1. Economic Valuation of Coral Reefs in Tobago – June 13, 2008 Tobago Lauretta Burke World Resources Institute

2. Project Partners Include Trinidad and Tobago Buccoo Reef Trust Buccoo Reef Trust T&T Institute of Marine Affairs (IMA) T&T Institute of Marine Affairs (IMA) Tobago House of Assembly (THA) / Policy Research Development Institute (PRDI) Tobago House of Assembly (THA) / Policy Research Development Institute (PRDI) T&T Central Statistics Office (CSO) T&T Central Statistics Office (CSO) T&T Environmental Management Agency (EMA) T&T Environmental Management Agency (EMA) Environment Tobago and SOS Environment Tobago and SOS Saint Lucia Government of Saint Lucia Government of Saint Lucia Regional Partners University of the West Indies (UWI) / Sustainable Economic Development Unit (SEDU) University of the West Indies (UWI) / Sustainable Economic Development Unit (SEDU) Caribbean Natural Resources Institute (CANARI) Caribbean Natural Resources Institute (CANARI)

3. Financial Support Macarthur Foundation Macarthur Foundation Ocean Foundation Ocean Foundation Henry Foundation Henry Foundation Munson Foundation Munson Foundation Dutch Ministry of Foreign Affairs Dutch Ministry of Foreign Affairs SwedBio SwedBio International Coral Reef Action Network (ICRAN) International Coral Reef Action Network (ICRAN) Buccoo Reef Trust Buccoo Reef Trust

4. Program Overview 1. Summary of results 2. Policy Applications 3. Ecosystem Goods and Services 4. Background on this Economic Valuation project – method and features 5. Valuation – details for Tobago 6. Policy Application for Buccoo Reef

5. Beautiful

6. Valuable

7. Threatened Coastal development Coastal development Mangrove removal Mangrove removal Sewage Sewage Dredging Dredging Runoff Runoff Tourism Tourism Overfishing Overfishing Warming Seas Warming Seas

8. Influencing Better Management Economic Valuation is a tool to guide coastal planning, investment and management in the long-term interest of local communities and the country Economic Valuation is a tool to guide coastal planning, investment and management in the long-term interest of local communities and the country

9. Evaluating trade-offs OPTIONS Development options Development options Enforcement of regulations Enforcement of regulations Capping tourist numbers Capping tourist numbers Investing in pollution control Investing in pollution controlOUTCOMES Revenue streams from tourism Revenue streams from tourism Societal benefits from reefs Societal benefits from reefs Ecosystem goods and services Ecosystem goods and services

10. Economic Valuation of Coral Reefs WRI (with partners) developed a coral reef valuation methodology and implemented valuations for the coral reefs of Tobago and St. Lucia. WRI (with partners) developed a coral reef valuation methodology and implemented valuations for the coral reefs of Tobago and St. Lucia. The study evaluated the overall annual economic contribution of coral reef- associated The study evaluated the overall annual economic contribution of coral reef- associated tourism and recreation, tourism and recreation, fisheries, and fisheries, and shoreline protection services. shoreline protection services.

11. Ecosystem Services from Coral Reefs Provisioning Services -food – fish and shellfish -genetic resources - natural medicines and pharmaceuticals -ornamental resources - building materials Regulating Services - carbon storage / climate regulation -erosion control -storm protection CulturalServices -spiritual and religious values -knowledge systems / educational values -inspiration -aesthetic values -social traditions -sense of place -recreation and ecotourism Supporting Services -sand formation -primary production

12. Ecosystem Services from Coral Reefs Provisioning Services -food – fish and shellfish -genetic resources - natural medicines and pharmaceuticals -ornamental resources - building materials Regulating Services - carbon storage / climate regulation -erosion control -storm protection CulturalServices -spiritual and religious values -knowledge systems / educational values -inspiration -aesthetic values -social traditions -sense of place -recreation and ecotourism Supporting Services -sand formation -primary production

13. Non-Valued Services Total Economic Value (TEV) would also include: Other Use Values: Research Values Research Values Option Values (e.g. pharmaceutical) Option Values (e.g. pharmaceutical) Carbon storage Carbon storage Non-Use Values Bequest Value Bequest Value Existence Value Existence Value We focus on values that can be reliably estimated using available data

14. Summary of Values

15. Valuation Summary Coral reef-associated tourism and recreation – contributed between US$100 and $130 million to the national economy in 2006. Photo: BRT

16. Valuation Summary Coral reef-associated fisheries – important for cultural tradition, safety net, and livelihood important for cultural tradition, safety net, and livelihood provide annual economic benefits estimated at between US$0.8 – 1.3 million. provide annual economic benefits estimated at between US$0.8 – 1.3 million. Photo: BRT

17. Valuation Summary Shoreline Protection Services of Coral Reefs – avoided erosion and storm damage from waves valued between US$18 and $33 million per year. avoided erosion and storm damage from waves valued between US$18 and $33 million per year.

18. Valuation Summary Tourism and Recreation - US$100 to $130 million in 2006. Tourism and Recreation - US$100 to $130 million in 2006. Coral reef-associated fisheries - US$0.8 – 1.3 million / year Coral reef-associated fisheries - US$0.8 – 1.3 million / year Shoreline protection services – US$18 and $33 million per year. Shoreline protection services – US$18 and $33 million per year. These are significant compared to Tobago’s GDP, which was $286 million in 2006. These are significant compared to Tobago’s GDP, which was $286 million in 2006. Coral reefs provide other important values not estimated in this study, and these numbers should be regarded as a lower bound estimate. Coral reefs provide other important values not estimated in this study, and these numbers should be regarded as a lower bound estimate.

19. Coral Reefs – Economically Important to Tobago Valuation can highlight: Significant contribution to GDP Significant contribution to GDP Taxes paid to government Taxes paid to government Jobs and wages dependent on coral reefs Jobs and wages dependent on coral reefs Value of social safety net Value of social safety netSupports: Coastal Planning (shoreline protection analysis) Coastal Planning (shoreline protection analysis) Evaluation of trade-offs Evaluation of trade-offs

20. Economic Valuation applications Estimate Economic Contribution to GDP Estimate Economic Contribution to GDP Compare benefits of development / management options Compare benefits of development / management options Encourage increased investment in coastal management / MPAs / fisheries management Encourage increased investment in coastal management / MPAs / fisheries management Identify sources of support for management / policy / protected areas Identify sources of support for management / policy / protected areas Set fees, such as visitor fees Set fees, such as visitor fees Damage assessment Damage assessment

21. Tobago-specific examples Evaluate the costs and benefits of investing in more active management of Buccoo Reef Marine Park Evaluate the costs and benefits of investing in more active management of Buccoo Reef Marine Park Evaluating the benefits of investment in improved sewage treatment in SW Tobago Evaluating the benefits of investment in improved sewage treatment in SW Tobago Examine changes in fisheries management and the impact on short-term livelihoods versus long-term benefits Examine changes in fisheries management and the impact on short-term livelihoods versus long-term benefits Comparing the benefits of consumptive vs. non- consumptive use of sea turtles Comparing the benefits of consumptive vs. non- consumptive use of sea turtles

22. Econ Val Project Characteristics 1. Develop method which is simple and replicable 2. Rely predominantly on existing, available data 3. Produce coral reef valuation estimates for two pilot areas (Tobago and St. Lucia) 4. Estimate likely economic loss due to coral reef degradation

23. Valuation – Main Components Tourism Method: Financial Analysis (Net revenues plus transfers) Fisheries Method: Financial Analysis (Net revenues plus transfers) Shoreline Protection Method: “Avoided Damages”

24. Tourism Components Accommodation Accommodation Reef Recreation – Diving Reef Recreation – Diving Reef Recreation – Snorkeling Reef Recreation – Snorkeling Marine Park Revenues Marine Park Revenues Misc. Expenses (e.g., departure taxes, visitor expenditure) Misc. Expenses (e.g., departure taxes, visitor expenditure) Local Use Local Use Indirect economic effects Indirect economic effects

25. Tourism Valuation issues 1. Identifying “coastal” visitors 2. Quantifying reef recreation 3. Getting accurate MPA visitation numbers 4. Tobago-specific data

26. Tourism and Recreation Valuation Assumptions 40% of visitors come to Tobago in part due to the reefs. 40% of visitors come to Tobago in part due to the reefs.

27. Tourism Valuation for Tobago Coral Reef-associated:($US million) Accommodation Value $24.7 Reef Recreation – Diving $1.3 Reef Recreation – Snorkeling $1.5 Marine Park Revenues n.a. Misc. Visitor Expenses $16.0 Total Direct Impact $43.5

28. Tourism Valuation for Tobago Coral Reef-associated:($US million) Accommodation Value $24.7 Reef Recreation – Diving $1.3 Reef Recreation – Snorkeling $1.5 Marine Park Revenues n.a. Misc. Visitor Expenses $16.0 Total Direct Impact $43.5 (15% of GDP)

29. Tourism Valuation for Tobago Coral Reef-associated:($US million) Accommodation Value $24.7 Reef Recreation – Diving $1.3 Reef Recreation – Snorkeling $1.5 Marine Park Revenues n.a. Misc. Visitor Expenses $16.0 Total Direct Impact $43.5 Indirect economic Impact ** $58 – 72

30. Tourism Valuation for Tobago Coral Reef-associated:($US million) Accommodation Value $24.7 Reef Recreation – Diving $1.3 Reef Recreation – Snorkeling $1.5 Marine Park Revenues n.a. Misc. Visitor Expenses $16.0 Total Direct Impact $43.5 Indirect economic Impact ** $58 – 72 Total Direct & Indirect Impact US$101 – 130 million

31. Tourism Valuation for Tobago Coral Reef-associated:($US million) Accommodation Value $24.7 Reef Recreation – Diving $1.3 Reef Recreation – Snorkeling $1.5 Marine Park Revenues n.a. Misc. Visitor Expenses $16.0 Total Direct Impact $43.5 Indirect economic Impact ** $58 – 72 Total Direct & Indirect Impact US$101 – 130 million Consumer Surplus $1

32. Tourism Valuation for Tobago Coral Reef-associated:($US million) Accommodation Value $24.7 Reef Recreation – Diving $1.3 Reef Recreation – Snorkeling $1.5 Marine Park Revenues n.a. Misc. Visitor Expenses $16.0 Total Direct Impact $43.5 Indirect economic Impact ** $58 – 72 Total Direct & Indirect Impact US$101 – 130 million Consumer Surplus $1 Local Use $13 – 44

33. Local Reef Use Survey Commissioned a survey through the University of West Indies / Sustainable Economic Development Unit / Government of St. Lucia, Department of Statistics Commissioned a survey through the University of West Indies / Sustainable Economic Development Unit / Government of St. Lucia, Department of Statistics 300 people surveyed in 6 locations in Tobago (Reef - Buccoo, Pigeon Point, and Speyside, and non-reef - Mt. Pleasant, Roxborough, and Patience Hill) 300 people surveyed in 6 locations in Tobago (Reef - Buccoo, Pigeon Point, and Speyside, and non-reef - Mt. Pleasant, Roxborough, and Patience Hill) Designed to measure local use of beaches and reefs as well as recreational and subsistence fishing Designed to measure local use of beaches and reefs as well as recreational and subsistence fishing

34. Fisheries Components Commercial Fisheries Commercial Fisheries Fish Processing and Cleaning Fish Processing and Cleaning Local Use (fishing) Local Use (fishing) Indirect economic effects Indirect economic effects Focus on reef-associated species – snapper, grouper, grunts, squirrelfish, parrot fish, lobster and conch.

35. Fisheries Valuation Issues 1. Lack of meaningful data on fish landings 2. Limited data on sales and exports 3. Limited data on local use 4. Focus on economic impact – does not fully capture social values.

36. Commercial Fishing in Tobago Estimate derived from two approaches – Estimate derived from two approaches – 1. reef fish productivity 2. estimated pot fishing effort Coral reefs are over-fished Tobago / productivity is declining Coral reefs are over-fished Tobago / productivity is declining

37. a) Reef Fish Productivity Reef Area: 30 km 2 (from this project) Reef Area: 30 km 2 (from this project) Estimated fish productivity rate: range of 2 to 5 MT of fish / km 2 of coral reef Estimated fish productivity rate: range of 2 to 5 MT of fish / km 2 of coral reef Potential sustainable harvest of 130,000 to 330,000 lb of reef fish Potential sustainable harvest of 130,000 to 330,000 lb of reef fish

38. b) Landings based on boats 16 boats doing pot fishing, average 105 trips per year, landing an average of 150 - 200 lbs per trip 16 boats doing pot fishing, average 105 trips per year, landing an average of 150 - 200 lbs per trip This leads to an estimated of fish caught. (Comparable to the maximum productivity estimate) This leads to an estimated 250,000 - 336,000 lbs of fish caught. (Comparable to the maximum productivity estimate) Average Price of pot fish = TT$15 ($2.50 US), leads to gross value of catch of US$630,000 - 840,000. Average Price of pot fish = TT$15 ($2.50 US), leads to gross value of catch of US$630,000 - 840,000.

39. b) Landings based on boats (cont.) We assume an additional lbs of lobster caught (and US$7 per pound for lobster) so US$106,000 - 140,000 We assume an additional 15,000 - 20,000 lbs of lobster caught (and US$7 per pound for lobster) so US$106,000 - 140,000 Total Gross revenue = US$735,000 - 981,000. Total Gross revenue = US$735,000 - 981,000.

40. Fisheries Valuation for Tobago Coral Reef-associated:($US thousand) Commercial Fisheries – Gross Revenue$736 - 981 N.L. Operating Costs (25%)$184 – 245 Commercial Fisheries – Net Revenue$552 - 736

41. Fisheries Valuation for Tobago Coral Reef-associated:($US thousand) Commercial Fisheries – Gross Revenue$736 - 981 N.L. Operating Costs (25%)$184 – 245 Commercial Fisheries – Net Revenue$552-736 Fish cleaning and processing$88-177 Total Direct Impact $640-913

42. Fisheries Valuation for Tobago Coral Reef-associated:($US thousand) Commercial Fisheries – Gross Revenue$736 - 981 N.L. Operating Costs (25%)$184 – 245 Commercial Fisheries – Net Revenue$552-736 Fish cleaning and processing$88-177 Total Direct Impact $640-913 Indirect economic Impact $118-235 Total Direct & Indirect Impact $758 – 1,148

43. Shoreline Protection Services Innovative method for isolating the role of coral reefs and integrating economics Innovative method for isolating the role of coral reefs and integrating economics Map outputs – Map outputs – Shoreline protected by coral reefs Shoreline protected by coral reefs Areas vulnerable to waves \ storm damage Areas vulnerable to waves \ storm damage Relative contribution of reefs to shoreline protection Relative contribution of reefs to shoreline protection

44. Physical Factors Physical factors affecting the protection afforded by a coral reef: orientation of the coast (windward / leeward; high energy or low energy coast) orientation of the coast (windward / leeward; high energy or low energy coast) bathymetry / shoreline profile bathymetry / shoreline profile shoreline shape (bay, headland) shoreline shape (bay, headland) depth of the reef / geology (type of reef) depth of the reef / geology (type of reef) distance the reef is from land distance the reef is from land

45. Complex Analysis IMA developed shoreline protection framework - rules for how much protection the reef affords this coastline situation. IMA developed shoreline protection framework - rules for how much protection the reef affords this coastline situation. Can be adapted for climate scenarios Can be adapted for climate scenarios

46. Shoreline Protection Analysis (5 Steps) 1. Identify vulnerable areas 2. Identify areas protected by coral reefs 3. Evaluate the relative protection provided by reefs 4. Incorporate property values 5. Combine to evaluate potential storm damage avoided

47. 1. 6% of Tobago’s land area rated “vulnerable.

48. Reef Protection 0Not protected by reef51% 2Within 100 m of fringing reef45% 3Protected by Barrier Reef4% 2.

49. Shoreline Stability Factors (from IMA) 1. Coastal Geomorphology 2. Coastal Geology 3. Coastal Protection Structures 4. Wave Energy 5. Storm/Hurricane Events 6. Coral Reef Index (Reef type, continuity, distance offshore) 7. Coastal Elevation 8. Coastal Slope 9. Coastal Vegetation 10. Anthropogenic Activities

50. Factor Factor Coastal Protection Scheme (from IMA) Very High 4High3Medium2Low1None0 Coastal Geomorphology Rocky, Cliffed Coastline Soft (Limestone) Cliffs or Low Bluffs MangrovesBeachesN/A Coastal Geology Igneous and/or Volcanic MetamorphicSedimentary Unconsolidated Sediments N/A Coastal Protection Structures Protected by 2 prominent headlands and breakwater Protected by 2 prominent headlands Seawalls, Riprap or Breakwaters Protected by one or two small headlands No protection by headlands Wave Energy (~ Max. Wave Height [cm]) < 20 20 - 40 40 - 60 >60N/A Coral Reefs Reef Type Reef Type Reef Distribution Reef Distribution Reef Distance (m) Reef Distance (m)BarrierN/A < 250 PatchN/A 250 - 500 FringeContinuous 500 - 1000 ApronDiscontinuous > 1000 No reef present Storm/Hurricane Events Affected by 1-5 TS every 10 years Affected by at least 5 TS every 10 years Affected by at least a category 1 every 25 years Affected by at least a category 3 every 25 years N/A Coastal Elevation (m) > 12 5 - 12 1 - 5 0 - 1 < 0 (N/A) ** Coastal Slope (%) 6.2 – 9.7 2.6 – 6.2 1.1 – 2.6 0.4 – 1.1 N/A Coastal Vegetation * Type Type Distribution DistributionMangroves > 75 % length of coastline Coastal Woodlands 50% - 75 % of length Thicket 25% - 50 % of length Runners < 25% length of coastline None No Vegetation Coastal Anthropogenic Activities No sand mining, coastal development, etc. Misc. Other Activities Either sand mining or coastal development Sand mining and coastal development N/A

51. Stability Factors used in Tobago Analysis 1. Coastal Geomorphology 2. Coastal Geology 3. Wave Energy 4. Storm/Hurricane Events 5. Coral Reef Index (Reef type, continuity, distance offshore) 6. Coastal Elevation Not Available 1. Coastal Vegetation 2. Coastal Slope 3. Coastal Protection Structures 4. Anthropogenic Activities

52. 3a. Relative Total Coastal Protection (RTCP) With reef present With reef present Without reef Without reef

53. 3b.

55. Potentially Avoided Damages Estimated based on property values in “vulnerable areas” which are “protected by a reef,” based on the “relative reef contribution” for that area. Estimated based on property values in “vulnerable areas” which are “protected by a reef,” based on the “relative reef contribution” for that area. Tobago – property values estimated at US$18 – 22 per square foot Tobago – property values estimated at US$18 – 22 per square foot

56. Shoreline Protection Summary – Tobago Tobago Land Area (sq km) 300 km2 Vulnerable Land Area (sq km) 19 km2 6% Vulnerable Area Protected by reefs (sq km) 9 km2 3% Shoreline length Protected by Reefs 49% Average Property Value (US$) US $18 - $22 US $18 - $22 Potentially Avoided Damages (annual average) US $18 – 33 mill

57. Shoreline Protection Summary – Buccoo Buccoo Potentially Avoided Damages (2007) US $5 – 10 mill 30% of TobagoTotal Potentially Avoided Damages (over 25 years) US $140 – 250 million

58. Summary of Values for Tobago Coral Reef-associated :($US million / yr) Tourism and Recreation – Total Direct Impact$43.5 million Tourism and Recreation – Total economic Impact$100 – 130 million Fisheries – economic Impact~ $1 million Shoreline Protection Services$18 – 33 million

59. Policy Exploration – Buccoo Reef Tourist Destination Tourist Destination Environmental issues Environmental issues water quality water quality overfishing overfishing reef condition reef condition BRMP - enforcement BRMP - enforcement

60. Management Options – Buccoo Reef Enforcement of no- fishing regulations Enforcement of no- fishing regulations Re-routing of storm drain Re-routing of storm drain Integrated watershed management Integrated watershed management Sewage treatment Sewage treatment

61. Economic Value – Buccoo Reef Glass-bottom / snorkel Tours –US$1.4 mill / yr Glass-bottom / snorkel Tours –US$1.4 mill / yr Tourism Tourism US$7-8 million / yr US$7-8 million / yr US$128 – 156 million over 25 years US$128 – 156 million over 25 years Shoreline protection - US$140-250 million over 25 years Shoreline protection - US$140-250 million over 25 years

62. Policy Recommendations for Tobago Improve coastal water quality Improve coastal water quality Maintain coastal mangroves Maintain coastal mangroves Establish an entrance fee to BRMP and use revenue for park management Establish an entrance fee to BRMP and use revenue for park management Monitor marine recreation and manage within sustainable limits Monitor marine recreation and manage within sustainable limits Improve mapping and monitoring of coral reefs and mangroves Improve mapping and monitoring of coral reefs and mangroves

63. Policy Recommendations for Tobago (continued) Improve fishing survey design, data collection and information management at THA to allow tracking of fishing effort and catch over time Improve fishing survey design, data collection and information management at THA to allow tracking of fishing effort and catch over time Monitor sea turtle populations – manage sustainably Monitor sea turtle populations – manage sustainably Use the coral reef valuation methodology and Tool to track the economic contribution of coral reefs over time Use the coral reef valuation methodology and Tool to track the economic contribution of coral reefs over time

64. Available online at www.buccooreef.org andwww.buccooreef.org www.wri.org/project/valuation-caribbean-reefs Contacts: WRI –Lauretta Burke, +1 (202) 729 7774, lauretta@wri.orglauretta@wri.org BRT – Hyacinth Armstrong, +868 635 2000, h.armstrong@buccooreef.org h.armstrong@buccooreef.org IMA – Sean Paddy, (868) 634 4291 x405, spaddy@ima.gov.ttspaddy@ima.gov.tt