Transcript Economic Valuation of Coral Reefs in St. Lucia – June 2008 Castries, St.

Economic Valuation of Coral
Reefs in St. Lucia –
June 2008
Castries, St. Lucia
Lauretta Burke
World Resources
Institute
Project Partners Include
Saint Lucia

Government of Saint
Lucia
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Planning Department
Fisheries Department
SMMA
Ministry of Tourism
Statistical Office
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St. Lucia National Trust
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SLHA, resorts
Regional Partners
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University of the West Indies
(UWI) / Sustainable Economic
Development Unit (SEDU)
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Caribbean Natural Resources
Institute (CANARI)

T&T Institute of Marine Affairs
(IMA)

CEHI
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OECS
Financial Support
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Macarthur
Foundation
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Ocean Foundation
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Henry Foundation
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Munson Foundation
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Dutch Ministry of
Foreign Affairs
SwedBio
International Coral
Reef Action Network
(ICRAN)
Buccoo Reef Trust
Program Overview
1.
Ecosystem Goods and Services
2.
Summary of results
3.
Policy Applications
4.
Background on this Economic Valuation project
5.
Valuation – details for St. Lucia
6.
Policy Applications
– method and features
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Buccoo Reef example

Discussion
Beautiful
Valuable
Threatened
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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

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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
Ecosystem goods (such as food) and
services (such as waste assimilation)
represent the benefits human
populations derive, directly or
indirectly, from ecosystems.
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:
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Research Values
Option Values (e.g. pharmaceutical)
Carbon storage
Non-Use Values
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Bequest Value
Existence Value
We focus on values
that can be reliably
estimated using
available data
Summary of Values
for St. Lucia
Valuation Summary –
Tourism and Recreation
Coral reef-associated tourism and recreation –
contributed between US$160 and $194 million to
the national economy in 2006.
Valuation Summary –
Fisheries
Coral reef-associated fisheries –

important for cultural tradition, safety net, and livelihood
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provide annual economic benefits estimated at between
US$0.5 – 0.8 million.
Valuation Summary –
Shoreline Protection
Shoreline Protection Services of Coral Reefs –
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avoided erosion and storm damage from waves
valued between US$28 and $50 million per year.
Valuation Summary
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Tourism and Recreation US$160 to $194 million in 2006.
Annual Economic Contribution of Coral Reefs in St. Lucia
250
Coral reef-associated fisheries US$0.5 – 0.8 million / year

Shoreline protection services –
US$28 and $50 million per year.
200
US$ million
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150
High estimate
Low estimate
100
50
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These are significant compared
to St. Lucia’s GDP, which was
$825 million in 2005.
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 St. Lucia
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:
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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
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
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Comparing “reef-dependence”
St. Lucia - specific examples
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To guide future development, including evaluating
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the changes resulting from marina development on east and west
coasts
The benefits of investing in improved sewage treatment
Guide the management planning for SMMA or Point Sabel
Examine changes in fisheries management and the impact
on short-term livelihoods versus long-term benefits
To evaluate tourism carrying capacity and potential
revenue
To estimate loss of local use of beaches due to development
EV Project Characteristics
1.
Develop method which is simple and replicable
2.
Rely predominantly on existing, available data
3.
4.
5.
Develop a tool to guide valuation and apply to policy
questions.
Produce coral reef valuation estimates for 2 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”
Challenges
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Distinguishing the coral-reef associated
benefits
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Tourism
Fisheries
Shoreline protection
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Valuing “local use”
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Secondary (indirect) economic impacts
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
Estimating labor and other operating
costs
Tourism and Recreation
Valuation Assumptions
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25% of visitors come to St. Lucia in part
due to the reefs.
Non-labor operating costs – about 40%
Tourism Valuation for St. Lucia
Coral Reef-associated:
Accommodation Value
($US million)
$64.7
Tourism Valuation for St. Lucia
Coral Reef-associated:
Accommodation Value
($US million)
$64.7
Reef Recreation – Diving
$4.9
Reef Recreation – Snorkeling
$0.8
Tourism Valuation for St. Lucia
Coral Reef-associated:
Accommodation Value
($US million)
$64.7
Reef Recreation – Diving
$4.9
Reef Recreation – Snorkeling
$0.8
Marine Park Revenues
$0.1
Tourism Valuation for St. Lucia
Coral Reef-associated:
Accommodation Value
($US million)
$64.7
Reef Recreation – Diving
$4.9
Reef Recreation – Snorkeling
$0.8
Marine Park Revenues
$0.1
Misc. Visitor Expenses
$21.2
Tourism Valuation for St. Lucia
Coral Reef-associated:
Accommodation Value
($US million)
$64.7
Reef Recreation – Diving
$4.9
Reef Recreation – Snorkeling
$0.8
Marine Park Revenues
$0.1
Misc. Visitor Expenses
$21.2
Total Direct Impact
$91.6
Tourism Valuation for St. Lucia
Coral Reef-associated:
Accommodation Value
($US million)
$64.7
Reef Recreation – Diving
$4.9
Reef Recreation – Snorkeling
$0.8
Marine Park Revenues
$0.1
Misc. Visitor Expenses
$21.2
Total Direct Impact
$91.6
(11% of GDP)
Tourism Valuation for St. Lucia
Coral Reef-associated:
Accommodation Value
($US million)
$64.7
Reef Recreation – Diving
$4.9
Reef Recreation – Snorkeling
$0.8
Marine Park Revenues
$0.1
Misc. Visitor Expenses
$21.2
Total Direct Impact
$91.6
Indirect economic Impact
** $68 – 102
Tourism Valuation for St. Lucia
Coral Reef-associated:
Accommodation Value
($US million)
$64.7
Reef Recreation – Diving
$4.9
Reef Recreation – Snorkeling
$0.8
Marine Park Revenues
$0.1
Misc. Visitor Expenses
$21.2
Total Direct Impact
$91.6
Indirect economic Impact
Total Direct & Indirect Impact
** $68 – 102
US$160 – 194 million
Tourism Valuation for St. Lucia
Coral Reef-associated:
Accommodation Value
($US million)
$64.7
Reef Recreation – Diving
$4.9
Reef Recreation – Snorkeling
$0.8
Marine Park Revenues
$0.1
Misc. Visitor Expenses
$21.2
Total Direct Impact
$91.6
Indirect economic Impact
Total Direct & Indirect Impact
Consumer Surplus
** $68 – 102
US$160 – 194 million
$2.2 – 2.4
Tourism Valuation for St. Lucia
Coral Reef-associated:
Accommodation Value
($US million)
$64.7
Reef Recreation – Diving
$4.9
Reef Recreation – Snorkeling
$0.8
Marine Park Revenues
$0.1
Misc. Visitor Expenses
$21.2
Total Direct Impact
$91.6
Indirect economic Impact
Total Direct & Indirect Impact
** $68 – 102
US$160 – 194 million
Consumer Surplus
$2.2 – 2.4
Local Use
$52 – 109
Local Reef Use Survey
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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 St. Lucia (Soufriere,
Vieux Fort, Anse La Raye, Castries town,
Gros Islet, Dennery/Micoud)
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Designed to measure local use of
beaches and reefs as well as
recreational and subsistence
fishing
Fisheries Components
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Commercial Fisheries
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Fish Processing and Cleaning
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Local Use (fishing)
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Indirect economic effects
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Focus on reef-associated species – snapper,
grouper, wrasse, grunts, squirrelfish, parrot fish,
and lobster.
Fisheries Valuation Issues
1.
2.
Limited data on local use
Focus on economic impact – does not
fully capture social values.
Commercial Fishing in St. Lucia
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Estimate derived from two approaches –
1.
2.
reef fish productivity
recorded landings
a) Reef Fish Productivity
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Reef Area: 33 km2
(from this project)
Estimated fish productivity rate: range of
1 to 5 MT of fish / km2 of coral reef
Potential sustainable harvest of 73,000
to 363,000 lb of reef fish
b) Landings recorded
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9 landing sites
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Fisheries Dept. data for 2002-2004
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Prices
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Pot fish = EC$10 (US$3.75)
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Lobster = EC$25 (US$9.00)
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Sea Urchin = EC$50 (US$18.00)
Average Fish Landings 2002-04
Pounds
Value ($US)
Percent of Value
Squirrelfish
13,459
$50,788
7.3%
Snapper
44,995
$169,795
24.5%
Grouper
8,244
$31,108
4.5%
Parrotfish
9,930
$35,445
5.1%
Total for finfish
76,628
$287,137
41.4%
Lobster
29,000
$273,585
39.5%
7,251
$132,538
19.1%
112,879
$693,260*
100.0%
Sea Urchin
Grand Total
Fisheries Valuation for St. Lucia
Coral Reef-associated:
($US thousand)
Commercial Fisheries – Gross Revenue
$515 - 772
N.L. Operating Costs (25%)
$129 – 193
Commercial Fisheries – Net Revenue
$386 – 579
Fish cleaning and processing
Total Direct Impact
$51 – 77
$437 – 656
Fisheries Valuation for St. Lucia
Coral Reef-associated:
($US thousand)
Commercial Fisheries – Gross Revenue
$515 - 772
N.L. Operating Costs (25%)
$129 – 193
Commercial Fisheries – Net Revenue
$386 – 579
Fish cleaning and processing
Total Direct Impact
Indirect economic Impact
$51 – 77
$437 – 656
$82 – 185
Fisheries Valuation for St. Lucia
Coral Reef-associated:
($US thousand)
Commercial Fisheries – Gross Revenue
$515 - 772
N.L. Operating Costs (25%)
$129 – 193
Commercial Fisheries – Net Revenue
$386 – 579
Fish cleaning and processing
Total Direct Impact
Indirect economic Impact
Total Direct & Indirect Impact
$51 – 77
$437 – 656
$82 – 185
$520 – 841
Fisheries Valuation for St. Lucia
Coral Reef-associated:
($US thousand)
Commercial Fisheries – Gross Revenue
$515 - 772
N.L. Operating Costs (25%)
$129 – 193
Commercial Fisheries – Net Revenue
$386 – 579
Fish cleaning and processing
Total Direct Impact
Indirect economic Impact
$51 – 77
$437 – 656
$82 – 185
Total Direct & Indirect Impact
$520 – 841
Local (non-commercial) fishing
$155 - 790
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
Shoreline Protection Valuation
Potential Valuation Methods:
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Replacement Cost
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Avoided Damages
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
4% of St. Lucia’s land area rated “vulnerable.”
44% of St. Lucia’s coastline is protected by coral reefs.
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 St. Lucia Analysis
1.
2.
3.
4.
5.
6.
7.
8.
Coastal Geomorphology
Coastal Geology
Wave Energy
Storm/Hurricane Events
Coral Reef Index (Reef type, continuity, distance
offshore)
Coastal Elevation
Coastal Slope
Coastal Vegetation
Not Available
1.
Coastal Protection Structures
2.
Anthropogenic Activities
3a. Relative Total Coastal
Protection (RTCP)

With reef present
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Without reef
3b.
Potentially Avoided Damages
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Estimated based on property values in
“vulnerable areas” which are “protected by
a reef,” based on the “relative reef
contribution” for that area.
St. Lucia – property values estimated at
US$25 - 30 per square foot
Relative reef contribution applied at +/- 20%, reflecting
some uncertainty.
Shoreline Protection Summary –
St. Lucia
St. Lucia
Land Area (sq km)
Vulnerable Land Area (sq km)
Vulnerable Area Protected by reefs (sq km)
610 km2
24.5 km2
4%
10 km2
1.5%
44%
Shoreline length Protected by Reefs
US $25 - 30
Average Property Value (US$)
Potentially Avoided Damages
(2007)
US $28 – 50 mill
Shoreline Protection Summary –
St. Lucia
St. Lucia
Potentially Avoided Damages
(2007)
Potentially Avoided Damages
(over 25 years)
US $28 – 50 mill
US $700 million $1.2 Billion
Summary of Values for St. Lucia
Coral Reef-associated :
Tourism and Recreation –
Total Direct Impact
($US million / yr)
$91.6 million
Tourism and Recreation –
Total economic Impact
$160 – 194 million
Fisheries – economic Impact
$0.5 – 0.8 million
Shoreline Protection Services
$28 – 50 million
Policy Exploration – Buccoo Reef
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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
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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
St. Lucia
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Improve mapping and monitoring of coral
reefs and mangroves
Maintain coastal mangroves
Monitor and improve coastal water quality
Monitor marine recreation and manage
within sustainable limits
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]
Gov StL – LaVerne Walker [email protected]
IMA – Sean Paddy, (868) 634 4291 x405, [email protected]