<p>Ethiopia has been making efforts to establish and manage new urban parks, including the Entoto Recreational Park. This park, recently established in the north of Addis Ababa, offers cultural and natural attractions. Despite attracting high numbers of visitors, no study has investigated the visitors’ preferences for the various attractions and tourist services provided, nor has a fee-based entrance policy been set for the newly established recreational park. Setting an entrance fee is challenging without information on visitors’ willingness to pay (WTP). This study aims to investigate the preferences of visitors to Entoto Recreational Park and the factors influencing their WTP. A contingent valuation method (CVM) was applied. Through random sampling, 165 visitors were selected to determine their preferences regarding park improvements through the introduction of an entrance fee. The results revealed that 76% of visitors were willing to pay an entrance fee to enjoy the natural forest, landscape, recreational facilities, weather conditions, and resort hotels provided by the park. They also wanted to support easy access, cleanliness, and the quality of park facilities. Of the visitors surveyed, 68.2% were willing to pay an entrance fee ranging from Birr 5–50, with a mean WTP of Birr 45.64 per person. The analysis of determinants of WTP showed that factors such as age, marital status, mode of transportation, group size, distance from the park, and the initially proposed entrance fee value influenced visitors’ WTP and recreational preferences.</p>