USAID SEA PROJECT

USAID SEA PROJECT RAPID ASSESSMENT OF TOURISM AND FISHERIES IN CENTRAL

Submitted on: September 30, 2018

DISCLAIMER This report is made possible by the generous support of the American People through the United States Agency for the International Development (USAID) with the close collaboration of the Government of (GoI). The contents of this report are the sole responsibility of Tetra Tech and do not necessary reflect the view of USAID or the United States Government

TABLE OF CONTENTS EXECUTIVE SUMMARY 1 BACKGROUND 2 ACKNOWLEDGMENTS 2 1. SCOPE OF THE RAPID ASSESSMENT 3 2. LEASE ISLANDS MPA BACKGROUND INFORMATION 3 3. TOURISM ASSESSMENT 5 4. FISHERIES ASSESSMENT 13 5. RISKS TO THE MPA 17 6. RECOMMENDATIONS 20 APPENDIXES 22

EXECUTIVE SUMMARY Once a major tourism destination, Lease Islands continue to offer splendid diving with its rich coral coverage and charismatic species, such as dugongs, migratory sperm whales and sharks. The region is now starting to recover from the downturn that depressed the tourism sector during the conflicts in Maluku in the late 1990s. The creation of a Marine Protected Area (MPA) can help solidify the Lease Islands as a top ecotourism destination in Indonesia, and once the area is protected and fish biomass rebounds, it can compete with Wakatobi and Komodo.

While the current accommodations cover the current demand, they need upgrades and there is an opportunity to develop a mid-range eco-resort offering to cater to this niche market segment. Given this is a high opportunity site, with several investment opportunities and the possibility of tourism growth, an economic model outlining the trade-offs and economic impact of tourism development will support the development and establishment of the MPA.

The short tourism season due to region’s weather patterns, poses a challenge, but the emergence of liveaboard boats in the region is an encouraging sign of its tourism potential. Another important challenge will be the development of a transparent fee system for divers and visitors of the different islands, to replace the current fee system. This will be crucial, as tourism grows in the next season and the MPA management body is not yet operational. The development of other services that can cater to tourists, such as restaurants and cultural activities, will further enhance guests’ experience and making it a memorable holiday.

Limited data about the fisheries sector hampered the assessment’s ability to recommend specific and detailed actions that would support the emerging MPA. Anecdotal evidence supports that market demand forces keep the fishery sector under sustainable catch levels, however, detailed catch data is required to make this determination. The main recommendation for the fishery sector is to obtain detailed catch volumes data to determine the level of exploitation around the Lease islands. Considering the need to maintain marine exploitation within sustainable levels, investments in the fisheries are discouraged.

The recommendations focus on improving the management of the area, particularly to stop bombing and destructive fishing, decrease the collection of reef fish for farming, discourage catching of endangered marine life and control the growth of aquaculture expansion.

The key investment opportunities lie in the tourism sector, particularly to strengthen infrastructure to increase average tourist length of stay, support communities to further engage in the tourism sector, and subsequently receive additional incomes, and improve the dive offering to secure additional revenues.

1 | TOURISM AND FISHERIES RAPID ASSESSMENT OF LEASE ISLANDS MPA, CENTRAL MALUKU USAID.GOV BACKGROUND The USAID funded Sustainable Ecosystems Advanced (SEA) Project is a five-year project (2016-2021) that supports the Government of Indonesia to improve the governance of fisheries and marine resources and to conserve biological diversity. Implemented by Tetra Tech and a consortium of partners, the SEA project is targeted at national, provincial, and local levels, with a focus on the Provinces of West Papua, Maluku, and that lie within Indonesia’s Fishery Management Area (FMA) 715. The project aims to utilize an ecosystem approach to fisheries management and engage key stakeholders, to (1) reform fisheries management and promote marine protected areas to enhance fisheries productivity, conservation, and sustainable utilization; and (2) strengthen the leadership capacity of local governments and the Ministry of Marine Affairs and Fisheries (MMAF). Marine Change is a specialist advisory firm that focuses on investments in Asian seafood companies committed to sustainable and financially rewarding business opportunities that contribute to social and environmental benefits. Marine Change’s vision is to see disciplined long-term investment support innovative efforts to renew fisheries and marine ecosystems, permitting them to recover from overexploitation and to support prosperity, food security and livelihoods in Asia.

Under the USAID SEA Project, Project Marine Change seeks to assist the USAID SEA Project Core Team and Project Partners to develop an inclusive investment and economic model for agreed target areas in support of SEA Project’s Strategic Objectives.

ACKNOWLEDGMENTS Marine Change is grateful for the assistance of the USAID SEA core team in the arrangement of the Lease field trip, especially Mr. Asril Djunaidi, whose local knowledge and expertise were invaluable. The Coral Triangle Centre (CTC) team on the ground was very helpful with the arrangements and their contacts, insights and continued communications and we thank them for the collaboration and hope to continue this in the next steps of the project.

USAID.GOV TOURISM AND FISHERIES RAPID ASSESSMENT OF LEASE ISLANDS MPA, CENTRAL MALUKU | 2 1. SCOPE OF THE RAPID ASSESSMENT This document outlines the findings of the rapid sector assessment conducted on site in Lease Islands, North Maluku Province, in April 2018 as part of the USAID SEA Project. The purpose of the rapid sector assessment is to provide an overview of two key economic sectors that can contribute to the USAID SEA Project’s efforts, tourism and fisheries.

The rapid assessment intends to provide an evaluation of the constraints and opportunities in these sectors in Lease Islands, as well as an overview of the key players active in the two sectors. Building from an analysis of the current constraints and opportunities, this report outlines potential strategies for the USAID SEA Project Partners to consider in their implementation efforts.

The rapid sector assessment of Lease relied on information and data obtained by interviews with relevant local officials and official data sets provided by the local government as well as collected by CTC. A full list of people interviewed is in Appendix 1.

2. LEASE ISLANDS MPA BACKGROUND INFORMATION The Lease Islands, formerly called the Uliassers, are a group of three inhabited islands (and smaller uninhabited islets), lying in the Banda Sea immediately to the south of Seram and east of in the province of Maluku, in Indonesia. The three inhabited islands, from west to east, are Haruku, , and the small uninhabited Molana island; these islands constitute administrative districts (kecamatan) within Central Maluku .

Haruku island is the biggest island and covers an area about 150 km2. It consists of 11 villages with 24,798 inhabitants in 2016. Saparua island is the second largest island among others with 17 villages. The area of Saparua island is 79,9 km2 with a population of 16,506 in 2016. The smallest, Nusa Laut island consists of 7 villages with 5,451 inhabitants spread around 32,5 km2 of area. Most of the villages led by a Raja (king), an inherited position based on the local culture (adat).

The Central Maluku Province government issued a governor’s decree in 2016 to establish a marine protected area (MPA) around the Lease islands covering 81,573 hectares of area. As a response from the governor’s decree and direct request, the USAID SEA Project committed assisting the establishment of MPA around Lease islands and appointed the Coral Triangle Centre (CTC) to lead these efforts.

CTC will collect the necessary data, design the MPA, support the development of zoning and management plan, initiate the management unit and establishing sustainable financing mechanism. The Lease MPA is planned as multipurpose MPA with areas to support fisheries, aquaculture, marine tourism and conservation, which will contribute to local income and livelihood development and food security.

3 | TOURISM AND FISHERIES RAPID ASSESSMENT OF LEASE ISLANDS MPA, CENTRAL MALUKU USAID.GOV Figure 1: Lease Islands

Source: Muller, 1991

MPA ECOLOGICAL AND SOCIAL BACKGROUND CTC conducted ecological baseline survey of the Lease islands in April 2018 in parallel with MC’s rapid assessment. The result implies that Lease has relatively good hard coral reef coverage ranging from 10% (poor) to 78,7% (very good) with average 43%. Fish densities were low, due to current fishing effort and lack of no take areas, dominated by Fusiliers (Caesionidae), Surgeon fish (Acanthuridae) and Snapper (Lutjanidae), all coral reef species. The islands also have mangrove and seagrass habitats and contain

Figure 2: Manta tow locations in CTC surveys around the lease islands (Source CTC).

USAID.GOV TOURISM AND FISHERIES RAPID ASSESSMENT OF LEASE ISLANDS MPA, CENTRAL MALUKU | 4 charismatic species like black tip reef shark, dolphins, seasonal migrations of sperm whales (observed during the rapid assessment) and dugongs.

CTC also conducted a socioeconomic household survey in April 2018. The results imply that the community already has good material standard of life, with houses mainly built with permanent materials and access to electricity. More than 50% of the household heads work as farmers and seasonal fishermen. Most of the fishermen do not own a boat; they work on other peoples’ boats, using hand line as the most common fishing gear. The main target fish are mackerel, skipjack tuna, grouper and snapper species.

3. TOURISM ASSESSMENT Lease islands can be reached by a public ferry (approximately 1h30) from Ambon to the port in Haria or by private speedboats. Prices for a one-way trip are IDR160,000 (US$ 10) for the ferry and IDR 800,000 (US$ 53) to 1.5 (US$101) for small or large speed boat, respectively. There are daily direct flights from Jakarta to Ambon Pattimura International Airport, which is a connection hub for Eastern Indonesia. There are no international flights since 1998. Recently there has been talk of resuming international flights out of Ambon, but nothing specific has been announced yet.

Lease’s strong east wind seasons with heavy seas and rain affect the influx of tourists. The high season is from September to April, with Christmas and any Muslim holidays being the peak. All accommodations closed during May, to August.

SAPARUA Saparua Island is tourism development center, and has 7-8 accommodations of various types, listed below. Sapura island is considered an important spice island cultural destination, included in organized tours that visit Ambon. Its main attractions are historical sites from the colonial era including a restored 17th century Dutch Fort located in Saparua, the main village, beaches (especially Pantai Leano), amangrove conservation project, forest walks, and waterfalls.

The height of tourism on the island was in the 1990s, when group tours from the Netherlands, especially of Moluccan inheritance, visited the island. The conflicts in Maluku in the end of 1990s halted tourism in region, which is beings slowing reinvigorated. Currently, tourists are mainly Dutch relatives, backpackers or national tourists from Jakarta and Maluku area.

Attraction Price Mangrove conservation IDR 10,000 (US$0.67) per visitor project Tourists can pay extra IDR 200,000 (US$13) to have their names engraved into the building Dutch Fort IDR 50,000 (US$3)

5 | TOURISM AND FISHERIES RAPID ASSESSMENT OF LEASE ISLANDS MPA, CENTRAL MALUKU USAID.GOV The island has PLN facility where generators provide electricity and ground water is widely available on the island. The waste collection and infrastructure Sand mining in Saparua is poor on the island, as it does not have its own facilities or infrastructure to collect and return There has been extensive sand mining around plastic to Ambon for recycling. See also further Saparua island to construct seawalls as many of below at risks. The association of the Church the low areas are threatened by storm surges. (Klassis) is working with the University in Ambon The island is mainly of coralline rock and given to improve waste management in Saparua, develop the relatively affordable cost of sand – a large solutions to waste problems, and other activities pick-up truck of sand costs IDR 500,000 (US$ such as education, art competitions and reduction 33) – there are no economic incentives to find and recycling programs. There is also a mangrove another substrate or bring sand from elsewhere. restoration and educational program called Pantai This has caused many beaches to disappear and Batu Pintu in Haria village by Nus Leuwol since can be a long-term threat to tourism. 1999. The island has several accommodation offerings which are detailed below and summarized in table 1.

Mahu Lodge

This lodge was established in 1983, with 10 rooms, in the mangrove of Mahu village by an ethnic Malukan, and is now run by the second-generation. In 1990, as a result of strong demand from Netherlands-based travel agent, the lodge expanded and started to receive groups of 30 people for cultural trips (colonial relics, sago making, musical shows etc). The lodged closed during the conflicts and re-opened in 2015. Currently it has 27 rooms; 5 rooms are equipped with air conditioner and employs two full-time kitchen staff and 6 part-time employees from Mahu village.

In 2017 the Mahu Lodge had approximately 250 guests, a 20% increase from the previous year. Only 10% of their guests dive, despite this being the main attraction and advertisement on their web site. The facilities are timeworn, although the rooms are clean and have warm water. The cost of accommodations is IDR 400,000 (US$26) per night for a double room with fan, and IDR 600,000 (US$40) for the air-conditioned room, including breakfast and dinner.

The lodge offers both diving and snorkeling trips, cultural trips and forest hiking activities. The basic dive shop, offers dive equipment rental, and dive trips with a self-educated dive guide who only speaks Ambonese, limiting the experience and creating safety concerns for the dive operations.

The lodge also caters to divers and snorkelers from other resorts that do not have their own facilities. The dive center received 100 divers in 2017 and 80 by April 2018. Approximately 20 of them were from other lodges: Putih Lessih Indah, Perdana, and Molana. Divers stay a maximum of 4 days and all want to visit Nusa Laut, Molana, Saparua, with repeated visits to Nusa Laut.

USAID.GOV TOURISM AND FISHERIES RAPID ASSESSMENT OF LEASE ISLANDS MPA, CENTRAL MALUKU | 6 Investment needs and opportunities:

The lodge needs complete renovations including the rooms, garden, restaurant, pool area and the dive shop needs to be modernized and run professionally. The current owners did not seem too ambitious with the resort and seem happy with the current operational mode and level of visitors. This may change if alternative competitors appear on the island with a dive facility in a mid-to low price range.

Putih Lessi Indah

This is a rustic small and basic hut-type accommodation on a small beach in the village of Kulur. This charming lodge was popular in the 1990. However, it was destroyed during the conflict and slowly reopened after 2007. The owner’s cooking and personal attention, enhances the guests’ experience and has rendered him a strong reputation. The lodge does not offer diving or snorkeling, but can organize these activities through Mahu lodge. The lodge has a nice view of the Ceram island, with nice swimming during high tide; but the reef has been damaged by dynamite fishing during the conflict. Guests can see sperm whales migrating in October and November and a “resident” dugong. Additionally, forest walks can be done from the lodge. There are 8 bungalows at a cost of IDR 350,000 (US$20) including breakfast and dinner. The resort has 5 staff.

The guests are usually backpackers from Europe or America and stay for 2-3 days. Approximately 50% of the guests request snorkeling, and another 50%, diving. most of the bookings come through TripAdvisor, other online channels and Lonely Planet, November-March period being the high season, when he is fully busy.

Investment needs and opportunities:

There is a need for a pier, to enable all day swimming and sunset viewing. The lodge also has termite problem, which needs to be solved.

Cape Paperu Dive Resort

The Swiss owners of this high-end dive resort negotiated a long-term lease with the Paperu village 12 years ago to establish the resort. They are the village’s largest buyer of local products and employer, with 60 full-time staff.

The all-inclusive resort receives 100% divers and is not suitable for children under 12. This beachfront resort has a pool, spa, restaurant, dive center, two speedboats and snorkeling off the beach. About 30% of the guests are repeat customers. There are 12 double occupancy bungalows and there is a minimum 5-night stay. Most guests stay 2 to 3 weeks. The services include pick up from Ambon hotel and speedboat transfer direct to the resort. Their clients are mainly from Europe, US, Japan and some Indonesians. The price of the stays is above US$100/night and most guests either book direct through their web site or though agents in Europe. They do not accept walk-in guests.

This resort is the most environmentally conscious of the island, they have a water circulation system, a recycling system for the gray water, a bio-activator for food waste, and make their own drinking water. The owners mentioned that despite recent efforts in Saparua to improve waste management, inadequate

7 | TOURISM AND FISHERIES RAPID ASSESSMENT OF LEASE ISLANDS MPA, CENTRAL MALUKU USAID.GOV waste management and marine debris are a still a problem still. They rely on PLN for electricity and have three diesel-powered generators as back up.

According to the owners, diving and variety of life around the entire area is very good; there are at 36 dive sites – at least two weeks worth. They are supportive of the MPA and protection agenda, but had some concerns about existing fees to dive in Nusa Laut and Molana island and possible increases in fees as part of the MPA.

The resort has a somewhat controversial reputation with the local community. Upon its establishment, the resort protected its adjacent reef area from fishing and sand extraction, major threats in the area. The local community, initially supportive of the resort, change its general consensus, when the Raja (village leader) changed a few years ago. There is now a legal case against this closure run by an indigenous human rights NGO in Jakarta. The resort mentioned that it makes financial contributions to the local church and schools and the owners feel that they are fairly contributing to the local community.

Investment needs:

The resort does not require additional investment, as the owners do not wish to expand its current capacity. However, the owners intend to retire in few years and are looking for a buyer.

Perdana

This 34-room guest house is located at the center of Saparua town, between the market and the Dutch Fort. It offers basic accommodation with prices ranging from IDR 200,000 to 300,000 (US$13 to 20) per night including breakfast. The guest house caters to government employees or other business visitors, and is not attractive to tourists seeking a relaxing getaway.

MOLANA ISLAND

This beautiful white sand beach uninhabited island offers several dive sites, and is also suitable for snorkelling. The island is popular for day-trippers from Haruku and Saparua. Local and foreign visitors pay an ‘entrance fee’ that costs IDR 5,000 (US$0.34) for children and IDR 15,000 (US$1) for adults and IDR 50,000 to 100,000 (US$3 to 6) respectively, depending on the activities. Molana Island Resort collects the fee and indicated that it uses it for beach maintenance. However, there was a high volume of Photo 1: Beach, Molana Island plastic and other debris on the sand during the rapid assessment.

USAID.GOV TOURISM AND FISHERIES RAPID ASSESSMENT OF LEASE ISLANDS MPA, CENTRAL MALUKU | 8 Molana Island Resort

There is only one option to overnight, the Molana Island Resort, opened in 2001 with three bungalows and a restaurant.1 The development has been limited, as the island does not have a freshwater source water. Bungalows cost IDR 1,100,000 (US$ 73) per night, including three meals. Most guests book through their web site and stay from 3 days to 1 month. The resort is not operating at capacity as there were 45 in 2016, 40 guests in 2017, and 30 until April 2018. The decrease from 2016 to 2017 was attributed to a price increase of IDR 350,000 (23). A small portion of their guests dives through Mahu Dive Lodge numbers (10 divers in 2017).

Photo 2: Bungalow, Molana lodge in The resort owners unsuccessfully requested a water treatment facility Molana Island from Dinas Pariwisata and, currently, all water is brought from Saparua.

Investment needs:

Seawater declinator would allow for the resort to expand its operations as it is cumbersome and expensive to bring adequate amount of freshwater to the island.

NUSA LAUT

Nusa Laut Island is approximately 1 to 1h 30 minutes by boat from Saparua and accessible only during good weather season. There are seven fishery-dependant villages around the island. The villages of Ameth and Leinitu have interest in tourism and possibly the village of Abubu, where there is an annual cultural festival. The island is very rural and picturesque with beautiful mangroves a lush interior, an old church on and hot springs. There are very high-quality dive sites in this area, and approximately 15 liveaboard vessels pass through twice a year, during their transit between Komodo and Raja Ampat. Divers pay an IDR 50,000 (US$3) daily fee to the village of Photo 3: Liveaboard vessel in front of Ameth Village, Nusa Laut Ameth.

1 https://www.tripadvisor.co.id/Hotel_Review-g3561782-d3547708-Reviews-Molana_Island_Resort- Pulau_Molana_Maluku_Islands.html

9 | TOURISM AND FISHERIES RAPID ASSESSMENT OF LEASE ISLANDS MPA, CENTRAL MALUKU USAID.GOV There are currently no moorings and the ships drop anchor in the deep area of the reef. There has been dynamite fishing reported in the area and there was a significant volume of plastic debris in the water during the rapid assessment. These are clear areas of improvement and investment, however, it does not appear that Ameth’s village leadership has strong investment plans to address these issues that may hamper the growth of tourism. The current plans include inviting tourists from the liveaboard boats to the village for a cultural evening, with food and entertainment.

Although they are supportive of the MPA, the villagers do not want to stop fishing in front of the village. Additionally, with an estimated 400 divers per a year, Ameth village receives a good financial contribution (approx. 1600 USD annually). Although the current fee is very low, it might complicate introduceing a more comprehensive MPA-wide fee.

The island has a few homestays; with one in particular, called Vientje, operating since 2004. This very pleasant homestay, is located on the main road of Ameth with five rooms, costing IDR 200,000 (US$13) per day and an additional IDR 50,000 (US$3) for meals. Vientje receives only about 15 tourists a year – mainly Europeans – staying an average 1-3 days, and approximately 20 government officers who usually stay for 3 days. The homestay owners can organise snorkelling boat trips but do not rent snorkelling equipment. Guests also have an opportunity to partake in an island sightseeing tour and a walking tour to Nalakia hot spring. Vientje is in the Lonely Planet, guests can book through internet, by phone or via walk-in.

Leinitu village, home to the oldest church in Other products in Leinitu village Maluku also has strong desires to attract tourists. The Raja (village leader) is building Using its village funds, Leinitu village formed a 30 a 15-bedroom accommodation, with an women-cooperative to produce and commercialize estimated price of IDR 200,000 (US$13) per syrup, smoked fish and meat flakes (abon). The day and an additional IDR 50,000 (US$3) for cooperative buys fish from four local fishermen meals. The Raja also wants to offer groups. Using a unique fish processing method using snorkelling and dolphin watching, as there is coconut oil the cooperative’s fish products have a a resident pod visible by land and boat. The distinctive taste. Price of a 100-gram meat flake Raja is supportive of the MPA development package is IDR 30,000 (US$ 2), and a piece of smoked and saw it compatible with his tourism fish IDR 50,000 (US$ 3). The main sales channel will development plans. The village has also be the annual festival and secondary channels, the allocated land for a Swiss liveaboard boat internet and their family in the Netherlands. owner.

OTHER TOURISM SERVICES

It seems some of dive operators from Ambon offer excursions to the Lease Island area. However, further research in Ambon once the season re-starts in September is required to determine the frequency, price and route of these excursions.

USAID.GOV TOURISM AND FISHERIES RAPID ASSESSMENT OF LEASE ISLANDS MPA, CENTRAL MALUKU | 10 Table 1: Summary of accommodation

Total Average Number Accommodation Year Nationality of Total Location capacity Average price stay of guests name opened guests employees (guests) (days) in 2017 IDR 400,000 (US$26) per night with fan, and IDR 2 full time 600,000 (US$40) for the Currently, mostly Mahu Lodge 1983 40.5 2-3 days 250 staffs and 6 air-conditioned room, local tourist part time staffs including breakfast and dinner IDR 350,000 (US$20) European and Putih Lessi Indah 2007 12 including breakfast and 2-3 days <100 American 5 staffs dinner backpackers Saparua mainly from Cape Paperu Dive 2 – 3 Europe, US, Japan 60 full time 2007 18 above US$100/night 300 Resort weeks and some staff Indonesians Ena Anakotta 2011 4.5 IDR 150,000 - - Mainly Dutch 1 staff Home Stay IDR 200,000 to 300,000 Perdana - 51 (US$13 to 20) per night - - - - including breakfast IDR 1,100,000 (US$ 73) 90% Foreign Molana Molana Island 2001 4.5 per night, including three 3 days 40 tourist and 10 % - Island Resort meals. national tourist 15 tourist IDR 200,000 (US$13) per Vientje 2004 7.5 1-3 days and 20 gov. European 1 staff Nusa day official Laut IDR 200,000 (US$13) per Leinitu home stay 2018 22.5 - - - - day

11 | TOURISM AND FISHERIES RAPID ASSESSMENT OF LEASE ISLANDS MPA, CENTRAL MALUKU USAID.GOV TOURISM SWOT ANALYSIS

Strengths Weaknesses • Rich coral coverage. Lease’s rich coral • Short tourism season due to regions’ coverage is a strong attraction for divers weather patterns. and snorkelers. • No transparent fee system for divers • Proximity to Ambon makes it an easy or visitors of the different islands. to reach destination. Proximity to There is not transparent pricing for the Ambon, attracts both international and visitor fees paid at Molana Island, nor of its Indonesian tourists. use. A diver fee is required to dive in Nusa Laut, however, only one village – Ameth – benefits financially from this fee. • Only a few white sandy beaches left for guests. As noted, sandy mining in Saparua has depletead many of the previously white sandy beaches, leaving few alternatives for tourists to visit. • No restaurants in the island to cater to tourists. All means have to be procured in the hotel, thus, the community is not benefitting from the spill over from tourist arrivals and tourists are not able to explore the islands’ different food culture.

Opportunities Threats • Revival of tourism in Lease Islands. • Increased volumes of solid debris in Lease Island are making a comeback as a the ocean. strong dive tourism destination, with • Increased number of liveaboard boats increased numbers of liveaboard boats that do not contribute to economic passing by its waters, and increase development of tourism in the islands. occupancy in some of the long-standing Since there are no supporting tourism hotels. services and few organized attractions on • Explore the “Spice Islands” history to land, local communities do not capture any promote Lease Islands as an easy to financial benefits from the increase number reach natural and cultural destination. of liveaboard boats.

USAID.GOV TOURISM AND FISHERIES RAPID ASSESSMENT OF LEASE ISLANDS MPA, CENTRAL MALUKU | 12 4. FISHERIES ASSESSMENT The rapid assessment of the fisheries sector was conducted on the basis of interviews and data from DKP, as the CTC team had not conducted an extensive fisheries assessment. Similar to the tourism sector, the fisheries sector is also strongly impacted by the strong east rainy seasons with heavy seas and rain. Very few, if any fishing activities, take place during this time, and the fishing season is concentrated on September to April. In addition, many of the fish, such as tuna, seasonally appear in the region. Thus, many fishermen have other livelihoods overcome low fishing seasons. According to CTC’s socio-economic surveys, 50% of the households’ main livelihoods are seasonal fishing and farming. The fishermen numbers reported by DKP, were much lower for the islands; indicating much informal subsistence fishing activities (see table 1).

Table 2: Fisheries related livelihoods (number of individuals) in 2016 in the three districts of the MPA

Catch at sea Sea farming Fish processing Trader

Haruku 3,632 22 170 69

Saparua 2,967 25 102 102

Nusa Laut 862 10 479 54

CTC’s preliminary ecological surveys results indicate that the amount of reef fish around the Lease Islands was relatively low with an average of 5,226.8 ind/ha. The highest fish biomass was found in the Nusa Laut area (see Figure 3 below), with many of the sites close to Saparua showing clear signs of fish biomass depletion in the main fish groups studied by CTC.

Figure 3: Fish biomass (individuals) of major families in sites surveyed

3500.0 3000.0 2500.0 2000.0 1500.0 1000.0 500.0 0.0 Pia Booi Oma Ouw Kulur Aboru Akoon Abubu Ameth Noloth Leinitu Tj Tj Ouw Hulaliu Pelauw Titawai Nalahia Tittawai Ittawaka Ihamahu Waitimal Molana Molana 1 Molana 2 Porto Teluk Porto Porto Hutan Porto Haria Pantai Haria Siri Sori Sori Siri Serani

Acanthuridae Caesionidae Lutjanidae

Source: CTC Survey

13 | TOURISM AND FISHERIES RAPID ASSESSMENT OF LEASE ISLANDS MPA, CENTRAL MALUKU USAID.GOV MAIN FISHING TECHNIQUES

The fishing activities are divided between near shore demersal and pelagic fisheries and off shore (2-3 miles and further) pelagic fisheries. The number of fishers and related professions, vessel numbers, number of different fishing gears are summarized in tables 2, 3 and 4 below for all three main districts within the MPA area. The total catch of fish within the three districts was 26,751.40 tons. Appendix 2 includes main species in 2016.

Saparua had the highest total catch with 13,916.10 tons, Haruku’s catch was 7,486.90 tons and Nusa Laut 5,348.40 tons. It is not clear if these catch estimates include fish that was landed in Ambon or , but likely these are total catch estimates and not based on landings figures. The data includes Haruku as it is assumed that some of the fishing activities of Haruku vessels also include the MPA area. Given the lack of spatial data and catch monitoring, it is not possible to quantify the current catch rates within the proposed MPA.

There are also mariculture activities within the MPA – main aquaculture are sea cages for reef fish species farming, such as groupers. According to DKP, aquaculture activities are very low compared to total estimated productivity potential.

Troll, handline and drifting gill net were the most common techniques used in the inshore areas and reefs, with small unmotorized vessels, with capacity below 5 gross tons (GT) – see table 2. Purse seine vessels were the main type of motorized vessel.

Table 3: Different type of vessel numbers in the three districts of the MPA in 2016

Boat without a machine Portable motor Purse Vessel with machine (GT) Seine Canoe Small Medium Large Yamaha Canoe 1-<5 5 - 10 11 - 19 20 - 30 35 - 50 total 567 322 216 52 199 190 23 3 2 14 0 0 1588 Haruku

628 280 161 37 170 138 16 7 4 8 13 0 1462 Saparua

226 241 51 18 78 99 9 0 0 0 0 0 722 Nusa Laut

Source: DKP

There is a high number, approximately 70 bagans or lift net units in and around Lease islands, likely serving as baitfish resources. Given that these boats are unmanaged and monitored, they could easily be depleting the stocks. It is not clear if the bagans also fish during the rainy season in sheltered areas or if the stocks can rebound during this time.

For offshore fisheries, many people fish with fishing nets – mini purse seines and circling net – at night at the Fish Aggregation Devices (FADs) that are 3-4 miles east of Saparua and Nusa Laut. The target species are small pelagic fish as well as skipjack and yellowfin tuna. There was an increase in the offshore fishing effort in recent years, although there is no data to compare previous years’ catches.

USAID.GOV TOURISM AND FISHERIES RAPID ASSESSMENT OF LEASE ISLANDS MPA, CENTRAL MALUKU | 14 Table 4: Number of different gear types used in the three districts of the MPA in 2016

Boat Fixed skipjack upright squid Other Beach Purse Drift Encircling Set Stationary Scoop Trolling Hand Fish Bubu Other lift longlin pole and fishing fishing fishing Nets seine gill net gillnets gillnets lift net netter line line trap trap traps nets e line rod rod rod

15 21 147 113 17 12 5 48 1 179 694 418 279 25 39 15 76 75 Haruku 44 15 397 74 45 45 7 74 0 477 431 571 275 107 28 22 67 16 Saparua Nusa 50 8 187 34 14 0 1 38 9 0 276 131 156 98 19 21 116 0 Laut 109 44 731 221 76 57 13 160 10 656 1401 1120 710 230 86 58 259 91 Total Source: DKP

15 | TOURISM AND FISHERIES RAPID ASSESSMENT OF LEASE ISLANDS MPA, CENTRAL MALUKU USAID.GOV According to interviews, there are approximately 50 FADs or rumpons in the area, mostly located outside of the proposed MPA, although some were also seen closer to land (see photo 4). A rumpon costs approximately 6 million to construct, uses light at night and are individually owned. The fishers share the cost of the nightly catch at the rumpon: 1/3 of the cost is born by the rumpon owner, 1/3 by the net owner, 1/3 by the fishers. The catch is likely small pelagic such as mackerels, scad and some skipjack tuna (line caught with troll around the rumpon at dawn).

There are also many skipjack tuna pole and line boats Photo 4: Fishing aggregating device (FAD) or rumpon near Lease around the islands. There is no available data on the Islands number of boats; there are 656 individual rods are being used. It is likely the boats also fish on the rumpons and on free swimming schools when the season is good. The catch is most likely landed in Ambon where there is a high demand for skipjack tuna and several buyers with internal market demand for the pole and line caught tuna.

MARKET AND INCENTIVES / INVESTMENT OPPORTUNITIES

According to interviews, the fishers have unstable local fish price as low as IDR 5,000 (US$ 0.34) to up to IDR 20,000 (US$1.34)/kg; hence, there is fluctuation in supply chains and fishers vary sell their catch according the to the highest price either sell in the village or at the local Saparua market. If the price is low there they can sell to Masohi in Ceram or to Ambon, where there are several buyer and exporters. PT Suria (Note: name might be incorrect) in Ambon, buys fish at stable prices – IDR 40,000 (US$ 2.68)/kg of skipjack. The fishers take the fish to the market themselves and obtain ice from either Ambon / Masohi or use homemade ice.

Data from DKP indicates a number of fish processors on the islands, especially in Nusa Laut. These are likely fish smoking processors or other preservations techniques for fish sales in the local markets. There are also a significant number of local fish sellers that sell the fish in the local market. Central Maluku province’s export volumes are quite low at just 2,436.8 tons in 2016. This number in 2016 experienced a significant decline compared to 2015. See figure 4 below.

Figure 4: Export volume of fisheries products (ton)

7,060 6,862

2,437

1,653

737

2012 2013 2014 2015 2016

USAID.GOV TOURISM AND FISHERIES RAPID ASSESSMENT OF LEASE ISLANDS MPA, CENTRAL MALUKU | 16 5. RISKS TO THE MPA Sector Risks Mitigation strategies • Inadequate waste management resulting in high • Regular cleaning on the beaches and investment in waste volumes of marine debris can negatively impact infrastructure to minimize ocean debris. tourism. Significant waste was not visible on land in Saparua where some clean up efforts to have taken place. However, it there were significant volumes of plastic and other solid waste debris in Nusa Laut and Molana Islands. • Unclear ownership of Molana island and current • Understand the true ownership rights of the land on fee collection structure can undermine the MPA’s Molana island and develop an agreement between the long-term plans. The ownership of the land on Molana rightful owners and the MPA management body to ensure Island is unclear. Molana Island Resort acts as the de-facto that any fees collected are destined to the management of Tourism owner and collects an entrance fee to the island. the MPA and actual cleaning of the beaches. However, there is no evidence of the legality of this type of fee collection. • Continued sand mining in Saparua will cause the • An urgent ban on sand extraction needs to be put into disappearance of more beautiful beaches. Saparua place and as much as possible, restore the natural state of has already lost many beaches due to sand mining, now the beaches. risking more erosion and problems with storm surges as a result. Tourism development around beach areas is almost not possible. • Lack of moorings leaving boats to anchor on reefs • Inclusion of moorings within the village budgets to prevent or sandy areas. further damage to reefs. • Collection of reef fish for farming. There are several • Include a restriction on the collection of juvenile grouper small cages of fish farms around Saparua, and their and marine life into the MPA management rules and ownership is unclear. Live fish is sold at IDR 300,000 to ensure the farms operate with hatchery bred juvenile fish. 400,000 (US$20 to 26) per kg. the origin of the seeds is unknown and so is the collection of juveniles by the Fishing fishermen. • Continued bombing and destructive fishing. During • Support the church’s efforts in preaching against fish the conflict years many reefs were damaged by bombing, bombings in 16 churches around the MPA and as part of as there was no rule of law and monitoring of fishing the MPA process establish a local POKMASWAS that can activities. There still seems to be infrequent bombing help monitor and enforce MPA rules. events in the Lease Islands. It is mainly reported that the

17 | TOURISM AND FISHERIES RAPID ASSESSMENT OF LEASE ISLANDS MPA, CENTRAL MALUKU USAID.GOV Sector Risks Mitigation strategies bombers come from , especially ahead of costly religious festivals. There are anecdotal reports of a bomber being caught in 2017, however, it is unclear if there were any strong punishments. There are also anecdotal reports that fishers using nets destroy corals on the reefs. • Catching of endangered marine life. Fishermen kill • Strengthen reporting mechanisms and monitoring to turtles if they see them spear fishing or they are caught in punish fishers who catch endangered marine species. a net. There has been some intentional killing of mantas despite the fishing ban. • Aquaculture expansion. DKP data indicated a much • Establish controlled plans for aquaculture expansion higher ambition for aquaculture in the MPA area than ensure that there is no further depletion of the reefs or currently in place. It is not clear if the fish is collected from juvenile fish. the reefs, but according to at least one informant this seemed to be the case. • Possible impacts of bagans and coastal FADs. There • Conduct an assessment on the locations, number and is a high number of pagans and coastal FADs in the area fishing patterns of FADS and determine their sustainability that might negatively impact the MPA and its objectives. in regards to the MPA objectives.

USAID.GOV TOURISM AND FISHERIES RAPID ASSESSMENT OF LEASE ISLANDS MPA, CENTRAL MALUKU | 18

19 | TOURISM AND FISHERIES RAPID ASSESSMENT OF LEASE ISLANDS MPA, CENTRAL MALUKU USAID.GOV 6. RECOMMENDATIONS Lease Islands offers underexploited high-quality diving – there are only two local operators, occasional liveaboards boats and diving day trips from Ambon. As the destination is starting to recover from the tourism slump brought upon by the Maluku conflicts in the late 1990s, there is a strong opportunity to promote the destination as an easily accessible mid-range dive ecotourism destination. Current tourism offerings are not harnessing the region’s potential, and there is market gap in the mid- range eco-resort accommodation as an alternative to the high-end Cape Paperu and the run down/ unequipped Mahu Lodge. A new mid-range eco-resort either in Saparua or ideally, closer to the premium dive sites in the Nusa Laut, will attract this growing market segment and increase visitor numbers as well as support the MPA. Another opportunity is improving the infrastructure of the existing resort in Molana Island, to harness the feel of a “private island” mid-range resort option. However, the owners of Molana Island Resort were not initially interested in an eco-resort concept. In addition, there are smaller upgrades to existing accommodations that could increase the number of visitors – particularly the backpackers and national tourists segments – and extend their stay from the current average of three days. Tourism Investment opportunities Types of investment needed Infrastructure investments to • Establishment of solar plant in Molana Island increase average tourist length of • Water purification system in Molana Island stay • construction of a new pier and renovations at Putih Lessi Indah • Development of new services (kayak trips, SUP) at Putih Lessi Indah Increasing dive revenues • Establishment of a fully equipped dive center with certified dive guides in Mahu lodge • Investments for snorkeling equipment purchases for rental in homestays in Nusa Laut • Safety training to homestays to increase the number of snorkeling trips Increased opportunities for • Establishment of marked hiking trails, and exploration of community engagement in tourism caves and waterfalls in Nusa Laut and Saparua • Training of local communities to become trail guides • Expand market channels of community products, such as the smoked fish from Leinitu, Nusa Laut to resorts in Saparua, such as Cape Paperu and the liveaboards • Development of other products, such as souvenirs • Develop cultural offering for tourists, such as traditional performances to attract liveaboard tourists to land and stay/explore the islands beyond diving.

Given the limited survey conducted on fisheries these conclusions are preliminary. The strong seasonality, fluctuating markets prices, lack of cold storage and stable buyer on the islands is currently keeping the fishing effort in apparent managed levels. There is a well-developed offshore fishery for pelagic species, which are the most economically valuable for the area, and hence, the main thrust of the fishing pressure is not concentrated around the MPA and its reef habitats currently. Therefore, fishery- related investments in the Lease Islands area are not advisable, as they could intensify the fishing effort.

USAID.GOV TOURISM AND FISHERIES RAPID ASSESSMENT OF LEASE ISLANDS MPA, CENTRAL MALUKU | 20 It is recommended, however, that further survey is conducted in the Islands to obtain better data on the fishing volumes and species and fishing locations. This will allow a more detailed assessment of the impacts of the fishing activities on the MPA and to design any incentive or investment-based strategies to ensure sustainable use and adherence to MPA management and zoning plans in the future.

In addition to the specific investment opportunities outlined above, there are additional recommendations that would strengthen the MPA, outlined below. Recommendation Rationale and approach  Given this is a high opportunity site, with several investment Develop an economic opportunities and the possibility of tourism growth, an economic model for the proposed model outlining the trade-offs and economic impact of tourism Lease MPA development will support the development and establishment of the MPA.

Creation of a community  A community-led POKMASWAS combined with police POKMASWAS enforcement of fines is required to control bombing – a key threat to the areas current good coral cover.  Create an enforceable ban on sand mining to protect the existing Protect beaches from beaches for sand mining. further sand mining  Invest in beach chairs and umbrellas in a few clean beautiful spots that are relatively easy to reach to allow for beach-based activities.  The rampant increase in marine debris makes it an urgent priority Establish a waste to ramp up waste management systems in all the Lease islands. management system and  Adequate infrastructure, coupled with proper disposal training to collection infrastructure local communities, and even fines, can prevent further deterioration of the uncontrolled waste in the ocean.  Obtain more detailed catch and location-based data on fishing activities within the MPA over the coming fishing season (September-May) and evaluate this against the MPA habitat and Collect detailed fishery potential no-take area data. data  Interview buyers in Ambon and Masohi for more detailed price and market-based information for the fish originating from Lease to help develop a strategy for incentives to maintain fishing pressure under control.

21 | TOURISM AND FISHERIES RAPID ASSESSMENT OF LEASE ISLANDS MPA, CENTRAL MALUKU USAID.GOV APPENDIXES

APPENDIX 1. LIST OF PEOPLE INTERVIEWED IN LEASE ISLANDS

Government Agency Contact List

No Name Office Contact number Position

1 Johan Titaley Saparua village office 081291831303 Bapak Raja of Saparua

2 Wem. Dirk Parinusa Ameth village office 081240014394 Bapak Raja of Ameth

3 Decky Tanasale Leinitu village office 081247740567 Bapak Raja of Leinitu

4 Charles Paperu village office 081247537686 Secretary

5 Chris Tatipata Ouw village office 081240017451 Ouw Village Representative

Hotel, Homestay, and Dive center

No Name Office Contact number Position

1 Paul Tomasoa and Mahu Lodge +62 811 977 232 / +62 Owner Johann Tomasoa 821 2525 4789

2 Mesak Tomasua Klasis GPM Lease 081343340742 Secretary of Klasis Islands

3 Nus Leuwol Pantai Batu Pintu - Owner

4 Azis Lessi Putih Indah 081247486647 Owner Resort

5 John and Lili Voentje homestay 081343278826 Owner

6 Agus and Lusi Molana resort 082189591337/ Owner 082238115115

7 Ena anakotta Rumah RP homestay +6281343108100 Manager

8 Elsanus Mayaut Mahu Lodge - Dive guide

9 Kurt and Ellen Cape paperu resort - Owner

Others

No Name Office Contact number Position

1 Angki - - Fishermen

USAID.GOV TOURISM AND FISHERIES RAPID ASSESSMENT OF LEASE ISLANDS MPA, CENTRAL MALUKU | 22 APPENDIX 2. FISHERIES CATCH BY SPECIES

Cakalang Tuna Tongkol Layang Selar Kembung Julung julung Terbang Kerapu Lencam Kakap Kakap Merah Sunglir Lalosi Kuning Kuwe Tembang Teri Cumi cumi Jenis lainnya Total Katsuwonus Thunnus Auxis Decapterus Selaroides Rastrelliger Cypsilurus Epinephelus Lethrinus Lutjanus Lutjanus Elagatis Caranx Sardinela Stalephorus Hemirhamphusfar Casio sp Squid Other pelamis albacore thazard ruselli leptoleptis kanagurta poecileptorus sp. lentjam sp altifrontal bipinnulatus sp sp sp Haruku 1,524.30 96.1 1834.4 648.70 139.90 69.80 38.00 82.60 261.50 101.60 17.90 24.60 125.90 178.70 37.50 474.10 30.80 12.50 1788.00 7,486.90 Saparua 3747.9 2561 2729.1 1825.7 245.5 124.9 130.6 290.2 87.6 151.4 67.8 118.1 61.9 105.4 30.5 482.2 44.9 12.1 1099.3 13,916.10 Nusa Laut 1,573.70 512.9 325.4 399.2 125.8 51.8 27.7 65.7 48.1 8 4.1 9.5 2.5 10.7 32.9 201.3 37.1 2.8 1909.2 5,348.40 Total 6,845.90 3,170.00 4,888.90 2,873.60 511.20 246.50 196.30 438.50 397.20 261.00 89.80 152.20 190.30 294.80 100.90 1,157.60 112.80 27.40 4,796.50 26,751.40

23 | TOURISM AND FISHERIES RAPID ASSESSMENT OF LEASE ISLANDS MPA, CENTRAL MALUKU USAID.GOV