van Beukering, P.

Highlights

• Study presents the first economic valuation of a Caribbean island coastal lagoon.

• A choice experiment embedded in a larger household survey is used for the valuation.

• The Simpson Bay Lagoon provides many valuable ecosystem services to local people.

• Findings illustrate that the lagoon is currently worth $12.1 million per year.

• Mangrove restoration and improved sewage treatment raise value up to $26.3 million.

Like many Caribbean coastal ecosystems, the Simpson Bay Lagoon in Saint Martin suffers from heavy development, wastewater pollution, and overexploitation. These pressures have severely degraded its ecological integrity, causing significant environmental impact as well as negative socio-economic consequences. Local livelihoods depend on important ecosystem services provided by the Simpson Bay Lagoon, such as storm protection and water purification. A major cause for the continued degradation of the Simpson Bay Lagoon is that decision-makers undervalue these ecosystem services. This study conducts an economic valuation of the Simpson Bay Lagoon to solve this undervaluation, providing the first economic valuation of a Caribbean island coastal lagoon. To estimate the economic value of the Simpson Bay Lagoon, this paper employs a choice experiment, which is embedded in a larger household survey among residents of Saint Martin. The findings of the choice experiment reveal that the Simpson Bay Lagoon in its current environmental state is worth US$12.1 million per year to the residents of Saint Martin. Besides an economic valuation, this paper also scrutinizes the welfare benefits of improved environmental management. Two environmental management scenarios are evaluated: the installation of a sewage treatment plant and mangrove restoration. The installation of a sewage treatment plant would enhance the annual economic value to US$16.5 million, mangrove restoration to US$23.0 million, and the implementation of both measures to US$26.3 million. Hence, ameliorating the ecological integrity of the Simpson Bay Lagoon through improved environmental management proves to be a promising venture for the environment, society, and economy of Saint Martin.

Governments around the world are taking an interest in the measurement of well-being to improve their policy decisions. Aruba has started the process of implementing and localizing the United Nations Sustainable Development Goals in order to measure progress that contributes to overall well-being of its citizens. One of the main pillars of Aruba’s economy is the tourism industry since it provides the main source of employment and income to many citizens on the island. The island is currently home to approximately 115,000 residents and more than 1.6 million tourists visit the island every year (CBS). The total contribution of the tourism industry (including wider effects from investment, supply chain and induced income impacts) was US$ 2,434.5 million in 2016, which accounted for 88.1% of Aruba’s GDP (WTTC, 2017). But even more important, the total contribution of the tourism industry to employment in 2016 was 89.3% of the total employment on Aruba. Most tourists on Aruba visit the island for its beaches and the marine environment, so the perceived quality of the tourist experience and the return rate to the island depend on the quality of the natural environment. Stated differently; the local economy including the employment of many citizens working in the travel and tourism industry on the island strongly depends on the quality of Aruba’s nature. This report determines the monetary value of the natural environment, the Natural Capital, relevant for the tourism industry on Aruba using the market price method within the environmental economics approach.

Touristic expenditures and ecosystems dependency ratios are obtained by conducting a tourist exit survey (n=584). Not all tourist expenditures and activities are for 100% attributable to an ecosystem. There is a distinction between tourist expenditures that are partly attributable to ecosystems (e.g. accommodation) and tourist expenditures that are fully attributable to ecosystems (e.g. diving); the ecosystem dependency ratio accounts for this difference. The total value of tourist expenditures that can be related to Natural Capital (i.e. gross annual value of Natural Capital) is estimated at US$ 564 million. The part of the value added created in the tourism industry that can be attributed to the natural environment of Aruba is estimated at US$ 269 million.

On top of that, the total willingness-to-pay (WTP) by tourists for enhanced nature protection on Aruba is examined using the contingent valuation method. During the same tourist exit survey respondents were asked directly how much they are willing to pay for enhanced nature protection on the island. Based on the mean of these stated WTP’s the total estimated WTP for nature protection by tourists visiting Aruba is US$ 10.6 million per year. This total WTP is a hypothetical monetary value and might be interpreted as the potential extra benefits of Aruba’s ecosystems for the local economy, provided that the money is spent on nature protection.

It is important to note that the environmental economics approach takes an anthropocentric view. Something will have value only if it provides a service to humans. This is in contrast to the belief that ecosystems and biodiversity have an intrinsic value in itself which justifies their conservation. Economic value is only one dimension of the overall value of nature (Balmford et al., 2011) and in order to integrate other dimensions that cannot be expressed in monetary terms (e.g. intrinsic value, freedom of choice, human rights) other analyses in addition to economic valuation are needed (e.g. livelihoods assessment, vulnerability assessment, capabilities to make choice assessments) (TEEB, 2010).

Finally, to obtain an idea of the spatial distribution around the island of its natural capital value for tourism the report presents value maps of Aruba considering both recreational and aesthetic values. During the same tourist exit survey tourists were asked to state their recreational and aesthetic values around the island. Furthermore, photographs from crowdsourced social media were analysed. According to the results from the tourist exit survey the most important hotspots are Eagle Beach, followed by Palm Beach and California Light House and the dunes. Based on the social media data, considering the perception of both tourists and locals, the most important aesthetic hotspots arethe Natural Bridge, Baby Beach and the California Lighthouse and its surrounding dune area.

The main recreational hotspots are the three white beaches along the western coast of the island (i.e. Malmok, Palm Beach and Eagle Beach).

Aruba’s natural capital value for tourism, culture, fishing and carbon exceeds US$ 287.3 million per year.

ARUBA, an island of 115,000 human inhabitants and a myriad more animals, plants, bacteria and other fantastic organisms, is a gem in the Caribbean Sea. Located in the Lesser Antilles, outside of the hurricane belt, it enjoys a great, calm, warm climate. In combination with beautiful, white beaches, natural mangroves, forests and saliñas, this has turned Aruba into a very popular tourist destination.

Aruba depends on tourism

Direct contributions of tourism account for 28.6% of total GDP. When combined with indirect, this reaches 88.1%, expected to reach97.4% by 2027.

Tourism depends on natural capital

A natural capital assessment of tourist expenditures derived US$ 269 million in value. The growth, employment benefits and economic rewards of the tourism industry are related to Aruba’s environmental attributes.

Environmental degradation could lose 50% of visitors

This report estimates the value of several ecosystem services to residents and tourist on Aruba by answering various research questions about the role of natural capital on the island.

Aruba’s welfare could halve if its marine environment degraded

A tourist exit poll of 584 surveys showed that between 45% and 55% of visitors would not return if there would be terrestrial, marine, or beach degradation.

Half of all 1.6 million visitors also indicated that they were prepared to pay additional fees for improved nature protection on the island.

Tourists are willing to pay US$ 10.3 millionper year

Aruba’s small population relies and depends upon many different services provided by its ecosystems. The small fishing industry on Aruba provides its related natural capital with a value of US$ 4.45 million.

Aruba’s local population values highly its natural surroundings: residents are willing to pay for an increased sized marine protected area. Also, increased fish catch, and natural areas, were indicated as priority services.

Residents willing to pay US$ 3.6 millionfor protection

Whilst the majority of Aruba’s residents are not bothered by the increase in visitors, over 80% of want natural history and cultural heritage to be taught in schools. They want to see a larger share ofgovernment budget going towards nature protection.

Carbon sequestration value on the island is estimated to be worth nearly US$ 109,000 per year. This is largely due to the tropical dry forests in the northwest of the island.

illegal fishing derives over US$ 2.1 millionin natural capital value

Recreational fishing activity on Aruba derives 36% of the value of fishing-related natural capital. However, the largest beneficiary is the illegal industrial fishing industry. Nearly 50% of the value is attributable to foreign industrial fishing in Aruba’s waters.

When considering the size of the tourism sector relative to Aruba’s GDP alongside the sector’s dependency on the environment, it is clear that any development plan must seriously consider the role of natural capital.

Value maps were also created for several services. As seen above, points of recreational interest for local residents are spatially analysed. These can provide input for spatial development plans and conservation programmes.

Quantification of the benefits humans obtain from Marine Protected Areas (MPAs) supports decision-makers by elucidating the link between the functioning of MPAs and human welfare. By conducting a residential household survey among residents in the Cayman Islands, this study assesses people’s willingness to pay for the marine environment from a perspective of cultural and recreational values. In this way the study offers a partial estimation of the total economic value of the marine environment of the Cayman Islands. Two valuation methods are applied: the contingent valuation and the choice modelling method.

Data from 384 household surveys shows that 63% of the respondents are willing to pay for additional management of the marine environment. The average amount that respondents are willing to pay per month for an improvement in a marine protection area ranges between is 12.69 CI$ and 16.55 CI$. The Cayman Islands has approximately 24,165 households, resulting in a range of the total yearly cultural and recreational value of the marine environment of between 3.7 million – 4.8 million CI$ for its residents.

The choice experiment shows that respondents especially value coral reefs and water quality as marine elements. Moreover, households who participate in fishing on average express a higher value for all attributes of marine environment covered in the experiment. The study also shows that residents from Cayman Brac value fish catch significantly more than the other sister islands and that no-take zones are less valued by older residents and people born on the Cayman Islands.

The conclusions from our study concerning public support for expansion of the MPA diverge the findings of an earlier study. While Richardson et al. (2013) concludes that levels of support range from 14% to 47% between the sister islands, our study measured much higher levels of public support ranging between 58% to 85%. Whilst Richardson et al. (2013) used public consultation, geared towards assessing people’s opinions on the intended expansion, the statement within this study was part of a larger survey and a simplification of the proposed changes presented during the public consultation. However, besides the simplification, within this study people might have been primed by previous questions in the survey, which may have led to respondents realizing what trade-offs need to be made in marine conservation.

Finally, this research reveals the presence of an anchoring/ordering effect in the valuation process. Showing respondents the choice experiment first is associated with a higher fraction of the respondents being willing to pay in the contingent valuation, and to respondents being willing to pay more in the contingent valuation, compared to respondents that were shown the contingent valuation question first. 

Since the first sightings of the lionfish in the Caribbean, the local marine ecosystems have experienced severe problems due to predation and competition by this invasive species. Since 2008, the lionfish problem is also present in the coastal ecosystems of the Cayman Islands. In order to manage this ecological threat, The Department of Environment (DOE) of the Cayman Islands requires both comprehensive ecological and economic information. Although ecological research on the lionfish invasion in the Caribbean region is increasing rapidly, socio-economic studies investigating the societal impact of this ecological threat are still rather lacking. This pilot study aims at providing an insight into the potential impacts of lionfish proliferation in the Cayman Islands on the tourism industry by revealing the perception of the lionfish problem by visitors to the Cayman Islands and measure the willingness to pay (WTP) of these tourists for managing this invasive species. These findings provide important information for the final calculation of the overall economic impact of lionfish on the Cayman Islands as well as providing a basis for possible funding schemes for the management of the lionfish problem.

An extensive visitor survey among 326 visitors shows that on average 60% of the respondents are in principle willing to pay (WTP) an environmental fee, managed by a nature organization, which would contribute to management of the lionfish problem. Depending on the valuation method chosen and taking into account the distinct characteristics of stay-over and cruise tourists, the total potential annual contribution of visitors for lionfish management in the Cayman Islands is determined at a minimum of USD8 million and a maximum of USD 26.3 million. From these findings we conclude that the support among visitors to manage the lionfish problem is already substantial but could be further increased by improving communication to visitors about lionfish related issues. 

his thesis is part of the project ‘What is Saba’s nature worth?’ a collaboration between the IVM, VU University Amsterdam and Wolfs Company. The aim of this study is to value the nature of Saba, a small Dutch Caribbean island. This small island faces a number of threats, which can harm the environment. Saba is home to unique ecosystems and its inhabitants have a strong link with their natural environment. The scope of this research is to determine the recreational and cultural value of this natural environment on the island to its residents with the use of economic valuation methods. Saban inhabitants were interviewed, during a household survey, on how much they are willing to pay for nature management on their island. The willingness to pay was determined by a choice experiment conducted as part of the household survey. With the choice experiment, the annual willingness to pay (WTP) per household for additional environmental management can be determined. The analysis shows that more than half of the respondents on Saba are prepared to pay for nature management on the island. The total WTP per year of all Saban residents for additional environmental management is 143,201 USD. This WTP is attributable to the different aspects that are considered in the experiment: the coastal waters, the natural landscape on the island, the Saba Bank and the management of free-roaming goats on the island. All aspects are valued positively by Saban households. The research furthermore creates insight in the perception of Saban residents on the natural environment on their island. 

Tourism is an important source of income for most Small Island Developing States (SIDS), including Saba. This study aims to value the services provided by nature to the tourism industry on Saba. The natural landscape, the coastal waters, the tranquillity and friendly local people are highly appreciated by tourists that visit the island. Healthy ecosystems are therefore crucial to the island. Human activities like development in the tourism industry are relevant to facilitate development of the island, on the other hand, have an impact on the natural environment. In order to fully understand this paradoxical relationship, the economic value of the cultural and recreational ecosystem services to tourists and the economic contribution of nature to the tourism sector on Saba are determined. Transparency about these values and the beneficiaries of ecosystem services can support the local and national government and other stakeholders in decision-making processes.

These values are retrieved using a Choice Modelling method. During six weeks, a total of 390 visitors on Saba and Statia have been interviewed. 200 of these respondents were interviewed during their stay on Saba. With the use of a choice experiment, the willingness to pay (WTP) of tourists for the maintenance or improvement of nature and other island aspects is determined. The results also show the preferences of tourists concerning the different ecosystems and other island aspects. Characteristics, expenditures and perceptions about Saban nature of visitors are retrieved through the complementary survey.

This study also made clear that next to ecosystem-based activities, tourists highly appreciate other island aspects such as the tranquillity, the friendly local people and visiting archaeological heritage. These aspects are part of the attractiveness of the islands and should be taken into account when growth in the tourism sector is desired. The total revenue by the tourism industry of Saba is estimated to be almost 6 million USD per year. The results from the survey demonstrate that tourists are willing to pay an additional amount of 1.6 million USD for extra nature conservation efforts on the island. 

St Eustatius, is a small island in the Caribbean and a special municipality of the Netherlands. As many other small islands, St Eustatius’ marine and terrestrial ecosystems are vulnerable to external disturbances, such as natural disasters but also pressures from human behaviour. Multiple stresses can lead to degradation of ecosystems, if these are not able to recover until the next disturbance. As ecosystems provide benefits to people, so called ecosystem services, the value of these services decreases, as the ecosystem degrades. Economic valuation of ecosystem services identifies the costs and benefits of human interaction with nature, e.g. construction, and helps to develop long-term development strategies that take ecosystem services into account. This research is evaluating the local recreational and cultural services that ecosystems on St Eustatius provide to their residents and their value to the inhabitants, as part of a larger study on the total economic value (TEV) of the island’s natural environment. To this end, a household survey with an embedded choice experiment is used. The results of the survey show that: (1) Half of the population has a general willingness to pay (WTP) for nature management; (2) the biggest perceived threats to the environment are oil spills, solid waste and invasive species; and (3) that the people of St Eustatius want see livestock on the island fenced and archaeology managed. The total aggregated annual WTP of all households on St Eustatius for the conservation of terrestrial land is 29,000 USD and for the marine ecosystems 65,000 USD. Residents of St Eustatius are willing to pay 41,000 USD for the management of archaeological heritage. An interesting result is that the people are keen on managing the roaming livestock by contributing additionally 64,000 USD on an annual basis. 

This study aims to value the services provided by nature to tourists on St Eustatius. The natural landscape, the coastal waters, the tranquillity and rich historical heritage are highly appreciated by tourists that visit the island. For most Small Island Developing States (SIDS), such as St Eustatius tourism is one of the main sources of income. Healthy ecosystems are therefore crucial to the island. However, human development (including tourism) puts pressure on the same natural environment. In order to fully understand this paradoxical relationship, the economic value of the cultural and recreational ecosystem services to tourists and the economic contribution of nature to the tourism sector on St Eustatius are determined. Transparency about these values and the beneficiaries of ecosystem services can support the local and national government and other stakeholders in decision-making processes.

These values are retrieved using a choice modelling method. During six weeks, a total of 390 foreign visitors on Saba and St Eustatius have been interviewed. 190 of these respondents were interviewed on St Eustatius. With the use of a choice experiment, the willingness to pay (WTP) of tourists for the maintenance or improvement of nature and other island aspects is determined. The results also show the preferences of tourists concerning the different ecosystems and other island aspects. Characteristics, expenditures and perceptions about the natural environment of St Eustatius by visitors are retrieved through the complementary survey.

This study also reveals that next to nature-based activities, tourists highly appreciate island aspects such as the tranquillity, the friendly local people and admiring archaeological heritage. These aspects are part of the attractiveness of the island and should be taken into account when growth in the tourism sector is desired. The value of the natural environment for the tourism industry of St Eustatius is estimated to be almost 3 million USD per annum and tourists are willing to pay an annual 120,000 USD to increase the management of the archaeological heritage on the island. 

The coastal protection value (CPV) of coral reefs is one of the ecosystem services that contribute to the economic value of coral reefs. The basic principle of coastal protection by coral reefs is the observation that reefs dissipate wave energy either by wave breaking or friction by reef structures. In this study, the coastal protection value (CPV) is estimated on 30 * 30 m grid cell level, which gives a more spatially explicit estimation of the CPV of coral reefs. The annual coastal protection values of the coral reefs of Bonaire for short-term (i.e. within 10 years) and long-term processes (i.e. beyond 10 years) are estimated at $33,000 and $70,000, respectively.