Values Associated with the Local Use of the Montego Bay Marine Park. as a component of Marine System Valuation: An Application to Coral Reef Systems in the Developing Tropics

Values Associated with the Local Use of the Montego Bay Marine Park. as a component of Marine System Valuation: An Application to Coral Reef Systems in the Developing Tropics

Primary Country: Jamaica
Ecosystem: multiple
Sample Value Estimates:
NPV of coastal protection in Montenego Bay at
  1. $130.0 million:5% discount rate
  2. $43.3 million: 15% discount rate; NPV of recreation and tourism in Montenego Bay at
  3. $630 million: 5% discount rate
  4. $210 million: 15% discount rate, NPV of nearshore fishery in Montenego Bay at
  5. $2.92 million: 5% discount rate
  6. $0.815 million: 15% discount rate
  7. $1.66 - 7.49 million (1996$): NPV fishing at Montego Bay's coral reefs
  8. $65 million /year: Annual value of coastal protection of Montego Bay's reefs (NPV of 250 acres of land protected from erosion by the coral ree
Region: Americas
Data source: Primary, Consvalmap.org, NOAA's Coral Reef Database

Publication information

Gustavson, K. “Values Associated with the Local Use of the Montego Bay Marine Park. as a component of Marine System Valuation: An Application to Coral Reef Systems in the Developing Tropics” World Bank, 1998

Addtional Notes

Fisheries / Tourism / Coastal Protection / Coral Reefs / Net Present Value / Economic Valuation In this study, net present value is estimated for two direct uses (tourism and fishing) and one indirect use (coastal protection). The three values estimated use different data sources and the methodologies are modified, based on information available for each use. In general, the annual net value for each use is calculated and the net present value is estimated using a range of discount rates for fishing and tourism. Revenues and costs for firms in the tourism industry are taken from government statistics and a previous study. Fishing is artisanal and largely subsistence in nature. Revenue and costs were taken from a survey of 378 fishers from a previous study. Market values of property protected by the reef are substituted for net present value for coastal protection. Consumer’s surplus associated with tourism is not addressed. A net present value range of $210 to $630 million associated with tourism (with a 15% and 5% discount rate, respectively). This translates to a per person-day NPV of $56 to $318. Ranges of net present values for fishing of -$1.66 to $7.49 million at the 5% discount rate (the range is based on a range of operating revenues from a previous study) and -$741 thousand to $2.37 million at the 15% discount rate. These estimates can be normalized to a (non-weighted) average per fisher of $7,410 to $33,437 for i= 5% and $3,308 to $10,580 for i=15%. Finally a net present value of $65 million is estimated for the coastal protection function based on the average value of land, this translates to $428,000 per acre.

Net present value is estimated. Activities valued include two direct uses (tourism and fishing) and one indirect use (coastal protection). Various data sources are used. Fishing is artisanal and largely subsistence in nature. Revenue and costs were taken from a survey of 378 fishers from a previous study. Market values of property protected by the reef are substituted for net present value for coastal protection.

Montego Bay Marine Park, Montego Bay, Jamaica

Coral reefs, beaches, climate, other attributes (note: the nature of the three uses is such that the value for a different set of resource sets are estimated for each use (e.g. the beach does not contribute to coastal protection, but does contribute to tourism).

Tourism

Existing literature, Government Statistics, Private firms (e.g. real estate agencies and developers for land use).

1998A net present value range of $210 to $630 million associated with tourism (with a 15% and 5% discount rate, respectively). This translates to a per person-day NPV of $56 to $318.

No original data collection for tourism and fishing. Survey of three development firms and an undisclosed number of real estate agents conducted for coastal protection value estimation.

Estimation of net present value using production function theoretical context. In other words, contribution of resource as input to production to value of output in produced good or service.No original data collection

Reviewer: Peter C. Wiley

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