Assessing the economic benefits of a tourist access road: A case study in regional coastal Australia

Self-drive tourism opportunities are often advanced as a strategy for economic development in rural and regional areas. In many cases the tourism appeal of an area can be enhanced through the provision of flagship attractions, services and infrastructure such as roads and signage. However evaluation of potential investments requires an assessment of the benefits, which requires prediction of future use. In this paper the methodology to assess the impacts and values of investing in road infrastructure are outlined, together with a case study application to Queensland's Capricorn Coast. This tourism area is bypassed to the east of the main coastal highway and is accessible only through a regional highway city. The economic benefits of a northern access road to encourage tourism at the coast have been assessed. This study demonstrates how to conduct economic analyses before investing resources into new tourist access roads. © 2017 Economic Society of Australia, Queensland