Economic Valuation of Coral Reefs in St. Lucia –

1. Economic Valuation of Coral Reefs in St. Lucia – June 2008 Castries, St. Lucia Lauretta Burke World Resources Institute

2. Regional Partners University of the West Indies (UWI) / Sustainable Economic Development Unit (SEDU) Caribbean Natural Resources Institute (CANARI) T&T Institute of Marine Affairs (IMA) CEHI OECS Saint Lucia Government of Saint Lucia Planning Department Fisheries Department SMMA Ministry of Tourism Statistical Office St. Lucia National Trust SLHA, resorts Project Partners Include

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

4. Program Overview • Ecosystem Goods and Services • Summary of results • Policy Applications • Background on this Economic Valuation project – method and features • Valuation – details for St. Lucia • Policy Applications • Buccoo Reef example • Discussion

5. Beautiful

6. Valuable

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

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

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. • The study evaluated the overall annual economic contribution of coral reef-associated • tourism and recreation, • fisheries, and • shoreline protection services.

11. Ecosystem Services Ecosystem goods (such as food) and services (such as waste assimilation) represent the benefits human populations derive, directly or indirectly, from ecosystems.

12. Ecosystem Services from Coral Reefs

13. Ecosystem Services from Coral Reefs

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

15. Summary of Valuesfor St. Lucia

16. Valuation Summary – Tourism and Recreation Coral reef-associated tourism and recreation – contributed between US$160 and $194 million to the national economy in 2006.

17. Valuation Summary – Fisheries Coral reef-associated fisheries– • important for cultural tradition, safety net, and livelihood • provide annual economic benefits estimated at between US$0.5 – 0.8 million.

18. Valuation Summary – Shoreline Protection Shoreline Protection Services of Coral Reefs– • avoided erosion and storm damage from waves valued between US$28 and $50 million per year.

19. Valuation Summary • Tourism and Recreation - US$160 to $194 million in 2006. • Coral reef-associated fisheries - US$0.5 – 0.8 million / year • Shoreline protection services –US$28 and $50 million per year. • These are significant compared to St. Lucia’s GDP, which was $825 million in 2005. • Coral reefs provide other important values not estimated in this study, and these numbers should be regarded as a lower bound estimate.

20. Coral Reefs – economically important to St. Lucia Valuation can highlight: • Significant contribution to GDP • Taxes paid to government • Jobs and wages dependent on coral reefs • Value of social safety net Supports: • Coastal Planning (shoreline protection analysis) • Evaluation of trade-offs

21. Economic Valuation applications • Estimate Economic Contribution to GDP • Compare benefits of development / management options • Encourage increased investment in coastal management / MPAs / fisheries management • Identify sources of support for management / policy / protected areas • Set fees, such as visitor fees • Damage assessment • Comparing “reef-dependence” $

22. St. Lucia - specific examples • To guide future development, including evaluating • the changes resulting from marina development on east and west coasts • The benefits of investing in improved sewage treatment • Guide the management planning for SMMA or Point Sabel • Examine changes in fisheries management and the impact on short-term livelihoods versus long-term benefits • To evaluate tourism carrying capacity and potential revenue • To estimate loss of local use of beaches due to development

23. EV Project Characteristics • Develop method which is simple and replicable • Rely predominantly on existing, available data • Develop a tool to guide valuation and apply to policy questions. • Produce coral reef valuation estimates for 2 pilot areas (Tobago and St. Lucia) • Estimate likely economic loss due to coral reef degradation

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

25. Challenges • Distinguishing the coral-reef associated benefits • Tourism • Fisheries • Shoreline protection • Valuing “local use” • Secondary (indirect) economic impacts

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

27. Tourism Valuation issues • Identifying “coastal” visitors • Quantifying reef recreation • Getting accurate MPA visitation numbers • Estimating labor and other operating costs

28. Tourism and Recreation Valuation Assumptions • 25% of visitors come to St. Lucia in part due to the reefs. • Non-labor operating costs – about 40%

29. Tourism Valuation for St. Lucia

30. Tourism Valuation for St. Lucia

31. Tourism Valuation for St. Lucia

32. Tourism Valuation for St. Lucia

33. Tourism Valuation for St. Lucia

34. Tourism Valuation for St. Lucia

35. Tourism Valuation for St. Lucia

36. Tourism Valuation for St. Lucia

37. Tourism Valuation for St. Lucia

38. Tourism Valuation for St. Lucia

39. Local Reef Use Survey • 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 St. Lucia (Soufriere, Vieux Fort, Anse La Raye, Castries town, Gros Islet, Dennery/Micoud) • Designed to measure local use of beaches and reefs as well as recreational and subsistence fishing

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

41. Fisheries Valuation Issues • Limited data on local use • Focus on economic impact – does not fully capture social values.

42. Commercial Fishing in St. Lucia • Estimate derived from two approaches – • reef fish productivity • recorded landings

43. a) Reef Fish Productivity • Reef Area: 33 km2(from this project) • Estimated fish productivity rate: range of 1 to 5 MT of fish / km2 of coral reef • Potential sustainable harvest of 73,000 to 363,000 lb of reef fish

44. b) Landings recorded • 9 landing sites • Fisheries Dept. data for 2002-2004 • Prices • Pot fish = EC$10 (US$3.75) • Lobster = EC$25 (US$9.00) • Sea Urchin = EC$50 (US$18.00)

45. Average Fish Landings 2002-04

46. Fisheries Valuation for St. Lucia

47. Fisheries Valuation for St. Lucia

48. Fisheries Valuation for St. Lucia

49. Fisheries Valuation for St. Lucia

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