Transcript Economic Valuation of Coral Reefs in Belize

Economic Valuation of Coral
Reefs in Tobago –
June 13, 2008
Tobago
Lauretta Burke
World
Resources
Institute
Project Partners Include
Trinidad and Tobago

Buccoo Reef Trust

T&T Institute of Marine Affairs
(IMA)


Tobago House of Assembly
(THA) / Policy Research
Development Institute (PRDI)
T&T Central Statistics Office
(CSO)

T&T Environmental
Management Agency (EMA)

Environment Tobago and SOS
Saint Lucia

Government of Saint Lucia
Regional Partners


University of the West Indies
(UWI) / Sustainable Economic
Development Unit (SEDU)
Caribbean Natural Resources
Institute (CANARI)
Financial Support

Macarthur
Foundation

Ocean Foundation

Henry Foundation

Munson Foundation




Dutch Ministry of
Foreign Affairs
SwedBio
International Coral
Reef Action Network
(ICRAN)
Buccoo Reef Trust
Beautiful
Valuable
Threatened

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


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Coastal development
Mangrove removal
Sewage
Dredging
Runoff
Tourism
Overfishing
Warming Seas
Influencing Better Management

Economic Valuation is a tool to guide
coastal planning, investment and
management in the long-term interest of
local communities and the country
Evaluating trade-offs
OPTIONS
 Development options
 Enforcement of
regulations
 Capping tourist
numbers
 Investing in pollution
control
OUTCOMES
 Revenue streams
from tourism
 Societal benefits from
reefs
 Ecosystem goods and
services
Economic Valuation of Coral Reefs


WRI (with partners) developed a coral reef
valuation methodology and implemented
valuations for the coral reefs of Tobago and
St. Lucia.
The study evaluated the overall annual
economic contribution of coral reefassociated


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tourism and recreation,
fisheries, and
shoreline protection services.
Ecosystem Services from Coral Reefs
Provisioning
Services
-food – fish and
shellfish
Regulating
Services
- carbon storage /
climate
regulation
-genetic resources
-erosion control
- natural medicines
and
pharmaceuticals
-storm protection
-ornamental resources
- building materials
Supporting Services -sand formation
Cultural
Services
-spiritual and religious
values
-knowledge systems
/ educational values
-inspiration
-aesthetic values
-social traditions
-sense of place
-recreation and ecotourism
-primary production
Ecosystem Services from Coral Reefs
Provisioning
Services
-food – fish and
shellfish
Regulating
Services
- carbon storage /
climate
regulation
-genetic resources
-erosion control
- natural medicines
and
pharmaceuticals
-storm protection
-ornamental resources
- building materials
Supporting Services -sand formation
Cultural
Services
-spiritual and religious
values
-knowledge systems
/ educational values
-inspiration
-aesthetic values
-social traditions
-sense of place
-recreation and ecotourism
-primary production
Non-Valued Services
Total Economic Value (TEV) would also include:
Other Use Values:



Research Values
Option Values (e.g. pharmaceutical)
Carbon storage
Non-Use Values


Bequest Value
Existence Value
We focus on values
that can be reliably
estimated using
available data
Summary of Values
Valuation Summary
Coral reef-associated tourism and recreation –
contributed between US$100 and $130 million to
Photo: BRT
the national economy in 2006.
Valuation Summary
Coral reef-associated fisheries –

important for cultural tradition, safety net, and livelihood

provide annual economic benefits estimated at between
Photo: BRT
US$0.8 – 1.3 million.
Valuation Summary
Shoreline Protection Services of Coral Reefs –

avoided erosion and storm damage from waves
valued between US$18 and $33 million per year.
Valuation Summary

Tourism and Recreation US$100 to $130 million in 2006.
Annual Economic Contribution of Coral Reefs in Tobago
140

Coral reef-associated fisheries US$0.8 – 1.3 million / year
Shoreline protection services –
US$18 and $33 million per year.
120
100
US$ million

80
High estimate
Low estimate
60
40
20


These are significant compared
to Tobago’s GDP, which was
$286 million in 2006.
Coral reefs provide other important values not estimated in this study,
and these numbers should be regarded as a lower bound estimate.
0
Tourism and
Recreation
Fisheries
Shoreline
Protection
Coral Reefs – Economically
Important to Tobago
Valuation can highlight:

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Significant contribution to GDP
Taxes paid to government
Jobs and wages dependent on coral reefs
Value of social safety net
Supports:


Coastal Planning (shoreline protection
analysis)
Evaluation of trade-offs
Economic Valuation applications
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Estimate Economic Contribution to GDP
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Compare benefits of development /
management options
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Encourage increased investment in coastal
management / MPAs / fisheries management
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Identify sources of support for management /
policy / protected areas
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Set fees, such as visitor fees
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Damage assessment
Tobago-specific examples
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Evaluate the costs and benefits of investing in more
active management of Buccoo Reef Marine Park
Evaluating the benefits of investment in improved
sewage treatment in SW Tobago
Examine changes in fisheries management and the
impact on short-term livelihoods versus long-term
benefits
Comparing the benefits of consumptive vs. nonconsumptive use of sea turtles
Econ Val Project Characteristics
1.
Develop method which is simple and replicable
2.
Rely predominantly on existing, available data
3.
4.
Produce coral reef valuation estimates for two
pilot areas (Tobago and St. Lucia)
Estimate likely economic loss due to coral reef
degradation
Valuation – Main Components
Tourism
Method: Financial Analysis
(Net revenues plus transfers)
Fisheries
Method: Financial Analysis
(Net revenues plus transfers)
Shoreline Protection
Method: “Avoided Damages”
Tourism Components
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Accommodation
Reef Recreation – Diving
Reef Recreation – Snorkeling
Marine Park Revenues
Misc. Expenses (e.g., departure taxes, visitor
expenditure)
Local Use
Indirect economic effects
Tourism Valuation issues
1.
2.
3.
4.
Identifying “coastal” visitors
Quantifying reef recreation
Getting accurate MPA visitation numbers
Tobago-specific data
Tourism and Recreation
Valuation Assumptions

40% of visitors come to Tobago in part
due to the reefs.
Tourism Valuation for Tobago
Coral Reef-associated:
Accommodation Value
($US million)
$24.7
Reef Recreation – Diving
$1.3
Reef Recreation – Snorkeling
$1.5
Marine Park Revenues
n.a.
Misc. Visitor Expenses
$16.0
Total Direct Impact
$43.5
Tourism Valuation for Tobago
Coral Reef-associated:
Accommodation Value
($US million)
$24.7
Reef Recreation – Diving
$1.3
Reef Recreation – Snorkeling
$1.5
Marine Park Revenues
n.a.
Misc. Visitor Expenses
$16.0
Total Direct Impact
$43.5
(15% of GDP)
Tourism Valuation for Tobago
Coral Reef-associated:
Accommodation Value
($US million)
$24.7
Reef Recreation – Diving
$1.3
Reef Recreation – Snorkeling
$1.5
Marine Park Revenues
n.a.
Misc. Visitor Expenses
$16.0
Total Direct Impact
$43.5
Indirect economic Impact
** $58 – 72
Tourism Valuation for Tobago
Coral Reef-associated:
Accommodation Value
($US million)
$24.7
Reef Recreation – Diving
$1.3
Reef Recreation – Snorkeling
$1.5
Marine Park Revenues
n.a.
Misc. Visitor Expenses
$16.0
Total Direct Impact
$43.5
Indirect economic Impact
Total Direct & Indirect Impact
** $58 – 72
US$101 – 130 million
Tourism Valuation for Tobago
Coral Reef-associated:
Accommodation Value
($US million)
$24.7
Reef Recreation – Diving
$1.3
Reef Recreation – Snorkeling
$1.5
Marine Park Revenues
n.a.
Misc. Visitor Expenses
$16.0
Total Direct Impact
$43.5
Indirect economic Impact
Total Direct & Indirect Impact
Consumer Surplus
** $58 – 72
US$101 – 130 million
$1
Tourism Valuation for Tobago
Coral Reef-associated:
Accommodation Value
($US million)
$24.7
Reef Recreation – Diving
$1.3
Reef Recreation – Snorkeling
$1.5
Marine Park Revenues
n.a.
Misc. Visitor Expenses
$16.0
Total Direct Impact
$43.5
Indirect economic Impact
Total Direct & Indirect Impact
Consumer Surplus
Local Use
** $58 – 72
US$101 – 130 million
$1
$13 – 44
Local Reef Use Survey


Commissioned a survey through the
University of West Indies / Sustainable
Economic Development Unit / Government
of St. Lucia, Department of Statistics
300 people surveyed in 6 locations in
Tobago (Reef - Buccoo, Pigeon Point, and Speyside, and
non-reef - Mt. Pleasant, Roxborough, and Patience Hill)

Designed to measure local use of beaches
and reefs as well as recreational and
subsistence fishing
Fisheries Components

Commercial Fisheries

Fish Processing and Cleaning

Local Use (fishing)

Indirect economic effects

Focus on reef-associated species – snapper,
grouper, grunts, squirrelfish, parrot fish, lobster
and conch.
Fisheries Valuation Issues
1.
Lack of meaningful data on fish landings
2.
Limited data on sales and exports
3.
Limited data on local use
4.
Focus on economic impact – does not
fully capture social values.
Commercial Fishing in Tobago

Estimate derived from two approaches –
1.
2.

reef fish productivity
estimated pot fishing effort
Coral reefs are over-fished Tobago /
productivity is declining
a) Reef Fish Productivity

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Reef Area: 30 km2
(from this project)
Estimated fish productivity rate: range of
2 to 5 MT of fish / km2 of coral reef
Potential sustainable harvest of 130,000
to 330,000 lb of reef fish
b) Landings based on boats
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16 boats doing pot fishing, average 105
trips per year, landing an average of 150 200 lbs per trip
This leads to an estimated 250,000 336,000 lbs of fish caught. (Comparable to
the maximum productivity estimate)

Average Price of pot fish = TT$15 ($2.50
US), leads to gross value of catch of
US$630,000 - 840,000.
b) Landings based on boats (cont.)
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We assume an additional 15,000 - 20,000 lbs of
lobster caught (and US$7 per pound for lobster) so
US$106,000 - 140,000
Total Gross revenue = US$735,000 - 981,000.
Fisheries Valuation for Tobago
Coral Reef-associated:
($US thousand)
Commercial Fisheries – Gross Revenue
$736 - 981
N.L. Operating Costs (25%)
$184 – 245
Commercial Fisheries – Net Revenue
$552 - 736
Fisheries Valuation for Tobago
Coral Reef-associated:
($US thousand)
Commercial Fisheries – Gross Revenue
$736 - 981
N.L. Operating Costs (25%)
$184 – 245
Commercial Fisheries – Net Revenue
Fish cleaning and processing
Total Direct Impact
$552-736
$88-177
$640-913
Fisheries Valuation for Tobago
Coral Reef-associated:
($US thousand)
Commercial Fisheries – Gross Revenue
$736 - 981
N.L. Operating Costs (25%)
$184 – 245
Commercial Fisheries – Net Revenue
Fish cleaning and processing
$552-736
$88-177
Total Direct Impact
$640-913
Indirect economic Impact
$118-235
Total Direct & Indirect Impact
$758 – 1,148
Shoreline Protection Services

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Innovative method for isolating the role of
coral reefs and integrating economics
Map outputs –
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Shoreline protected by coral reefs
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Areas vulnerable to waves \ storm damage
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Relative contribution of reefs to shoreline
protection
Physical Factors
Physical factors affecting the protection afforded
by a coral reef:
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orientation of the coast (windward / leeward; high
energy or low energy coast)
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bathymetry / shoreline profile
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shoreline shape (bay, headland)
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depth of the reef / geology (type of reef)
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distance the reef is from land
Complex Analysis

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IMA developed shoreline protection
framework - rules for how much
protection the reef affords this coastline
situation.
Can be adapted for climate scenarios
Shoreline Protection Analysis
(5 Steps)
1.
Identify vulnerable areas
2.
Identify areas protected by coral reefs
3.
4.
5.
Evaluate the relative protection
provided by reefs
Incorporate property values
Combine to evaluate potential storm
damage avoided
1.
6% of Tobago’s land area rated “vulnerable.
2.
Reef Protection
0
Not protected by reef
51%
2
Within 100 m of fringing reef
45%
3
Protected by Barrier Reef
4%
Shoreline Stability Factors
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
(from IMA)
Coastal Geomorphology
Coastal Geology
Coastal Protection Structures
Wave Energy
Storm/Hurricane Events
Coral Reef Index (Reef type, continuity, distance
offshore)
Coastal Elevation
Coastal Slope
Coastal Vegetation
Anthropogenic Activities
Coastal Protection Scheme (from IMA)
Factor
Very High
4
High
3
Medium
2
Low
1
None
0
Coastal Geomorphology
Rocky, Cliffed
Coastline
Soft (Limestone)
Cliffs or Low Bluffs
Mangroves
Beaches
N/A
Coastal Geology
Igneous and/or
Volcanic
Metamorphic
Sedimentary
Unconsolidated
Sediments
N/A
Protected by 2
prominent headlands
and breakwater
Protected by 2
prominent headlands
Seawalls, Riprap or
Breakwaters
Protected by one or
two small headlands
No protection by
headlands
< 20
20 - 40
40 - 60
>60
N/A
Coastal Protection Structures
Wave Energy (~ Max. Wave
Height [cm])
Coral Reefs
Reef Type
Reef Distribution
Reef Distance (m)
Storm/Hurricane Events
Coastal Elevation (m)
Coastal Slope (%)
Coastal Vegetation *
Type
Distribution
Coastal Anthropogenic Activities
Barrier
N/A
< 250
Patch
N/A
250 - 500
Fringe
Continuous
500 - 1000
Apron
Discontinuous
> 1000
No reef present
No reef present
No reef present
Affected by 1-5 TS
every 10 years
Affected by at least 5
TS every 10 years
Affected by at least a
category 1 every 25
years
Affected by at least a
category 3 every 25
years
N/A
> 12
5 - 12
1-5
0-1
< 0 (N/A) **
6.2 – 9.7
2.6 – 6.2
1.1 – 2.6
0.4 – 1.1
N/A
Mangroves
> 75 % length of
coastline
Coastal Woodlands
50% - 75 % of length
Thicket
25% - 50 % of length
Runners
< 25% length of
coastline
No sand mining,
coastal development,
etc.
Misc. Other Activities
Either sand mining or
coastal development
Sand mining and
coastal development
None
No Vegetation
N/A
Stability Factors used in Tobago Analysis
1.
2.
3.
4.
5.
6.
Coastal Geomorphology
Coastal Geology
Wave Energy
Storm/Hurricane Events
Coral Reef Index (Reef type, continuity, distance
offshore)
Coastal Elevation
Not Available
1.
Coastal Vegetation
2.
Coastal Slope
3.
Coastal Protection Structures
4.
Anthropogenic Activities
3a. Relative Total Coastal
Protection (RTCP)

With reef present

Without reef
3b.
3b.
Potentially Avoided Damages


Estimated based on property values in
“vulnerable areas” which are “protected by
a reef,” based on the “relative reef
contribution” for that area.
Tobago – property values estimated at
US$18 – 22 per square foot
Shoreline Protection Summary –
Tobago
Tobago
Land Area (sq km)
300 km2
Vulnerable Land Area (sq km)
19 km2
6%
9 km2
3%
Vulnerable Area Protected by reefs (sq km)
49%
Shoreline length Protected by Reefs
US $18 - $22
Average Property Value (US$)
Potentially Avoided Damages
(annual average)
US $18 – 33 mill
Shoreline Protection Summary –
Buccoo
Buccoo
Potentially Avoided Damages
(2007)
Potentially Avoided Damages
(over 25 years)
30% of
US $5 – 10 mill Tobago
Total
US $140 – 250
million
Summary of Values for Tobago
Coral Reef-associated :
Tourism and Recreation –
Total Direct Impact
Tourism and Recreation –
Total economic Impact
($US million / yr)
$100 – 130 million
Fisheries – economic Impact
~ $1 million
Shoreline Protection Services
$18 – 33 million
$43.5 million
Policy Exploration – Buccoo Reef


Tourist Destination
Environmental issues

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
water quality
overfishing
reef condition
BRMP - enforcement
Management Options – Buccoo Reef

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Enforcement of nofishing regulations
Re-routing of storm
drain
Integrated watershed
management
Sewage treatment
Economic Value – Buccoo Reef


Glass-bottom / snorkel
Tours –US$1.4 mill / yr
Tourism
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

US$7-8 million / yr
US$128 – 156 million over 25
years
Shoreline protection US$140-250 million over 25
years
Policy Recommendations for
Tobago
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Improve coastal water quality
Maintain coastal mangroves
Establish an entrance fee to BRMP and
use revenue for park management
Monitor marine recreation and manage
within sustainable limits
Improve mapping and monitoring of coral
reefs and mangroves
Policy Recommendations for
Tobago
(continued)



Improve fishing survey design, data
collection and information management at
THA to allow tracking of fishing effort and
catch over time
Monitor sea turtle populations – manage
sustainably
Use the coral reef valuation methodology
and Tool to track the economic
contribution of coral reefs over time
Available online at www.buccooreef.org and
www.wri.org/project/valuation-caribbean-reefs
Contacts:
WRI –Lauretta Burke, +1 (202) 729 7774, [email protected]
BRT – Hyacinth Armstrong, +868 635 2000,
[email protected]
IMA – Sean Paddy, (868) 634 4291 x405, [email protected]