Cesar2000-Economics of Coral Reefs.pdf

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50 40 # incidents 30 20 10 0 J A J O J A J O J A J O J A J O J A J O J A J O Months: 1993–Oct. 1998 Figure 1. Number of monthly incidents of attempted fishing or anchoring within the protected area in Chumbe (1993–1998). in the closed area, as recorded by the park rangers from 1992 to 1998 (see figure 1). As a result of successful management, the coral reef has become one of the most pristine in the region, with 370 species of fish (Fiebig 1995) and over 200 species of reef-building corals, at least 90% of all those recorded in East Africa (Veron, pers.com. 1997). In addition, the coral communities in the sanctuary survived the 1998 bleaching event relatively unscathed. The forest covering the island is one of the last pristine ‘coral rag’ forests in Zanzibar (Beentje 1990) and has now become a sanctuary for the highly endangered Aders’ Duiker (Cephalophus adersi) which is being translocated from the main island of Zanzibar (Unguja) where it is facing extinction from poaching and habitat destruction (Kingdon 1997). The island also has a large population of the potentially endangered Coconut crab (Birgus latro) recorded as ‘data deficient’ in the IUCN Red data book, and had in 1994 a large breeding population of Roseate terns (Sterna dougalli) classified as ‘rare’ (Iles 1995). CHICOP is registered with the World Conservation Monitoring Center (WCMC) and has been chosen for presentation at the EXPO 2000 World Exhibition in Hannover, Germany for its achievements in private conservation area management and the innovative ecoarchitecture of its buildings. The project has won the 1999 British Airways Tourism for Tomorrow Award, both for the Southern Region (comprising the whole of Africa, Middle East, Indian subcontinent) and the world, and after that it has also won the 2000 UNEP Global 500 Award. 5. PROJECT COSTS The original feasibility study of 1991 provided for an investment of little more than US $ 200,000 in order to establish the park and to construct a visitors’ centre and 10 guest bungalows. Revenue for running the park was to be generated with diving, snorkelling, glass-bottomed boat trips, nature trails, overnight accommodation and restaurant services. Payback of the investment was ex- 232 SIBYLLE RIEDMILLER:
pected to start after three years with an internal rate of return (IRR) of 27%. However, unexpectedly three more years had to be spent in negotiating the official gazettement of the island as a protected area, the several management contracts, land lease, licenses and building, research, work and residence permits. Thus, the feasibility study had to be updated in 1994 based on an adjusted project design and more realistic conservation costs, resulting in more than three times the original investment. The projected prices for overnight accommodation had to be doubled. According to Soley (1997), by mid 1997 conservation costs accounted for 52% of the investment realised so far, while 9% had been spent on educational programs (nature trails and information materials). The remaining 39% were used for building the tourism infrastructure (visitors’ centre and seven eco-bungalows). In addition, by then altogether 171 person months of professional volunteer work (154 at senior level) had been contributed to the project, but were not included in the above calculation. An economic analysis in 1998 (Neckening 1998) calculated the overall investment made by then to nearly 1.2 Million US$, out of which 220,000 US$ were grants from a variety of donors for several non-commercial project components. As commercial operations were to start in mid 1998, the objective of this study was to propose a commercially viable price structure for the reserve. The finding was that a net, all-inclusive overnight price (excluding agents’ commission) of US$ 200 per person and an occupancy rate of at least 41% were needed to reach the break-even-point for running costs without capital payback. The grant component of the project costs had not been included here. Presently, in the second year of commercial operations, the Chumbe project still receives less than this amount per guest and has a lower occupancy rate than required. Thus, the project is maintained with very costconscious operations and has required the continued volunteer work of the owner and other expatriate management staff. A recent update of the feasibility study based on nominal costs (not including volunteer work and opportunity costs) produced an IRR of 9% and a capital payback period 7 years. This is certainly less than what most investors in tourism facilities in Tanzania would consider attractive. 6. LESSONS LEARNED 6.1 On the Positive Side: Coral Reef Conservation Can Work on the Ground! The Chumbe experience suggests that private management of marine protected areas is technically feasible and efficient, even when government enforcement is not available or is ineffective. This is probably the case for coral reefs that are not yet over-exploited by communities depending on them for their survival, or by commercial fisheries. A private protected area such as Chumbe can provide important community benefits, particularly in capacity building, biodiversity conservation and restocking of fisheries resources. The Chumbe Reef Sanctuary and Forest Reserve provide a safe haven for endangered species and breeding grounds for corals, reef fishes and other marine and forest organisms that are under threat elsewhere. Depleted areas downstream may have seen their fisheries stock enhanced by the Chumbe Sanctuary. The main positive aspects are: ● The hands-on approach to capacity building and monitoring through inexpensive on-the-job-training of local fishers by volunteers has produced very competent and committed park rangers. They are stationed on the island and manage the Reef Sanctuary with no means of enforcement other than persuasion of their fellow fishers. Lacking policing power, the rangers interact with fishers by stressing the role of the protected area as a breeding ground for fish. This has proven very successful. Village fishers now generally respect the park boundaries and report that catches outside the boundaries have increased. Any event or infringement is closely monitored and observations on any major change in the coral reef, such as storm or coral bleaching, are also recorded by the rangers. PRIVATE SECTOR MANAGEMENT OF MARINE PROTECTED AREAS: THE CHUMBE ISLAND CASE 233
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
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Table 2. Variables Used in the Econ
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Table 3. Tied P-Values for Differen
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as, lagoons and coral reefs were pe
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Table 5. Results of the Econometric
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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 220 and 221: Table 4. Current (1999) annual net
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 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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