Diagnose For

Home , Amatique Bay, Caye Caulker, Central Bank of Honduras, Gulf of Honduras, Ports of Belize, Puerto Cortes

Project for the Environmental Protection and Control of Pollution Caused by the Maritime Transportation in the Gulf of Honduras Final Report Data and Information Management System, Establishment of a Base Line, Preparation of a Transboundary Diagnostic Analysis and a Strategic Action Plan

Aliphatic hydrocarbons with quantifiable values in biota was the pentacosane (which can be found at the majority of the sampling points). Considering that their origin is diesel or gas oil, its presence could originate from floating vessel motors and/or it could be associated to contributions from urban areas (from road washings and the consequent dragging of fuels used by the car pool).

Finally, it should be noted that in the tissue samples of the White Grunt fish (Haemulon plumieri), no quantifiable values of organic compounds, such as PCBs, pesticides and PAHs were recorded, with the exception of Cayo Sapodilla (wherein DDT could be quantified) and from Turneffe Reef (where pyrene was assessed, although in low concentrations).

3.3. Social-Economic Frame

3.3.1. Demographic and Population Aspects

According to the information of the latest population census available (Figures and Tables 3.3–1 a 3.3–3) and the population projections performed by the Latin American and Caribbean Demography Center – CELADE (Figure 3.3–4), the global population in the countries adjacent to the Gulf of Honduras reaches, approximately, a total of 21,7 million inhabitants, whereof some 2,1 million belong to the coastal region of the area of study object of the present consultancy (Table 3.3–4).

Likewise, Maps 35 to 38 show the administrative limits of the districts / departments in which each country is subdivided (Slide 35), the population belonging to the years 2000 – 2002 (Map 36) and 2007 – 2008 (Map 37) as well as the population variation occurred in said period (Map 38).

In broad outlines, the information shown above allows observing that:

 Belize is administratively organized in six (6) districts, whereof four (4) have coasts on the Caribbean (Corozal, Belize, Stan Creek and Toledo) and only three (3) have coasts on the Gulf of Honduras (Belize, Stan Creek and Toledo). The population taken in the census to the year 2000 belonged to 232.111 individuals and the performed projections allow estimating the population in 311.600 inhabitants for the year 2007.  Guatemala is administratively organized in twenty-two (22) departments and is the highest populated country (both in the region of the Gulf of Honduras and in Central America; (see Table 2–1). Said population represented 11.237.196 individuals to the year 2001 and, in accordance with the projections performed by the Latin American and Caribbean Demography Center (2008), it will reach a total of 14.361.666 individuals in the year 2010. Although the mean annual growth rate tends to diminish, its present level (2,5 %) remains high which is explained by a high fertility – the highest in the Latin American region - and a reduction of mortality, which has contributed to a higher survival of its population. In consequence, the Guatemalan population is characterized by its youth: four out of every ten individuals are under 15 years of age and six out of every ten are under 20 years of age.  Honduras, is administratively organized in eighteen (18) departments, with a population of 6.535.344 inhabitants as of the year 2001 and 7.721.324 inhabitants by the year 2008, showing a demographic growth rate estimated in 2,25 % per annum (Central American Population Center of the University of Costa Rica – CPC/UCR).

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Figure 3.3–1. Belize – Districts

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Table 3.3–1. Belize – Population by Districts

Population Coastal Districts Gulf of District / City or Villa 2000 2007 Variation (%) Caribbean Honduras Belize 63.061 93.200 48,0 93.200 93.200

Belice City 45.584 63.700 40,0 San Pedro 3.808 10.400 173,0

Ladville 3.472 4.852 40,0 Belize Rural 10.197 14.248 40,0 Cay 51.221 73.400 43,0 – – – – – –

San Ignacio / Sta Elena 12.734 18.300 44 BenqueViejo 5.096 8.200 61

Belmopan 4.785 16.400 243 Cay Rural 28.606 30.500 7 Corozal 32.209 36.300 13 36.300 – – –

Corozal City 7.589 9.100 20

Corozal Rural 24.620 27.200 10 Orange Walk 38.060 47.100 24 – – – – – –

Orange Walk City 12.977 16.000 23

Orange Walk Rural 25.083 31.100 24 Stann Creek 24.443 32.200 32 32.300 32.300

Dangriga 8,424 11.600 38

Stann Creek Rural 16.019 20.600 29 Toledo 23.117 29.300 27 29.300 29.300

Punta Gorda 4.266 6.300 24

Toledo Rural 18.851 24.000 27 191.100 154.800 TOTAL 232.111 311.600 34 61,3 % 49,7 % Nota: Districts with coasts on the Gulf of Honduras are: Belize, Stann Creek and Toledo Source: Statistical Institute of Belize

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Figure 3.3–2. Guatemala – Departments

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Table 3.3–2. Guatemala – Population by Departments

Population 2002 Department Total Men Women Urban Rural

Guatemala 2.541.581 1.221.379 1.320.202 2.186.669 354.912 El Progreso 139.490 69.058 70.432 50.300 89.190 Sacatepequez 248.019 122.258 125.761 208.876 39.143 Chimaltenango 446.133 219.000 227.133 217.922 228.211 Escuintla 538.746 271.923 266.823 256.972 281.774 Santa Rosa 301.370 150.190 151.180 105.061 196.309 Sololá 307.661 152.132 155.529 150.134 157.527 Totonicapan 339.254 159.979 179.275 121.617 217.637 Quetzaltenango 624.716 300.325 324.391 344.858 279.858 Suchitepéquez 403.945 199.550 204.395 165.871 238.074 Retalhuleu 241.411 119.215 122.196 87.749 153.662 San Marcos 794.951 392.368 402.583 173.332 621.619 Huehuetenango 846.544 411.320 435.224 192.099 654.445 Quiché 655.510 317.096 338.414 161.591 493.919 Baja Verapaz 215.915 105.187 110.728 58.962 156.953 Alta Verapaz 776.246 387.219 389.027 163.012 613.234 Petén 366.735 187.228 179.507 110.399 256.336 Izabal 314.306 156.559 157.747 90.508 223.798 Zacapa 200.167 98.669 101.498 77.935 122.232 Chiquimula 302.485 147.212 155.273 78.631 223.854 Jalapa 242.926 118.584 124.342 76.689 166.237 Jutiapa 389.085 190.388 198.697 105.648 283.437 TOTAL 11.237.196 5.496.839 5.740.357 5.184.835 6.052.361 Note: The department with coast on the Gulf of Honduras is Izabal Source: National Institute of Statistics of Guatemala

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Figure 3.3–3. Honduras –Departments

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Table 3.3–3. Honduras – Population by Departments

Density Population Urban Rate (hab/km2) Department 2001 2008 Variation (%) 2001 2002

Atlántida 344.099 394.338 14,6 72,1 50,3 Colón 246.708 283.127 14,8 26,5 27,9 Comayagua 352.881 421.995 19,6 64,9 40,9 Copan 288.766 347.324 20,3 85,2 31,3 Cortés 1.202.510 1.492.499 24,1 274,7 65,3 Choliuteca 390.805 444.081 13,6 83,6 28,1 El Paraíso 350.054 410.345 17,2 44,2 26,2 Francisco Morazán 1.180.676 1.381.627 17,0 128,8 75,1 Gracias a Dios 67.384 83.579 24,0 3,3 20,0 Intubuca 179.862 220.573 22,6 56,1 18,7 Islas de la Bahía 38.073 46.820 23,0 133,7 39,2 La Paz 156.560 187.564 19, 8 58,5 25,1 Lempira 250.067 300.757 20,3 57,7 11,6 Ocotepeque 108.029 127.055 17,6 62,7 29,1 Olancho 419.561 489.706 16,7 16,1 27,4 Santa Barbara 342.054 389.155 13,8 65,2 25,7 Valle 151.841 167.206 10,1 85,2 31,4 Yoro 465.414 533.573 14,6 56,6 38,3 TOTAL 6.635.344 7.721.324 18,1 56,6 44,9 Note: The departments with coasts on the Gulf of Honduras are Cortés and Atlántida Source: National Institute of Statistics of Honduras

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Figure 3.3–4. Demographic Tendencies of Belize, Guatemala and Honduras (Total population)

Taken from: CELADE (2008)

Table 3.3–4. Belize, Guatemala and Honduras: Demographic and Territorial Indicators

(Latest projections available by country)

Belize Guatemala Honduras Total (2007) (2008) (2008)

Territory (km2) 22.966 108.889 112.492 244.347

Population (inhabitants) 311.600 13.677.815 7.721.324 21.710.759 Data

General Density of population (hab/km2) 13,6 125,,6 68,6 88,9

Territory (km2) 9.500 9.038 5.123 23.661

Population (inhabitants) 154.800 364.910 1.886.837 2.133.237

Density of population (hab/km2) 16,3 40,4 368,0 90,2 Gulf of Gulf

Honduras Population (% of the national

Region of the 49,7 2,7 24,4 9,8 populationl) Coastal length on the Caribbean Sea 457 135 680 1.272

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3.3.2 Aspects of the “Health” Sector

Tables 3.3–5 y 3.3–6 respectively present information on basic health indicators and the investment into the “population health” sector for the three countries being studied in the present consultancy.

In the region of the Gulf of Honduras, health and human development have improved noticeably in the last decade, due essentially, to the concentration of the population and to the improvement of the urban infrastructure; on the other hand, it is possible to affirm that in the last 15 years the population of Belize, Guatemala and Honduras have achieved higher access both to the drinkable water services and sewage disposal, and the primary health attention and immunization policies.

These improvements are reflected by the rising life expectancy tendency of the population in the three countries, and by the continuous decrease of the maternal and child mortality rates (both in those younger than 1 year of age and in the group of younger than 5 years of age). At the same time, the coverage rates of potable water have increased (particularly in the urban areas).

However, the maternal and child mortality rates continue to be elevated with respect to the average of the Central American region, particularly in Guatemala and in Honduras. Besides, reports from the Panamerican Health Organization (PAHO) indicate the presence of chronic problems in the population related to nutritional deficiencies (which are reflected by indicators such as the prevalence of low child weight and insufficiency in the height of newborns and children below 5 years of age). On the other hand, there is an inequality in the medical coverage that is high in important urban centers (San Pefro Sula, Cortes Port, Barrios Port, City of Belize) but insufficient in the case of the rural population.

Likewise, there is an insufficient coverage of the sewage disposal systems for the rural areas and, in particular, adequate systems for final disposal of urban effluents. With the exception of the treatment system existing in Puerto Cortes, in the other localities of the area of study, object of the present consultancy there are no sewage water treatment systems of urban origin (or they are not operating).

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Table 3.3–5. Basic health indicators

Basic Indicators Belize Guatemala Honduras

Life expectancy (years) at birth (1970) 66 52 52 Life expectancy (years) at birth (1990) 72 62 66 Life expectancy (years) at birth (2006) 76 70 70

Mortality rate of younger than 5 years x 1000 live births (1990) 43 82 58 Mortality rate of younger than 5 years x 1000 live births (2006) 16 41 27

Child mortality rate (< than 1 year of age) x 1000 live births (1990) 35 60 45 Child mortality rate (< than 1 year of age) x 1000 live births (2006) 14 31 23

Neonatal mortality rate x 1000 live births (2000) 18 19 18

% of newborns with low weight (1999 – 2006) 6 12 10 Younger than 5 years (2000 – 2006) with (severe) short height 18 49 25

Life expectancy: women with respect to % of men (2006) 108 111 111 Coverage rate (%) of prenatal care (2000 – 2006) 96 84 92 % of deliveries attended by qualified personnel (2000 – 2006) 84 41 67 % of deliveries in institutions (2000 – 2006) 77 42 67 Maternal mortality x 100.000 births (2000) 140 110 240

% of total population using improved sources of potable water (2004) 91 95 87 % of urban population using improved sources of potable water (2004) 100 99 95 % of rural population using improved sources of potable water (2004) 82 92 81

% of total population with adequate sanitation facilities (2004) 47 86 69 % of urban population with adequate sanitation facilities (2004) 71 90 87 % of rural population with adequate sanitation facilities 2004) 25 82 54

Taken from: UNICEF (2007, UNFPA (2008)

Table 3.3–6. Comparative chart of expenses in the “population health” sector (year 2001)

Country US$ per person % of the GDP

Belize 197,9 6,3% Guatemala 95,0 5,4% Honduras 66,5 7,2% Taken from: PAHO – WHO

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3.3.2.1 Belize

The Government of Belize has increased the priority assigned to health issues and, especially, to the relationship between health and the environment: according to the Pan American Health Organization (PAHO) in the year 2001 Belize devoted 6,3 % of the gross domestic product to the Public Health sector (which belongs to some US$197,9 per person per year).

In the year 1990, Belize had a child mortality rate above the Central American average; the implementation of a “Health Policy” improved their basic health indicators with significantly lower rates of child mortality to those observed in the region. That is how in the year 2006, the child mortality rate was 14 for each 1000 live births, a decrease higher than 50% of the rate registered in the year 1990 (when this rate was 35 x 1000).

According to Belize’s Enrivonmental Profile (DOE – MNRE, 2006) the main causes of child mortality in children younger than five years are respiratory and intestinal infections, dehydration related to diarrheas, congenital malformations and accidents. Malaria has reduced its incidence, but continues to be one of the first causes of hospitalizations. With relation to the immunization coverage, in 1990 Belize obtained the status of “country with universal child immunization”.

Even though there have been no recordings of cholera cases since the year 2000, other diseases related to the quality of water continue being main factors for diseases, particularly in the case of children. Recordings indicate that almost 11% of the children younger than five years of age have experienced situations of diarrhea.

3.3.2.2 Guatemala

In Guatemala, the general poverty and extreme poverty indicators are 54,3 % and 22,8 % respectively; the Department of Izabal, the only department having coasts on the area of study, object of the present consultancy, shows relatively similar indexes: 52,12 % and 16,84 %, respectively.

According to SEGEPLAN (2006), in said Department poverty has an impact on health due to poor nutrition of the population and the high degree of basic services that are not provided (such as the management of solid and liquid wastes, the provision of drinkable water, the medical assistance and the absence of diversified productive alternatives; all of them important for a healthy life).

Notwithstanding the above, life expectancy at birth has increased throughout the years: at the national level it passed from 62 years (1990) to 70 years (2006); depending on the information available in the department of Izabal, by the year 2000, life expectancy reached 68,8 years.

On the other hand, the Department shows a birth and fertility rate above the national average; at the same time, the maternal mortality rate has maintained a descending trend and also above the national average (Table 3.3–7). The child mortality rate of children under 1 year (23,6 x 1000 live births, for the year 2001) is also below the mean of the country.

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Table 3.3–7. Department of Izabal and Republic of Guatemala:

Birth, fertility and child mortality rates of the department of Izabal

Tasas (año 2001)

Indicadores Izabal Nacional

Gross birth rate x 1000 live births 32,5 31,9 Fertility rate x 1000 women 140,1 137,7

Maternal mortality rate x 100.000 live births 118,0 99,0 Taken from: Head of the Health Area of Izabal (SEGEPLAN, 2003)

By the year 2001, according to Head of the Health Area of Izabal (SEGEPLAN, 2003) the health coverage amounted to 54 % of the population. As to the diseases, at the level of the Department of Izabal, the highest incidence belonged to acute respiratory infections, intestinal parasitism, skin diseases, anemia, septic diseases, urinary infections, amebiasis, pneumonias and bronchopneumonia, headaches and diarrheas (SEGEPLAN, 2003).

3.3.2.3 Honduras

According to the Panamerican Health Organization (PAHO, 2005), in Honduras the health system is strongly fragmented, with a limited coordination between providers of the public sector and those of the private sector, with duplications of responsibilities and services, but leaving several areas without coverage.

30% of the population does not receive health care, and 83% are not insured; the lack of coverage affects, especially ethnic minorities and the rural population.

The health expense represents about US$ 66,5 per person and, in relative terms, is one of the lowest of the region (See Table 3.3–8).

According to the Panamerican Health Organization (PAHO, 2005), the high rates of maternal and child mortality are explained by the high index of pregnancies in adolescents, the low level of maternal education and the limited access to potable water and sanitation services. The high prevalence of child malnutrition also contributes in this sense.

The Honduran Government, through the “Strategy for Reduction of Poverty” (2001) and the “Plan of the Health Sector 2002 – 2006” has looked to improve the basic sanitary conditions, the coverage and access to primary care as well as to insure the quality and efficiency of the services.

According to the “National Survey of Epidemiology and Family Health” (PAHO, 2003), the main causes of child death in the neonatal period are trauma/asphyxia (38.2%) and low weight at birth (27,9%).

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With regard to the types of disease (IDB, 2005):

 Diseases transmitted by vectors constitute a serious risk to the health of the general population and for certain groups in particular. Dengue has decreased but still persists at high levels; on the other hand, malaria has decreased but continues to be endemic and affecting, mainly the populations of the North and west (where there are rates higher than 1000 x 100.000 persons).  Nutritional diseases have a high incidence (due to the conditions of poverty of the population); as an example, iron deficiency is present in 30% of the children younger than five years, whereas chronic malnutrition reaches 33% of that same age group.  Chronic transmissible diseases have a high incidence, although some of them have decreased; such is the case of tuberculosis, for which the number of detected cases per each 100.000 inhabitants went from 72,0 (in 1993) to 50,8 (in 2003).  Diseases which could be prevented through vaccination have noticeably decreased in the last two decades (especially those prevalent in younger than five years of age).  Intestinal infectious diseases have a high incidence (due to the very bad healthiness conditions in which the population lives): 77% of the acute diarrheas reported yearly correspond to children younger than five years (in this group the prevalence of diarrhea is 22,5%). At the Cortes Port’s Municipality, which is a reference point for the coastal Honduran areas and the rest of the coastal municipalities of the Gulf of Honduras, currently there are three public hospitals and over fifteen private clinics; on the other hand, at the rural area there are other five medical facilities. The main diseases reported, according to information from the Ministry of Health, are the respiratory diseases (42%), diarrheas (15%) and skin diseases (5%).

At the beginning of the 2000 decade, 25% of the children younger than five years was affected by acute respiratory diseases, 25% had acute diarrheic syndrome and intestinal parasitism, besides suffering from skin and soft tissue diseases. The same was reflected in the age group from five to fourteen years of age. Dermatomycosis would be frequently present. Nonetheless, with the installation of the sanitation system at Cortes Port and the increase in the health coverage of the population, it was possible to corroborate a decrease of the diarrheic diseases, of intestinal parasitism, of skin and soft tissue diseases, the same as of dermatomycosis. Nonetheless, there is still a high incidence of dengue (caused by the presence of the Aedes aegypti mosquito.

At the Izabal Department (SEGEPLAN, 2006) the life expectancy at birth has increased as years go by: in 1990 it was 64,4 years, later going to 68,8 years in the year 2000. The maternal mortality rate has also shown a reduction tendency (even though it is higher than the national mean, meaning that it is a risk group); by contrast, child mortality can be found below the country mean (although, in the last years it shows a tendency to grow).

The higher percentage of disease frequency of the department corresponds to acute respiratory infections which affect, both 14% of women and 29% of men. Intestinal parasitism is the second morbility cause, both in men (14%) and in women (10,6%). In the case of children, acute respiratory infections are the main cause of mortality (24%) whereas in the maternal group, the greater percentage corresponds to urinary infections (27%) and anemia (25%).

It must be pointed out that in this coastal department, the health system coverage is 54% of the population and benefits mainly the urban population. According to reports from the Ministry of Health

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(2001), at the Izabal department there is a relation of three beds for each 5.000 inhabitants an the health services are rendered mainly by the public sector through a national hospital and several stations and health centers, distributed in the five municipalities; the Social Security Institute (IGSS) takes care of cases of common diseases, pediatrics, maternity and accidents. The private sector covers a part of the services through an auxiliary hospital and eight clinics that benefit workers and their families.

3.3.3 Gulf of Honduras Region

3.3.3.1 Main Demographic Aspects

As a whole, Belize, Guatemala and Honduras have a total coastline length of 1.272 km on the Caribbean Sea, which is reduced to 717 km considering only the Honduran coast comprised in the area of study object of the present consultancy (between the (Barra) Sandbank of the Motagua River and Punta Izopo).

Analyzing the situation of the departments or districts having coasts on the Gulf of Honduras (Table 3.3–4), we can observe that in Belize, the coastal zone represents the place of residence for 49,7 % of the population (strictly, the whole country results comprised within a maximum distance of 100 km from the coast line); in contrast, only 24,4 % of the Honduran population and hardly 2,7 % of the Guatemalan population live in said coastal area. a) Belize

According to information presented in Section 3.3.1 and especially in Tables 3.3–1 and 3.3–4, out of the six (6) districts in which Belize is organized administratively, four (4) have coasts on the Caribbean (Corozal, Belize, Stan Creek and Toledo) and only three (3) are coastal to the Gulf de Honduras (Belize, Stan Creek and Toledo). In these coastal districts is concentrated 61,3 % of the total population and, especially, in the coastal area of the Gulf of Honduras the population is estimated in 154.800 inhabitants (49,7 % of the total population); a significant proportion resides in the district and in the city of Belize (93.200 inhabitants, 29,9 % of the total population and 60,2 % of the coastal population on the Gulf of Honduras).

The population resides mainly in urban zones and in small towns and villages of less than 3000 inhabitants. In the last eight (8) years there has been a growing trend of migration to the urban zones (Belize City, Belmopan, San Pedro), that is reflected in the population growth index for said zones (64 %).

As for the whole country, the rural population represents 47,4 % of the total population whereas in the coastal districts the same represents 38,0 % of the population de said districts. Throughout the last eight years it has been evidenced a growing trend towards the migration to urban zones (Belize City, Belmopan, San Pedro, Dangriga and Punta Gorda), with a growth rate of 7,7 % per annum (the population growth rate in rural areas is only 1,1 %).

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b) Guatemala

According to information shown in Section 3.3.1 and especially in Tables 3.3–2 and 3.3–4, it is the country with highest population both of the region of the Gulf of Honduras and of Central America (11.237.196 inhabitants); according to the population projections carried out by the Latin American and Caribbean Demography Center (CELADE, (2008) the population will reach a total of 14.361.666 inhabitants by year 2010.

Most of the population reside in the regions called “metropolitan” and “Southwestern”; only 2,7 % of the population resides in the coastal zone of the Gulf of Honduras (see Tables 3.3–2 y 3.3–4).

Out of the twenty-two (22) departments in which Guatemala is administratively organized, Izabal is the only department with coasts on the Gulf of Honduras.

In the year 2002 the population of said department was 314.306 inhabitants and, by the year 2008, the same was estimated in 364.910 inhabitants (see Table 3.3–2)

According to data on internal migration intercensal, Izabal department has historically been an ejector population while the Peten department of Guatemala City has acted as the main takers of this internal migration, however this in the period 2002 - 2008 the growth rate of the departmental population (estimated at 2.53%) would have been higher than the national average (estimated at 2.5%), so that explain what the population growth above. c) Honduras

According to information shown in Section 3.3.1 and especially in Tables 3.3–3 and 3.3–4, out of the eighteen (18) departments in which Honduras is administratively organized; only two have coasts on the Gulf of Honduras (Cortés and Atlántida).

According to the census of the year 2001, the population residing therein represented a total of 1.546.609 inhabitants and, according to the estimations made by the National Institute of Statistics of Honduras, by the year 2008 said population would amount to 1.886.837 inhabitants (see Table 3.3–4).

On the other hand, in the departments of Atlántida and Cortés, three of the main cities of the country are located (San Pedro Sula, Choloma and Puerto Cortes) which, additionally, represent urban centers capturing internal migration. In particular, the departments of Cortés and Francisco Morazán received, in the year 2001, more than one half of one million cumulative internal immigrants (mostly women); the former received 346.170 individuals and the latter a total of 203.169 individuals.

3.3.3.2. Main Social and Urban Aspects

In the three countries, there is an ethnic diversity that is reflected in a coexistence of cultures and languages. As an example: a) in Belize: half-breds represent approximately 50,0% of the population, creoles 25,0%, garifunas 7,0% and other ethnic groups 18,0%; and b) at the Izabal department (Guatemala) the half-bred population represents 75%, the indigenous population 23% and the garifunas 2,0%.

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In the regional context, the three countries are characterized by a lower degree of urbanization; however, at the coastal area of the Gulf of Honduras, there are some urban centers of economic and social importance that is timely to point out: a) the city of Belize and its port (in Belize), b) the Bay of Santo Tomas de Castilla with the city of Puerto Barrios and ports of Santo Tomas de Castilla and Barrios (In Guatemala), and c) the Valley of the Sula with the city of Puerto Cortes (in Honduras).

 The city of Belize represents the most important urban and commercial center of the country. At present it has 63.700 inhabitants (see Table 3.3–1) and a tourist infrastructure which in the year 2007, received approximately 183.000 tourists with entry to the country through the International Airport Philip Goldson (Belize City) and some 624.000 passengers from tourist cruise ships.40 The tourist industry represents 17,0 % of the gross domestic product of Belize (some US$200.000.000) but urban services do not result adequate for the demand since, on the one hand, the city has no adequate system for the treatment of urban effluents 41 and, on the other hand, 40 % of the population of Belize City is not connected to the sewage disposal system. Additionally, the river Belize, a source of drinkable water for the city, receives the untreated urban effluents of the city of Belmopan (since the treatment plan is not in operation). The Port of Belize is the main port terminal of the country; in the year 2007 it mobilized 723.000 tons of cargo and 39.000 container TEUs 42.  By the year 2008 the total population of the Department de Izabal was estimated, according to the National Institute of Statistics, in 364.910 inhabitants being the most of them concentrated in the rural area and the rest in numerous urban centers (Puerto Barrios, Livingston, Los Amates, Morales, Río Dulce, El Estor, Modesto Méndez) among which the following stand out. Puerto Barrios, the head of departament and port city located on the Bay of Amatique. Generally, all urban centers and, in particular, the city of Puerto Barrios have an urban infrastructure with numerous insufficiencies, since they have no sewage disposal or rain drainage systems; however, Puerto Barrios has recently improved and expanded the drinkable water network. The department’s economy depends on the port activity, tourism and agriculture. In the ports of Santo Tomás de Castilla and Puerto Barrios an intense economic activity related to the movement or cargo and cruise ship tourism is developed. In the year 2007, through both port terminals a cargo volume equivalent to 6.750.000 tons and 594.000 TEUs of containers were moved, additionally some 40.000 cruise ship tourists. In the locality of Piedras Negras, crude petroleum coming through a petroleum pipeline, from the region of El Petén is stored; in the year 2007 approximately 4.8 million barrels were exported. In Santo Tomas de Castilla, regarding the use of the soil, out of the total 825.000 ha of the department, 37 % is for agricultural cattle use, 9 % belongs to bodies of water, and 53 % to forests, bushes and flood-prone, arid and wet lands.

40 It should be noted that, next to the port and to the commercial free zone of the city of Belize, a Cruise Ship Terminal is in construction (Carnival Cruise Terminal). 41 The same was initially designed for a population of 50.000 inhabitants.

42 It is the English abbreviation for “Twenty – feet Equivalent Unit” (TEU).

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The agricultural production is devoted to export crops (banana, African palm, rice) and crops for national consumption (corn, beans, rubber and others). According to studies by the University Rafael Landivar (2006), the gross domestic product of the department represents 4,2 % of the national gross domestic product).  The region of Valle de Sula, with Puerto Cortés as its main city, is currently the zone of highest urban and economic growth of Honduras and, generally, of the area of study, object of the present consultancy. In this region, it has been developed an important industrial corridor located between San Pedro Sula and the municipality of Puerto Cortés. San Pedro Sula is known as the “Industrial Capital of Honduras” and is the second city in importance of Honduras (after Tegucigalpa). The municipality of San Pedro Sula currently represents one of the most dynamic urban centers of Honduras and receives a large part of the migration from the neighboring departments. Puerto Cortés is the third city of importance in the country and has a regional mega –port, with an important free zone, which in the year 2007 mobilized 8.000.000 tons of cargo and 553.000 TEUs of containers. At present, Puerto Cortes has modern facilities and has even the certification from the United States Safety Department. San Pedro Sula and Puerto Cortes have drinkable water and sewage disposal services considered as “state of the art” for the country and which, at the same time, serve as a reference within the frame of the reform of the Water and Sewage Disposal System of Honduras. Between San Pedro Sula and Puerto Cortes more than 80,0 % of the manufacturing and textile industry of Honduras has been installed; in the zone there is a good road infrastructure network and the International Airport s Ramón Villeda Morales (San Pedro Sula) as well as six industrial parks wherein it is developed an important multure (“maquila”) industry. San Pedro Sula, Puerto Cortes, Choloma, La Lima, El Progreso, Búfalo and Villanueva, are connected as a co- urbanization of the Valle of the Sula and give an important demographic and economic dynamism to the country. Together with the industrial corridor, the region develops also agricultural activities wherein stand out banana, sugar cane, plantain, African palm, citric, pastures and basic grains. The economic activities of the Valle de Sula represent 55,0 % of the Gross Domestic Product of Honduras and, approximately, 40,0 % of exports; in the region reside, approximately, 20 % of the Honduran population (which is the most numerous labor force both in its urban and rural centers). 3.3.4. Basic Economic Aspects

3.3.4.1. Recent Tendencies and Current Profile of the Regional Economy

The economy of the Gulf of Honduras is characterized by the weight of its agricultural sector, the predominance of the intensive production of natural resources and, especially, by the important participation of the agricultural sector in exports (of bananas, coffee and sugar).

For each one of the countries, the fishing sector is relatively important; however, at the coastal level of the Gulf of Honduras, only Belize develops a fishing activity level that represents an important proportion of the gross domestic product.

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In the last years, the tourism sector has quickly developed in the three countries, turning into a sector of particular interest at national level for each country, which is something that has justified the design of “Strategic Plans” or “Master Plans” oriented to policy – framework for investments which have become available for this sector.

At the level of the coastal area of the Gulf of Honduras, the greatest dynamism has been observed in the coastal districts of Belize, at the coastal municipalities in Honduras (Cortes, Tela and Omoa) and at the municipalities of Livingston and Barrios Port (Guatemala). A tourism modality, which tends to grow in the region, is the cruise ship tourism (particularly in Belize and Honduras).

The “maritime transport and ports” sector represents one of the activities of greatest economic relevance in the area; in fact, the ports of the region represent the entrance and departure of exports and imports to their respective countries (particularly Honduras). Not only there are expansion projects for the ports, but also there are projects in process for “dry channels” or “interoceanic connections by road” between the main ports of El Salvador, on the Pacific Ocean and Cortes and Saint Thomas of Castille’s ports (on the Caribbean Sea).

Belize’s Port is the main port of this country and, from the year 2006, with the beginning of the oil export activities in Spanish Lookout (Cay District), the Port of Big Creek has become strongly stimulated.

In the Valley of Sula (see section 3.3.2.2), the Cortes’ department has consolidated as an industrial center, with a strong component of assembly plant industries (called “maquila”) and various industrial activities of importance for the region (which include paper, chemical products and the processing of food products).

3.3.4.2 Cash Remittances and their Socio – Economical Impact

Cash remittances of Belizeans, Hondurans and Guatemalan residents abroad have increased in the last years (Table 3.3–8) becoming an alternate source of financing for the commercial deficit in the external balance of payments of their respective countries. At a macroeconomic level, the flow of remittances pressures for an appreciation of the local currency, thus affecting in that sense and in an unfavorable way, the competitiveness level of the economy and, in particular, of the export sectors.

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Table 3.3–8. Evolution of the net volume of remittances in Belize, Guatemala and Honduras (in million US$)

Millions of U$S Country 2003 2004 2005 2006 2007

Belize 30 31 41 58 58 Guatemala 2.107 2.551 2.993 3.610 4.085 Honduras 860 1.144 1.788 2.359 2.590 Taken from: Interamerican Development Bank

The transferred amounts represent a significant percentage of the gross domestic product (PBI); in the year 2006, remittances represented 5 % of the GDP of Belize, e 17 % of the GDP of Guatemala and 25 % of the GDP of Honduras.

Remittances are directly related with the migratory phenomenon; according to studies of the International Organization for Migration (IOM) and of the World Bank, emigrations from Honduras and Guatemala represent no less than 10% of the total population and, in the case of Belize, it reaches 22%. However, the latter country receives an important flow of immigrants coming mainly from Guatemala and El Salvador (who represent approximately 15% of Belize’s population).

At the microeconomic level, depending on the origin of the migration, remittances are not distributed uniformly in the territory; for instance: a) in the case of Guatemala, only 4,5 % of the flow of remittances are oriented toward families residing in the Department of Izabal, and b). in the case de Honduras, 32 % of remittances are intended for families residing in the Department of Cortes and 14 % to families residing in the Department of Atlántida.

Remittances represent a relevant factor for the improvement of the economic income of the poorest homes. In this sense, various analysts consider that remittances have definitely contributed to the decrease in poverty and inequality; additionally they consider that remittances have promoted an improvement of children’s school attendance and access to health care.

According to the “Survey on Expenses”, in Guatemala and Honduras remittances are used, mainly, for current expenses in food and medicines or in rental rates, in a proportion of 75% and 66 % respectively. In turn, the data available for Belize confirm said priority destinations. In this respect, the environmental impact of remittances is related to the trend and the present consumption pattern of the population.

Studies of the Interamerican Development Bank (IDB) on the phenomenon of cash remittances in Central America have identified some international experiences with good practices, which relate to the possibility of utilizing such remittances to create foundations to develop productive projects al local level, oriented to training at the communities of the migrants who remit the cash, and to support the installation of companies and the promotion of savings and investment projects.

It should be added, for instance about the importance of remittances, that according to the information from the module “Migration and International Remittances” of the “XXXIII Permanent Survey of

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Households of multiple Purposes”, carried out in September 2006 by the National Institute of Statistics (INE) of Honduras, 11,3 % of the Honduran households have, at least, one migrant in the family, of whom 55,6 % are located in the urban area and 44,4 % in the rural area; in turn, according to information published by the Central Bank of Honduras, the remittances which in the year 1993 represented hardly 1,7 % of the PBI, became an economic income which by the year 2006, represented 25,4 % of the GDP. Likewise, according to the latter source of information, the destination of said remittances is found highly concentrated in the territory: approximately 85 % of the funds sent during 2006, concentrated in the departments of Francisco Morazán (39 %), Cortés (32 %) and Atlántida (14 %). Another significant information is the high correlation at the department level, between the flow of remittances received and the high levels in the “Human Development Index” prepared by the Program of the United Nations for the Development (PNUD, 2007).

3.3.4.3 Economic Integration and its Influence in the region of the Gulf of Honduras

In the last fifteen years, the economies of Belize, Guatemala and Honduras have quickly transformed after the influence of the insertion process of those countries into the regional and international economy.

During the 2004 – 2007 period, Central America has accomplished significant advances toward the consolidation of their “Free Zone Trade” (FZT), the deepening of the “Customs Union” (CU) and the coming into force of the “Free Trade Agreement among the United States, the Dominican Republic and Central America” (RD – CAFTA, United States – Dominican Republic – Central America Free Trade Agreement). a) Guatemala and Honduras and their participation in the “United States – Dominican Republic – Central America Free Trade Agreement” (RD – CAFTA)

The approval of the RD – CAFTA involves Guatemala and Honduras and is in force and effect since the year 2006. The agreement establishes a “free trade zone” between the seven signatory countries (United States, El Salvador, Guatemala, Honduras, Nicaragua, Dominican Republic and Costa Rica). Said free trade zone covers both agricultural and industrial goods and services.43 However, the treaty includes, additionally, subjects such as intellectual property, purchases from the public sector, investments and several regulations on the commercial activity (including aspects related to sanitary, phyto-sanitary and environmental measures).

Both in Guatemala and in Honduras, the RD – CAFTA is perceived as a historic opportunity, since it consolidates the access to the United States market (its major commercial partner with 42 and 80 % of exports, respectively) and promotes new trade and investment opportunities. However, the Agreement also implies challenges of a large dimension related to the necessary adjustments at the level of the productive machinery, the costs of the adjustment and some negative effects on small and middle- sized companies (PyMES) and the sector of the small and middle-sized agriculture.

43 A 95 % of exports are tax and duty free in the United States. In the industrial sector, practically the totality of products will have free access to the United States market, whereas in the agricultural sector it is foreseen, for certain products (olives, cotton, tobacco, etc.), a process removal of duties within a term between 10 and 15 years and, for other products, the elimination of the duties within terms ranging from 10 to 20 years.

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In particular, Chapter 17 of the Agreement includes everything related to the environmental policy and management of the signatory countries. The Parties undertake to establish laws and policies that provide and foster the environmental protection as well as generate efforts aimed at improving said laws and policies. The importance of the environmental legislation is reaffirmed by means of the statement that “it shall be considered as improper any way of promoting the trade or the investment that generates the weakening or the reduction of the protections contemplated in the internal legislation”.

It is also specified that each one of the Parties shall guarantee the existence of either judicial or administrative procedures and instances that enforce the sanctions or crimes mentioned in the legislation, in those cases where an environmental crime is committed.

In order to improve the compliance of the legislation in force and effect, it has been proposed a set of incentives and other mechanisms flexible and volunteer, which contribute to the achievement and maintenance of the environmental protection. It has been contemplated among them: a) associations involving the participation of the general public, b) mechanisms that facilitate the Exchange of information and experiences between the authorities, the interested parties and the general public, c) market-based mechanisms, and d) incentives for the exchange or trade of environmental permits.

The Parties have undertaken to recognize the ratified multilateral environmental agreements and follow up the implementation thereof at the national level.

The main specific environmental commitments which appear in “Chapter 17” of the Central America – US Free Trade Treaty (RD – CAFTA), are:

 Comply with the environmental laws affecting the trade between the parties.  Monitor and guarantee the compliance of these laws.  Guarantee that, for the purpose of attracting investments, the existing environmental laws are not reduced in penalties or sanctions do not become more flexible or are weakened in any way.  Guarantee that the environmental policies, laws and standards are constantly improved.  Guarantee that the competent institutions consider the requests from interested persons who may request to the authorities to investigate alleged infractions to the environmental legislation.  Guarantee the existence and functioning of adequate judicial procedures to fund, punish and remedy failures to comply.  Encourage incentives and voluntary measures of compliance to contribute to the implementation of the environmental legislation affecting trade.  Create National Councils of Advisors in Environment and Trade ascribed to the Environment Secretariats.  Create offices, in the Secretaries of Environment, to: a) answer to consultations on Industry and Trade in connection with the compliance of the environmental legislation affecting trade between the parties, b) process the consultations from the population regarding the environmental subject of the RD – CAFTA, c) carry out the work plan of environmental cooperation, d) serve as a liaison between the contact points of other countries, and e) coordinate the institutions involved at the national level (through National Consulting Councils of the Environment and of the technical teams that are created).

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 Support the creation of National Councils on Environmental Affairs.  Propose three national experts and at least one of a nationality other than the one of the parties in the RD – CAFTA, to integrate a “Panel for the Solution of Controversies”.  Efficiently develop the processes between the “contact point”, the Secretariat of Central American Economic Integration and the Council of Environmental Affairs integrated by the ministers. Currently, there are several programs of institutional strengthening, both at the national and regional level, which will allow guaranteeing the compliance of the commitments signed in the Treaty.

For instance, within the frame of the Central American Integration System (SICA), whereof Guatemala and Honduras are members, the Central American Commission of Environment and Development (CCAD) develop the “Regional Environmental Plan for Central America” (PARCA). Said plan includes six (6) strategic components: a) harmonization of institutional and juridical frames, b) municipal environmental management, c) modernization of environmental entities, d) economic incentives, e) methodologies for the economic appraisal of natural resources, f) mechanisms for the participation of the general public, and g) the promotion of self-regulation. b) Belize and its participation in the Community of Caribbean Countries (CARICOM) and in the Central American Integration System (SICA)

Belize belongs to the Community of Caribbean Countries (CARICOM in Spanish) and has as its main objective to act as a “geopolitical link” between such community and the Central American countries; that is why it participates in the Commission of Environment, Sustainable Development and Natural Phenomena of the CARICOM and, at the same time, of the Central American Commission of Environment and Development (CCAD in Spanish) of the Central American Integration System (SICA in Spanish). 44

Besides, within the CARICOM sphere, it participates of the CSME initiative (Caribbean Single Market and Economy), in process since the year 2006, which also involves commitments on environmental topics related to the development of sustainable tourism and the emergency management of natural disasters.

On the other hand, the Commission of the Community of Caribbean Countries for Climate Change (CCCCC) has its headquarters in Belmopan; being in implementation a project of “Adaptation to Climate Change” (MACC).

Finally, it must be indicated that, in the SICA – CCAD sphere, Belize participates on the commitments taken upon from the “Memorandum of Agreement for Sustainable Development” and from the document on “Environmental Safeguarding Policy”. c) Free Trade Agreements and the “Maquila” Industry of the Region

Both the regional and the multilateral negotiations put pressure for the elimination of fiscal and custom tariff incentives that benefit those companies established in the free zones, particularly those of the “maquila” industries.

In Belize, in Guatemala and especially in Honduras, the promotion of exports is based upon export free zone regimes that allow the temporary import of inputs for export. The production of the “maquila”

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sector represents 6,6 % of the gross domestic product of Honduras and contributes to the exports of the country with, approximately, US$1.000.000.000. On the other hand, the “maquilas” are mainly concentrated on the textile sector (almost by 80%) and it is labor-intensive, yearly generating jobs for approximately 135.000 people. From the territorial point of view, the “maquila” industries are concentrated in the coastal departments of the Caribbean coast (Cortes, Yoro and Atlantida) and, mainly by 87% in the Valley of Sula.

3.3.5. Main Economic Sectors

In the region of the Gulf of Honduras, the agricultural production maintains its dominant weight in the economy and job generation; however, the development of said activity is not the most dynamic in the region, at least compared to other sectors in the secondary and tertiary sectors such as fishing and aquaculture, tourism, maritime transport, the port activity and petroleum exports.

3.3.5.1. The “Agricultural” Sector

The agricultural production is concentrated in export crops (such as banana and African palm) and the crops for the internal market (such as corn and beans). Additionally, sugar cane and citric (orange and grapefruit) plantations stand out in Belize.

3.3.5.2. The “Fishing and Aquiculture” Sector a) Belize

The total surface of Belize’s fishing area represents about 4.700 Km2, with a variable action radius between 1,5 and 10,0 m of depth; nonetheless, practically all the fishing is carried out in the area between the coral barrier and the coast, as well as in the not-too-deep waters of atolls (Turneffe, Glovers, and Lighthouse).

“Fishing and Aquiculture” represent a sector that contributes with the economy in a significant way, generating a growing opportunity of jobs for the population.

The fishing effort is focused on the capture of the “spiny lobster” (Panulirus argus) and the “Queen’s snail” (caracol de la reina) (Strombus gigas). In the last five years, captures represented, in average, approximately 220 tons of lobster and some 250 tons of snails; in turn, the fishing of shrimps has been significantly reduced.

The fin fish species, sought for export, include dusky sea perches of the genus Epinephelus and Mycteroperca; snappers of the genus Lutjanus and Ocyurus; the hog fish (Lachnolaimus maximus); the mackerel (caballa of the rey) (Scomberomorus cavalla); the large barracuda (Syhyraenabarracuda) and horse mackerels of the genus Alectis, Caranx and Trachinotus

Table 3.3–9 (Statistical Institute of Belize, 2009) shows the information available on the volume of exports of fishing products, as well as the income derived from them.

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Table 3.3–9. Belize: Evolution of the volume of exports of fishing products and income derived from them

2000 2001 2002 2003 2004 2’005 2006 2007 2008 Aquarium Fish

N° 5.788 2.884 3.452 15.403 61.874 115.222 48.100 52-033 38.207 U$S 0,05 0,02 0,025 0,045 0,09 0,11 0,05 0,115 0,12 (mill.) Other Fish

Tons 412,74 488,01 17,03 10,78 121,32 141,00 245,09 165,93 1.212,41 U$S 0,91 1,06 0,06 0,02 0,61 0,63 0,61 0,48 2,17 (mill.) Snail

Tons 273,64 225,89 226,31 243,26 244,01 236,50 180,62 238,68 294,13 U$S 7,71 6,27 6,62 6,80 7,57 7,42 6,97 2,70 3,32 (mill.) White shrimp

Tons 2.224,25 3.037,84 2.804,73 7.214,26 7.741,77 8.605,98 7.219,58 2.467,19 2.280,08 U$S 24,57 23,28 25,71 45,89 42,23 36,88 31,22 9,88 9,26 (mill.) Pink shrimp

Tons 19,69 9,79 19,69 66,71 50,98 23,15 2,68 – – – – – – U$S 0,25 0,12 1,08 0,50 0,48 0,39 0,04 – – – – – – (mill.) Lobster

Tons 247,27 308,62 210,92 203,98 270,38 247,96 332,01 208,05 203,71 U$S 1,79 2,49 1,72 1,87 2,91 3,75 4,19 8,05 7,41 (mill.) TOTAL EARNINGS

U$S 35,22 33,21 35,18 55,065 53,785 49,06 43,01 21,09 22,14 (mill.) Taken from: Statistical Institute of Belize (2009) (available at: http://www.cso.gov.bz/dms20uc/dynamicdata/docs/20090224155053_2.pdf)

As of the year 2007, the fishing sector generated income for a total of US$21.090.000, whereof: the white shrimp represented US$9.880.000, the lobster represented US$8.050.000 and the snail US$2.700.000. In this year, according to Belize Department of Fisheries (2008) the sector generated a total of 2.812 direct jobs, whereof 2.110 were fishermen (who, in their majority, belong to one of the four major cooperatives owned by local investors and the fishermen themselves as the major

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shareholders) and 702 indirect jobs belonging to the processing activities, general operations and administration (102 jobs in the fishing sector and 600 jobs in the aquaculture sector).

The sector is characterized as a small scale and artisan industry (except the dredge fishing of the shrimp which is of an industrial type). According to the Belize Fisheries Department (2008), the artisan fishing fleet comprises 593 boats which, in their majority, belong to small boats (from 5 to 10 m length) with out-of-board engines (from 15 to 75 HP) and simple capture methods which include mesh nets, lobster and fish traps, “casitas” (lobster curtains), dredging nets, hand line fishing and free diving.

As for the industrial fishing fleet, it ranges between three and eight dredging ships per season and operates, mainly, South of Belize (Victoria and Inner Channel). b) Guatemala

In the Gulf of Honduras, the Guatemalan fishing activity is developed integrally, with small scale vessels and artisan fishing arts concentrating in the 2.100 km2 of the continental platform closest to the coast.

The industrial fleet is comprised by 64 vessels (generally with fiber glass or steel hulls, lengths ranging between 9,0 and 17,0 m and engine powers varying between 80 and 200 HP).

The artisan fleet is comprised by 1.942 vessels engaged in the fishing of shrimp and lobster and 350 vessels engaged in the sport fishing.

The major operation bases destined to the provisioning and charge / discharge of products are located in Puerto Barrios and Livingston (on the Atlantic coast); in turn, the artisan fleet has no specific docks or facilities, and therefore is transformed in a sector with strong characteristics of dispersion little control.

In the Department of Izabal, the only Guatemalan department on the coast of the Gulf of Honduras, fishing represents an extractive activity with strictly subsistence purposes which incorporates unqualified and unemployed labor, for which fishing represents a work alternative. There are numerous artisan fishermen organizations which at present receive –or have received – technical and financial assistance from the Fishing and Aquaculture Management Unit (UNIPESCA) of the Ministry of Agriculture, Cattle and Food (MAGA) and/or of the international cooperation.

According to the information from UNIPESCA it is estimated that in the Guatemalan coast of the Gulf of Honduras the capture amounts to 42 tons of snail, 22 tons of lobster and 130 tons of shrimp; regarding scale fishing, it is estimated that the average production would be in the order of 1.250 ton/year.

c) Honduras

In Honduras, the “fishing and aquiculture” sector not only constitutes one of the main export items, but it also represents a source of employment, of economic income and is part of the food diet of the coastal communities over the Gulf of Honduras and the Caribbean Sea.

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Between the outfall of the Motagua River and the eastern border of the Atlantida department a craft fishing activity develops, which is mainly oriented toward the scale species and the common lobster. Such activity is carried out by fishermen of two ethnic communities (the garifunas and the half-bred) which concentrate in the area between the outfall of the Motagua River and the outfall of the Wans Coco or Segovia River and includes coastal lagoons, reserve areas and national parks (“Jeanette Kawas” National Park, “Izopo Point”) and some sites of the Bay’s islands.

In the case of protected areas and national parks, the fishing is carried out under special regulations, with only fishhooks being allowed as fishing gears.

In the year 2001, the industrial fleet had a total of 309 boats: 109 for shrimps, 156 for lobsters, 29 for scale fish and 15 for snails; with their operations base in the communities of Coxen Hole, French Harbor, Oak Ridge, Jonesville and Guanaja (Bay Islands), Cauquira (La Mosquitia) and La Ceiba (Atlantida).

Packing companies are located on the Bay Islands and have specialized in traditional species (shrimps, lobsters and snails); on the Caribbean coast there are four other packing companies (also for lobsters, shrimps and snails), with their products being obtained both from the industrial fleet and from craft fishermen.

The boats are built with steel and fiberglass, with their length being between 20 – 26 meters and their motors between 130 – 420 HP; and these are equipped with cold storage (holds), which can freeze to temperatures up to -140 oC, as well as modern equipment for positioning and navigation.

Industrial fishing is directed toward traditional resources: the brown shrimp (Litopenaeus aztecus), the white shrimp (Litopenaeus duorarum) and the pink shrimp (Litopenaeus schmitti); the common lobster (especially porgies and groupers). Also there is a harvest of the so-called “queen snail” (Cassis madagascariensis).

3.3.5.3 The “Receptive Tourism” Sector

In the coastal area of the Gulf of Honduras, and at the level of the three countries (Belize, Guatemala and Honduras), tourism has become one of the major industries (see Figure 3.1–41 and Table 3.3– 10). In fact, the three countries have a great variety of natural and cultural resources of particular tourist, regional and international interest.

In the case of Guatemala and Honduras, such tourist capital is distributed along all their territories, both on the Pacific Ocean coasts and over the Caribbean Sea. The coastal and marine areas over the Gulf of Honduras represent a major tourist attraction for Belize, with lesser importance for Honduras and relatively marginal importance for Guatemala.

With relation to receptive tourism, Guatemala and, in a lesser degree, Honduras, have duplicated the number of tourists’ visits between the years 2000 and 2007; Belize, on the other hand, has shown a consolidation of the numbers of tourists visits around 250.000 people.

The industry of tourism generates a strong economic impact, representing (on the year 2006): 7,0% of the gross domestic product of Guatemala, 5,5% of the gross domestic product of Honduras and 22% of the gross domestic product of Belize.

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Table 3.3–10. Receptive tourism in the countries of Central America

Tourist arrivals Country 2000 2001 2002 2003 2004 2005 2006 2007

196.766 195.955 199.521 220.574 230.673 236.573 247.325 251.656 Belize 4,5 % 4,5 % 4,2 % 4,5 % 4,0 % 3,7 % 3,6 % 3,2 % 926.240 835.492 884.190 880.223 1.315.646 1.315.646 1.481.547 1.585.000 Guatemala 19,0 % 19,4 % 18,8 % 18,0 % 20,6 % 20,5 % 21,3 % 19,9 % 470.727 617.914 549.500 610.535 672.103 749.395 738.667 831.000 Honduras 10,8 % 12,0 % 11,7 % 12,5 % 11,7 % 11,7 % 10,6 % 10,5 % 2.862.261 2.759.493 3.069.081 3.187.838 3.639.618 4.102.095 4.474.680 5.284.344 Others 65,6 % 64,0 % 66,3 % 66,1 % 63,6 % 64,1 % 64,6 % 66,5 % TOTAL 4.344.994 4.308.854 4.702.292 4.899.170 5.724.079 6.403.709 6.942.219 7.962.000

Earnings (in millions of U$S)

133,8 156,2 182,5 174,7 199,4 Belize – – – – – – – – – 4,1 % 4,3 % 4,4 % 3,6 % 3,5 % 536,3 492,7 612,2 599,7 770,1 868,8 1.012, 0 965,4 Guatemala 18,1 % 17,4 % 18,7 % 16,4 % 18,5 % 18,0 % 17,9 % 22,2 % 259,8 274,6 341,5 370,2 410,2 407,6 474,6 524,7 Honduras 8,8 % 9,7 % 10,5 % 10,1 % 9,8 % 8,4 % 8,4 % 12,1 % 2.170,4 2.065,3 2.178,7 2.521,9 2.810,7 3.373,5 3.975,5 2.853,6 Others 73,2 % 72,9 % 66,7 % 69,1 % 67,3 % 69,9 % 70,2 % 65,7 % TOTAL 2-966 2.833 3.265 3.648 4.174 4.825 5.661 4.344 Taken from: Central American Integration System (SICA)

a) Belize

In Belize, tourists mainly come by air and their main destinations are the Mayan archeological sites; the protected areas and the marine reserves represent the second destination but, the fundamentally, their main interest is oriented toward coral reefs and the Northern cays.

According to the official statistics, 346.972 tourists entered in 2007, which represented earnings of approximately US$199.000.000 (17 % of the gross domestic product) and generated a demand of direct jobs for 15.670 persons.

The perspectives of the tourist sector tend to consolidate it as one of the key sectors of the economy; nonetheless, there is a wide consensus among those mainly involved with regard to the need to frame such development into strategies of “sustainable tourist development” and “nature tourism”. In particular, such focus is applied to the “cruise tourism” sector, which has had a very fast development

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up to the year 2005 but which has fluctuated until reaching, in the year 2007, about 624.000 passengers.

Given the economic importance of tourism and the specific demand for “nature tourism”, the government and those mainly involved participate in the implementation of various projects which may expand and make the current infrastructures suitable toward the focus on “sustainable tourist development” such as:

 The preparation of a “Master Plan” that would work as a framework and will determine the strategic lines of the sector.  The expansion of the International Airport of Belize City.  The paving of the route to Placencia  The conclusion of the Cruise Terminal construction in Belize City. b) Guatemala

In Guatemala, according to information presented in Table 3.3–10, the entry of tourists has increased from 926.240 visitors in the year 2000 to 1.585.000 visitors in the year 2007; however, regarding their destination, the coast of the Caribbean would represent less than 4,0 % de said visitors and the Southern coast less than 2,0 % (MARN, 2008). c) Honduras

In Honduras, the tourist sector is important at national level and relatively important in the coastal area of the Caribbean Sea, where there are numerous developing investments at the present time (particularly in the Tela Bay and in Omoa).

The flow of receptive tourism shows a growing tendency; the Honduran Institute of Tourism (HIT) has estimated the contribution of the tourist sector and its related activities to the gross domestic product of the country in 5,5% for the year 2007. On the other hand, the sector represents an important generator of jobs: 148.212 direct jobs (mainly through the “Foods”, “Beverages”, “Hotel” and “Transport” sectors)

In December 2005, the government of Honduras approved a “National Strategy for the Development of Sustainable Tourism” which defines the strategic guidelines, instructions and policies for the promotion, development and management of sustainable tourism. Among their priorities at short and medium term are, on one hand the Emerald Caribbean and the Bay Islands, and on the other hand, the Omoa area, Cortes Port and Tela.

Among the main central development ideas there are:

 The restoration and valueing of the Omoa Fortress  The tourist development of Tela Bay (including the valueing of its beaches and protected areas)  The valueing of the beaches of the so-called “North coast”.  The “Environmental Management Program of the Bay Islands” (EMPBI) which includes the integral management of the natural resources; the environmental sanitation and the institutional strengthening.

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3.3.5.4. The “Cruise Tourism” Sector

The cruise industry is the tourism segment with the greatest growth in the region of the Gulf of Honduras (Table 3.3–11); in fact, starting on the 90’s decade, it went from a low profile position to become the option of greater growth and future.

Table 3.3–11. Cruise ships tourism in the Central American countries

Passengers in Cruise ships Country 2000 2001 2002 2003 2004 2005 2006 2007

64.121 48.116 319.690 675.295 651.436 800.331 655.929 624.128 Belize 9,5 % 6,9 % 28,0 % 40,6 % 30,9 % 36,4 % 29,5 % 23,9 % 1.454 4.055 6.430 19.254 17.975 17.975 20.522 42.000 Guatemala 0,2 % 0,6 % 0,6 % 1,2 % 0,9 % 0,8 % 0,9 % 1,6 % 217.700 154.100 238.605 276.076 444.610 444.610 397.689 613.000 Honduras 32,3 % 22,3 % 20,9 % 16,6 % 21,1 % 20,3 % 17,9 % 23,4 % 391.524 484.139 677.781 690.312 992.601 931.244 1.152.474 1.335.000 Others 58,0 % 70,1 % 59,3 % 41,6 % 47,1 % 42,4 % 51,8 % 51,1 % TOTAL 674.799 690.410 1.142.506 1.660.937 2.106.622 2.194.160 2.226.614 2.614-126

The three countries (Belize, Guatemala and Honduras) are expanding and making the necessary facilities more suitable to receive and to accommodate such tourism option. With respect to the year 2002, in the year 2007 the visits of cruise passengers duplicated, who arrived both at Roatan and at Cortes Port. In the case of Belize, the growth of cruise tourism between 2001 and 2007 multiplied by a factor of ten, reaching 624.000 passengers. Starting on the year 2005, there is a growing concern for making tourist development more suitable for the real load capacity of the marine and coastal ecosystems which are most visited by tourists.

In a lesser degree, Guatemala has terminals for cruise tourist attention mainly at the Saint Thomas of Castille’s Port which, has considered as part of their expansion plan, the construction of a specific cruise ships terminal.

It is calculated that each cruise tourist spends, by average, about US$100 per day during their stay (both in the destination area where they arrive, as in the visit to patrimonial, archeological or natural sites).

3.3.5.5. The “Maritime Transport and Port Activity” Sector

In the region of the Gulf of Honduras, maritime transport and port activities fulfill a fundamental role both in international trade of the three countries (Belize, Guatemala and Honduras) as in the development of their national economies.

Such as it has already been set forth (see Chapter 2), the main port facilities of the area of study, object of the present consultancy are Belize City and Big Creek (in Belize), Puerto Barrios and Puerto

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Santo Tomas de Castilla (in Guatemala) and Puerto Cortes (in Honduras), to which the facilities existing in the Bay of Tela (Honduras) should be added.

In the year 2007, said ports received a little more than 4.300 ships and mobilized more than 15.000.000 tons of cargo and more than 1.100.000 TEUs (Table 3.3–12). At the regional level, the importance of the maritime transport, as the main transportation means of foreign trade, has increased by 40 %; at the same time the ports received a growing flow of tourist ships (whose routes include the Gulf of Honduras).

The port of the City of Belize received, in the year 2007, 256 ships which mobilizes approximately 722.800 tons of cargo and 39.191 TEUs; in turn, Big Creek, which traditionally has been a port for the export of bananas and citric concentrates, exports, since 2006, the petroleum extracted from the wells located in Spanish Lookout.

In Guatemala, 78% of its foreign trade volume (approximately US$20.000.000 for the year 2007) was transported by sea and 37% of said cargo was manipulated at their two ports on the Caribbean Sea. The main port is the Saint Thomas of Castille, which receives more than 1.500 ships per year (including 25 oil carriers) and which operates yearly with cargo representing 4.700.000 cargo tons and 376.000 TEUs. On the other hand, Barrios Port mobilizes a total of 2.000.000 cargo tons and 218.000 TEUs.

Puerto Cortés (in Honduras), is the main deep water port on the Caribbean Sea of Central America and is located in a natural bay of deep waters (the Bay of Amatique). It is a port having an important “hinterland” which includes the industrial zone of the Valle of the Sula and, additionally, is one of the best equipped ports of the region. On a yearly basis, more than 1.900 ships (including 110 tankers), operate in its facilities, handling more than 8.000.000 tons of cargo and approximately some 500.000 TEUs. This port has obtained, from the United States Authorities, the certificate of “safe port” and has in execution an important project of expansion and modernization: from the year 2008 there are foreseen important projects which will allow to consolidate the growing development of the port and which, at the same time, will allow the port to be projected as a mega-port of international category within the middle term.

Additionally, through the Bay of Tela (Honduras) a large part of said country’s fuel imports enters.

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Table 3.3–12. Movement of ships and goods in the port terminals of the Gulf of Honduras

Santo Puerto Puerto Year Belize Big Creek Tomás de Bay of Tela Barrios Cortés Castilla

2001 253 – – – 535 1.263 1.786 – – – 2002 227 – – – 570 1.281 1.742 16 2003 246 – – – 508 1.320 1.792 70 2004 273 – – – 463 1.369 1.756 74 Ships (units) 2005 238 – – – 480 1.365 1.746 85 2006 237 – – – 541 1.437 1.836 26 2007 256 – – – 564 1.578 1.909 15 2008 234 – – – 479 1.320 1.816 23 2001 701,9 110,8 1681,0 4.502,1 5.661,9 – – – 2002 724,5 78,4 2.045,7 4.800,0 5,781,9 95,0 2003 737,5 103,0 1.956,0 4.540,2 6.306,4 400,0 Load 2004 703,2 154,3 1869,1 4.563,3 7.012,0 163,9 (thousand of tons) 2005 701,7 – – – 1936,9 4.322,2 7.365,8 187,8 2006 675,5 – – – 1821,9 4.667,8 7.396,9 237,7 2007 722,8 – – – 2.034,5 4.714,8 8.010,5 146,6 2008 658,6 – – – 2.092,0 4.677,0 8.527,3 209,4 2001 27.074 – – – 189.808 201.090 338.932 0 2002 30.312 – – – 241.608 300.657 352.983 0 2003 33.789 – – – 242.103 312.457 399.612 0 2004 35.565 – – – 232.242 328.464 466.805 0 TEUs (units) 2005 36.388 – – – 229.437 316.474 468.563 0 2006 37.527 – – – 213.098 313.777 507.946 0 2007 39.191 – – – 218.818 376.666 553.139 0 2008 38.211 – – – 248.797 381.199 572.382 0 Prepared upon the basis of information obtained from: Central American Transport Commission (COCATRAM), Belize Port Authority (Belize), National Port Corporation (Guatemala), and National Port Company (Honduras)

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Finally, it should be noted that, within the frame of the “Project of Integration and Development of Mesoamerica” (also called “Project Mesoamerica” and, formerly, Plan Puebla – Panamá)44, there are currently three important initiatives of regional transport infrastructure, in progress:

 The “International Network of Mesoamerican Roads”” (RICAM).  The “International Network of Mesoamerican Airports” (RIAM).  The “Integral and Sustainable Port System of National and International Mesoamerican Service”. From the year 2006, within the frame of la RICAM, it has been approved the construction of two important inter-oceanic highways which foresee the connection between ports of the Republic of El Salvador on the Pacific Ocean) and the main ports of Guatemala and Honduras (on the Caribbean Sea): Puerto Acajutla (El Salvador) – Puerto Barrios (Guatemala) and Puerto La Libertad (El Salvador) – Puerto Cortés (Honduras).

Likewise, it should be noted that the initiative of the Agreement RD – CAFTA, the regional integration and the materialization of the projects of regional infrastructure will foster the expansion of commerce in the region and, particularly, the maritime transport and the port activity of the ports of the region of the Gulf of Honduras.

3.3.5.6 Oil Exports (Guatemala and Belize)

Both Guatemala and, more recently, Belize have an oil industry which exports from their ports located over the Gulf of Honduras: Big Creek (in Belize) and Saint Thomas of Castille (in Guatemala).

In Belize, hydrocarbons production started in the year 2005. The oil fields are located in Spanish Lookout (Cay District) and, from the year 2006, they have the facilities of Big Creek Port for the export of oil, with the oil operations being carried out by Belize Natural Energy (BNE). In the year 2007, according to the Statistical Institute of Belize (2009) the volume of oil extracted and transported represented some US$71.310.000 (making it the leading export product).

In Guatemala, between 1990 and 1998, the production of crude oil Grez from 1,3 to 9,2 million barrels; from 1999 (year wherein it was recorded the maximum Guatemalan oil production) it was started a process of reduction of the production (which reached 5,5 million barrels in the year 2007). The oil exploitations are located Department of Petén, wherein are produced some 5,5 million barrels (information belonging to the year 2007). From said exploitation sites the oil is transported through a pipeline to the terminal of Piedras Negras (in the locality of Puerto Barrios) for its subsequent export through the Port of Santo Tomas de Castilla. In the year 2007, said exports represented some US$ 249.100.000 (1,0 % of the gross domestic product).

44 Plan Puebla – Panamá was proposed in 2001 to contribute to the integration of the Central American region regarding infrastructure and energy. The Plan is integrated by: Belize, Costa Rica, El Salvador, Guatemala, Honduras, Mexico, Nicaragua and Panama and, from 2006, also Colombia. The Plan Puebla – Panamá (at present “Project Mesoamerica”) grants financing to support eight initiatives: Transport, Energy, Telecommunications, Human Development, Tourism, Sustainable Development, Facilitation and Commercial Competitiveness, Prevention of Disasters. In 2007 the following were added: Biofuels, Science and Technology, Education, Water, Climate Change and Forest Sciences. The Plan Puebla – Panamá has t present a portfolio of 99 projects. The estimated total investment in projects is US$ 8.076,43 million.

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It should be noted that, in the future, the trend in the production and, consequently, in the export through the port facilities of the Gulf of Honduras, will depend both on the international market and the investment policy of the governments in connection with the prospection and exploitation of new deposits.

3.3.6. Future Tendencies of the Economy

The region of the Gulf of Honduras, maintains a growing tendency of their economic activities (in spite of the agricultural production stagnation); the economic drive is guided by the “tourism”, “maritime transport” and “port activity” sectors.

In a lesser degree, the “fishing and aquiculture” sector is a significant sector both for the case of Belize’s economy, and particularly for the districts of Toledo and Stann Creek, as in the local communities of Tela – Omoa (Amatique Bay, Honduras).

The three countries, particularly Belize and Honduras, promote the tourist sector growth. As already indicated, Honduras is implementing a “National Strategy for Sustainable Tourism” and Belize promotes the “sustainable and nature tourism”.

At the same time, in the region of the Gulf of Honduras, the tendency toward the growth of the industrial sector is consolidated through projects of oil production and export (in Belize and Guatemala) and projects of expansion of maritime transport and port activities (which in the case of the Saint Thomas of Castille and Cortes Ports point toward the increase in their participation on containers’ transshipment movements and on the additional cargo to be mobilized through the logistic corridor between the Pacific Ocean and the Caribbean Sea).

At medium term, the perspectives of regional integration and the implementation of the RD – CAFTA Agreement will have a positive effect on the economies of the region’s countries and, as a result, an increase of port and maritime transport development. In this sense, the tendency currently being observed is expected to remain and to increase in the three critical areas identified: a) Cortes Port – Valley of Sula, b) Barrios Port – Amatique Bay, and c) City – Port of Belize.

3.3.7 Economic Appraisal of the Coastal Ecosystems of the Gulf of Honduras

3.3.7.1 Conceptual Framework

The marine - coastal ecosystems of the Gulf of Honduras provide with environmental goods and services of vital importance and high social and economic significance for the local population and the economy of the countries of the region (Belize, Guatemala and Honduras).

Among the most significant ecosystems, from the economic point of view, it stands out the coral reef (with its coral beaches), the mangroves, the marine pastures, the bays, lagoons and estuaries and the sandy beaches. All of them offer numerous direct economic benefits through the potential development of activities that depend on the existence of their environmental quality; among said benefits the following stand out:

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 The international receptive and cruise ship tourism.  The fishing activity.  The generation of economic resources for the local community.  The port services to the navigation and the maritime transport of persons and goods.  The urban development. Said ecosystems provide, additionally, with numerous environmental services with an important indirect economic impact. In fact, the marine-coastal ecosystems such as the coral reef and the mangrove are the main habitat of the juvenile stadiums of many coast and pelagic fish as well as molluscs; on the other hand, they contribute with protection elements in connection with the coastal erosion.

On the other hand, the five most relevant ports of the region (City of Belize and Big Creek and, in Belize; Puerto Barrios and Puerto Santo Tomas de Castilla, in Guatemala; and Puerto Cortes, in Honduras) are located in the area of study, object of the present consultancy).

The movement of cargo operated in said ports represented, in average and for the years 2006 – 2007, 20,6 % of the volume of the port activity in the Central American region and, on the other hand, represents 100 % and 78 % of the total maritime commerce of Belize and Honduras, respectively. In the case of Guatemala, the two ports located in the Bay of Amatique (Puerto Barrios and Puerto Santo Tomas de Castilla) develop a significant activity in the foreign commerce of agricultural, agro-industrial products and hydrocarbons, which represents 40,1 % of the volume of cargo operated in the Guatemalan ports.

Another key economic activity of the marine – coastal zone is tourism, which depends on the environmental quality and on the existence of a natural and cultural capital all along the coastal coast and the marine zone of the Gulf of Honduras. This tourism has several components which must be analyzed separately: international receptive tourism l and cruise ship tourism.

The sector “fishing” also represents a key sector for the local coastal community of the countries of the region and, specially, for the national economy of Belize.

3.3.7.2 Applied Methodology a) General Considerations

Such as it has already been set forth, the coral reef (with its coral beaches), mangroves, marine pastures, bays, lagoons and estuaries and sandy beaches constitute ecosystems of local and global biological importance, but they represent also the chosen site and a unique attraction for the development of numerous important activities for the local population and for the economies of the countries of the region.

The methodology of economic appraisal used for the purpose of the present analysis, is supported by the concept of “environmental goods and services of the ecosystem”, as the basis for the estimation of the tangible benefits provided by the marine-coastal ecosystems whereon depends both the sustainable development of numerous economic activities and the well being of the society and the economies of the countries.

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Such as it was also stated, such ecosystems provide with a wide variety of environmental goods and services (both within the local and national and global scope).

Among the most significant environmental goods, stand out: a) the products of fishing (lobster, sea snail, shrimp and fish), b) the wood chips and coal extracted from the mangroves and coastal wetlands, and c) the raw material for potential medicinal products (many of which are used for local consumption or commercialization).

The environmental services represent the capacity of the ecosystems to generate products useful for humans and for the environment, such as: a) the protection of the coast against the erosion generated by tropical storms, b) the habitat of a unique biodiversity, c) the scenic beauty, d) the availability of water resources, e) the availability of sites and natural resources for human settlement, f) the opportunities for the development of services to the maritime commerce, and g) the production of oxygen and the sequestration of coal.

The applied methodology is supported, basically, by the estimation of the direct economic benefits generated by the use of the goods and services of said marine – coastal ecosystems but it has also been included an estimation of the economic value associated to the conservation of the coral reef and mangroves for the protection of the coast against erosion as well as the habitats for unique species for the conservation of biodiversity and scientific research.

Thus, the performed analysis represents estimation – realistic – of the economic value of such ecosystems and contributes to the establishment of a “base line” of the value of the marine-coastal ecosystems of the Gulf of Honduras; however, said analysis is not aimed at dimensioning the “Total Economic Value” of said ecosystems since it has not been addressed the estimation of:

 The “Value of Existence” of the ecosystems: A very significant dimension which is associated to the willingness to pay, both at the local and global level, for the existence and conservation of said ecosystems (beyond their direct use).  The “Value of Option”: A dimension associated with the potential – still unknown – of the biodiversity of said ecosystems which could represent, in the future, an important economic value and which inspires the interest and the willingness of its conservation (both at the national and regional and global level). It should be noted that the results of the estimation of this “base line” must be enhanced by means of the implementation of studies of “Contingent Appraisal” and other specific methodologies which allow estimating key aspects of the “Value of Existence” of the marine – coastal ecosystem.

Likewise, it should be noted that special reference is made to the most recent bibliography related to the economic appraisal of the environmental services of wetlands and hydrographic basins and, more concretely, for the case of the Gulf of Honduras, is supported by two of the most recent studies:

 Windevoxhel, N. and Jolón, M. R. 2008. Economic Importance of the Marine and Coastal Resources of Guatemala. The Nature Conservancy (TNC) – Ministry of the Environment and Natural Resources (MARN) de Guatemala.  Cooper, E,; Burke, L. and Bood, N.. 2009. Coastal Capital: Belize. The economic contribution of Belize’s Coral Reefs and Mangroves”. WRI Working Paper. World Resources Institute (available at: http://www.wri.org/publications).

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Windevoxhel and Jolón (2008) estimate the economic importance of the marine-coastal ecosystems of Guatemala including both coasts (the Pacific and the Caribbean) through the estimation of the economic market value of the direct – extractive and non- extractive – uses associated to: a) the fishing activity and aquaculture of salt water, b) the use of the resources associated to the mangrove, c) the economic contribution of the activities of the marine and coastal tourist sector (including the sport fishing), and d) the service to the maritime commerce provided by the port sector.

In turn, Cooper et al. (2009) estimate the economic value of the coral reef and of the coastal mangrove of Belize from the appraisal of the environmental services and goods provided by these ecosystems to the local communities and the society among which it should be noted: a) the habitat availability of a variety of fish of commercial value for the fishing sector and the tourist sector which develops sport fishing and other connected recreational activities, b) the availability of unique sites and attractions for the development of recreational and tourist activities, and c) the coastal protection against the erosion and the damage produced by the frequent tropical storms that impact the region. It should be noted that said work includes also guidelines for the estimation of: a) the indirect impact of the ecosystems, b) the “surplus” of the consumer associated to those uses and c) the value associated to the economic cost – benefit of the potential modifications in the conditions of the ecosystem. Generally, the economic appraisal made by the authors is supported by an estimation of the value added of each one of these activities, from the market price value of the considered goods and services, whereof is deducted the cost of the input and intermediate products (including, in the value of the goods and services, the labor used and the payment of the corresponding related taxes).

Thus, el analysis carried out for the purpose of the present consultancy is supported by the methodology and the assumptions proposed by both authors (Windevoxhel and Jolón, 2008; Cooper et al., 2009):

 Upon the basis of the available information and estimations on the volume of goods or services and the corresponding market price (net of costs of input and intermediate products), it is dimensioned economically the value of the direct use of the ecosystems through the value of the environmental goods (the fishing production, the extraction of fire wood and /or coal) and the one belonging to the commercial services that are developed from their environmental benefits (tourist activities, port services, etc.).  Upon the basis of its contribution to the protection of the coast against the erosion and its contribution to the conservation of biodiversity, is estimated the economic value associated to the protection of the coral reef, the wetlands and mangroves in the system protected areas of the three countries (Belize, Guatemala and Honduras). For that purpose: a) it is applied the methodology of Cooper et al. (2009) which consists in evaluating both the cost of economic opportunity of having said ecosystems and the value of the coastal lands (“with” or “without protection” against the erosion), and b) it is estimated the total area of the core zones of the protected wetlands and mangroves being the results used for the purpose of estimating the value (US$/hA) considered in the various studies implemented both in the region and in the international scope (Brander et al., 2006; Windevoxhel and Jolón, 2008) . b) Studied Area

For the economic appraisal performed for the purpose of the present consultancy, the goods and services that are located in the marine – coastal area, object of the consultancy, were identified (see

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Chapter 2); however, included are those areas of direct influence, such as the protected coastal areas (including core zone, buffer zone and zone of multiple uses), the areas of coastal mangroves and the protected marine areas. c) Economic Appraisal of the Conservation of Wetlands and Mangroves

 General Considerations Although they show a large diversity, all wetlands share a fundamental feature: the complex interaction of their basic components (soil, water, fauna and flora) which play diverse roles and provide a wide range of products and services that are vital for humans.

The “Economic Value” of an ecosystem can be discriminated as follows:

 Its “Value of Use” which includes the direct consumption of the goods coming from said ecosystem (such as fishing, fire wood, coal, the raw material for the construction of housing and /or the water resource for the consumption of drinkable water) and the indirect use of the services of the ecosystem (such as the capacity to retain water or the recycling of nutrients).

 Its “Value of No Use” which refers to the economic value not associated to the use of its environmental goods and services; between them it is included the so-called “Value of Existence” that is to say, the willingness to pay, whether at the local or global level, for the preservation of the ecosystem. On the other hand, the already mentioned “Value of Option” can be considered as a “Value of Use” if it is defined as the future economic value associated to the preservation of the environment as a potential benefit in the future; it is so that some persons will be willing to pay for the conservation of wetlands and tropical forests (as a potential source of input for the production of medicines).

It should be noted that there are numerous studies of economic appraisal of wetlands and mangroves which implement different methodologies (Table 3.3–13) for the purpose of calculating the economic value associated to their various functions (among them: the control of floods, the replacement of underground waters, the depuration of waters, the stabilization of coasts, the retention and “export” of sediments and nutrients, la protection against extreme events (storms), the mitigation of the impact of climate change; including, additionally, their character as depository of biodiversity and as an area for recreational and tourist activities).

Table 3.3–13. Methodologies of Economic Appraisal of Ecosystems

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Metodología de la Descripción Indicador de Bienestar Valoración

Estimation of the willingness to pay Contingent Appraisal according to direct surveys and Compensated or equivalent wellbeing hypothetical scenarios

Estimation of the willingness to pay Cost of Travel according to surveys on the cost of the “Surplus” of consumers visit to the site

Estimation of the willingness to pay “Surplus” of consumers and Hedonic Price from the price differential associated producers with the related goods

Estimation of the value as consumables Function of Production “Surplus” of the producer for production Assignment of value upon the basis of the Value more significant than the Net Economic Earnings earnings associated to the net proceeds of present cost of supply the cost of consumables “Surplus” of the consumer and Cost of the alternative technology replacing producer, or the total income for the Cost of Replacement the specific function of the ecosystem best alternative

Value of the best alternative of use of the Cost of Opportunity Total Earnings resources of the ecosystem Assignment of value based upon the earnings Market Prices obtained through the transaction performed in a market

In turn, Table 3.3–14 summarizes the results of an estimation of the total economic value per type of wetland (Costanza et al, 1997).

Table 3.3–14. Total Economic Value of Wetland Ecosystems

Total Value Appraisal of Wetlands US$/Hectares, per/year

Estuaries 22.382 Prairies of marine pastures /algae 19.004 Coral reefs 6.075 Tide salt marshes/mangroves 9.990 Swamps/ floodable plains 19.580 Lakes/rivers 8.498 Source: Costanza et al (1997)

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 Case Studies Wetlands are very diverse and, consequently, not all of them perform the set of duties described above; on the other hand in every economic appraisal assessment it must be taken into account the importance of the factors of context that have an incidence on the specific value of an ecosystem (in this case a coastal wetland) some of them related to the specific area under study (local population, intensity of use, income level, etc.), with the specific methodology used or the available budget to assess the economic value of the environmental services and the ecosystem itself. Such factors affect by creating divergences between the different sites, which are added to the differences at the level of economic value between different ecosystems.

A significant aspect in the estimation of the economic value of a wetland is associated to the degree of use thereof. In some cases, the economic value assessment is based upon the intensive use of its environmental services and goods whereas, in others, the appraisal is performed within a context wherein the ecosystem is in pristine conditions. For instance, in some of the protected areas analyzed, tourism is frequently not developed, which is reflected in the estimation of the economic value.

In this respect, the economic value estimated upon the basis of the available information for a specific wetland must be conceptualized as the estimation of a basis extent that provides only a degree of economic importance of said ecosystem. On the other hand, it should always be taken into account that the economic value of an ecosystem represents, only a part of its intrinsic value that is associated directly to the preferences of use or consumption by humans. The total value total of an ecosystem includes other values of high significance and which has to do with biodiversity, with the scientific value, with climate regulation and with the value for the future generations.

Some of the appraisals available from the bibliographic revision present low economic values compared to other ecosystems with functions and availability of similar goods. El Pantanal (in the Federal Republic of Brazil) characterizes for having a high ecological value that is not reflected in the economic value of use. In this case, the same as in the case of the coral reefs, there is a willingness to pay at the international level for its conservation and which are not reflected in the economic appraisal assessments that are based upon the value of use.

Table 3.3–15 summarizes the appraisal results of five (5) international wetlands that serve as a reference of the economic importance of said ecosystems; on the other hand, said Table evidences the significant dispersion of the estimated values.

 Analysis of the available information The analysis carried out by Brander et al. (2006), consists in a recompilation of the economic appraisal of 191 coastal wetlands; it should be noted that, for of some of them, more than one appraisal methodology is used.

Table 3.3–16 summarizes the performed analyses organized in accordance with the used methodology.

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In said table, is being observed that the one that has been used the most is the one based upon “Market Prices” (PM) for those goods related to the functions of the wetland from which it is calculated, as an estimation of the value of the wetland, the total income obtained by the sale of said goods. In a second position, the methodology of “Contingent Appraisal” (CV) based upon a costly assessment, based upon information obtained by means of direct and indirect surveys to beneficiaries, is found.

The use of the different methodologies are related to the type of specific function; particularly:

o the “Contingent Appraisal” (CV) has been used for the appraisal of the total value,

o the “Hedonic Price” (PH) and the “Cost of Trip” have been used, mainly, to valuate the recreational functions,

o the “Cost of Replacement” has been used to valuate the functions of purification of water and the control of erosion and floods,

o the method of “Production Function” has been used to valuate the function of habitat – nursery, and

o the “Market Price Method”, which is the one used in a more generalized manner, has been applied for most of the functions of the ecosystem.

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Table 3.3–15. Examples, at the international level, of economic appraisal of wetlands (Brander et al., 2006) Whangamarino, Charles River, PANTANAL Muthurajawela Wadden Sea North Island, Massachusetts- (Brazil) (Sri Lanka) (Holland) (New Zealand) (USA)

Millions US$

Regulation of gases 181,3 – – – – – – – – – – – –

Regulation of climate 120,5 – – – – – – – – – – – –

Regulation of distortions 4.703,6 – – – – – – – – – – – –

Water regulation 1.019,8 – – – – – – – – – – – –

Control and prevention of floods – – – 5,0338 189,0000 0,6010 39,9868

Treatment of effluents 1.359,6 1,7276 – – – – – – – – –

Control of pollution – – – – – – – – – – – – 24,6342

Control of erosion 170,7 – – – – – – – – – – – –

Formation of soil 60,2 – – – – – – – – – – – –

Recycling of nutrients 498,2 – – – 945,0000 – – – – – –

Recycling of organic matter – – – – – – 756,0000 – – – – – –

Polinization 33,0 – – – – – – – – – – – –

Biological control 30,4 – – – – – – – – – – – –

Habitat / Sanctuary / Nursery 285,0 – – – 45,3600 – – – – – –

Water supply 5.322,6 0,0392 – – – – – – – – –

Agricultural production – – – 0,3140 – – – – – – – – –

Food Production 143,8 – – – 170,1000 – – – – – –

Raw material 202,0 – – – 9,4500 – – – – – –

Fire wood – – – 0,0825 – – – – – – – – –

Genetic resources 22,2 – – – – – – – – – – – –

Recreational services 423,6 0,0547 189,0000 2,0227 0,2165

Sport and recreational hunting – – – – – – – – – – – – 23,7720

Fishing / Nursery – – – 0,2723 – – – – – – – – –

Fishing – – – – – – – – – 0,0105 6,8777

Aquaculture – – – – – – 8,3160 – – – – – –

Cultural services 1.144,5 – – – 5,6700 – – – – – –

Education and Scientific research – – – – – – 6,0480 – – – – – –

Preservation and Conservation – – – – – – 5,6700 7,2471 – – –

Coal sump – – – 0,0081 – – – – – – – – – Economic Value 15.644,1 7,5242 2.329,6140 9,8814 95,4871

total Area (in Hectares) 13.853.345,4 3.068,0 270.000,0 10.320,0 3.455,0

Value (US$/ Hectares) 1.129,3 2.452,5 8.628,2 957,5 27.637,4

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Table 3.3–16. Methodology of economic appraisal of a sample of 191 wetlands

N° of Methodology Description Economic wellbeing indicator Cases

Assignment of value resulting from the earnings obtained through the Market Prices 91 Total earnings transaction performed at the level of a market Estimation of the Willingness to pay Contingent Appraisal obtained from direct surveys and 38 Compensated or equivalent wellbeing hypothetical scenarios Cost of the alternative technology Value more significant that the present Replacement Cost replacing the specific function of the 28 cost of supply ecosystem Assignment of value from the earnings Net Economic associated to the products (net of the 22 “Surplus” of the producer Earnings cost of the consumables) Estimation of the willingness to pay Cost of Trip through a survey on the cost of the visit 19 “Surplus” of the consumer to the site Estimation of the value as consumable “Surplus” of the consumer and of the Production Function 19 in production producer “Surplus” of the consumer and of the Value of the best alternative of use of Cost of Opportunity 11 producer, or total earnings for the best the resources of the ecosystem alternative Estimation of the willingness to pay, obtained from the price differential Price differential between between Hedonic Price 5 associated with related goods but of goods having different characteristics different characteristics Source: Brander et al. (2006)

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 Average Value (US$/ha) or Marginal Value (additional US$/ha) Most of the appraisal assessments of wetlands estimate the total value and average value per hectare (or surface unit). The estimations in terms of average value per hectare are relevant to the purpose of the international comparison, but it should be taken into consideration that applying an average value per hectare to the totality of the ecosystem implies assuming a constant scale yield, which in most cases is not realistic and requires an additional, more detailed analysis, which takes into account the specific aspects of the major components of the ecosystem.

In the sample analyzed by Brander et al. (2006) the average value is US$ 2.800/ha with a mean of US$150/ha. This result is significantly lower than the one estimated in Constanza et al. (1997), but represents estimation from base to base at market values. On the other hand, these results sampling a distribution of asymmetrical statistical frequency, with a high frequency of assessments with a very low estimation of the economic value of the benefits from wetlands.

Figure 3.3–5 shows the results of the average and mean value in terms of the topology of the ecosystem and of the environmental function and service.

Figure 3.3–5. Average and mean value (US$/ha) depending on the type of wetland (logarithmic scale)

Taken from: Brander et al. (2006)

In terms of average values, the value of the mangrove tree reaches US$400/ha, but the Inter-tidal of sand and mud which shows the highest economic value amounts to US$8.500; on the other hand, there is a differential of economic value per functions, ranging between US$492/ha for the recreational potentials of the wetlands and US$14/ha for the supply of fire wood or coal.

Table 3.3–17 shows the average value in US$/ha for each relevant function of the ecosystem.

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Table 3.3–17. Mean value (US$/ha) for each relevant function of the ecosystem

N° de Cases US$/ha

Recreational services 48 492

Control of floods 26 464

Sport Fishing 36 374

Water Purification 27 288

Biodiversity 13 214

Habitat nurseries 67 201

Sport hunting 50 123

Raw material 32 45

Water supply 18 45

Fire wood /Coal 18 14

 Transference of the economic value of an ecosystem or its main functions The analysis of the available information on the economic appraisal of coastal wetlands at the international level, including the Caribbean and Central America, implements the approach of the “transference of values” to extrapolate the estimation of the value of the concrete marine – coastal ecosystems, such as it is the case of the Gulf of Honduras.

For that purpose, there are two general approaches (Florax et al., 2002; Brower, 2000): a) the direct transfer of value, and b) the employment of a function of transfer of values.

In the first approach, the procedure consists in transferring the values estimated in one or several reference assessments to the site considered in the analysis. The sample of selected sites must be a suitable representation of the physical and socioeconomic characteristics of the target. If this condition is met, the transfer of value will represent an estimation which may be used as a reference to establish, at least, a “base line” that results pertinent for the policy and management recommendations.

In the second approach, it is used a function of transfer of value and through the use of a goal - regression, which includes the characteristics of the site, its base value is estimated.

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It should be noted that the results obtained in both procedures incur in “transfer errors”, especially when the analyzed site and its features are not being represented in the sample used for the purpose of the estimation of the parameters of the model. This limitation implies that, finally, the results obtained which will serve as a Base Line which shall be extended and expanded with date directly obtained must be handled with precaution.

 Parameters used in the appraisal of the coastal wetlands of the Gulf of Honduras For the economic appraisal of the coastal wetlands of the Gulf of Honduras, making a part of the protected area systems of the countries of the region (Belize, Guatemala and Honduras), the basic results of the sample analyzed by Brander et al (2006) have been considered, as a reference, and the parameters proposed by Windevoxhel and Jolón (2008) that are summarized in Table 3.3–18 have been used.

Table 3.3–18. Parameters proposed by Windevoxhel and Jolón (2008) used for the economic appraisal of the coastal wetlands (unit values US$/ha)

Average Reference High Mean Value Low Scenario Value Value Scenario (US$/ha) (US$/ha) (US$/ha) (US$/ha) (US$/ha)

Brander and Florax (2006) 150 2.800 – – – – – – – – – Windevoxhel and Jolón – – – – – – 255 2.500 3.274 (2008)

La Table 3.3–19 shows the information about the surface occupied by the protected areas and their core zones that were used in the analysis performed for the purpose of the present consultancy.

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Table 3.3–19. Surface occupied by the protected areas and their core zones used in the analysis performed for the economic appraisal carried out

Continent Marine Central Total Country Protected Area Category al Area Zone (ha) Area (ha) (ha) (ha)

Payne's Creek National Park 15.308 – – – 15.308 – – – Belize Sarstún – Temash National Park 6.509 – – – 6.509 – – – Definitively closed fishing Bahía de Santo Thomas – – – 1.000 1.000 1.000 zone Cerro San Gil Forest reserve 47.433 – – – 47.433 7.901

Guatemal Chocon Machacas Protected Biotope 6.265 – – – 6.265 6.265 a 151.87 Punta Manabique Wildlife Sanctuary 49.289 102.589 17.258 8 Río Dulce National Park 7.200 – – – 7.200 7.200

Río Sartsún Area of multiple uses 35.202 – – – 35.202 7.472 Lancetilla Botanic Garden and Res. C – – – – – – 2.255 1.680 Punta Izopo National Park – – – – – – 18.820 2.950 Honduras Punta Sal – Parque J. National Park 49.937 28.510 78.447 50.193 Kawas Texiguat Wildlife Sanctuary – – – – – – 20.132 11.917 Source: Inhouse Elaboration based upon Brander et al. (2006) and Windevoxhel and Colón (2008)

d) Economic appraisal of Port Services

Ports represent a relevant user of marine-coastal area of the Gulf of Honduras; their facilities permit the provision of indispensable services for the international commerce and the maritime navigation of the countries of the region (Belize, Guatemala and Honduras) and, at the same time, provide a site for the installation of industries depending on the maritime transport and navigation such as the industries of hydrocarbons and /or chemical products, the fishing sector, the cruise ships industry and the facilities of the marina.

It is so that ports and their maritime terminals, together with their intermodal logistic facilities and the industries related to navigation and maritime transport, belong to a system or “port cluster” which represents a vital economic interface for the economy de each one of the countries of the region (Belize, Guatemala and Honduras).

Said “port cluster” operates annually with a volume of cargo which, in the year 2007, reached 23,3 million tons (general cargo and containers) representing one fourth of the total GDP of the countries of the region (Belize, Guatemala and Honduras). In the case of Belize, the Port of Belize City and Big Creek operated 48 % of the Belizean GDP; in turn, the ports of Santo Tomas de Castilla and Puerto

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Barrios (In Guatemala) and Puerto Cortés (In Honduras) represented 33 and 20 % of the GDP of their respective countries.

La Table 3.3–20 shows the major indicators of the port sector of the Gulf of Honduras.

Table 3.3–20. Activity indicators and value of the cargo operated by ports of the area of study

Puerto Puerto Santo Big Tela Belice TOTAL Cortes Barrios Tomas Creek

Ships 2006 1.836 26 541 1.437 237 100 4.177 (units) 2007 1.909 15 564 1.578 256 161 4.483

Cargo handled 2006 7.397 237,7 1.822 4.678 675,5 136,6 14.946 (thousands ton) 2007 8.011 146,6 2.035 4.715 722,8 218,1 15.847

Containers 2006 3.276 0 1.363 2.028 244,6 – – – 6.912 (thousands ton) 2007 3.404 0 1.500 2.364 228,8 – – – 7.497 Exp/Imp Value (thousands 2006 3.274.240 154723 1.133.802 4.871.671 565.000 9.999.436 US$) GDP (thousands 2007 12.279.000 33.694.000 1.277.000 47.250.000 GDP (thousands US$) 2007 US$) % GDP (2007) 2007 33% 20% 48% 24% % GDP (2007) 2007 Note: Prepared upon the basis of information published by: Belize Port Authorithy (Belize), the National Port Company (Guatemala), the National Port Company (Honduras) and the International Monetary Fund The economic benefits of the ports are associated not only to the employment and the economic earnings directly generated by the services to ships and to the handling of cargo but, additionally, have a high dragging impact on the local and regional economy through the demand of services to third parties.

Within the frame of the economic appraisal performed for the purpose of the present consultancy the gross value of the port services (VBP) has been estimated from the earnings obtained for the payment of the services provided in the port, which include charging for fees and services that are provided to the ship and to the cargo handled. The “Value Added of Port Facilities” was calculated deducting the cost of consumables and the purchase of intermediate products to third parties; in this way it was possible to have available an economic benefit indicator (net of costs of goods and intermediate consumables) directly from the port sector, including the economic value of the employed labor.

 Methodology The estimation of the cost of the fees and services was based upon the information available on the “Earning Statements” of Puerto Cortes (available for the years 2006 to 2008) and the information available on the statistics and tariffs in each one of the ports of the Gulf of Honduras; likewise it should be noted that it was considered, very specially, the report “Basic Study of the Market for the purpose of Establishing the Supply and the Demand of Port Services in Guatemala” (Ing. Zetina Toralla & Asociados, 2005).

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Table 3.3–21 shows a summary of the “Earning Statements” of Puerto Cortés; the economic value of its services represented, in the year 2008, a total amount of US$ 60,2 million whereof US$ 26,1 million belong to services to ships and US$ 34,2 million belong to cargo services. Said values represent an average unit cost of the services to the ship and to the cargo of US$ 3,06 and US$ 4,01 per metric ton, respectively.

Table 3.3–21. Costs of port services in Puerto Cortes

2007 (US$) 2008 (US$) Services to ships 25.127.548 26.068.352 Services to modules 25.516.246 28.414.052 Service to merchandise 5.916.718 5.762.869 Coastal sailing services 525.442 836.181

Services (Ship/Cargo) 56.560.512 56.560.512 60.245.273

Operated cargo (thousand metric tons) 8010,5 8527,3 Cost ship (average US$/ton m) 3,14 3,06 Cost cargo (average US$/ton m) 3,92 4,01 Note: Prepared upon de basis of information from the National Port Company (Honduras) Regarding the Port of Santo Tomas de Castilla and Puerto Barrios, the analysis was based upon the information provided by Toralla & Asoc. (2005) who analyze the value of port services based upon a simulation model of the price of the services provided in three ports on the Gulf of Honduras (Puerto Santo Tomas de Castilla, Puerto Barrios; Puerto Cortes) and two ports on the Pacific Ocean (Puerto Quetzal and Acajutla) considering, to that effect, the information of the port operational activity and the tariff structures of each Puerto in force as of December 2004.

Table 3.3–22 shows a summary of the main results obtained by said authors.

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Table 3.3–22. Results of the simulation model on the cost of port services developed by Toralla & Asoc. (2005)

Santo Tomas Puerto Barrios Puerto Cortes

General Cargo 330,0 195,4 855,7 Containers 1.684,2 1.443,8 2.675,5 Roll On – Roll Off 762,0 – – – – – – Solid Bulk 161,5 82,4 1.263,9 Liquid Bulk 1.604,9 147,5 1.531,1 Others 20,7 0,0 1.013,6 TOTAL 4.563,3 1.869,1 7.012,0 Unit cost of Services (US$/metric ton) per type of Service – Year 2004

Cost to ship (US$/TM) 2,10 2,51 2,88

Cost to cargo (US$/TM) 5,71 6,99 4,47

TOTAL 7,77 9,50 7,96 Total Cost of Services (US$/metric ton) per type of service – Year 2004

Cost to ship 9.562,77 4.692,78 20.161,59 Cost to cargo 26.063,94 13.062,72 31.369,41 TOTAL 35.626,72 17.755,50 51.531,00 Source: Zetina Toralla & Asociados (2005)

In accordance with said results, port services in the Port of Santo Tomas de Castilla and in Puerto Barrios reached, respectively, US$ 35,6 million and US$17,8 million. The ratio between Ship/Cargo costs, to the year 2004, was, approximately, 36 % for Guatemalan ports which results in a significant difference with the cost structure in Puerto Cortes which amounted to 67 % (Table 3.3–23).

Table 3.3–23. Cost of port services (US$/metric ton) in Guatemala and Honduras (year 2008)

Costo per Service Santo Tomas Puerto Barrios Puerto Cortes

Cost to ship 11.262,20 5.409,39 23.756,36

Cost to cargo 29.793,33 16.109,34 38.466,45

Total (Ship + Cargo) 41.055,54 21.518,73 62.222,81

Nota: Prepared in-house upon the basis of the results of the Model Zetina Toralla & Asociados, 2005 and the statistical data for the year 2008

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In turn, Table 3.3–24 shows the results obtained from the application of said model to the operation data of the ports of Belize City and Big Creek, which represent a reference estimation on the value of their port services since no information about actual costs was available.

Table 3.3–24. Cost of port services (US$/metric ton) in Belize (year 2008)

Costo per Service Belice City Big Creek

Cost to ship 1.802,56 543,91

Cost to cargo 4.137,80 1.248,55

Total (Ship + Cargo) 5.940,36 1.792,46

Note: Prepared in-house upon the basis of the results of the Model Zetina Toralla & Asociados, 2005 and the statistical data for the year 2008

 Added Value– Gross Production Value of Port Services It was not possible having available an exhaustive assessment of the value added of the port service sector in any of all three countries of the area of study, object of the present consultancy (Belize, Guatemala and Honduras); consequently, in order to estimate a net value of the port activity it has been appealed to the regional estimations (CEPAL and MERCOSUR) in which it is estimated a ratio Value Added – Gross Production Value for services to the ship that is approximately between 65 and 85 % and 45 – 65 % for services to cargo.

 Haul impact of the Port sector towards the rest of the local and regional economy No data were available consistent on the haul impact of ports in any of the three countries of the area of study, object of the present consultancy (Belize, Guatemala and Honduras).

e) Economic Appraisal of the Fishing Activity

The fishing sector is and economically relevant sector in the region of the Gulf of Honduras and very especially for Belize where it represents an important source of income from exports and local sales.

Table 3.3–25 shows the export data of marine origin products published by the Institute of Statistics of Belize: in the year 2008 1,7 million tons of marine products were exported generating export earnings for US$ 12,9 millions.

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Table 3.3–25. Belize – Export of products of marine origin

2000 2001 2002 2003 2004 2005 2006 2007 2008 Ton x 1000 953 1.032 474 525 687 649 760 613 1.710 Marine Prods. mill. US$ 10,66 9,93 9,48 9,18 11,56 12,19 11,79 11,21 12,89

Aquarium Unit 5.768 2.884 3.452 15.403 61.874 115.222 48.100 52.033 38.207 Fishes mill. US$ 0,05 0,02 0,03 0,05 0,09 0,11 0,05 0,12 0,12 Tons 413 488 17 11 121 141 245 166 1.212 Others mill. US$ 0,91 1,06 0,06 0,02 0,61 0,63 0,61 0,48 2,17 Tons 247 309 211 204 270 248 332 239 394 Snail mill. US$ 1,79 2,49 1,72 1,87 2,91 3,75 4,18 2,69 3,32 Tons 20 10 20 67 51 23 3 0,00 0,00 Marine Shrimp mill. US$ 0,25 0,12 1,08 0,50 0,48 0,39 0,04 0,00 0,00 Tons 274 226 226 243 244 237 181 208 204 Lobster mill. US$ 7,71 6,27 6,62 6,80 7,57 7,42 6,97 8,05 7,41

Source: Statistical Institute of Belice (2008)

In the Guatemalan Caribbean coast, the fishing sector does not have the weight of the industrial sector operating on the Pacific coast; however, said production is important for the local consumption of the community and of tourists. Given the fact that it was not possible to have available a database of the captures of this sector, for the purpose of the economic appraisal performed for the present consultancy, the data published in the Environmental Statistical Annuarium (Anuario Estadístico Ambiental) of Guatemala (2007) was used and in the information emerging from the specific studies carried out by FUNDAECO (2006), UNIPESCA (2005, 2007) and the University Rafael Landivar (2004).

A similar situation occurs with the fishing sector of the Honduran Caribbean coast, characterized for its artisan activity which is carried out by the fishermen of the communities over the length thereof which are found located from the outlet of the River Motagua to Punta Izopo and, also, in the protected areas and national parks such as National Park Jeanette Kawas, (Punta Izopo). Such fishermen belong to two ethnic communities: Garífunas and mestizosIndustrial fishing has its operation base on Islas of the Bahía and, especially, in the fishing ports French Harbor, Oak Ridge, Jonesville and Guanaja.

The data of the commercialization of artisan products coming from the communities of Omoa, Puerto Cortes and Tela which were gathered by the TCP/RLA/3111 Project and published by INFOPESCA (2008) has been available for the economic appraisal performed within the frame of the present consultancy.

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 Employed Methodology In the case of fishing and for the purpose of the economic appraisal performed within the frame of the present consultancy, it has been used an approach that is similar to the one proposed by Cooper et al, (2009) which is supported by the information on the annual production in the area of study, object of the present consultancy and in the sale prices after deduction of the cost of consumables and intermediate products.

In the case of Belize, the most suitable information is the one that has been gathered and analyzed by Cooper et al. (2009); Table 3.3–26 details the list of the eighteen (18) protected marine areas which made a part of said study being identified those that were considered within the frame of the economic appraisal performed within the frame of the present consultancy.

For the appraisal of the Belizean fishing in the area of study, object of the present consultancy it has been performed a proration of the total estimated value for the totality of Belizean marine areas taking into consideration that said area of study represents 64 % of the total marine areas of Belize.

The results obtained for Belize, from the information of the year 2007, is shown in Table 3.3–27 allowing to estimate an economic value of US$ 9,65 million per year.

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Table 3.3–26. Belize – Protected Marine Areas

Comprised in Land Water Competition Islands - Cays Protected Marine Areas the area of Space Space Management studies

Turneffe Islands Caye Bokel – – – 558 Fisheries MPA 

Turneffe Islands Fog Flea – – – 576 Fisheries MPA 

Gladden Gladden Split & Silk Cayes – – – 10.453 Fisheries MPA 

Glover's Reef Glover's Reef 42 35.025 Fisheries MPA 

Ambergris Caye Hol Chan 92 1.453 Fisheries MPA 

Port Honduras Port Honduras 673 39.796 Fisheries MPA 

Sapodilla Cayes Sapodilla Cayes 28 15.591 Fisheries MPA 

Dangriga B.Reef South Ewater Caye 130 47.573 Fisheries MPA 

Fshr/Forest Ambergris Caye Bacalar Chico 5.185 6.303 MPA  Fshr/Forest Caye Caulkar Caye Caulkar 63 3.911 MPA 

Lighthouse Reef Atoll Blue Hole – – – 414 Forestry MPAs 

Corozal Corozal Bay – – – 73.050 Forestry MPAs 

Lighthouse Reef Atoll Half Moon Caye (LH) 18 3.936 Forestry MPAs 

Laughing Bird Laughing Bird 18 4.077 Forestry MPAs 

Belice City Swallow Caye 0 3.631 Forestry MPAs 

Belice City Caye Glory – – – 547 Gvt Parks 

Lighthouse Reef Sandbore (LH) – – – 521 Gvt Parks 

Caye Caulker South Point – – – 533 Gvt Parks  TOTAL 6.249 247.948 100 %

TOTAL (area of study) 909 162.698 64 % Note:  Protected Area included in the study area of the present consultancy  Protected Area not included in the study area of the present consultancy

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Table 3.3–27. Belize – Economic contribution of Fishing (million US$) In the area of study, object of the present consultancy

Escenario

Low Medium High

Export 7,21 7,21 7,21 Sales from Cooperatives Local sales 0,64 0,64 0,64 Other local sales 1,22 1,74 2,25 Local fish processing 0,05 0,06 0,08 Total (Direct Impact) 9,13 9,65 10,18

For the case of Guatemala, the information was prepared upon the basis of the results shown in the following reports:

 INE – SEA (2008): Statistical Environmental Annuarium of Guatemala.  Jolón et al. (2005): Study on Fishing Resources of scale fish in the Pacific coast and the Caribbean Sea of Guatemala.  Pérez – Ramírez, 2007. Guatemalan Fishing Description.  UNIPESCA – SAM – MARN. 2007. Study on the status of fisheries and biology of the Mantua of the Guatemalan Atlantic coast.  Arrivillaga, 2004. Diagnose of the present status of Marine and Coastal Resources of Guatemala.  ATP SA. 2004. Diagnose of the Commercialization of Fishing Products coming from Organized groups of and from small-scale artisan fishermen from the Pacific and Atlantic coasts of Guatemala. The results are shown in Table 3.3–28, it should be clarified that the values of the “médium scenario” belong to the information gathered in the “Anuario Estadístico Ambiental” of Guatemala whereas the alternative scenarios were completed with the data of the specific studies set forth above.

Finally, for the case of Honduras, the information was prepared upon the basis of the information published by DIGEPESCA (2007) and Espinoza (2008). Table 3.3–29 shows the information available on production and earnings for the first sale (year 2006) by artisan fishermen of the Honduran Coast on the Gulf of Honduras that are commercialized in the localities of Omoa, Tela and San Pedro Sula.

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Table 3.3–28. Guatemala – Fishing Economic Contribution (year 2007)

Production Local Sales Local Sales (US$) (metric tons/year)

Low Medium High Price Low Medium High Scenario Scenario Scenario US$/TM Scenario Scenario Scenario

Scale fish Fishing 90 120 403 7.900 711.000 948.000 3.179.750 Manjua 600 800 1.250 1.100 264.000 544.000 1.430.000 Snail 32 42 53 11.023 462.949 462.949 578.687 Shrimp 98 130 600 8.267 808.513 1.078.017 4.960.200 Squid 5 7 7 8.267 43.402 57.869 57.042 Lobster 16 22 36 14.880 243.288 324.384 535.680 TOTAL 841 1.121 2.348 – – – 2.533.152 3.415.219 10.741.359 Source: Statistical Environmental Yearbook (2008); Jolón et to the (2005); Pérez – Ramirez (2007)

Table 3.3–29. Honduras – Economic Contribution of Fishing (year 2006)

Production Earnings*

Pounds Lempiras Pounds Tela 356.390 1.209.500 63.558 Omoa 3.201 150.984 7.934 Fish Puerto Cortes 6.726 228.210 11.992 San Pedro Sula 503.080 9.940.536 522.361 Sub Total 869.397 11.529.230 605.845 Tela 16.000 24.000 1.261 Omoa – – – – – – 0 Other Puerto Cortés 6.246 24.408 1.283 Products SPS 374.700 866.760 45.547 Sub Total 396.946 915.168 48.091

Earnings* Lempiras Lempiras Tela + Omoa + Puerto Cortés 1.637.102 86.027 San Pedro Sula 10.807.296 567.908 Total 2006 12.444.398 653.936 Source: DIGEPESCA (2007) and Espinoza (2008)

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f) Economic Appraisal of Marine – Coastal Tourism

The marine – coastal zone of the area of study, object of the present consultancy is a preferred destination of international ecotourism. In fact, the presence of unique and healthy ecosystems represents a major attraction for the development of recreational and tourist activities which have as their scenario the coral reef, mangroves and beaches.

Ports receive on a yearly basis a very important contingent of tourists and cruise ship passengers, attracted by the natural and cultural attractions of said marine – coastal zone and its area of influence. In some countries, such as it is the case of Honduras it has been also developed an internal tourism which represents a significant contribution to the coastal economy.

In the case of Belize the tourist sector represents one of the key sectors of the economy of the country and said sector consists, basically, in the demand of international receptive tourism oriented, in a high proportion, toward coral reefs and beaches, mangroves and cultural and historic sites. In fact, Belize is known for being a preferred destination for the development of recreational and sport marine activities such as “diving”, “snorkeling” or sport fishing.

The port of Belize City is an important destination of the cruise ship industry, which in the year 2007, recorded the arrival of 620.000 cruise ship tourists. In the short and middle term, the expansion of facilities and construction of a new cruise ship terminal will consolidate the growing trend observed in the last ten (10) years.

Belize’s tourist statistics belonging to the year 2007 were recorded within the frame of the studies carried out by Burke et al. (2008) which focuses on the tourist activities related, either directly or indirectly, to the reef system and the coastal mangrove.

For the economic appraisal performed within the frame of the present consultancy said results have been extended to the other centers of attention of coastal tourism and, in the case of cruise ship tourism, and included additionally, the expenses of those cruise ship passengers who do not carry out activities in the reef and coastal mangrove zones.

Table 3.3–29 shows the economic contribution of tourism in Belize’s marine-coastal zone.

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Table 3.3–29. Belize – Economic contribution of tourism in the marine – coastal zone (year 2007 (año 2007)

Medium High Low Scenario Scenario Scenario million US$

Hotel activities 30,71 37,97 45,23 Diving 14,56 15,86 17,16 Recreational activities Snorkeling 7,13 8,03 8,92 Sport Fishing 4,58 5,23 5,88 Other visitor expenses 21,94 26,39 30,84 Cruise ship tourism (In protected 3,67 4,08 4,49 marine areas) Others Cruise ship tourism (not performed 22,04 24,48 26,93 in protected marine areas) Taxes and Fees 16,30 17,98 19,64 Total (Direct Impact) 120,93 140,02 159,10

In the case de Guatemala, it was considered the statistics and studies on the profile of receptive tourism and cruise ship tourism published by the Guatemalan Tourist Institute (Instituto Guatemalteco de Tourism) (INGUAT): “Perfil del Turismo Receptor y Emisor”, “Boletín Estadístico Anual de Tourism”, “Boletín de Estadísticas 2003 – 2007”, “Estadísticas de Turismo – 2008” and “Boletín de Visitantes internacionales por Crucero – 2008”.

Based upon said information the tourist sector of Guatemala’s Caribbean coast was analyzed distinguishing cruise ship tourism with a stay of less than 24 hours from receptive tourism average stays of 5,9 days and considering average expenses per stay of US$ 668 per person.

As to the destination of tourism, the same emerged from the analysis of the studies of the profile of receptive tourism and the data from cruise ship tourism in the Caribbean which were identified in the statistic bulletins of the INGUAT; the results are shown in Table 3.3–30.

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Table 3.3–30. Guatemala – Economic contribution of tourism in the marine – coastal zone (year 2008)

Marine-coastal Average Expenses Destination Izabal Destination in the Gulf Total stay per day of Honduras persons (days) (US$) Earnings Earnings Persons Persons (US$) (US$)

Cruise ship tourism 62.717 103,8 33.039 3.430.471 22.025 2.286.687 – – – Maritime tourism (no cruise 8.353 5,9 102 668 402.147 445 45.395 ship) Tourism 71.070 – – – – – – 33.708 3.832.618 22.470 2.332.282 (arrival by sea) Receptive tourism 1.447.033 5,9 102 115.763 69.665.970 77.098 46.397.536 (arrival other than by sea) Excursion tourism (arrival 268.393 – – – – – – – – – – – – – – – – – – other than by sea) Total 1.715.426 – – – – – – 149.470 73.498.588 99.568 48.729.818

In the case of Honduras, the analysis was based upon the various publications of the Honduran Tourist Institute (Instituto Hondureño de Turismo) (IHT): “Statistical Compendia”, “Economic Analysis on an Expanding Activity”, “The importance of Tourism in the National Economy”, Planning of a Regional Strategy and Action Plans for the Sustainable Coastal Tourism – Municipal Diagnoses”.

It should be noted that, in Honduras, a characteristic of the tourist sector, and especially in the coast of the Gulf of Honduras (Omoa, Puerto Cortes and Tela), is the importance of internal tourism emphasized in the analyses and statistics of the IHT; the studies of the profile of the internal tourist as a receptor allow to distinguish tourist flows by locality.

Table 3.3–31 shows the economic contribution of tourism in the Honduran marine-coastal zone of the area of study, object of the present consultancy.

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Table 3.3–31. Honduras – Economic contribution of tourism in the marine – coastal zone (year 2007)

Destination: Average Tela. Puerto Cortes, Total stay Expenses Omoa persons (days per US$/day Earnings tourist) Persons (US$)

Cruise ship tourism 297.392 1 102 – – – – – – Tourism comino by sea 27.883 5,6 65 25.152 9.130.176 (other than cruise ships) Tourism 803.550 5,6 65,0 192.852 70.005.276 (arrival by sea)

Excursion tourism 207.800 1 – – – – – – – – –

Total tourism 1.336.642 5,6 65,0 218.004 79.135.452 (Tourist + Excursionists) Internal tourism 3.472.700 5,6 25,0 375.000 52.500.000 (Tourists per year)

g) Economic appraisal of the Protection of the Coastal line: Presence of the Coral Reef and Coastal Mangroves

The appraisal of the environmental protection service of the coast line took into consideration the methodological approach of the “prevented damage” and the information gathered by Cooper et al. (2009) which estimate the damages caused by a tropical store in the coastal area and its economic consequences based upon the available data of the history of concrete events, comparing the coastal situation “with” and “without” the presence – aligned to the coast – of the coral reef and the mangrove.

For that purpose, said authors proceeded in five stages:

 Identification of the coastal soil vulnerable to the erosion induced by the waves and the damages caused by a tropical storm.  Identification of the coast line having protection from the presence of the coral reef or the coastal mangrove.  Estimation of the relative stability of the coast line.  Determination of the stability percentage on the coast line that can be ascribed to the presence of the coral reef and /or the coastal mangrove.  Estimation of the “prevented damage” as an annual average due to the presence of the coral reef or coastal mangrove, upon the basis of the economic value differential of the lands in real estate market. The authors analyze the “prevented damage” by reason of the presence of these ecosystems was estimated separately for the coral reef and the mangrove, and for each area identified as vulnerable,

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considering a storm with probability of occurrence of 25 years; for that purpose it was combined the information of the market value of the lands with the estimated degree of stability for each span of the coast line.

The results obtained with this methodology and the information available for Belize’s coastline is shown in Table 3.3–32.

Table 3.3–32. Belize – Environmental Services for the coast protection, by the coral reef and the mangrove

US$/year Average Value Low Scenario High Scenario

Coral Reef 150.000.000 120.000.000 180.000.000 Mangroves 139.000.000 111.000.000 167.000.000 Source: Cooper et al. (2009)

In accordance with the data shown in said Table, the coastal protection due to the presence of the mangrove ecosystem at the level of the coastal zone of Belize represents an economic value (“prevented damage”) average of US$ 2.775 – 4.000 per hectare of mangrove and per year.

Based upon the information available in the Geographic Information System prepared for the purpose of the present consultancy, said results were generalized for the marine-coastal zone with presence mangrove ecosystems of Guatemala and Honduras (Table 3.3–33).

Table 3.3–33. Presence of coastal mangrove in the area of study

Protected Country Total Area (ha)

Belize 7.681 40.209 Guatemala 5.246 5.286 Honduras – – – 1.802 TOTAL 12.927 47.296 Note: Prepared upon the basis of the information available in the Geographic Information System prepared for the purpose of the present consultancy

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h) Scenarios for the economic appraisal of the marine-coastal ecosystems of the Gulf of Honduras

For the economic appraisal performed within the frame of the present consultancy, the estimations are based upon the information available for recent years; however, for some activities, said information implies a certain degree of uncertainty whether because of absence of official data or because of the existence of several sources with different information (such is the case of fishing and the average expenses per stay of the tourists visiting the region).

On the other hand, the future trends and values of the activities considered in the appraisal, represent another factor of uncertainty.

In particular, it should be noted that:

 In the case of Belize:

 The economic contribution of the sectors “tourism” and “fishing”, as well as the contribution of the coral reef and the coastal mangroves to the protection of the coast line, are based upon the parameters and assumptions established by Cooper et to the (2009); in fact, in the analysis carried out within the frame of the present consultancy the methodology of said authors was applied to the area object of study thereof.  In the case de Guatemala:

 The economic contribution of the sector “fishing” was estimated upon the basis of the information available for the year 2007 (published in the Environmental Statistical Annuarium (el Anuario Estadístico Ambiental), 2008); the same considered as the “medium scenario”. The “low scenario” was constructed as 75 % of the “medium scenario” and the “high scenario” was constructed considering information from recent studies on the Guatemalan artisan fishing in the Gulf of Honduras.

 The economic contribution of the sector “tourism” was estimated upon the basis of the information published by INGUATE (2008), which was considered as the “medium scenario”; the “low scenario” and the “high scenario” represent, respectively, 85 and 115 % of the “medium scenario”.  In the case of Honduras:

 The “low scenario” of the economic contribution of the “fishing” sector was estimated upon the basis of the information gathered by Espinoza (2008) on the value of sales from the artisan fishermen of the Gulf of Honduras. In turn: a) the “high scenario” was constructed from the “reference value” of said sales at the second purchase level in the commercialization system of Omoa, Puerto Cortes and San Pedro Sula; and b) the “medium scenario” was constructed as the average value of the “low” and “high” scenarios”

 Due to the growing trend of investments and tourist activities in the Honduran coast of the Gulf of Honduras, the available data from the sectors “receptive tourism” and “internal tourism” of the year 2007 were considered as the “low scenario”. In turn, the “medium scenario” and the “high scenario” were considered, respectively, as 125 and 150 % of the “low scenario”.  The economic contribution of the “port activity” was estimated from the cost average of the services to the ship and to the cargo calculated in accordance with the model proposed by

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Zetina Toralla y Asociados (2005) and the available official data for each one of the ports considered for the purpose of the present consultancy. In particular, due to the fact that the study carried out by Zetina Toralla y Asociados (2005) does not include the costs of the ports of Belize, it was assumed, for said ports (Belize City and Big Creek) and from the results obtained for the ports de Santo Tomas de Castilla, Puerto Barrios and Puerto Cortes, an average unit cost per metric ton. The results obtained, belonging to the “Gross Production Value” were adjusted by means of a ratio “Value Added/Production Value” common to all ports. The “low”, “medium” and “high” scenarios were adopted for the purpose of reflecting the uncertainty associated to the absence of specific information regarding the ratio “Value Added/Production Value”.  The economic appraisal of the contribution of the coral reef and the mangroves to the protection of the coastal line was based upon the parameters and assumptions established by Cooper et al (2009) and the information about total area of t coral reef and coastal mangrove obtained from the Geographic Information System “Sistema de Información Geográfica” prepared within the frame of the present consultancy.  The economic appraisal of the services of coastal wetlands to the conservation of biodiversity, as well as the economic appraisal of other environmental services of the coastal ecosystem (different from the protection against the erosion), was estimated from the parameters and assumptions established by Windevoxhel and Jolón (2008). The “low”, “medium” and “high” scenarios were constructed from the economic value per hectare of core zone of the protected areas in the coast of the area of study object of the present consultancy. 3.3.7.3. Results

Table 3.3–34 shows the results of the application of the methodology described above, to the economic appraisal of the ecosystems present in the area of study, object of the present consultancy.

It should be noted that said result represents a “base line” of the economic value of such ecosystems:

 The estimation of the direct impact of the ecosystems is US$ 967,9 million and, due to the inaccuracies in the available information, such mean estimation is found within the range US$ 574,4 –1236,1 million.  The economic contribution of said ecosystems represents 2 % of the total gross domestic product (PBI) of the three countries of the region of the Gulf of Honduras (Belize, Guatemala and Honduras) and 27,7 % of the coastal gross domestic products de said countries. Finally, Tables 3.3–35 a 3.3–37 present the results belonging to each one of the countries (Belize, Guatemala and Honduras.

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Table 3.3–34. Gulf de Honduras – Economic contribution of the coastal ecosystems

SCENARIOS

Low Medium High

Fishing 12.248.266 13.723.498 21.838.666 Goods Coal and Fire Wood 87.750 117.000 1.123.200

Recreation and Tourism 239.540.389 285.386.639 360.887.894

Internal Tourism (Guatemala + Honduras) 54.443.854 67.911.887 101.067.420

Port Services to the Ship 27.803.374 32.080.816 36.358.259 Services Port Services to the Cargo 40.389.962 49.365.509 58.341.056

Coral Reef and Mangrove – Erosion Protection 168.369.200 210.010.600 251.352.000

Protected Areas and Wetlands – Protection of the 31.552.680 309.340.000 405.111.664 Biodiversity (Core Zone = 21.817 ha) Total Direct Impacts (US$) 574.435.475 967.935.948 1.236.080.159 % of the Coastal GDP 16,4% 27,7% 35,4% % of the Countries’ GDP 1,2% 2,0% 2,6% Area of Study (ha) 6.858.219 US$/ha of the Area of Study 83,8 141,1 180,2

Total – Coastal Protection (US$/ha) 2.775 3.388 4.000 Assumptions Value Wetland – Protection of the Core Zone 255 2.500 3.274 (US$/ha)

Tourism Indirect Impact (1,2 – 1,4) 58.796.849 105.989.558 184.782.126

Indirect Shrimp + Accompanying Fauna (135 %) 28.783.425 32.250.220 51.320.865 Impacts

Fishing Indirect Impact (1,2 – 1,4) 2.449.653 4.117.049 8.735.466

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Table 3.3–35. Belize – Economic contribution of the coastal ecosystems

SCENARIOS

Low Medium High

9.126.57 9.654.34 10.182.1 Goods Fishing 2 3 14 120.928. 140.024. 159.099. Recreation and Tourism 446 393 551 1.525.20 1.759.85 1.994.50 Port Services to the Ship 6 3 0 2.423.85 2.962.49 3.501.12 Services Port Services to Cargo 8 3 8 148.700. 186.000. 223.000. Coral reef and mangrove – Erosion Protection 000 000 000 Protected Areas and Wetlands – Protection to Biodiversity (Core 5.563.33 54.542.5 71.428.8 Zone = 21817 ha) 5 00 58 288.267. 394.943. 469.206. Total Direct Impacts (US$) 416 581 150 % of the Coastal GDP 28 % 39 % 46 % % of the Countries’ GDP 28 % 39 % 46 % Total – Coastal Protection (US$/ha) 2.775 3.388 4.000 Value Wetland – Protection of the Core Zone (US$/ha) 255 2.500 3.274 Assumpti Ports and Navigation: 65 % 75 % 85 % ons Value Added/Value of Production Ports Merchandise: 45 % 55 % 65 % Value Added/Value of Production 24.185.6 42.007.3 63.639.8 Tourism Indirect Impact (1,2 – 1,4) 89 18 20 Indirect 21.447.4 22.687.7 23.927.9 Shrimp + Accompanying Fauna (135 %) Impactss 45 06 67 1.825.31 2.896.30 4.072.84 Fishing Indirect Impact (1,2 – 1,4) 4 3 5 Note: In view of the fact that Belize has developed in a territory representing a strip of less than 100 Km wide, it has been understood as reasonable to consider the coastal GDP and the country’s GDP as equal.

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Table 3.3–36. Guatemala – Economic contribution of coastal ecosystems

SCENARIOS

Low Medium High

Fishing 2.533.152 3.415.219 10.741.359 Goods Coal and Fire Wood 87.750 117.000 1.123.200 Recreation and Tourism 39.476.491 46.442.931 53.409.371 Tourism Cruise Ships 1.943.854 2.286.887 2.629.920 Port Services to the Ship 10.836.534 12.503.693 14.170.852 Services Port Services to the Cargo 20.656.202 25.246.469 29.836.736 Coral Reef and Mangrove – Erosion Protection 14.668.650 17.906.325 21.144.000 Protected Areas and Wetlands – Protection to 12.009.480 117.740.000 154.192.304 Biodiversity (Core Zone = 47.096 ha) Total Direct Impacts 102.212.112 225.658.523 287.247.741 % of the Coastal GDP 7,2 % 15,9 % 20,3 % % of the Countries’ GDP 0,3 % 0,7 % 0,9 % Mangrove – Coastal Protection (US$/ha) 2.775 3.388 4.000 Wetland – Protection to Biodiversity (US$/ha) 255 2.500 3.274 Tourism Indirect Impact 20% 30% 40% Assumptio ns Ports and Navigation 65% 75% 85% Value Added/Value of Production Ports Merchandise: 45 % 55 % 65 % Value Added/Value of Production Tourism Indirect Impact (1,2 – 1,4) 8.284.069 14.618.945 22.415.716 Indirect Shrimp + Accompanying Fauna (135 %) 5.952.906 8.025.765 25.242.193 Impacts Fishing Indirect Impact (1,2 – 1,4) 506.630 1.024.566 4.296.544

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Table 3.3–37. Honduras – Economic contribution of coastal ecosystems

SCENARIOS

Low Medium High

Goods Fishing 588.542 653.936 915.194 Recreation and Tourism 79.135.452 98.919.315 148.378.973 Internal Tourism 52.500.000 65.625.000 98.437.500 Port Services to the Ship 15.441.635 17.817.271 20.192.908 Services Port Services to the Cargo 17.309.903 21.156.548 25.003.193 Coral reefs and Mangrove – Coastal Erosion 5.000.550 6.104.275 7.208.000 Protected Areas and Wetlands – Protection to 13.979.865 137.057.500 179.490.502 Biodiversity (Core Zone = 54823 Ha) Total Direct Impacts 183.955.947 347.333.845 479.626.268 % of the Coastal GDP 17,4 % 32,8 % 45,3 % % the Countries’ GDP 1,5 % 2,8 % 3,9 % Mangrove – Coastal Protection (US$/ha) 2.775 3.388 4.000 Wetland – Protection to Biodiversity (US$/ha) 255 2.500 3.274 Tourism (Esc. Medium = +1,25; Esc. High = + 1,50) IHT (2006) 1,25 1,50 Assumptio ns Ports and Navigation: 65% 75% 85% Value Added/Value of Production Ports Merchandise: 45% 55% 65% Value Added/Value of Production Tourism Indirect Impact (1,2 – 1,4) 26.327.090 49.363.295 98.726.589 Indirect Shrimp + Accompanying Fauna (135 %) 1.383.074 1.536.749 2.150.705 Impacts Fishing Indirect Impact (1,2 – 1,4) 117.708 196.181 366.077

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