An Economic Analysis of Coral Reef Protection in Negril, Jamaica

An Economic Analysis of Coral Reef Protection in Negril, Jamaica

Primary Country: Jamaica
Ecosystem: coral reef
Sample Value Estimates:
Maximum amount of money visitors to Negril are WTP annually (in addition to current cos
  1. to preserve coral reefs
  2. $31 / person / year : preserve coral reefs as they are
  3. $49 / person / year: to improve them to a quality level where over 90% of the reef's coral are alive and healthy
  4. $5 million / year: aggregate current recreational benefits
  5. $8 million / year: aggregate potential recreational benefits with coral improvement
  6. $121 / person / trip: CS per person per trip
  7. $19,602,000 / year: aggregate annual CS
Methodology: contingent valuation
Region: Americas
Data source: NOAA's Coral Reef Valuation Database

Publication information

Wright, M. G. “An Economic Analysis of Coral Reef Protection in Negril, Jamaica” Williams College, Department of Environmental Studies., 1994

Addtional Notes

Surveyed 240 peopleCollege Senior Thesis

Wright, Matthew G.

5/16/94

"An Economic Analysis of Coral Reef Protection in Negril, Jamaica"Submitted to Williams CollegeContingent valuation/TCM,

This paper approaches the topic of coral reef preservation in Negril, Jamaica, from an economic perspective by determining the economic benefits that would accrue to visitors, and Negril's tourism industry, from the implementation of projects aimed at protecting the town's coral reefs. Contingent valuation and the travel cost method were used to determine: a) the maximum amount of money that visitors to Negril are willing to pay annually to preserve coral reefs at different quality levels

b) the changes in the level of tourism revenue and visitor demand for Negril that would be associated with changes in the quality of the town's coral reefs. Welfare estimate: Visitor WTP=$31 annually (in addition to current costs) to preserve coral reefs as they are

$49 annually to improve them to a quality level where over 90% of the reef's coral are alive and healthy. Visitors receive approximately $5 million annually from the reefs. If the quality was improved, they would receive approximately $8 million in benefits. Consumer surplus (from TCM) = $121. Annual consumer surplus = $19,602,000.

Contingent valuation and the TCM were used on survey data to determine the benefits and costs to tourism revenue of more carefully managing Negril's coral reefs.

Negril, Jamaica

Coral reef

Scuba diving, snorkeling, glass bottom boat, existence value

Survey

1993Visitor WTP=$31 annually (in addition to current costs) to preserve coral reefs as they are

$49 annually to improve them to a quality level where over 90% of the reef's coral are alive and healthy. Visitors receive approximately $5 million annually from the reefs. If the quality was improved, they would receive approximately $8 million in benefits. Consumer surplus (from TCM) = $121. Annual consumer surplus = $19,602,000.

Contingent valuation: questionnaire distributed randomly to visitors in hotels and scuba diving shops. Travel Cost Method: Analysis of information on the cost of travel to Negril annually from the top ten tourist producing states in America and the number of visitors to Negril annually from each state. The cost of airfare, the opportunity cost of time spent traveling to and from Jamaica and the cost of the vacation were all taken into account.

Contingent valuation and TCM-based surveys.

240

General visitor population and scuba divers

Of 240 surveys distributed, 60 were distributed to scuba divers only, 180 distributed to general visitor population. 58% of the scuba divers responded, and 39% of the general population responded. Overall, 105 surveys were returned. 54% male, 46% female. The breakdown of the nationality of the visitors in the sample almost perfectly matched the breakdown of the nationality of the visitors to Negril in general.

Kim Barry

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