LAUSR

Abstract Based on stakeholder theory and using the Kaldor-Hicks Tableau for cost-benefit analysis, this study investigates the effects on social welfare of the free-of-charge policy in tourist areas and the implications for various stakeholders through an examination of the Shanghai Sheshan National Forest Park. The results show that the park has become significantly more effective than before, and the policy is compatible with Kaldor-Hicks efficiency. Local residents, tourists, and the catering and retail businesses in and around the park have been the main beneficiaries, while local authorities and state-owned enterprises have borne most of the costs. The original cost-benefit scenario has been disrupted. Key policy implications for managerial practice and contributions to scholarly knowledge are discussed.