Elephants are a unique biological and cultural resource for Sri Lanka. Conservation of Sri Lankan elephants is a felt need since t h e elephant population h a s declined to a very low level. However, elephant conse~vation has hecome a resource use conflict as it competes for scarce natural and public resources. An extended henefit cost analysis on elephant conservation is necessary to determine
... [Show full abstract] the efficient allocation of resources for elephant conservation. This study generates part of the economic informa-tion required for such an anal.ysis. Using a travel cost model this study estimates t h e scenic value of elephants a t Pinnawela orphanage. Results show t h a t local visitors derive Rs. 12.2 million worth scenic benefits per a n n u m from t h e Pinnawela orphanage. A preliminary assessment on t h e scenic value by foreign visitors indicates t h a t their recreational benefits from viewing elephant;^ is much higher. Therefore, policies should be designed to capture part of tlle scenic benefits of foreign visitors by increasing producer surpluses that acciue locally.