Cesar2000-Economics of Coral Reefs.pdf

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Table 4. Current (1999) annual net revenues per hectare of wetland (mangrove and other) on Olango Island Resource use Production range Potential annual net revenue (US$) (range) Per hectare Per hectare Total Sustainable wood harvest a (average from 424 ha of mangroves) 3–4 cubic metres 36 – 48 15,260– 20,350 Sustainable fisheries b (mangrove associated species) 600–750 kg 480 –600 203,500–254,400 Tourism c (for 920 ha sanctuary) (entry through DENR visitor centre) 2.2–2.7 persons 13.2– 16.2 12,144– 14,904 Tourism d (for 920 ha sanctuary) (entry through Olango Bird and Seascape Tour) 0.4–0.5 persons 7.2– 9.0 6,624– 8,280 Tourism e (for 920 ha sanctuary) (off-island expenditures for bird tour guests) 2.5–3 persons 120 –144 110,400–132,480 Total 656.4–814.2 Mangrove production 218,780–274,750 Tourism to sanctuary 129,168–155,664 Total revenue from wetland area 347,948–430,414 a Average revenue of US$ 12/m 3 of wood after production costs (Schatz 1991). b Average market price of US$ 0.80 of mangrove associated fish after production costs (Schatz 1991). c Average expenditure of US$ 10/person including fee, local transport and food assuming 60% profit margin. d Average expenditure of US$ 30/person including boat transport and food assuming 60% profit margin. e Average expenditure of US$ 80/person/day staying on Mactan Island assuming 60% profit margin. million for the entire 40 km 2 Olango Island coral reef area is significant and reflects the relatively large expanse of coral reef compared to island land area. It also reflects the large amount spent to stay on Mactan Island while making day visits to Olango. It should also be noted that no ‘potential’ or ‘indirect’ benefits or revenues are included. Such indirect benefits and other revenue streams such as fees, taxes, donations or simply more scuba divers would be possible with more active management and promotion of the area as a quality diving destination with better reefs. 3.2 Wetland areas other than coral reefs (mangrove and mudflats) Olango Island is unusual because in addition to its diverse coral reef habitats, it has productive mangroves and mudflats that attract significant numbers of migratory birds travelling along the East Asia Migratory Flyway twice a year. The economic values and benefits derived from these areas are distinct from those associated with reefs and are dealt with separately. In the Philippines, various studies have shown that the direct and measurable sustainable benefits from mangroves come in the form of fish catch and wood harvested. These annual net revenues are slightly more than US$ 600 per hectare for fairly marginal, not pristine stands of mangroves, from two net revenue streams from wood products (US$ 90) and fishery products (US$ 538) (Schatz 1991; White & Cruz-Trinidad 1998). A summary of mangrove ecosystem value averages from the around the world by Costanza et al. (1989) is much 222 ALAN T. WHITE, MICHAEL ROSS & MONETTE FLORES:
higher at US$ 3,294 per hectare per year but will not be used because there is no supporting research for Philippine mangroves other than benefits measured with market values. In addition to the potential revenue derived from the mangroves on Olango is tourism supported by the bird habitat of the associated mangrove mudflats and the protected and unpopulated areas of the OIWS. This is based on the average annual number of visitors and what they spend as shown in table 4. The range of annual net revenues from these wetland resources is also significant and can be factored into management planning for the island. 4. COSTS OF MANAGEMENT FOR LOCAL GOVERNMENT AND COLLABORATORS Olango Island is attracting increasing attention because of its ‘potentially’ rich resource base; however, increasing tourism and resource use conflicts indicate the need for improved coastal resource management. There are ongoing projects to assist the local governments with planning and conservation activities affecting both the reef and wetland systems and the people that use these resources. A framework for the coastal resource management (CRM) process in Olango includes an island-wide management committee, zoning for resource use, law enforcement, environmental education, community-level assessments and planning, and provision for sustainable tourism development. This CRM process for Olango is long-term and involves a number of parallel activities that engage local residents, their government and other stakeholders in implementation. Although these ongoing activities do not require large investments of budget, they require continued support and proper technical guidance and mentoring through local and national government institutions. Investment for infrastructure is required for the OIWS to maintain the visitor centre, as well as planned tourist reception areas and the necessary boats and equipment for local law enforcement. The annual costs required for management to improve and maintain the condition of the coral reefs and wetland areas of Olango Island are summarised in table 5. Table 5. Estimated annual costs required to support coastal resource management in Olango Island. Olango Island Wide Management Costs a US$ Resource assessments and monitoring Two reef surveys (2 x US$ 2,000) 4,000 Two wetland surveys (2 x US$ 2,000) 4,000 Community organising 4 CO’s full-time working with communities (US$ 4,000/person/year) 16,000 Education and training 12 Seminars 12,000 Education and training materials 3,000 Law enforcement 1 full-time patrol boat, crew and maintenance 10,000 Information dissemination Weekly radio broadcasts 2,000 12 Public meetings 6,000 Visitor centres (2) (annualised over 10 years) 3,000 Planning activities 1 full-time CRM planner and technical guide 6,000 4 Planning workshops (US$ 1,000/workshop) 4,000 Total 70,000 Gilutongan Marine Sanctuary (1 km 2 ) US$ Operations and Maintenance Costs b Reef surveys, monitoring and buoy maintenance 2,000 Community organising 3,500 Education and training 3,500 Planning and resource centre (annualised over 10 years) 1,000 Law enforcement (small patrol boat) 3,000 Information dissemination 2,000 Planning and operation 1 full time Project Director (on site) 3,000 Honorarium for part time community staff 3,000 Municipal LGU staff and advisory group support 1,000 Total 21,000 a This amount is intended to cover the Olango Island complex and considered to be a minimal amount to maintain the area. The actual expenditures of the two LGUs combined is currently about US$ 6,000/year. The average CRM expenditures in the 29 LGUs that the Coastal Resource Management Project is directly involved with in the Philippines is US$ 5,000/year. The actual annual expenditure of the CRMP for Olango Island management in addition to the LGU expenditures is US$ 65,000 plus overhead costs. In addition, the LGUs do collect some taxes to offset expenses such as US$ 500 from the Nulusuan Resort in 1999. b This amount is intended to support active management of the marine sanctuary, an area that is more heavily used than the larger Olango Island-wide reef area. BENEFITS AND COSTS OF CORAL REEF AND WETLAND MANAGEMENT, OLANGO ISLAND, PHILIPPINES 223
Page 2 and 3:
Collected Essays on the Economics o
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Table of Contents Acknowledgements
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Foreword Corals and coral reefs hav
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● ● ● ● assessing the threa
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fishing is lucrative from the indiv
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Coral Reefs: Their Functions, Threa
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Table 1. Ecosystem functions and co
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Figure 1. Yield of Trochus Shells i
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Figure 2. Total Economic Value and
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Table 3. Total Net Benefits and Los
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Table 5. Valuation Techniques used
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people live from the Park, the high
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duction or logging) would have an e
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Hatcher, B. G., Johannes, R. E., &
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Thorhaug, A., (1992) “Oil Spills
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Authors Threats Mgt. Description Is
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Page 36 and 37:
Page 38 and 39:
Assessing the Benefits of Improving
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2.2 Coral Reef Quality Change and t
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Five groups were given and the resp
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The total sample mean was similar a
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one of the five categories were nex
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4.4 Protecting Rights and the Desir
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able for tourists versus locals was
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problem that where respondents are
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turists who regularly handle soil e
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expanding tourist industry based on
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ism and fisheries. Logging activiti
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Table 2. Fisheries gross revenue an
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an ‘Environmentally Critical Area
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25,000 20,000 15,000 10,000 5,000 0
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sized animals — even at the most
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greater willingness among environme
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stroyed was 7.5 fish times 0.19 ope
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were affected by cyanide squirts fo
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Russ, G. R., (1991) “Coral reef f
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eefs that are not too remote, can n
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Table 2. Estimated net income (US$/
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Table 4. Results of base case and t
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ating the destruction of its coral
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creased. Besides these direct effec
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3. ECONOMIC ANALYSIS: SOCIETAL COST
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3.2 Case Study 2: Sri Lanka The soc
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A first difference between the two
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Coral Bleaching in the Indian Ocean
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leaching occurred in the Maldives,
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months after the coral bleaching ev
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Level of importance 35 30 25 20 15
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trols. What is useful from the data
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most disappointing: food and bevera
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REFERENCES Anderson, R. C., Waheed,
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also seem capable of providing many
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Table 1. Summary of Findings of Eco
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Table 2-A. Summary Table of Bioecon
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lation for the spawning stock abund
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3.2.1 DENSITY-DEPENDENT MIGRATION M
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3.2.3 DENSITY-DEPENDENT AND UNI-DIR
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4.2 Habitat Protection A critical a
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REFERENCES Alcala, A. C., (1989)
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Russ, G. R., & Alcala, A. C., (1996
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poses of this review, the mechanism
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Supervision and training of labour
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Table 1. Comparison of restoration
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elating to the case studies. Recrea
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Value of reef products and services
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Fitzharding, R. C., & Bailey-Brock,
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1995). Global annual retail value o
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Table 1. Market Prices in Hong Kong
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2.3 Recent Trends The Asian financi
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destructive, since corals are often
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(input factors are indicated by blu
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Table 2. Challenges of grouper cult
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stages when natural mortality is hi
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STRENGTHEN ENFORCEMENT AND MONITORI
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32 Several efforts along these line
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Jones, R., (1997) “Effects of Cya
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▲ An Economic and Ecological Anal
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The Park was re-established and rev
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associated with dive tourism and th
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Apparent stress threshold B A S 1 P
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A Comparative Study of Socio-Econom
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Table 1. Key Site Characteristics C
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Level Target Respondent Information
Page 170 and 171: Table 2. Variables Used in the Econ
Page 172 and 173: Table 3. Tied P-Values for Differen
Page 174 and 175: as, lagoons and coral reefs were pe
Page 176 and 177: Table 5. Results of the Econometric
Page 178 and 179: ties may not reveal their true perc
Page 180 and 181: Salafsky, N., Cordes, B., John Park
Page 182 and 183: ICZM guides jointly the activities
Page 184 and 185: such as alternative means of beach
Page 186 and 187: 2.3.2 CONTRIBUTIONS TO UTILITY —
Page 188 and 189: marginal benefit function, relating
Page 190 and 191: the type of use, are not linked to
Page 192 and 193: 4. FUTURE DIRECTIONS FOR DECISION S
Page 194 and 195: Huber, R. M., & Jameson, S. C., (19
Page 196 and 197: Appendix. Economic valuation studie
Page 198 and 199: Ecosystem and Approach ____________
Page 200 and 201: Ecosystem and Approach ____________
Page 202 and 203: Contemporary national development p
Page 204 and 205: The PBPA contains four prominent ex
Page 206 and 207: 5. INTERACTIONS BETWEEN ECOSYSTEM S
Page 208 and 209: Table 2. Categories of Ecosystems i
Page 210 and 211: MEY shows the enormous level of ove
Page 212 and 213: the ecosystem together. The total (
Page 214 and 215: ▲ tourism, coastal protection and
Page 216 and 217: has dramatically decreased from abo
Page 218 and 219: seaweed per year is generating abou
Page 222 and 223: The essential activities that can e
Page 224 and 225: their overall economic benefit to i
Page 226 and 227: Private Sector Management of Marine
Page 228 and 229: ety of important conservation and o
Page 230 and 231: 50 40 # incidents 30 20 10 0 J A J
Page 232 and 233: ● Investment security is reduced
Page 234 and 235: onmental practices, and therefore t
Page 236 and 237: 7.4 NGOs Are Not Always Accountable
Page 238 and 239: Sterner, T, & Andersson, J., (1998)
Page 240 and 241: perfect but not completed and origi
Page 242: Jeff Muller, Economist, World Bank,
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