Determinants of demand for a cable car system in Malta

Abstract

The road to increased sustainability in transport has led cable cars to be considered as an alternative mode of transport for urban cities. The successful implementation of this pioneering transport in the Latin American cities of Medellin and Bolivia has incentivised European cities to study its application. This study aims to identify the determinants of demand for an urban cable car system in Malta. Data is gathered through an online survey with a total of 316 responses. Respondents answered questions regarding their current travel mode choices and were presented with a hypothetical scenario of an urban cable car in Malta. They answered questions on their willingness to use this system, the extent of such usage and factors that may influence their demand. The study identifies five main significant determinants of demand for an urban cable car in Malta which are: previous use, location, usage of bus, and the enjoyment of landscape. Previous usage of a cable car results in an increased probability of 0.1678 to use a cable car in Malta than another person who has never used a cable car. People residing in localities where the cable car was hypothesised to operate have an 11.81% higher probability of usage. Frequent users of bus have an additional probability of 0.1619 of using the cable car ceteris paribus. Price is also statistically significant with a free price increasing the probability of using the cable car by 0.2277 compared to an increase of 0.1001 if the price is double that of a bus. Enjoying landscape increases the likelihood of using the cable car by 5.01%. Results also indicate a high willingness to use urban cable cars in Malta with an overall positive outlook on the idea of such a system in the local scenario. The study argues that the concept of cable cars used for urban transportation is a relatively new concept and these identified determinants can be used to analyse the demand for such a system in Malta on a larger scale.