Socioeconomic Study of Reefs in Southeast Florida: Palm Beach County

Socioeconomic Study of Reefs in Southeast Florida: Palm Beach County

Primary Country: United States
Ecosystem: coral reef
Sample Value Estimates:
Economic impact of visitors to reefs in Palm Beach County
  1. $228 million: sales / output
  2. $127 million: income. CS values per person-day for those
  3. $13.88 / person / day: fishing
  4. $32.82 / person / day : scuba diving
  5. $14.84 / person / day: snorkelling
  6. $27.85 / person / day: overall. Aggregate annual consumer surplus from
  7. $2.2 million / year : fishing
  8. $22.4 million / year: scuba diving
  9. $1.3 million / year: snorkelling
  10. $26 million / year: overall. Asset value of reef activities with 3% discount rate
  11. $73.3 million: fishing
  12. scuba diving
  13. snorkelling
  14. overall.
Methodology: contingent valuation and IMPLAN input-output model
Region: Americas / Atlantic
Data source: NOAA's Coral Reef Valuation Database

Publication information

Johns, G. M. Leeworthy, V. R.Bell, F. W.Bonn, M. A. “Socioeconomic Study of Reefs in Southeast Florida: Palm Beach County” Florida Fish and Wildlife Conservation Commission, National Oceanic and Atmospheric Administration (NOAA), 2001

Addtional Notes

Person-days (thousands): Fishing 158

Scuba diving 682

Snorkeling 91

All Reef Use 931Report

Johns, G. M.//Leeworthy, V. R.//Bell, F. W.//Bonn, M. A.

10/19/2001

Socioeconomic Study of Reefs in Southeast Florida

Hollywood, Fl: Hazen and Sawyer, P. C., Silver Spring, MD: National Oceanic and Atmospheric Administration, National Ocean Service, Special Projects, and Tallahassee, Fl: Florida State University, Department of Economics and Department of Business, School of Hospitality Administration.255 pp.

coral reefs/natural reefs/economic user values/sales/income/employment/scuba diving/snorkeling/viewing/fishing

The study covered a four-county area off Southeast Florida (e.g., Palm Beach, Broward, Miami-Dade and Monroe) for year June 2000 - May 2001. Estimates of use (measured in person-days), economic impact/contribution (sales/output, income, employment), and consumer's surplus or economic user value (annual value and per person per day) were made separately by type of reef (artificial vs. natural--primarily coral), type of user (resident of county versus nonresident of county), and type of activity (fishing, scuba diving, snorkeling and glass-bottom boat rides). Consumer's surplus estimates are also used to calculate the asset value of the reefs assuming constant flows of annual value and a real discount rate of 3 percent. Demographic profiles of residents and visitors are also presented. For residents of each county, questions were also asked about the support for "no take areas". The report includes an Executive Summary with summary comparisons across counties. Chapter 1 is an Introduction that briefly explains the various surveys and samples. Chapter 2 provides a more detailed across county comparison. Chapters 3-6 provide details on each County (each County has it's own Chapter). Consumer’s surplus estimates (willingness to pay) were estimated separately for existing artificial reefs, existing natural reefs and for new artificial reefs. Methodologies Economic User Values Visitors to each county were first provided background information about different reef protection programs. They were then asked about their recent use of reefs in Southeast Florida, then asked for their willingness to pay for the natural reef program. If the respondent was not willing to pay, a follow-up question was asked for their reason to assess protest bids. Local and state government agencies are considering different approaches to maintaining the health and condition of natural and artificial reefs in Southeast Florida. One plan focuses on providing greater protection for Natural reefs by maintaining water quality, limiting damage to natural reefs from anchoring, and preventing overuse of the natural reefs. A second plan focuses on protecting the artificial reefs by maintaining water quality, limiting damage to artificial reefs from anchoring and preventing overuse of the artificial reefs. Both of these plans will involve increased costs to local businesses that will ultimately be passed on to both residents and visitors in Southeast Florida. We are doing this survey because local government agencies want to know whether you support one, both or none of these plans and if you would be willing to incur higher cost to pay for these plans. Please keep in mind that whether you support these plans or not would not have any effect on your ability to participate in any boating activity or other recreation in Southeast Florida. Southeast Florida includes Palm Beach, Broward, Miami-Dade and Monroe Counties. The Florida Keys are in Monroe County. Over the past 12 months, how many boating trips have you made in southeast Florida to use the: Natural reefs? ________ (Number of trips) Artificial reefs? _____ (Number of trips) Suppose there was a plan to maintain the health and condition of natural reefs in Southeast Florida. First, consider your total costs for your last boating trip in Southeast Florida including travel expenses, lodging, and all boating expenses. If your total costs for this trip would have been $ (randomly assigned dollar amount of $10, $50, $100, $500 or $1,000) higher, would you have been willing to pay this amount to maintain the natural reefs in their existing condition? YES NO If No, reason for saying no. Data was pooled across counties and logit model was used. Although the question asked about the willingness to pay per trip for all Southeast Florida natural reefs, estimates by County were derived by first normalizing to value per person-day for each individual. Sample means by County

Economic User Values Visitors to each county were first provided background information about different reef protection programs. They were then asked about their recent use of reefs in Southeast Florida, then asked for their willingness to pay for the natural reef program. If the respondent was not willing to pay, a follow-up question was asked for their reason to assess protest bids. Local and state government agencies are considering different approaches to maintaining the health and condition of natural and artificial reefs in Southeast Florida. One plan focuses on providing greater protection for Natural reefs by maintaining water quality, limiting damage to natural reefs from anchoring, and preventing overuse of the natural reefs. A second plan focuses on protecting the artificial reefs by maintaining water quality, limiting damage to artificial reefs from anchoring and preventing overuse of the artificial reefs. Both of these plans will involve increased costs to local businesses that will ultimately be passed on to both residents and visitors in Southeast Florida. We are doing this survey because local government agencies want to know whether you support one, both or none of these plans and if you would be willing to incur higher cost to pay for these plans. Please keep in mind that whether you support these plans or not would not have any effect on your ability to participate in any boating activity or other recreation in Southeast Florida. Southeast Florida includes Palm Beach, Broward, Miami-Dade and Monroe Counties. The Florida Keys are in Monroe County. Over the past 12 months, how many boating trips have you made in southeast Florida to use the: Natural reefs? ________ (Number of trips) Artificial reefs? _____ (Number of trips) Suppose there was a plan to maintain the health and condition of natural reefs in Southeast Florida. First, consider your total costs for your last boating trip in Southeast Florida including travel expenses, lodging, and all boating expenses. If your total costs for this trip would have been $ (randomly assigned dollar amount of $10, $50, $100, $500 or $1,000) higher, would you have been willing to pay this amount to maintain the natural reefs in their existing condition? YES NO If No, reason for saying no. Data was pooled across counties and logit model was used. Although the question asked about the willingness to pay per trip for all Southeast Florida natural reefs, estimates by County were derived by first normalizing to value per person-day for each individual. Sample means for each County/Activity/Boat Mode where the logit model identified significantly different values and there were significantly different sample means by County/Activity/Boat Mode. Annual value by County is derived as total person-days of natural reef use by Activity/Boat Mode in the County times the mean value per person-day by Activity/Boat Mode. Economic Impact/Contribution For visitors to Palm Beach, Broward and Miami-Dade counties the IMPLAN input-output model was used. For Monroe County, a model using wages to sales ratios and wages to employment ratios by industry was used to derive direct impacts on income and employment. Keynsian regional multipliers for income and employment were then used to calculate total income and employment impacts.

Palm Beach County in southeast Florida

Natural reefs (primarily coral reefs)

recreational fishing, scuba diving, and snorkeling

On-site survey of visitors

June 2000 - May 2001

Sales/Output (millions 2001 $): $228.2 Income (millions 2001 $): $127.2 Employment (# full and part-time): 3,552

Per Person Per Day: Fishing $13.88

Scuba diving $32.82

Snorkeling $14.84

All $27.85

On-site surveys of visitors.

User Value. Contingent Valuation using discrete choice logit model. Randomly assigned dollar amounts for residents were $10, $50, $100, $500 and $1,000 per trip. Many trips for visitors were multiple day trips. Data was pooled across counties and logit model was used. Although the question asked about the willingness to pay per trip for all Southeast Florida natural reefs, estimates by County were derived by first normalizing to value per person-day for each individual. Sample means by County/Activity/Boat Mode were used when the logit model identified significant differences and sample means were significantly different. Annual values by County/Activity/Boat Mode is derived as total person-days of natural reef use in the County (by Activity/Boat Mode) times the mean value per person-day (by Activity/Boat Mode). Economic Impact/Contribution For visitors to Palm Beach, Broward and Miami-Dade counties the IMPLAN input-output model was used. For Monroe County, a model using wages to sales ratios and wages to employment ratios by industry was used to derive direct impacts on income and employment. Keynsian regional multipliers for income and employment were then used to calculate total income and employment impacts.

490

Boating visitors to Palm Beach County that used reefs.

Visitor survey was stratified by sites based on local knowledge.

Bob Leeworthy

Information provided when available, for more information please visit the original database or PDF.