User-based Financing of Marine Protection in the Maldives

User-based Financing of Marine Protection in the Maldives

Primary Country: Maldives
Ecosystem: coral reef
Sample Value Estimates:
(a) USD 5,913 per person economic recreational value (b) USD1,549 per person trip value (c) USD 121 per day value. Four travel cost models were used. These results are from "Model 2", a Poisson regression model, which is based only on exogenous trip costs. Model 1, also a Poisson regression model, is based on total trip costs, exogenous and endogenous, and the study found that this model overestimated the recreational use values of resources. Models 3 and 4 are the respective Negative Binomial regression models and are considered the lower bounds of the respective economic values as these estimates are regarded more conservatively than the estimates derived fromt he PSR models. Exogenous travel costs are costs that tourists have no control over. Endongenous costs are costs chosen by tourists.
Methodology: travel cost study
Region: Asia
Data source: South Asian Network for Development and Environmental Economics

Publication information

Bhat, M. Batta, R.Shumais, M. “User-based Financing of Marine Protection in the Maldives” South Asian Network for Development and Environmental Economics (SANEE) Working Paper No. 57-11, 18 pp., 2011

Addtional Notes

This paper focuses on the recreational activiites of tourists visiting the Maldives. Using the model estimated value of USD 121 per day, the total annual surplus benefit was computed at USD 695 million. The 2007 annual environmental expenditure amounts to only 3.98% of the annual recreational benefit. Transferring just 4% of the total annual recreational benefit from visitors as a one-time fee towards environmental conservation and protection would generate USD 27.81 million. This funding level can either replace the existing funding source, or fund additional and new atoll-related environmental protection and regulation. This new source will also lower the dependence on unsustainable overseas environmental financing.

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