Demand for Improved Public Transport Services in the UAE: A Contingent Valuation Study in Dubai

Abstract

Service quality, being an integral part of urban growth, has been a subject of interest to city transport planners. The provision of better quality public transport service is a challenge in the United Arab Emirates, as this country strives to meet the transport requirements fundamental to sustain the investment and economic as well as urban population growth exhibited over the last few years. United Arab Emirates Government intervention strategies include increasing share of public transportation and decreasing transport by private vehicles through bettering bus service delivery. Such shift of demand for public service requires not only understanding of people's willingness to use and pay for improved public transport services but also market incentives to pull-down personal vehicle ownership demand into public transport services. This study examines the willingness of United Arab Emirates residents to use and pay for improved public transport services. A contingent valuation survey is conducted on 852 representative sample of cross section of United Arab Emirates residents. Probit and Ordered logit models are used to analyze the survey data. The study has generated results with significant ramifications for policy. It suggests that there is the knowledge that residents, in general, are willing to use and pay higher fees for using public bus provided its service quality is improved. This has to provide reassurance to the Roads and Transport Authority who may be interested about the potential demand for improved public bus service. In order for the United Arab Emirates Government to increase the share of public transportation and decrease transport by private vehicles, effort will have to continue to improve the public bus service quality. In particular, marketing of such improved service will have to consider the residents' socioeconomic and demographic as well as some travel attributes.

Urban transport systems in Latin America and the Caribbean: lessons and challenges

“…More specifically, users would pay an increase of 44% in weekly and monthly cards for more service frequency. In a similar vein, Worku (2013) examined the willingness to use and pay for improved public transport services in the United Arab Emirates. The results suggest that residents are willing to use and pay higher fees for public buses, provided that the quality of service is improved.…”

Transportation Matters: A Health Impact Assessment in Rural New Mexico

“…With respect to public transportation, in general in the U.S., there is insufficient research to understand and predict the relationship of “desire or willingness to use” and actual usage of public transportation. A few studies conducted outside the U.S. suggest that high quality service and strong marketing campaigns are the most important factors in predicting actual usage of public transportation for new and continuing users [ 20 , 21 , 22 , 23 , 24 , 25 ].…”

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“…Among these, contingent valuation "estimates by survey techniques how much individuals would be ready to pay to enjoy the benefits of a project" (Meunier and Marsden 2009, p. 7). The assessment of transport projects by contingent valuation has been the subject of many applications: reduction of noise and air pollution in Navarre (Lera-Lopez et al 2012), estimation of parking charges in Greece (Anastasiadou et al 2009), improvement in the provision of public transport in Dubai (Worku 2013), and rail services in Korea (Chang 2010).…”