Cultural heritages; such as Rock-Hewn Churches of Lalibela (RHCL) is not easy to be valued in a market price because it is a very unique product that cannot be determined in the formal market. World Heritage Sites (WHS) play an important role in sustaining community identity and enhancing economic development through tourism. However, studies that valuate such resources in the developing world in general and Ethiopia in particular are scarce. Although RHCL were designated as a WHS in 1978, severe damage has been happening to its structure due to man-made and environmental problems in recent years. Despite the priceless economic and cultural importance of the heritage, actions from concerned bodies to reverse the damage has stayed sluggish and continued to be so until recently. Thus, the purpose of this study is to estimate the total economic value of the RHCL thereby revealing its indispensable potential. The study specifically aims to estimate the use value and the non-use value of RHCL; and to analyze determinants of residents and visitors maximum willingness to pay for the conservation of the RHCL. The total number of respondents participated in this study for the empirical analysis were 427 individuals selected randomly. The study used the income generated from tourism related jobs and the direct payments of visitors for different services to estimate the use value of the RHCL; and the willingness to pay for the conservation purpose was used to estimate the non- use value of the RHCL. This study employed double bounded contingent valuation method followed by open ended question to estimate the non-use values of the RHCL. The data was analyzed using descriptive, inferential statistics and the Tobit model. The results indicated that 91.8% of local residents, 83.8% of domestic visitors and 78.5% of the foreign visitors to be willing to provide support for the conservation of the churches. The mean willingness to pay was 750 and 270 ETB for local residents and domestic visitors, respectively; and the mean willingness to pay for foreign visitors was 63 USD. The result of the study indicated that the potential use value of the RHCL was estimated to be 1,955,689,289.8 ETB per annum and the annual non-use value of the site is estimated to be 61,073,627.34 ETB per annum. Therefore, the total economic value of the RHCL is approximately 2,016,762,917.14 ETB per annum. To identify basic determinants of maximum WTP the study applied the Tobit model. The model result indicated that gender, age, education level, tourism related job, annual income,