Nonmarket Economic User Values of the Florida Keys/Key West

Nonmarket Economic User Values of the Florida Keys/Key West

Primary Country: United States
Ecosystem: coral reef
Sample Value Estimates:
  1. $108.35 / person / day: Per person recreational CS associated with wildlife watching in the Florida Keys
  2. $98.78 / person / day: Economic impact of reef related recreation by residents in Monroe County: average resident spending per day
  3. $401.3 million: Economic impact of reef related recreation by residents in Monroe County: export spending
  4. $94.3 million: Economic impact of reef related recreation by residents in Monroe County total export spending
  5. $105.63 million: Economic impact of reef related recreation by residents in Monroe County export spending output with multipliers
  6. $30.87 million: export spending income
  7. $118.58 / person / day: CS per person per day for snorkelling off the coasts of Florida
Methodology: travel cost
Region: Americas / Gulf of Mexico
Data source: National Ocean Economics Program

Publication information

Leeworthy, V R. Bowker, J. M. “Nonmarket Economic User Values of the Florida Keys/Key West” National Oceanic and Atmospheric Administration (NOAA), National Ocean Service (NOS), Forest Service, Outdoor Recreation and Wilderness Assessment Group. , 1997

Addtional Notes

KEYWORDS: tourists/visitors/user value/consumer's surplus/travel cost/Sanctuary/Florida Keys

This report is part of the project "Linking the Economy and the Environment of the Florida Keys/Florida Bay and estimates serve as baselines for the Socioeconomic Monitoring Program for the Florida Keys National Marine Sanctuary (FKNMS). The report includes estimates of nonmarket economic use values for visitors to the FKNMS. Estimates of value are for the total trip and cannot be used for direct coral reef valuation. Estimates of value can be interpreted as the use value for the entire ecosystem. The report attempts a first order approximation by allocating total use value by activity according to the distribution of person-days across activities. Those activities that depend on natural resources are used to derive the use value associated with the natural resources of the area. Activities such as swimming in outdoor pools, visiting historic areas and visiting museums have values labeled non natural resource based values. Methodology Separate Truncated Negative binomial models were estimated for the summer and winter season visitors. Summer and winter models were significantly different and yielded significantly different values. Both intercept and slope dummies were tested for factors such as length of trip, activity, race/ethnicity and if the person had a substitute site. For the summer model, race/ethnicity (person was Hispanic) was significant both as an intercept and slope dummy. For the winter model, intercept and slope dummies were significant for day trippers. For both the summer and winter models, length of trip, years of experience visiting the Florida Keys, age, and income were all significant variables. Also, whether the person had a substitute site or were Hispanic were significant intercept dummies. Estimated models yielded values per person-trip. Per person-trip values by season were then multiplied by aggregate numbers of person-trips by season to yield estimates of aggregate value by season. Addition of the two seasons yields aggregate annual values. Values were normalized to per person-day by dividing total value per season by the total person-days by season. This yielded estimates of $97 per person-day for the summer season and $77 per person-day for the winter season with a weighted annual average of $87 per person-day. Person-trips: Summer 952,956

Winter 889,651

Annual 1,842,607 Consumer's Surplus Per Person-trip: Summer $740.52

Winter $561.19

Annual $653.94 Annual Consumer's Surplus: Summer $705,681,844

Winter $499,946,309

Total $1,204,946,153 Person-days Natural Resource Based Activities (thousands): Summer 5,595.8

Winter 4,806.3

Total 10,402.1 Person-days Non Natural Resource Based Activities (thousands): Summer 1,711.7

Winter 1,675.2

Total 3,386.9 Annual User Value - Natural Resource Based Activities (Millions $): Summer $540.341

Winter $370.204

Total $910.545 Annual User Value - Non Natural resource Based Activities (Millions $): Summer $165.341

Winter $129.060

Total $294.401 Asset Value (constant annual value into perpetuity using a 3 percent real discount rate): Natural Resource Based Activities (Billions $): $30.4 Non Natural Resource Based Activities (Billions $): $9.8 All Activities (Billions $): $40.2

Visitors (nonresidents of Monroe County Florida) nonmarket economic use value for the Florida Keys National Marine Sanctuary. Values estimated using a travel cost models. Separate models were used for the summer and winter samples of visitors. Truncated negative binomial models were used to account for the fact that only those that had made at least one visit are included in the sample of visitors (on-site survey). Because the travel cost model can only support estimation of the total value of the trip, the model cannot be directly used to value particular habitats. Instead, the authors attempt a first order approximation by distributing total annual value by the annual number of days spent in each activity. Activities were divided into natural resource based activities and non natural resource based activities.

Monroe County Florida (Florida Keys National Marine Sanctuary)

All habitats in the Florida keys National Marine Sanctuary (10-15 percent coral reef, 85-87 percent sea grasses, and 3-5 percent other).

All Activities

On-site survey of visitors to Monroe County, Florida -- Florida Keys.

June 1995 - May 1996Per Person-day: Summer $97

Winter $77

Annual Average $87

On-site survey

Visitors (nonresidents of Monroe County Florida) nonmarket economic use value for the Florida Keys National Marine Sanctuary. Values estimated using a travel cost models. Separate models were used for the summer and winter samples of visitors. Truncated negative binomial models were used to account for the fact that only those that had made at least one visit are included in the sample of visitors (on-site survey). Because the travel cost model can only support estimation of the total value of the trip, the model cannot be directly used to value particular habitats. Instead, the authors attempt a first order approximation by distributing total annual value by the annual number of days spent in each activity. Activities were divided into natural resource based activities and non natural resource based activities.

4035

Visitors to the Florida Keys

Sample was stratified by season (summer: June-November and winter: December-May), region (Upper Keys, Middle Keys, Lower Keys and Key West) and sites within regions using local knowledge to get representative sample. This sample was then compared with a sample of visitors stratified by season and mode of access to the Florida Keys (auto, air and cruise ship). Local knowledge was successful in yielding representative samples since theior were no statistically significant differences between the two samples.

Bob Leeworthy

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