Transcript Economic Valuation of Coastal Ecosystems and MPAs in

Coastal Capital: The Economic
Contribution of Belize’s Coral
Reefs and Mangroves
November 14, 2008
IYOR – Belize
Emily Cooper /
Lauretta Burke
World Resources
Institute
Nadia Bood, WWF-CA
Financial Support





Oak Foundation
Ocean Foundation
Netherlands MFA
SwedBio
Macarthur Foundation
Project Partnership









Healthy Reefs
Initiative
BTB
Forestry Dept.
Fisheries
PACT
APAMO
Galen University
BZ HydroMet
CCCCC









WCS
FON
TASTE
TIDE
BAS
Hol Chan
GreenReef
TNC
UB
Overview



Project Intention and Purpose
Economic Valuation Method
Summary of Results





Shoreline Protection
Tourism and Recreation
Fisheries
MPA Valuations
Policy Recommendations
Coral Reef and Mangroveassociated Goods and Services
Coral Reef and Mangroveassociated Goods and Services
Photos: WWF/ Italo Bonilla, Julie Stockbridge
Coral Reef and Mangroveassociated Goods and Services

nurseries
Photos: WWF/ Gilda ABURTO, Lauretta Burke
Coral Reef and Mangroveassociated Goods and Services
Photos: WRI
Coral Reef and Mangroveassociated Goods and Services
Photos: WWF
Coral Reef and Mangroveassociated Goods and Services
Photos: WRI, WWF
Coral Reef and Mangroveassociated Goods and Services
Photos: Krishna Desai, J. Sharp
Coral Reef and Mangroveassociated Goods and Services
Photos: J. Sharp, Ferrari
Coral Reef and Mangroveassociated Goods and Services
Photo: M. Paz
Project Concept

Reefs at Risk in the Caribbean
(2004)
Project Concept


Reefs at Risk in the Caribbean
(2004)
Pilot analyses for Tobago and
St. Lucia (2005 - 2008)
Economic Valuation Project Concept
1.
2.
3.
Develop method which is simple and
replicable
Rely predominantly on existing, available
data
Develop a Tool for valuation and policy
analysis
Adapt Method for Belize

Extensive barrier reef system

Importance of mangroves

Focus on MPA network
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
Economic Valuation applications




Highlight economic contribution to GDP
Compare benefits of development /
management options
Encourage increased investment in coastal
management / MPAs / fisheries
management
Support damage assessment
Coral Reef and Mangrove
Goods and Services Evaluated

Tourism and recreation

Fisheries

Shoreline protection services
Non-Valued Services
Total Economic Value (TEV) would also include:
Other Use Values:



Option Values (e.g. pharmaceutical)
Carbon storage
Building materials
Non-Use Values


Bequest Value
Existence Value
We focus on values
that can be reliably
estimated using
available data
Interconnected Habitats
Interconnected Habitats

Shoreline Protection
Interconnected Habitats



Shoreline Protection
Tourism and Recreation
Fisheries
Summary of Results
Annual economic contribution
of coral reefs is between
US $270 and $370 million in 2007
-.
Coral Reef Goods and Serivces (Annual Values)
US$ millions
200
150
High
100
Low
50
0
Tourism and
Recreation
Fisheries
Shoreline
Protection
Mangrove Goods and Services
(annual vlaues)
US$ Millions
-
Annual economic contribution of
mangroves is between
US$175 and $250 million in 2007.
180
160
140
120
100
80
60
40
20
0
High
Low
Tourism
and
Recreation
Fisheries
Shoreline
Protection
Valuing
Shoreline Protection Services
Shoreline Protection Services



Innovative valuation method developed with
IMA in Trinidad

Integrates physical and economic data

Isolates the role of reefs in protecting the shore

Estimates “damages avoided”
Adapted for Belize
Can use Climate Scenarios for adaptation
planning
Shoreline Protection Analysis
(5 steps)
1.
2.
3.
4.
5.
Identify vulnerable areas
Identify shoreline protected by coral reefs
or mangroves
Evaluate the relative stability of the
shoreline
Isolate role of reefs or mangroves in
shoreline protection
Estimate potential storm damage avoided
1. Identify Vulnerable Land


Definition – within 1 km of coast, under
5m elevation (based on 25 year storm
event)
693 sq. km of land classed as “vulnerable”
3 % of Belize’s land
 87% of land within 1 km of coast

2a. Shoreline Protected
by Coral Reefs


70% of coast is
“protected” by coral reef
(66% of mainland coast)
2b. Shoreline Protected
by Mangroves

Two-thirds of coastline is
“protected” by mangroves


About 50% of mainland coast
Abut 75% of cayes
3. Evaluate Relative Stability of
the Shoreline
1.
2.
3.
4.
5.
6.
7.
8.
9.
Coastal Geomorphology
Coastal Geology
Coastal Protection Structures
Coral Reef Index (Reef type, continuity,
distance offshore)
Wave Energy
Storm/Hurricane Events
Coastal Elevation
Coastal Vegetation
Anthropogenic Activities
4a. Coral Reef Share
of Shoreline Stability

Coral Reefs contribute
between 12 and 40% of
shoreline stability
4a. Mangrove Share
of Shoreline Stability

Where present,
mangroves contribute
between 10 and 32% of
shoreline stability
5. Estimate “Damages Avoided”

Estimate property values in “vulnerable
areas”

Ranged from US$1 / sq ft in “other areas” to
US$ 14 – 16 / sq ft along coast in Caye
Caulker and Placencia
5. Estimate “Damages Avoided”

Estimate property values in “vulnerable
areas”


Ranged from US$1 / sq ft in “other areas” to
US$ 14 – 16 / sq ft along coast in Caye
Caulker and Placencia
Combine property values in vulnerable
areas with percent protection provided by
coral reef / mangrove.
Value of Shoreline Protection by
Coral Reefs and Mangroves 
avoided erosion and storm damage from waves valued between
US$230 and $347 million per year.

Coral Reefs – US$120 – 180 million / year

Mangroves – US$111 – 167 million / year
Shoreline Protection Services
(average annual value)
US$ millions
200
150
High Estimate
Low Estimate
100
50
0
Coral Reefs
Mangroves
Tourism Components


Accommodation
Recreation – diving, snorkeling, sport
fishing

Other tourist expenditures

Cruise visitor expenditures

Taxes and fees
Distinguishing reef- and mangroveassociated tourists
Region
Belize District
Ambergris
Caye Caulker
Cayo
Corozal
Orange Walk
Stann Creek
Placencia
Toledo
Other Islands
Photo: Mito Paz
Rooms Occupied by Reef
& Mangrove
Related
Total Number
of Rooms
Tourists:
64%
Occupancy Rate
Reef and Mangrove Associated
Tourism
Reef / mangrove -associated:
($US million)
Accommodation
$56.3 - $75.4
Recreation
$37.5 - $46.5
Other Visitor Expenses
$31.8 – $44.7
Marine Park Fees
$1.3
Taxes and Service Charges
$17.7 – $21.3
Cruise Tourism (revenues &
taxes)
$5.3 – $6.4
Total Direct Impacts
$149.9 - $195.7
Reef & Mangrove
Recreation
($US million)
Diving
Snorkeling
Sport Fishing
Other reef/mangrove rec
$20.1 – $25.1
$10.1 – $12.6
$7.2 – $8.5
$0.2 - $0.3
Total
$37.5 - $46.5
Reef and Mangrove Associated
Tourism
Reef / mangrove -associated:
($US million)
Accommodation
$56.3 - $75.4
Recreation
$37.5 - $46.5
Other Visitor Expenses
$31.8 – $44.7
Marine Park Fees
$1.3
Taxes and Service Charges
$17.7 – $21.3
Cruise Tourism (revenues &
taxes)
$5.3 – $6.4
Total Direct Impacts
Multiplier
Indirect Impacts
$149.9 - $195.7
1.2 – 1.4
$26.1 – $68.9
Reef and Mangrove Associated
Tourism
Reef / mangrove -associated:
($US million)
Accommodation
$56.3 - $75.4
Recreation
$37.5 - $46.5
Other Visitor Expenses
$31.8 – $44.7
Marine Park Fees
Taxes and Service Charges
Cruise Tourism (revenues &
taxes)
Total Direct Impacts
Multiplier
Indirect Impacts
$1.3
$17.7 – $21.3
$5.3 – $6.4
$149.9 - $195.7
1.2 – 1.4
$26.1 – $68.9
Outstanding Issues

Reef use data

Consumer Surplus

Future Values / Sustainable Levels

Tourist responses to change in reef quality
Fisheries

Commercial Catch
1.
Export sales through Co-ops
2.
Local sales through Co-ops
3.
Local sales outside Co-ops

Fish cleaning \ processing

Other benefits
Fisheries

Commercial Catch
1.
Export sales through Co-ops
75%
2.
Local sales through Co-ops
7%
3.
Local sales outside Co-ops
18%
Does not include fish caught in Belizean waters and sold
in neighboring countries
Economic Contribution:
Fisheries
Reef / mangrove -associated:
($US million)
Total Revenues (export + local)
Lobster
$9.3 - $9.7
Conch
$3.1 - $3.2
Finfish
$1.6 - $3.8
Shrimp
$0.10
Crab
$0.02
Total Revenues
Local fish cleaning
Total Economic Contribution
$35.0
$.08 - $.10
$14.2 - $15.9
Economic Contribution of Reef and
Mangrove Associated Tourism and
Fisheries
Tourism :
US$150 - $196 m
Fisheries :
US$14 - $16 m
____________________________________
Total Direct Impacts: US$164 - $212 m
13% – 16% of GDP
Marine Protected Areas

18 protected areas (~12 actively managed)

~115,000 reported visitors in 2007



1 day per MPA visitor = US$17 m in direct spending by
MPA visitors per year. $3.5 – $7 m in indirect impacts.
Typical government spending per MPA, by comparison, is
US$100,000
A lot of visitation is going unrecorded (and fees
uncollected). 30% or more in some MPAs.
Marine Protected Areas:
Glover’s Reef

Tourists visit from the mainland or stay for a week at a time in of the
five on-site resorts to kayak, snorkel, and dive in the reserve.

We estimate that reef-related tourism GRMR contributes US$3.8 $5.6 million / year to the economy.

Fisheries revenues from inside the reserve are estimated at US$0.7
- $1.1 m / year.

Without greater support for monitoring and enforcement, Belize’s
MPAs will not be able to provide this level of economic benefits into
the future.
Policy Recommendations for
Belize
Belize’s coastal resources are
extremely valuable.
They are also increasingly
threatened.
As reefs and mangroves
degrade and disappear,
the economic benefits they
provide will diminish. It is in
the long-term economic
interest of Belize to:
Plan and Implement Development
Sensibly



Enforce land-use and development regulations in
the coastal zone.
Minimize the loss of mangroves along the
shoreline.
Conduct and thoroughly evaluate EIAs and
subsequent compliance plans for development in
sensitive coastal areas, such as the cayes.
Invest in Management, Monitoring,
and Compliance



Reinvigorate the CZMAI and build capacity for
monitoring both the state and use of coastal
resources
Increase overall investment in MPAs. Improve fee
collection and monitoring of visitors.
Tighten fishing regulations and invest greater
resources in enforcement
Incorporate Economic Valuation
into Planning Processes




Incorporate economic valuation into EIAs
Include economic impacts in assessing fines for damages
to reefs and mangroves.
Weigh revenues from a growing cruise industry against
long-term economic losses from environmental impacts.
Evaluate distributional effects (“winners” and “losers”) of
proposed coastal development projects.
1.
2.
3.
Coastal natural resources in Belize are
extremely valuable
Shoreline protection provided by coral
reefs and mangroves is a surprisingly
high value service (highest of the three)
Current investment in coastal
management is insufficient to maintain
these valuable goods and services at
current levels
Thank You!
Emily Cooper
[email protected]
Lauretta Burke
[email protected]
Nadia Bood
[email protected]
http://reefsatrisk.wri.org
Photo credit: © WWF / Ítalo BONILLA