they only think about the utility benefits.

All three WTP values—WTP mean, WTP overall mean, and WTP truncated means—were employed to increase the reliability of the WTP values. The findings revealed that the WTP truncated mean was more conservative than the WTP mean and WTP overall mean. This outcome confirms the WTP truncated mean’s statistical efficiency and aggregation capacity.

6. Conclusions

6.1. Theoretical and Practical Implications

6.1.1. Theoretical Implications

Although Ichan Kala is listed as a UNESCO World Heritage Site and is famous for its open-sky museum, the number of local tourists visiting this travel site is not high enough. This is because the Fortress is located in the northwest part of the country and is quite far from many regions of the country. Moreover, there is a limit to establishing policies related to the promotion of tourist destinations due to the latest situations related to the COVID-19 pandemic. In this respect, this study is of academic significance in that it estimated the economic value of the Ichan Kala Fortress using the CVM. Results of the estimation of the use-value of Ichan Kala Fortress suggest that the economic value differs depending on the evaluation method and it was found that the WTP truncated mean method was evaluated more conservatively compared to two other estimation methods. Since this study is one of the limited attempts to estimate the WTP of Uzbek people, it is expected to be used as the main resource when estimating the use-value of other historical, environmental, and natural sites located in Uzbekistan. Next, it is a complementary resource to previous research that investigated the relationship between WTP and cultural worldview, with the novel quality of analyzing Central Asian people’s attitudes. The result of analyzing the relationship between WTP and CW of visitors is consistent with the study of Lee et al. [12], which found that strong CW has a positive effect on the behavioral intention of heritage travelers. Thus, it can serve as a substantiation of the relationship between the payment behaviors of the Central Asian population and their CW for future studies estimating either the use- or preservation-values of non-market assets in Central Asia. This study also contributes to the tourist behavior literature by exploring the role of CW in the WTP of heritage travelers. Furthermore, it contributes to the literature that explains the importance of identity and the tangibility of cultural worldview in the development of the tourism industry of the country.

6.1.2. Practical Implications

The results of the estimation of Ichan Kala’s economic value using CVM contribute to the need for preservation and budget allocation for to this end. The results of this study suggest that an effective admission charge system may be established to provide additional cash to ease the financial shortfall encountered by historical tourist attractions in Uzbekistan.

Based on these results, a fee-paying system that is acceptable to visitors while also ensuring the maintenance of high-quality recreational choices may be developed. Policymakers and site managers should at least consider admission fees as one of the financing possibilities. Thus, a combination of public funding and user fees (and even other financing mechanisms) can be beneficial and more efficient. In any case, the purpose is to increase the sustainability of cultural resource usage. Tourists bring often-cited benefits to a country’s economy; it would be ideal if some of these benefits were used to maintain and manage frequently underfunded natural attractions [8]. Furthermore, the operational costs of tourist attractions should be assessed in order to establish the best admission prices to charge.

This study investigated the effect of CW on WTP of the cost of using a touristic destination, allowing for governmental tourism organizations to implement policies such as free or low-cost tourism of historical and cultural destinations or various events in those places which can increase the cultural worldview of the Uzbek people and may serve as a key determinant in increasing the entrance fees for travel sites and in settling a fund for maintaining the site.

6.2. Limitations and Future Research

The results from this study should be treated with caution. The main limitation of this study is that the respondents are only Uzbekistan residents. Further research can be conducted by comparing the responses of local and foreign residents. Second, the survey did not include information on respondents’ previous visits to Ichan Kala. There may be some differences in WTP between those who have visited the destination before and those who have never traveled to the site. Third, other independent variables such as patriotism, place attachment, trip purpose, and history of fee-paying among the respondents could be included in future research along with a review to improve the suitability of the models.