“to quantify the value of reef fish for two industries – fishing and tourism”

“to quantify the value of reef fish for two industries – fishing and tourism”

Future Of Reefs in a Changing EnvironmentDavid GillPhD Candidate

Future of Reefs in a Changing Environment

FORCE: Future Of Reefs in a Changing Environment

FORCE Objectives

1. Understand the threats to coral reefs and coastal communities in the

Caribbean.

2. Understand how effective coral reef management has

been in the past.

3. Develop new ways to address these threats and support coastal

communities

4. Share the findings with people in the Caribbean

• FORCE is a 4-year, European Union (EU) funded, integrated research project

• It brings together scientists from 20 organizations from the Caribbean, Europe, USA and Australia

• This project takes an ecosystem approach, linking social and ecological aspects, towards managing Caribbean coral reefs in the face of climate change

• Centre for Resource Management and Environmental Studies (CERMES), UWI is the leading Caribbean partner

FORCE: Future Of Reefs in a Changing Environment

Background

FORCE Caribbean partners

1. Caribbean Research and Management of Biodiversity (CARMABI)

2. El Colegio de la Frontera Sur (ECOSUR)

3. Rosenstiel School of Marine and Atmospheric Science (RSMAS)

4. Universidad Nacional Autónoma de México

5. Universidad de Costa Rica6. University of the West Indies7. Utila Centre for Marine

Ecology

20 Organisations: Caribbean, Europe, USA, Australia

Research• WP1: Governance of coral reefs • WP2: Livelihoods & coral reefs• WP3: Physical environments of Caribbean reefs• WP4: Ecological status of coral reefs• WP5: Ecological processes on coral reefs• WP6: Impacts of climate change on coralsTools• WP8: Ecosystem based fisheries & marine reserve design• WP9: Evaluation of restoration methods for Caribbean coralsSynthesis • WP7: Integrated modelling of processes & drivers • WP10: Evaluation of efficacy & constraints to management toolsDissemination• Exploitation and dissemination of project results

FORCE: Future Of Reefs in a Changing Environment

Work-Packages

• Worldwide, over 100 countries have coral reef coastlines where millions depend on them directly and indirectly for their livelihoods and food security

• Caribbean Reefs: – 26,000 km2 of shallow reef

(~7% of world) protect 20% of coastline

– net economic value US$3.1-4.6 billion from fisheries, dive tourism, and shoreline protection services annually (2000)

Ecological Goods and ServicesCoral Reefs

Coral Reef Fish

Provisioning Services

Food

Employment

Foreign Exchange

Larval supply to neighbouring reefs

Organic exchange between

ecosystems

Sand production

Regulating & Supporting Services

Cultural Services

Spiritual Values

Knowledge Systems and Educational

Values

Recreation & Ecotourism

Adapted from WRI 2009

Ecological Goods and ServicesCoral Reef Fish

• Important source of protein for Caribbean coastal communities since pre-Columbian times

• ~ US$375 million in net annual revenue

• Supports artisanal fishery where few alternatives exist

• Emergency food and revenue supply

Ecological Goods and ServicesReef Fishing in the Caribbean

Ecological Goods and ServicesTourism in the Caribbean

• US$47 billion or 14% of GDP (2004) and 12% of total employment

• Caribbean reefs attract over 25 million tourists annually

• SCUBA divers account for 10% of all tourist arrivals

• Generate approximately US$4.7 billion in gross revenue (2000)

• Some research indicates that fish attributes may be more important to divers than coral

Current Threats to Reef Fish Habitat Degradation

• Significant declines: some reefs lost more than half their coral cover in the past 20 years

• Globally, 19% of the original coral reef area effectively lost

• potential loss of an additional 15-20% within the next half century under a ‘business as usual’ scenario (excluding climate change)

Caribbean Reefs significantly impacted by:• Land Based Pollution• Coastal Development• Physical Damage• Overfishing• Disease• Global Climate Change

Current Threats to Reef Fish Habitat Degradation

• decreased catch per unit effort• reduced abundance or absence of

high value species (e.g. snapper and grouper)

• reduced mean size of high value and other targeted species

• increased proportion of lower valued species in catch (e.g. surgeonfish)

• decline in the average trophic level on reef

• increased algal/lower coral abundance due to reduced grazing pressure

Current Threats to Reef Fish Unsustainable Fishing

Current Threats Impacts on Coastal Communities

• Many of the Caribbean reef fisheries are currently fully or overexploited and in danger of collapse

• Current declines in reef fisheries already are affecting many communities (reduced profits)

• When natural disasters strike and food is scarce, often people turn to the reefs for food

• By 2015, annual losses of US$95-140 million could be expected within Caribbean reef fisheries

• Reef degradation can threaten the livelihoods and security of millions in the region

• US$350 – US$870 million in annual economic losses could be expected from impacts to coral reef fisheries, dive tourism and shoreline protection services

• Need for data on current and expected economic gains and losses associated with changes in reef fish resources

Current Threats Impacts on Coastal Communities

Economic Valuation

• Economic valuation assesses the goods and services provided by an ecosystem which contribute to the wellbeing of human life (e.g. financial, social, biophysical)

• Measures the value of what something is worth to people and placing them in monetary units

• Within the context of reef fish, economic valuation involves the quantification and monetization of the benefits that are gleaned from the presence of reef fish

• Does not derive an absolute value but a lower bound/minimum value (impossible to value all of nature)

• Understanding the economic context of natural resource use is an essential element in its successful management

• Decision makers often consider the trade-offs that are involved with policy and more often than not, these trade-offs are measured in monetary units

• To provide a strong case for reef conservation, economic valuation can be used to reveal how changes in a resource can affect the flow of benefits to people by placing them in comparable monetary units

• With an understanding of the derived benefits from coral reefs, policy makers can become more aware of the revenue to be gained and expenses to be avoided by reef conservation

Economic valuationWhy is this Relevant?

• Cost-benefit analysis: examine whether or not the cost of management is justified by the prevention of loss of ecosystem services.

• Marine Spatial Planning: data on the intensity and value of extractive and non-extractive uses of reefs in each community

• Benefits Transfer: given the diversity of study sites being examined, the research can also provide data for benefits transfer values to be used in future valuation studies

Economic Valuation Applications

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Research Questions

1. What is the current economic value of reef fish to primary stakeholders in the fishing and dive industry within Caribbean coastal communities?

2. Given the uncertain future that Caribbean reefs face, how could changes in reef fish communities affect these values?

Research Framework

Biophysical/ ecological data on

predicted fish stock changes

Dive operator interview data

Reef fishinginterview data

Tourist diver interview data

Compare the relative values of extractive and non-extractive uses at sites

Identify the key attributes of reef fish affect diver satisfaction and fishing effort

Predict changes in economic value of reef fish due to exogenous impacts

Estimate economic values at multiple sites

Collect and analyse economic data on reef fishing & dive industries

Chapter 2Economic value of

reef-associated fishing

Chapter 3Economic value of

SCUBA diving industry

Chapter 4Economic implications of changes in reef fish

populations

Chapter 5Management implications of

changes in reef fish health

Research Question 1

Research Question 2

Methods

Economic ValuationComponents of Reef fish Value

Total Economic Value

Non-Use Value

Existence Value

Future Use(option/bequest value)

Indirect Use(sand production)

Direct Use

Non-Extractive Use(tourism & recreation)

Extractive Use(food)

Use Value

WRI 2009

Total Economic Value

Non-Use Value

Existence Value

Future Use(option/bequest value)

Indirect Use(sand production)

Use Value

Direct Use

Non-Extractive Use(tourism & recreation)

Extractive Use(food)

WRI 2009

Reef Fish Value: Fisheries & Dive TourismValuation Framework

Market Value

Direct Use Value

Non- Extractive Use( diving revenue)

Extractive Use(ex-vessel revenue)

Non-Market Use Value (consumer surplus)

ESTIMATED ECONOMIC VALUE OF REEF FISH

Non-Market Value

Reef Fish Value: Fisheries & Dive TourismValuation Framework

Dive TourismFishing

Research MethodsMarket Valuation: Fishing Industry

Fisher Data Instrument• fishing effort • costs and revenue• space-use patterns • market orientation• perceptions of threats and

changes in reef fish resources• Demographics • job satisfaction and alternative

livelihoods• contingent behavioural

responses to changes in reef fish resources

Economic Valuation in the Caribbean

Description Value (USD million)

Source

net annual economic impact of reef and mangrove associated fisheries in Belize

14-16 Cooper et al. 2009

ex-vessel value for coral reef and mangrove species in the Dominican Republic

5.4 Wielgus et al. 2010

annual net value of commercial and recreational reef fishing in Bermuda

4.9 van Beukering et al. 2009

Gross annual economic impact or trap fishing in Barbados

0.95 Schuhmann et al. 2011

• US$ 390 million (Burke et al. 2011)• US$ 286 million from spiny lobsters in 25 countries (2004 gross

value: Chávez 2008)

Site Selection• Research will attempt to capture some of the Caribbean

diversity by conducting economic valuations in three community types in 3 contrasting countries

HondurasSt. Kitts & Nevis

Barbados

Sample Sizes

Site typeSt. Kitts and

Nevis Honduras Barbados

Fishing 30 48 22

Tourism 27 11 15

Mixed 23 16 27

Total 80 75 64

• Over 300 fishers interviewed at 9 sites in the 3 countries

• Financial analysis on commercial fishers only (n=219)

Results

Average Annual Yield

Dieppe Bay

Jessups

Newtown

East Harbour

Utila Cays

West End

Holetown

Pile Bay

Six Men's

Ho

nd

ura

s

0 0.5 1 1.5 2 2.5 3 3.5 4 4.5

Demersal reef fish

Average annual yield (tons)

Average Annual Yield

Dieppe Bay

Jessups

Newtown

East Harbour

Utila Cays

West End

Holetown

Pile Bay

Six Men's

Ho

nd

ura

s

0 2 4 6 8 10 12

Pelagic reef fish

Average annual yield (tons)

Average Annual Yield

Dieppe Bay

Jessups

Newtown

East Harbour

Utila Cays

Holetown

Pile Bay

Six Men's

Ho

nd

ura

s

0 0.5 1 1.5 2 2.5 3 3.5 4

Lobster

Average annual yield (tons)

Average Annual Yield

Dieppe Bay

Jessups

Newtown

East Harbour

Utila Cays

Holetown

Pile Bay

Six Men's

St.

Kitt

s N

evi

sH

on

du

ras

Ba

rba

do

s

0 2 4 6 8 10 12

Conch

Average annual yield (tons)

Capital EquipmentBoat and Engine

Parameter St. Kitts and Nevis Honduras Barbados

Mean boat length (m) 6.2 8.3 5.2

Mean engine output (hp) 67.1 66.3 28.2

Mean boat and engine cost

(US$)9,541 12,273 4,649

Capital EquipmentFishing Equipment

Parameter St. Kitts and Nevis Honduras Barbados

Diving 596.34 929.44 833.48

Line-fishing 369.95 344.48 287.49

Net/seinefishing 1,189.12 441.62 6,301.51

Trap fishing 997.23 219.53 942.76

Trip Profits

Diving Diving (SCUBA)

Line Net/seine

Traps Trolling-100

100

300

500

700

900

1,100

1,300St. Kitts and Nevis

Trip costs

Trip Profit

Fishing activity/gear

US

PP

P d

oll

ars

Trip Profits

Diving Diving (SCUBA)

Line Net/seine

Traps Trolling-100

100

300

500

700

900

1,100

1,300Honduras

Trip costsTrip Profit

Fishing activity/gear

US

PP

P d

oll

ars

Trip Profits

Diving Diving (SCUBA)

Line Net/seine

Traps Trolling-100

100

300

500

700

900

1,100

1,300 Barbados

Trip costsTrip Profit

Fishing activity/gear

US

PP

P d

oll

ars

Profits by Fisher Role

Shore fisher

Crew member

Boat owner

Shore fisher

Crew member

Boat owner

Shore fisher

Crew member

Boat owner

Ho

nd

ura

s

0 5 10 15 20 25 30

Average annual income ($US PPP 000s)

Economic value by Site

Dieppe Bay (F)

Newtown (T)

Jessups (M)

Utila Cays (F)

West End (T)

East Harbour (M)

Pile Bay (F)

Holetown (T)

Six Men's (M)

Ho

nd

ura

s

0 1 2 3 4 5 6

annual net value

economic impact (1.05x)

economic impact (1.76x)

Average annual income ($US PPP millions)

Economic value of Recreational Fishing

Dieppe Bay (F)

Newtown (T)

Jessups (M)

Utila Cays (F)

West End (T)

East Harbour (M)

Pile Bay (F)

Holetown (T)

Six Men's (M)

Ho

nd

ura

s

0 2 4 6 8 10 12 14 16 18

Average annual value ($US PPP 000s)

• Data on the extractive value of reef fish within 3 contrasting community types

• Complexity of multi-gear, multi-species nature of fishery inhibits accurate valuation– Memory recall: missing data– Strategic bias– Large sample sizes needed

for disaggregation

• Nevertheless large value of reef-associated fishing to coastal communities demonstrated

Discussion

• Target species/ fishing regulations

• Access to fishing grounds• Gear preference• Three major drivers of

exploitation: – financial dependency– market access– food security

Drivers of Economic Activity Variation between sites

• Large percent of fisher’s income from reefs (especially in St. Kitts and Nevis)

• Main source of income on Utila Cays where little employment alternatives exist

• Social safety net for community and seasonal fishers

• “Retirement” fishery in Barbados

Drivers of Economic ActivityFinancial Dependency

• Access to export and tourism markets appear to be main driver of exploitation, – Honduras: Utila Cays

fishers are able maintain consistent level of product to be involved in the industrial industry

– St. Kitts and Nevis: lobster and conch fishing effort linked to tourist season and peak exports

– Markets mainly for large offshore pelagics species in Barbados

Drivers of Economic Activity Market Access

• High subsistence values in many communities

• Reef pelagic species play an important role in feeding communities

• Extremely low prices (US$1.52/kg)

• Utila Cay “exports” feed local poor population on Honduran mainland

• Research should assess the status of these stocks that many depend on as a cheap source of protein

Drivers of Economic Activity Food Security

• examine the response of fishers to hypothetical changes in the fish resource

• scenarios involving changes in the abundance and mean size of fish in catch (similar to those in diver choice model)

25% more fish 25% less fish 50% less fish

e.g. 10 fish now 12-13fish per haul/trip

e.g. 10 fish now 5 fish per haul/trip

e.g. 10 fish now 7-8 fish per haul/trip

Original Number

e.g. 10 fish

Next StepsMarket Valuation: Contingent Behaviour

• Comparative data on current use patterns and use value (between countries)

• Comparative data on predicted use value (with changes in management and select fish attributes)

• Information for policy on reef fisheries and dive tourism use and potential impacts of stressors

Next Steps

• Little available data on coral reef fisheries

• Data collection labour-intensive, high margins of error

• However, given the high dependency and the exogenous threats, there is a need for a combination of biophysical, social and economic data for implementing effective policy

• Research shows relatively high dependency at study sites with both external and internal factors driving social and economic dependency

• Further research on measuring impacts of these drivers needed

Conclusion

Questions?