Identification of Dried Native Chili Markets in the International Tourism Sector in Peru: An Open-Ended Contingent Valuation Study

• Main Author: Jaqueline Garcia-Yi
• Format: Article
• Language: English
• Published: MDPI AG 2014-02-01
• Series: Sustainability
• Subjects: international tourists; souvenirs; native crops; chili peppers; probit; tobit; sample selection; Peru
• Online Access: http://www.mdpi.com/2071-1050/6/2/1093

Many native chili varieties are becoming extinct due to the lack of economic incentives for farmers to their continued cultivation in Peru. A potential high value pro-poor market for selling native chilies is the international tourism segment. The objectives of this research were to assess the acceptability of the potential introduction of dried native chilies in the international tourism segment by identifying the motivations for buying dried chilies as souvenirs, and then by evaluating the factors influencing the price premiums’ magnitudes related to different label information conditions, such as information about the farmer community, traditional cooking recipes, organic certification, and Fairtrade certification. A face-to-face survey was conducted with 200 international tourists at the airport in Cuzco, Peru. The data were analyzed using a probit and tobit models with sample selection. The results suggest that dried native chilies would have a relatively good acceptance among international tourists. About 62% of the respondents indicated they would buy dried native chilies, and of them, 62%–74% would pay an average price premium ranging from S/1.16–1.58 for different label information conditions. Nevertheless specific marketing campaigns should be designed for different types of international tourists in order to maximize the economic benefits for small-holder farmers.