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Economic Valuation and Policy Priorities for Sustainable Management of Coral Reefs Revised Edition 2005

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Economic Valuation and Policy Priorities for Sustainable Management of Coral Reefs Revised Edition 2005 Economic Valuation and Policy Priorities for Sustainable Management of Coral Reefs Revised Edition 2005 Edited by Mahfuzuddin Ahmed Chiew Kieok Chong Herman Cesar Economic Valuation and Policy Priorities for Sustainable Management of Coral Reefs Revised Edition: 2005 Edited by Mahfuzuddin Ahmed Chiew Kieok Chong Herman Cesar First Edition: 2004 Revised Edition: 2005 Published by WorldFish Center PO Box 500 GPO, 10670 Penang, Malaysia Mahfuzuddin Ahmed, Chiew Kieok Chong and Herman Cesar (eds). 2005. Economic Valuation and Policy Priorities for Sustainable Management of Coral Reefs. Second Edition. WorldFish Center Conference Proceedings 70, XX p. Perpustakaan Negara Malaysia. Cataloguing-in-Publication Data Economic valuation and policy priorities sustainable management of coral reef / edited by Mahfuzuddin Ahmad, Chiew Kieok, Herman Cesar. - Rev. ed ISBN 983-2346-44-4 1. Coral reef and island--Economic aspects. 2. Coral reef conservation. 3. Ecosystem management I. Mahfuzuddin Ahmad II. Chiew, Kieok Chong. II. Herman Cesar. 333.955316 Cover photos by: J. Oliver, J.L.N. Sivasothi, M. Blatus, Y. Yusuf and WorldFish Center photo collection ISBN 983-2346-44-4 WorldFish Center Contribution No. 1758 Printed by Markono Digital Solutions (M) Sdn Bhd References to this publication should be duly acknowledged. For reprints, please contact [email protected] WorldFish Center is one of the 15 international research centers of the Consultative Group on International Agricultural Research (CGIAR) that has initiated the public awareness campaign, Future Harvest. ii WorldFish Center | Economic Valuation and Policy Priorities for Sustainable Management of Coral Reefs Contents Preface v Section I Introduction 1 An Overview of Problems and Issues of Coral Reef Management 2 Mahfuzuddin Ahmed, Chiew Kieok Chong and Hari Balasubramanian Section II Economic Valuation and Socioeconomics of Coral Reefs 13 Overview 1 Economic Valuation and Socioeconomics of Coral Reefs: 14 Methodological Issues and Three Case Studies Herman Cesar and Chiew Kieok Chong 2 Estimating the Value of Coral Reef Management Options 41 Jeff Bennett 3 Valuation of Coral Reefs: The Next 10 Years 50 James Spurgeon 4 Coral Reef Use and Management – 59 The Need, Role and Prospects of Economic Valuation in the Pacific Padma Lal Case Studies 5 An Economic Analysis of Coral Reefs in the Andaman Sea of Thailand 79 Udomsak Seenprachawong 6 Recreational Value of the Coral Surrounding the Hon Mun Islands in Vietnam: 84 A Travel Cost and Contingent Valuation Study Pham Khanh Nam and Tran Vo Hung Son 7 The Recreational Benefits of Coral Reefs: 108 A Case Study of Pulau Payar Marine Park, Kedah, Malaysia Bee Hong Yeo 8 Coral Bleaching and the Demand for Coral Reefs: A Marine Recreation Case in 118 Zanzibar Zeinab Ngazy, N. Jiddawi and Herman Cesar 9 Valuing the Recreational and Conservation Benefits of Coral Reefs in Bolinao, 126 Philippines Mahfuzuddin Ahmed, Gloria Magnayon Umali, Chiew Kieok Chong, Mary Franz Rull and Marissa C. Garcia Section III Policy Instruments and Management Measures of Coral Reefs and Marine 140 Resources Policy Instruments and Implications 1 Policy Instruments for Coral Reef Management and Their Effectiveness 141 Alan T. White and Catherine A. Courtney iii 2 Policy Issues and Caribbean Coral Reefs – Surfing in the Perfect Storm 162 Boris Fabres Case Studies 3 Implementing Policy and Strategy for Coral Reef Rehabilitation 172 and Management: Lessons Learnt from an Indonesian Effort Mohammad Kasim Moosa 4 Coral Reef Monitoring for Climate Change Impact Assessment and Climate 183 Change Adaptation Policy Development Leslie John Walling and Marcia M. Creary-Chevannes 5 Co-Management and Valuation of Caribbean Coral Reefs: A Jamaican NGO 196 Perspective Mark Figueroa 6 Policy Implications in the Management of Kenya’s Marine Protected Areas 205 Sam Weru 7 Coral Reef Conservation and Management in China 211 Qiaomin Zhang Section IV Future Research Directions in Coral Reef Management – 216 Workgroup Discussion Outcomes 1 Future Research Directions in Coral Reef Management 217 Chiew Kieok Chong, Herman Cesar, Mahfuzuddin Ahmed and Hari Balasubramanian Appendices 1 Participants and Resource Persons 223 2 Program 228 3 Abbreviations and Acronyms 233 iv WorldFish Center | Economic Valuation and Policy Priorities for Sustainable Management of Coral Reefs Preface This revised edition incorporates changes to the section on overview of the earlier edition by updating key references. It also includes an additional case study on coral reefs in the Philippines. Having been brought more closely to the attention of researchers worldwide by the International Year of the Reef (1997), the issue of conservation of coral reefs has intensified. Stresses on coral reefs created by increased development and population adjacent to the coast call for relevant authorities to take immediate action to prevent additional irrecoverable damage occurring worldwide. As of 2001 it was estimated that 11 per cent of all coral reefs had been totally destroyed or damaged beyond recovery, another 16 per cent had been severely damaged in 1998 by coral bleaching related to climate change.1 Since the workshop that formed the basis of these proceedings, the Climate Prediction Center of the United States has reported that warmer than normal sea surface and subsurface temperatures were observed throughout most of the equatorial Pacific during April 2002. Sea surface temperature anomalies were up to 2°C warmer than average in the region between the Galapagos Islands and the South American coast, and more than 1°C warmer than average immediately to the west of 180°W. The Climate Prediction Center also forecast a slow evolution towards El Niño conditions throughout the remainder of 2002.2 The Australian Bureau of Meteorology, in a comparison study, reported that seven out of 12 reputable ocean or coupled ocean/atmosphere forecast models predicted “warm” temperatures from April to September 2002.3 Such climate change would result in more coral reefs being destroyed. Furthermore, Talbot and Wilkinson (2001) concluded that, largely as a result of locally based rather than natural global stresses, a further 30 per cent of the world’s reefs will be seriously damaged in the next 20 to 40 years. Papers from the WorldFish workshop published in this report suggest that reef damage caused by human impacts needs to be addressed at local, national, regional and global levels. Coral reefs can be sustainably managed if reef uses are optimized and good policies are in place. This volume is the outcome of the “International Consultative Workshop for Economic Valuation and Policy Priorities for Sustainable Management of Coral Reefs” held at the WorldFish Center’s Headquarters, Penang, Malaysia, 8-10 December 2001. The overall goal of the workshop was to identify future economic and policy research directions relevant to the sustainable management of coral reefs. The directions were to be identified through review and discussion of the effectiveness of policy instruments; analysis of past research findings; and analysis of the interdependency of community livelihood, coral reefs and their resources. For more effective policy instruments to be introduced by any government, we believe that economic valuation and cost benefit analysis are important processes. They will provide information on the various values of coral reefs, which could allow decision-makers to devise policies that optimize the services and functions provided by the reef ecosystems and their capacity to support the livelihood of coastal communities. The workshop was the final activity of the Valuation and Policy Analysis for Sustainable Management of Coral Reefs project sponsored by the Center’s donors and the Swedish International Development Cooperation Agency (Sida), with additional support from the International Coral Reef Action Network (ICRAN), and support for selected participants from Southeast Asia by the Economy and Environment Program for Southeast Asia (EEPSEA) and the Australian Center for International Agricultural Research (ACIAR). A total of 48 participants from 15 countries located in Southeast and East Asia, the Caribbean, East Africa and the South Pacific Regional Seas attended the workshop. Seven keynote papers and 19 research papers were presented at the workshop. 1 Talbot, F. and Wilkinson, C. 2001. Coral reefs, mangroves and sea grasses: A sourcebook for managers, Australian Institute of Marine Science, Townsville. 2 National Oceanic and Atmosphere Administration (NOAA), El Niño/Southern Oscillation (ENSO) Diagnostic Discussion. Press Release, May 9, 2002. 3 National Climate Data Center (NCDC) classifies the predicted NINO3 temperature anomaly (or the mean of a suite of forecasts known as an ensemble) as “warm” if it exceeds 0.8°C, which is about one standard deviation above average. v These proceedings are organized into four sections and three Appendices. The Introduction – the first section – gives a brief account of current issues and problems in coral reef management. The second section focuses on the economic valuation and socioeconomics of coral reefs and consists of two parts. Part A is made up of four keynote papers which provide an overview of the theory and practice of economic valuation and the socioeconomics of coral reefs; the role of economic valuation in coral reef management over the next decade; the use of modeling as a tool to estimate the economic values of coral reefs; and the need for and potential role of
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