The Economic Value of Water and Ecosystem Preservation

and shellfish species and estuarine life upon which such fish and shellfish are
dependent.” However, the complexity of the science underlying the
understanding of freshwater inflows on marine and river ecosystems has led to
much infighting resulting in little progress on the issue (Korosec, 2007).
An estimated value for the water in the production of ecotourism can help to
establish the economic rationale for using scarce water to preserve and maintain
the Bay’s ecosystems. While existing agricultural economics literature provides
some insight in the valuation of water as an input in production, and tourism
economics provides additional insight into the nature of the tourism production
function and product, new methodology must be developed in order to rigorously
examine the value of water in ecotourism production. Ultimately, if the unique
ecosystems of the San Antonio Bay are to survive, they must be recognized as a
valuable natural asset as well as an economically important water user (Mathis,
2004a). This study attempts to more fully develop the economics behind
freshwater inflows and ecotourism in order to better inform the ongoing debate
on environmental flows.
Ecotourism in the San Antonio Bay Region
As more and more people have become aware of the ecological treasures
that exist there, ecotourism has developed into a rapidly growing sector of the
regional economy. In fact, tourism is among the top three industries in Texas,
and ecotourism makes up a significant share of total tourism in the state (Dean
Runyan Associates, 2004). One of the most popular ecotourism activities is
birding. Texas is the number one birdwatching state/province in North America,
and various protected areas within the San Antonio Bay offer excellent locations
to view birds and other wildlife.
Ecotourism in the San Antonio Bay can have a significant impact on the local
economy. For example, in 2003 more than 71,000 people visited the Aransas
National Wildlife Refuge to view flocks of migratory birds and other wildlife,
thereby providing the region with an important source of income. Ecotourists
provide business to hotels, nature-tour operators and restaurants located in the
nearby towns of Seadrift, Port Lavaca, Rockport-Fulton, Port Aransas, and
others. Many of the bed and breakfasts attract ecotourists by publicizing their
proximity to birding sites, and in particular, advertise opportunities to view
whooping cranes. They also promote butterfly and wildlife watching. In addition,
various hotels, RV parks, nature tours and outdoor recreation stores advertise
their role in the ecotourism industry and the availability of good birding
opportunities located nearby (Mathis, 2004a).
In 2003, Total Direct Travel spending in Texas was $41.2 billion, ranking
Texas third among all states with a 6 percent share of domestic travel spending
(Only California and Florida have a greater market share). This spending directly
supported 477,000 jobs with earnings of $13.3 billion (Dean Runyan Associates,
2004). Nature-based tourism increased by 63% from 1980 to 1990, making it the
fastest growing sector of the state travel industry. It generates $1 billion in state
taxes, $739 million in local taxes, and $1.4 billion of economic activity.
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