Philippine Coral Reefs Under Threat: The Economic Losses Caused by Reef Destruction

Philippine Coral Reefs Under Threat: The Economic Losses Caused by Reef Destruction

Primary Country: Philippines
Ecosystem: coral reef
Sample Value Estimates:
  1. almost $ 1 billion / year: Annual contribution of small scale fisheries to the economy of the Philippines
Methodology: revenue data
Region: Asia
Data source: NOAA's Coral Reef Valuation Database

Publication information

White, A.T. Vogt, H.P.Arin, T. “Philippine Coral Reefs Under Threat: The Economic Losses Caused by Reef Destruction” Marine Pollution Bulletin , 2000

Addtional Notes

From the NOAA Database: Healthy coral reefs can produce 20 t or more of fish and other edible products per sq. km per year, while degraded reef produces 4 t/km2/yr. Academic Study

White, Alan T.

Vogt, Helge P.

Arin, Tijen.

July 2000

"Philippine Coral Reefs Under Threat: The Economic Losses Caused by Reef Destruction."Marine Pollution Bulletin

40

7

Nuffield Press

Great Britain

598-605

Coral reefs/economic values/Philippines/reef destruction/reef conservation

In the Philippines, coral reef fisheries provide livelihood for more than a million small-scale fishers who contribute almost US$ 1 billion annually to the country's economy. The rapidly growing population needs increasing amounts of fish and other marine organisms. However, overfishing, destructive fishing methods and sedimentation have damaged or destroyed many reef areas. Fish catches have fallen well below the sustainable levels of healthy reefs. The economic losses to the coastal fishing population are considerable. Various programs have and are trying to counter coral reef decline by establishing sustainable management regimes. The economic benefits of such programs appear to exceed their investment costs. As an example, the start-up and maintenance costs of a successful island marine reserve project have been compared to the losses caused by reef destruction and the gains from reef management. The results clearly show that the economic benefits from a managed reef area due to higher catches and revenue from small-scale tourism far exceed costs. Coral reefs are also a major attraction for an increasing number of local and international tourists. In addition to providing income for the tourism industry, these reef visitors are often willing to contribute to the costs for reef management. The annual willingness-to-pay assessed in three popular diving destinations are significant. An estimated US$300,000 could be collected annually as entrance fees or donations in Mabini, Batangas alone. It is estimated that the 27,000 km2 of reef in their degraded condition still contribute at least US $1.35 billion annually to the economy. Reef management involving local fishing communities, local governments and other concerned organizations is a cost-effective way to alleviate the pressure on the numerous threatened coral reefs. In addition, economic valuation and cost-benefit analysis can provide essential information to support more investment in reef conservation. Healthy coral reefs can produce 20 t or more of fish and other edible products per sq. km per year, while degraded reef produces 4 t/km2/yr.

NPV of benefits per km2 from blast fishing to individuals over 25 years (using a 10% discount rate) is $US 14,600 with a loss of $400,000 to tourism potential, $US 190,000 from loss of coastal protection and US$108,000 from foregone sustainable fishery income. Sustainable fisheries (local consumption): 10-30 t =annual revenue range $15,000-45,000

Sustainable fisheries (live fish export): .5-1 t = annual revenue range $5,000-10,000

Tourism (on-site residence): 100-1000 persons= $2,000-20,000

Tourism (off-site residence): 500-1000 persons = $2500-5,000

Coastal protection (prevention of erosion): 5000-25,000/km/yr of reef front beach. Welfare estimate: WTP: 600-1000 persons - $2,400-8,000

Overview of the problem of coral reef degradation using valuation studies. The approximate economic losses being incurred from the destruction of coral reefs as well as the potential economic gains from reef management are presented in this paper.

Various--mainly Philippines

Coral reef

Tourism, fishing

Other studies

Various

Healthy coral reefs can produce 20 t or more of fish and other edible products per sq. km per year, while degraded reef produces 4 t/km2/yr.

NPV of benefits per km2 from blast fishing to individuals over 25 years (using a 10% discount rate) is $US 14,600 with a loss of $400,000 to tourism potential, $us 190,000 from loss of coastal protection and US$108,000 from foregone sustainable fishery income. Sustainable fisheries (local consumption): 10-30 t =annual revenue range $15,000-45,000

Sustainable fisheries (live fish export): .5-1 t = annual revenue range $5,000-10,000

Tourism (on-site residence): 100-1000 persons= $2,000-20,000

Tourism (off-site residence): 500-1000 persons = $2500-5,000

Coastal protection (prevention of erosion): 5000-25,000/km/yr of reef front beach. Welfare Estimate: WTP: 600-1000 persons - $2,400-8,000.

WTP: 600-1000 persons - $2,400-8,000

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Kim Barry

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