CASE STUDIES IN WETLAND t VALUATION #3: May 2003 t

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REAM NATIONAL PARK, e

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CAMBODIA: e

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balancing the local a n

opportunity costs of n

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Re-establishing ’s s a

Protected Area network a

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network was re-established in 1993 when 23 i R

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enabling national policy and legal framework. e u

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five national parks, and a draft Sub-Decree l a

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Figure 1: Ream National Park In 1995 Ream became the first National Park to be inaugurated in Cambodia after the civil war. It is located in Province on the south west coast of Cambodia, and covers an area of approximately 21,000 hectares. Ream is dominated by the estuary of the Prek Toek Sap, featuring extensive areas of and associated rear forests and mudflats. Low hills rise to the west of the river, covered with lowland Rural poverty is widespread on the coast of and dwarf evergreen forest, and isolated hills Cambodia, with more than half of the also occur to the east of the river. The northern population classified as poor and lacking in and eastern portions of the park contain basic amenities such as food, water and freshwater marshes in association with adequate housing (ADB 1999). Most mangrove and rear mangrove formations. households have limited access to alternative Ream also encompasses the uninhabited islands sources of income and subsistence, and often of and Koh Ses (totalling 6,000 see the existence of protected areas as a direct ha), situated to the south-east. Beaches, rocky threat to their livelihoods. shores, seagrass beds and coral reefs are found along its islands and mainland coastal areas. It is clear that if Cambodia’s renewed efforts at conserving protected areas are to succeed, then Ream National Park lies close to the major consideration of the economic needs of local towns of and Sihanoukville, and is communities will be a critical factor in relatively well-served by infrastructure, management planning. This case study including Cambodia’s main highway National describes an attempt to assess the economic Route No. 4. As well as providing an important value of local resource use in Preah Sihanouk set of products for local consumption, park (Ream) National Park, a coastal protected area resources are used commercially. The area in in Cambodia which is piloting both a and around the park is an important fishery management planning process and community area used by both local communities and by approaches to conservation. The study aimed commercial trawlers and push nets, and also to demonstrate the high reliance of community supports some level of tourist activity. Large livelihoods on park resources and to quantify parts of the mangrove area has been cleared for the high local opportunity costs of switching aquaculture developments, including prawn from activities that degrade wetland and crab farming. As a result of prolonged biodiversity. The study underlined the human activities, parts of Ream show signs of importance of factoring community concerns intensive use. It is currently estimated that over into park management planning, as well as one third of the Park’s area has been heavily integrating protected area concerns into socio- modified or transformed by farming, logging, economic development planning in mangrove cutting and clearance for surrounding Provinces, Districts and aquaculture, charcoal burning and other Communes. resource exploitation activities (IUCN 1997).

The National Park as a local (De Lopez et al 2001), 25% are involved in timber harvesting and 18% collect wild plants economic resource for food, medicines and handicrafts (DNCP Almost 30,000 people or 5,500 households live 1996). In total, farmers gather more than 50 in the 5 Communes that overlap or border different wild products from the park, and use Ream National Park, and population growth more than 200 species of plants for medicines. rates are estimated at nearly 3% (DNCP 1996). Nearly 30 species of marine fishes, crustaceans Four of these Communes are located on the and shells, and 8 species of freshwater fish, are boundary of Ream, and a total of 13 villages also harvested from Ream. have land lying within the Park’s boundaries. Although formerly communities were widely dispersed, settlements became increasingly Valuing the community costs and concentrated along the roadside following the benefits of the Protected Area upgrading of National Route No. 4 during the Ream is one of the five National Parks in 1960s. This concentration increased during the Cambodia where a draft management plan has era, as villages grouped together been developed, and where community as a security measure. The park-adjacent and management arrangements have also been park-dwelling populations now include a mix piloted. Between 1997 and 1999 the Ministry of of more recent immigrants (most who came to Environment, with the support of UNDP, the area during or after the Khmer Rouge era), implemented a project to support the and longer-term settlers. The incidence of rural preparation of a zoning and management plan poverty is extremely high, and per household for Ream National Park, construct park cash income is estimated at less than $1/day facilities, train park staff, and develop (ADB 1999). Few households rely on a single institutional arrangements for Park livelihood source: the majority of the management. This was followed, between 1999 population combine different economic and 2000, by a set of ADB-funded activities activities so as to spread risk and to generate which aimed to further develop the sufficient subsistence and income to survive. management zones and guidelines for Ream National Park, and to demonstrate a process of With few other sources of income and community participation in marine and coastal employment available to them, and a shrinking resource management. natural resource base outside the park, local livelihoods depend intimately on protected area As part of the latest phase of the management resources (DNCP 1996). Most household planning process, draft guidelines have been income is generated from farming, fishing and developed for three proposed management forest products collection, and almost all of zones of the park (GEC et al 2000). The bulk these resources come from the National Park. of the National Park is designated as a strictly Just over a quarter of households depend on protected core zone, comprising the two farming as their main source of income, islands and the mainland forested, wetland and cultivating a total area of just under 3,000 hectares inside the National Park. Between a quarter and a third of the population are involved in fishing as their main form of livelihood, with almost 500 boats operating within and close by to the Park. It is estimated that up to 84% of these fishing and farming households gather firewood from the Park

mangrove area. Here all natural resource important economic resource for adjacent exploitation is prohibited. The smaller buffer communities and for the Sihanoukville zone along the coastline to the east of the park Provincial economy. Household and village- and the wetlands around the Prek Toek Sap level surveys found that almost all local allows for traditional community access and residents depend on Park resources in some subsistence-level resource use according to co- way for their basic subsistence and income, to a management arrangements and community net value of some $1.2 million a year or an regulations developed by recognised groups average of $220 for every household living in and approved by the Ministry of Environment. and beside the National Park (Box 1, Box 2). In Within the community development zone to an area where the median family income is the north of the park, rural development estimated at only $316 a year, a third of families activities and settlement are permitted, earn less than $200, and where half of including village exploitation of forest and households can barely provide for their own fisheries resources. subsistence (De Lopez et al 2001), this figure is extremely significant. The park provides land, Despite their exclusion from certain areas and resource and services which together natural resource exploitation activities, the contribute fisheries and agricultural sector participation of local communities in coastal income of more than $0.5 million a year each, and marine management forms a central theme and forest resource values worth $177,000. in the management plan. One innovation has been the development of community fisheries Box 1: The value of local fisheries in Ream NP regulations and organisational structures for co-management of the inshore fishing areas of A total of 500 boats  300 un-motorised touk Ream National Park. Today, 49 Village Fishing chaev and 200 boats with engines  fish within Groups and a Village Fisheries Committee Ream National Park, employing 30% of the work to regulate, conserve and manage marine population or 1,597 households. The annual catch resources in the Park according to the fisheries of 537.6 tonnes is worth a total of $687,291 a year management guidelines and regulations that at market prices, or $1,375 per boat. Taking into they have developed. account the costs of boats, equipment and running costs, this translates into annual net values of The basic aim of the valuation study was to $0.515 million overall, $1,031 per boat, or $323 lend support to these ongoing management per fishing household. planning processes in Ream − to demonstrate their validity in economic terms, as well as to Local Catch Value price identify the kinds of additional economic (kg/year) (US$/year) concerns and measures that would have to be (CR/kg) incorporated into protected area management Shells 72,000 5,000 92,426 and into the socio-economic development Shells 60,000 3,000 46,213 plans of . An underlying Prawn 48,000 15,000 184,852 Marine fish 200,000 3,000 154,044 objective was to demonstrate economic Crab 32,000 8,000 65,725 assessment methods that could be replicated in Shrimp 30,000 2,500 19,255 other protected areas in Cambodia that might Lobster 1,600 25,000 10,270 develop management plans in the future. Two Squid 24,000 4,000 24,647 principles guided the study: the need to Freshwater 70,000 5,000 89,859 highlight the importance of community-based fish Total gross approaches to park planners, at the same time 537,600 687,291 as finding measurable indicators of protected value area benefits that would be meaningful to local Average gross value 1,075 1,375 authorities and development planners. per boat Total costs 171,767 The economic value of key Total net value 515,525 Average net value per boat 1,031 resources and ecosystems Average net value per fishing 323 The results of the study showed that Ream household National Park constitutes an extremely

mangroves, and a significant proportion of firewood, medicinal plants and construction materials are also sourced from them. Box 2: The value of other community land and Mangroves act as a carbon sink, prevent resource uses in Ream NP saltwater intrusion and coastal erosion, and A wide range of forest products are gathered within buffer against storms and floods, enabling Ream, worth a total of $190,672 at market prices. human habitation and farming in the villages Livestock and crop production taking place in the which lie along the coast. By quantifying these park has a gross value of $520,344. Taking into benefits, the study showed that conserving account the costs of harvesting these products, this mangrove ecosystems in the National Park, and translates into a net total value of $721,897 per elsewhere along the Cambodian coast, year. generates significant economic values − both in absolute terms, and relative to the short-term Average profits earned from the activities that threaten Gross value per Net value them (Box 3). Ream’s mangroves yield value user (US$/year) (US$/year) household subsistence goods worth almost $600,000 a (US$/year) year, and generate an additional $300,000 a year Firewood 125,133 112,062 25 through the provision of ecosystem services Construction such as storm protection and prevention of 23,659 23,659 18 wood coastal erosion in areas surrounding the park. Medicinal 10,788 10,788 11 With a overall value of almost $1 million a year plants and net value of more than $500 per hectare, Food 17,695 17,695 18 this is far more than either the one-off income Roofing 13,397 13,397 84 materials generated through clear-cutting (De Lopez et al Sub-total, 2001) or the returns from conversion to crab forest 190,672 177,601 and prawn farming (Bann 1997). products Crops 316,594 316,594 119 Livestock 227,702 203,750 143 Box 3: The value of mangrove conservation in Sub-total, Ream NP 544,296 520,344 farming Total, In total there are approximately 1,800 ha of forest mangroves in Ream, with a total volume of products 734,968 697,945 111,645 m3 (De Lopez et al 2001). The mangrove and area of Ream National Park is particularly farming important to the local households who live around,

and use, it. Much of the fishery in the area

Mangroves constitute a particularly important depends on the habitat, nursery and breeding set of park resources, and are also one of the grounds provided by mangrove habitats, and a most endangered ecosystems in Ream and significant proportion of firewood, medicinal plants other parts of Cambodia’s coast. In order to and construction materials are also sourced from demonstrate the broader economic benefits of mangroves. Mangroves act as a carbon sink, ecosystem conservation, the study made a prevent saltwater intrusion and coastal erosion, detailed analysis of the returns to alternative and buffer against storms and floods, enabling uses of the 1,800 hectares of mangroves in the human habitation and farming in the villages which park. A key question posed by Provincial lie along the coast. Yet a key question is whether it development planners has been if it is worth worth conserving these mangroves, or should they conserving these mangroves, or whether they be harvested for immediate income and financial should be harvested for immediate income and gain, and then turned over to another land use? financial gain, or converted for salt production This is a real threat to Ream. Already part of the and aquaculture. mangroves have been clear-cut illegally, a prawn/crab farm has been developed inside the The study found that much of the fishery in Park over an area of nearly 50 ha, and approval the Sihanoukville area depends on the habitat, has been given for a 10 ha experimental cockle nursery and breeding grounds provided by farm (ADB 2000).

Total Value A simple cost-benefit analysis demonstrates the Net value (US$ high value of mangrove conservation in terms of (S$/ha/yr) local socio-economic and environmental benefits. ‘000/yr) Under realistic recovery and harvesting conditions, Local use 344 619,200 Storm clear-cutting the mangroves would yield a one- 32 57,600 protection time income of less than $630,000 (De Lopez et al Coastal erosion 122 219,600 2001). Although prawn farms can, under the best prevention conditions, realise a net income of almost Carbon 2 3,600 $4,500/ha/yr, few actually do. In Koh Kong, a sequestration similar mangrove area lying to the west of Ream Total Value 500 900,000 National Park, half of prawn farms are making a loss  at a realistic productivity rate of 3.6 tonnes per harvest, this loss is nearly $9,950/ha/yr  and Using economic incentives to offset in aggregate they show a loss of $1,103 per ha per year (Bann 1997). the opportunity costs of protection Some reduction in local resource utilisation Yet even if only half of the forest, fisheries and activities is required by the draft zoning and agricultural production in surrounding villages management plan that has been prepared for depend on mangroves in the Park, their clearance Ream National Park. As well as the prohibition would result in a loss of local income of around of all extractive activities in the core zone, it $620,000 a year. This figure of $344/ha/yr is a implies curtailing unsustainable and illegal realistic one  data for similar mangrove areas in fishing, logging, charcoal production, hunting, estimate local use of mangroves to be coral collection and agricultural encroachment worth between $230 (Christensen 1982) and in other management zones. Yet without access $1,200 (Sathirthai 1998) a year, and values in Koh to the basic subsistence, income and Kong Province exceed $500/ha, including charcoal employment that the Park provides, many of (Bann 1997). the 30,000 local people will find it difficult to survive as they lack access to other sources of In fact many more economic losses would occur livelihood. The study therefore showed that, from mangrove clearance, such as the damage to under existing conditions, there will be a houses, infrastructure, farmland, employment, significant local opportunity cost to markets and general local welfare that result from biodiversity protection. the loss of vital environmental functions and Given the high levels of poverty in park- ecological services. In Southern Thailand, the adjacent communities, and the difficulty of economic benefits of mangroves in terms of accessing alternative sources of income and coastline protection have been estimated to have subsistence, the local opportunity costs of a value of between $76.5/ha/year (Sathirathai resource utilisation foregone may be untenable. 1998) and $165/ha/year (Christensen 1982), On the one hand valuation lends strong carbon sequestration benefits $2.2/ha, and support to the type of community-based mangrove storm protection functions have been resource management initiatives that have been valued at $32/ha in (Bann piloted for inland fisheries in Ream, and 1997). Taking into account these indirect suggests that they could usefully be extended to economic benefits increases the annual economic other resources and ecosystems within the value of conserving Ream’s mangroves to protected area. However, by themselves, such $900,000 a year. This is far more than the one-off collaborative management and sustainable gain (and long-term loss) of clear-cutting the resource utilisation activities − although mangroves and turning them over to prawn farms. undoubtedly an essential and necessary part of The economic costs of destroying these valuable park management − are likely to provide natural ecosystems, both immediate and long- insufficient economic incentives for park term, far exceed the benefits  or, in other words, conservation, because they provide no direct biodiversity conservation in Ream National Park is alternatives to unsustainable income and a demonstrably economically worthwhile activity to subsistence generating activities. engage in.

encouraging natural resource conservation. The Clearly, further measures are needed to offset study underlined the importance of Ream the local opportunity costs of protected area conservation. Here, factoring the need to National Park to the long-term development of provide alternative and sustainable livelihoods the area, as an economic asset for which to the residents of Communes that lie inside conservation is well worth investing in. and adjacent to Ream into Provincial planning becomes critical. Existing Provincial socio- economic development plans, although laying This case study is adapted from Emerton, L., Seilava, great stress on rural poverty alleviation, take R. and H. Pearith, 2002, Bokor, Kirirom, Kep and little note of the presence of the protected area Ream National Parks, Cambodia: Case Studies of and contain few activities aimed specifically at Economic and Development Linkages, Field Study Report, Review of Protected Areas and their Role in the Socio-Economic Development of the Four Countries of the Lower Region, International Centre for Environmental Management, Brisbane and IUCN − The World Conservation Union Regional Environmental Economics Programme, Karachi

ADB. 1999. Cambodia Coastal and Marine De Lopez, T., Vihol, K., Proeung, S., Dareth, Community Survey Report. Report for P., Thea, S., Sarina, C., Song, S., Chantha, Project ADB 5712-REG: Coastal and V., Vandy, N., Bunly, L. and C. Sinoeun. Marine Management in the South China 2001. Policy Options for Cambodia’s Sea, Phase 2., . Ream National Park: A Stakeholder and Bann, C. 1997. An Economic Analysis of Economic Analysis. Research Report, Alternative Mangrove Management Environment and Economy Programme Strategies in Koh Kong Province, for South East Asia, International Cambodia. Research Report, Development Research Centre, Ottawa. Environment and Economy Programme DNCP. 1996. Preah Sihanouk National Park: for South East Asia, International Integrating Conservation and Development Research Centre, Ottawa. Development. A Management Plan for

Christensen, B. 1982. Management and the Preah Sihanouk National Park. Utilization of Mangroves in Asia and the Department of Nature Conservation and Pacific. FAO Environment Paper No.3. Protection, Ministry of Environment, in Food and Agricultural Organisation. collaboration with IUCN — The World Rome Conservation Union, Phnom Penh. GEC, WWF & WIAP. 2000. Cambodia Demonstration Project Report. Report prepared for ADB 5712-REG: Coastal and Marine Management in the South China Sea, Phase 2 by Global Environmental Consultants Ltd, World Wide Fund for Nature, Indochina Program, and Wetlands International Asia This document was produced under the project and Pacific, Kuala Lumpur. "Integrating Wetland Economic Values into River Basin Management", carried out with financial support from IUCN, 1997. The Conservation and DFID, the UK Department for International Development, Sustainable Use of Biological Resources as part of the Water and Nature Initiative of IUCN - The Associated with Protected Areas of Southern World Conservation Union. Cambodia. The Parks, People and This project aims to develop, apply and demonstrate Biodiversity Project: A Concept Paper, environmental economics techniques and measures for IUCN — The World Conservation Union, wetland, water resources and river basin management Phnom Penh. which will contribute to a more equitable, efficient and sustainable distribution of their economic benefits at the Sathirathai, S. 1998. Economic valuation of global level and in Africa, Asia and Latin America, mangroves and the roles of local especially for poorer and more vulnerable groups. communities in the conservation of natural The views and opinions in this document are those of the resources: Case Study of Surat Thani, South authors alone, and do not necessarily reflect those of of Thailand. Research Report, Environment IUCN, DFID or other institutions participating in the and Economy Programme for South East project. Asia, International Development Research For more information, please contact: Lucy Emerton. [email protected] Tel: ++94 1 694 094 Centre, Ottawa.

For information about project activities in Africa, Asia and Latin America please contact:

Eastern Africa: Francis Karanja. [email protected] Tel: ++254 2 890 605-12 Latin America: Rocío Córdoba. [email protected] Tel: ++506 241 0101 Lower Mekong: Sarah Porter. [email protected] Tel: ++855 23 222 311/2 South Asia: Shamen Vidanage. [email protected] Tel: ++94 1 694 094