IVM Institute for Environmental Studies

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. 

The Challenge
Healthy ecosystems such as the forests on the hillsides of the Quill on St Eustatius and Saba’s Mt Scenery or the corals reefs of Bonaire are critical to the society of the Caribbean Netherlands. In the last decades, various local and global developments have resulted in serious threats to these fragile ecosystems, thereby jeopardizing the foundations of the islands’ economies. To make well-founded decisions that protect the natural environment on these beautiful tropical islands against the looming threats, it is crucial to understand how nature contributes to the economy and wellbeing in the Caribbean Netherlands. This study aims to determine the economic value and the societal importance of the main ecosystem services provided by the natural capital of Bonaire, St Eustatius and Saba. The challenge of this project is to deliver insights that support decision-makers in the long-term management of the islands’ economies and natural environment. 

The Approach
By assigning economic values to the main ecosystem services of the Caribbean Netherlands, this research draws attention to the economic benefits of biodiversity
and highlights the growing costs of biodiversity loss and ecosystem degradation.
From the onset of the study, stakeholders on each island actively participated in the research by providing information and valuable insights. This process of stakeholder engagement also created public support for the concept of ecosystem services among the target audiences. The studies address the most relevant ecosystems and ecosystem services for each of the three islands and apply a range of economic valuation and evaluation tools. By surveying more than thousand people on the three islands including tourists, local residents as well as interviewing around 1,700 Dutch residents in the continental Netherlands, this study estimates the willingness of individuals to pay for the protection of nature of the Caribbean Netherlands. Furthermore, scenario analyses are conducted to inform decision-makers about the most effective strategies to manage the ecosystems of the islands thereby supporting the economy and wellbeing of its residents.

The Results
The total economic value (TEV) of the ecosystem services provided by marine and terrestrial ecosystems represents an important part of the economy. The TEV of the natural environment of the Caribbean Netherlands amounts to $122 million per year. The TEV and its underlying components can be used to design a strategy for effective conservation measures and sustainable development. After extensively analysing different development scenarios for the value of future ecosystem services on Bonaire, St Eustatius and Saba, we can draw a number of clear and outstanding conclusions. For example, there are indeed ample opportunities to further develop the tourism industry, however, increasing the tourism sector beyond its capacity will cause pressures the local ecosystems cannot endure. Consequently, degradation of the natural environment will deter future tourists from coming to the Caribbean Netherlands. Furthermore, we clearly show that with the current pressure on ecosystem services of Saba, St Eustatius and Bonaire, the TEV of its natural environment will significantly decrease. Therefore, increased support for nature conservation proofs to be a profitable investment in the economy as well as the environment of the three islands. These and other lessons learned in this elaborate study are well documented in a series of extensive online reports and a number of easily accessible policy briefs communicating the outcomes of the study for each individual island. 

The Natural Capital of the Caribbean Netherlands

Ongoing developmental pressures in a context of global environmental change and economic liberalization challenge the physical and economic security of the islands of the Caribbean Netherlands. These challenges require an integrated, multi-scale research approach that supports the development of a strong green economy of the islands. In the period 2012-2014, The Economics of Ecosystems and Biodiversity for the Netherlands (TEEB-NL) program supported multidisciplinary research in Bonaire, St Eustatius and Saba to study the economics of nature in the Caribbean Netherlands. The research generates relevant information for supporting green economic development of the islands in different ways. 

The focus of the study is to value nature through the perspective of various stakeholders such as local residents, visitors, tourist industry and residents in the Netherlands’ mainland. More than 1,500 local individuals and 2,000 Dutch respondents were interviewed to learn about their relationship with nature and extract information about their willingness to pay for nature management on the islands. Among others, the study concludes that the benefits of nature in the Caribbean Netherlands are not only enjoyed by local stakeholders but also to a large extent by citizens in the mainland of the Netherlands. By summing up the worth of the range of valued ecosystem services, the annual TEV of the natural environment of the Caribbean Netherlands is estimated to be $122 million. This is close to $5.800 per capita of residents in the Caribbean Netherlands and clearly demonstrates that the economies of the three islands are highly dependent on natural assets.1

The valuation results were used to develop several tools that can be easily applied to raise awareness, support decision-making, develop sustainable financing mechanisms or to serve as input for spatial planning. The study can also be used to assess the economic loss if natural assets are damaged by, for example, ship groundings, oil spills or other types of destruction. However, damage assessment studies have not yet been developed in this project. The tools answer questions relating to current environmental management issues. Stakeholders and local experts provided input to determine the most relevant management issues to investigate in the study. By increasing the information and transparency on issues that that are related to the natural environment of the Caribbean Netherlands more equitable decisions can be made.

Policy Brief

The Challenge
The tourism industry is the most important source of income for Saba, which is marketed as “the Unspoiled Queen” of the Caribbean, referring to the pristine natural beauty and tranquillity on the island. The island offers a range of touristic activities that depend on the quality of the natural environment, such as diving and snorkelling and participating in land activities, especially hiking. The Saban Government published the Tourism Strategic Plan in 2011, in which the desire to double the tourism sector before 2020 is expressed. However, the economic value of the contribution of nature to tourism on Saba has not been quantified sufficiently. It is essential that the economic value of the ecosystem services to tourism as well as the impact of tourism on ecosystems is determined. This information creates understanding creates an understanding of the crucial interconnectivity of the economy and the environment and supports sustainable economic development on Saba.

The Approach
To determine the value of the ecosystems for the tourism industry, a survey among visitors was conducted on Saba. This study reveals the average expenditures of these visitors, as well as their Willingness-To-Pay (WTP) for protection of ecosystems and historical heritage. The result of this survey also elucidates tourists’ perceived value of different aspects of nature on Saba. The socio-economic value of the ecosystem services is combined with spatial data to determine the parts of the ecosystems that are most valuable with regards to tourism.

Results
The annual expenditures by tourists on Saba are found to be approximately $30 million. Around 70% of these spendings can be attributed to the natural environment. Marine ecosystems are found to be slightly more economically significant than terrestrial ecosystems on the island. A high WTP for nature management indicates that there is an opportunity to increase the nature fees on Saba. Tourists are also willing to pay for additional management of the island’s historical heritage. 

Policy Brief

The Challenge
Healthy ecosystems such as the corals reef patches and forests on the characteristic Mount Scenery are critical to the Island of Saba. Local people call Saba ‘The Unspoiled Queen’, showing how proud residents are of their cultural heritage and pristine nature. In the last decades, various local and global developments resulted in serious threats to these fragile ecosystems, thereby jeopardizing the foundations of the island’s economy. To address these threats in an effective manner, it is crucial to understand how nature contributes to the economy and wellbeing of this beautiful tropical island. This research aims to determine the economic value of the main ecosystem services that are provided by the natural resources of Saba and their overall importance to the island’s society. The challenge of this project is to deliver insight that supports decision-makers in the long-term management of the island’s economy and the natural environment.

The Approach
By assigning economic values to the main ecosystem services of Saba, this study draws attention to the economic benefits of biodiversity and highlights the growing costs of biodiversity loss and ecosystem degradation. From the onset of the study, stakeholders participated by facilitating data and simultaneously creating support for the concept of ecosystem services among the target audience. The study applies a range of economic valuation and evaluation tools. By surveying over a 1,000 people including tourists, local residents, and citizens of the Netherlands, this study estimates the willingness to pay of individuals for the protection of nature of Saba. Furthermore, scenario analysis is conducted to inform decision-makers about the most effective strategies to protect the ecosystems of Saba to improve the economy and wellbeing on the island. 

Policy Brief

The Challenge
Local people call Saba ‘The Unspoiled Queen’, showing how proud Saban residents are of their history and the ‘unspoiled’ nature of the Caribbean island. However, many human induced pressures such as construction, solid waste and invasive species threaten the resilience of the ecosystems of the island. It is important
to understand how the people of Saba benefit from nature in order to support decision-makers in sustainable development.

The Approach
By researching the Willingnes-To-Pay (WTP) for nature conservation by Saban residents, the benefit that local people derive from their natural resources is quantified. A survey was conducted to determine the value households attribute to the protection of nature on their island. Around 300 households on Saba participated in this valuation survey, and respondents reflected on various issues such as the main threats to nature, the benefits that the natural environment brings, and their usage of the local ecosystems.

Results & Recommendations
The WTP of the total population of 900 households to maintain the quality of marine and terrestrial ecosystems is estimated at around US$150,000 per year. Residents identified oil spills, solid waste and erosion as the most severe threats facing the natural environment on Saba. Results of the WTP analysis demonstrate that nature plays a crucial role for the residents; threats are seen as a communal problem, signalling the solidarity of the Saban community and its culture. People are willing to pay for improved management of the roaming goats for example. They have requested more communication on nature management policies. The study shows that improvement in nature management will benefit the community by contributing to the island’s economy and its cultural identity. 

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.