Using Integrated Coastal Management and Economics to Conserve Coastal Tourism Resources in Sri Lanka

Using Integrated Coastal Management and Economics to Conserve Coastal Tourism Resources in Sri Lanka

Primary Country: Sri Lanka
Ecosystem: coral reef
Sample Value Estimates:
Recreational value of Hikkaduwa beach and reef in Sri Lanka
  1. $5.12: reef access WTP estimate
  2. $0.75: beach access WTP
  3. $54,000-$167,000 : aggregrate CS
  4. $5.6 million: NPV of implementing an integrated coastal management plan for a marine sanctuary in Hikkaduwa, Sri Lanka over 20 years
Methodology: travel cost
Region: Asia / Indian Ocean
Data source: NOAA's Coral Reef Valuation Database

Publication information

White, A.T. Barker, V.Tantrigama, G. “Using Integrated Coastal Management and Economics to Conserve Coastal Tourism Resources in Sri Lanka” Ambio , 1997

Addtional Notes

KEYWORDS: coastal zone management, cost-benefit analysis, economic valuation, Sri Lanka This paper analyzes the costs and benefits of implementing an integrated coastal management plan for a marine sanctuary in Hikkaduwa, Sri Lanka. The study outlines financial, socioeconomic, and environmental policies to improve the sustainable management of the coastal resources. The authors note that without improved management, the desirability of the area as a tourism destination will decline dramatically. An economic appraisal of the impacts of the management plan options is used to compare the net economic benefits compared to other investment options. Based on projected tourism growth rates over a 20 year period with the implementation of improved management practices, it is estimated that the net present value of the benefits of the plan will be approximately $5.6 million, far surpassing the projected costs to implement the management plan. Average tourist expenditure is $32/day. With an estimated 311,726 tourist guest nights per year, total gross tourism expenditure is approximately $10 million. Reef access WTP estimate: $5.12 (Vaartjes and Witvilet (1995))

Beach access WTP estimate: $0.75

Aggregrate 1994 consumer surplus for Hikkaduwa beach and reef ranges from $54,000-$167,000.

The negative environmental impacts of excessive coastal tourism development is common place around the world. This study uses a cost-benefit framework to analyze the costs of implementing a stronger management plan versus the benefits gained from increased protection. The economic methodology used in this paper may be appropriate for other cost-benefit studies of coastal management actions.

Hikkaduwa, Sri Lanka

coral reefs, beaches,

Beach tourism, reef tourism

Four field surveys: De Alwiss (1993) 168 Hikkaduwa businesses

Tantrigama (1993) 122 randomly selected foreign visitors

Vaartjes and Witvilet (1995) 96 foreign tourists willingness to pay estimates for beach and coral protection

White et. al (1995) survey count of reef users.

1993-1995

Average tourist expenditure is $32/day. With an estimated 311,726 tourist guest nights per year, total gross tourism expenditure is approximately $10 million.

Reef access WTP estimate: $5.12 (Vaartjes and Witvilet (1995))

Beach access WTP estimate: $0.75

Aggregrate 1994 consumer surplus for Hikkaduwa beach and reef ranges from $54,000-$167,000.

In person surveys

Contingent valuation

0Random

Toben E. Galvin

Average tourist expenditure is $32/day. With an estimated 311,726 tourist guest nights per year, total gross tourism expenditure is approximately $10 million. Journal Article

White, Alan T., Barker, Virginia., Tantrigama, Guanatilake

September, 1997

Using Integrated Coastal Management and Economics to Conserve Coastal Tourism Resources in Sri LankaAmbio

26

6

Royal Swedish Academy of Sciencescoastal zone management, cost-benefit analysis, economic valuation, Sri Lanka

This paper analyzes the costs and benefits of implementing an integrated coastal management plan for a marine sanctuary in Hikkaduwa, Sri Lanka. The study outlines financial, socioeconomic, and environmental policies to improve the sustainable management of the coastal resources. The authors note that without improved management, the desirability of the area as a tourism destination will decline dramatically. An economic appraisal of the impacts of the management plan options is used to compare the net economic benefits compared to other investment options. Based on projected tourism growth rates over a 20 year period with the implementation of improved management practices, it is estimated that the net present value of the benefits of the plan will be approximately $5.6 million, far surpassing the projected costs to implement the management plan. Average tourist expenditure is $32/day. With an estimated 311,726 tourist guest nights per year, total gross tourism expenditure is approximately $10 million. Reef access WTP estimate: $5.12 (Vaartjes and Witvilet (1995))

Beach access WTP estimate: $0.75

Aggregrate 1994 consumer surplus for Hikkaduwa beach and reef ranges from $54,000-$167,000.

The negative environmental impacts of excessive coastal tourism development is common place around the world. This study uses a cost-benefit framework to analyze the costs of implementing a stronger management plan versus the benefits gained from increased protection. The economic methodology used in this paper may be appropriate for other cost-benefit studies of coastal management actions.

Hikkaduwa, Sri Lanka

coral reefs, beaches,

Beach tourism, reef tourism

Four field surveys: De Alwiss (1993) 168 Hikkaduwa businesses

Tantrigama (1993) 122 randomly selected foreign visitors

Vaartjes and Witvilet (1995) 96 foreign tourists willingness to pay estimates for beach and coral protection

White et. al (1995) survey count of reef users.

1993-1995

Average tourist expenditure is $32/day. With an estimated 311,726 tourist guest nights per year, total gross tourism expenditure is approximately $10 million.

Reef access WTP estimate: $5.12 (Vaartjes and Witvilet (1995))

Beach access WTP estimate: $0.75

Aggregrate 1994 consumer surplus for Hikkaduwa beach and reef ranges from $54,000-$167,000.

In person surveys

Contingent valuation

0Random

Toben E. Galvin

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