Total Economic Value of Bermuda’s Coral Reefs: A Summary

Abstract

The Total Economic Value (TEV) of Bermuda’s coral reef reefs is based on 6 key ecosystem goods and services. These more tangible direct and indirect use values are: (1) Coral reef-associated tourism, (2) Reef-associated fisheries, (3) Amenity or reef-associated surplus value on real estate, (4) Physical coastal protection, (5) Reef-associated recreational and cultural values, and (6) Research and education value. The study area is estimated to be 400 km2, encompassing the reefs of the Bermuda platform, excluding those of the outer edge of the North Lagoon. Quantification of each value, including data collection and decision-making, is summarized. The TEV of Bermuda’s coral reefs, dependent on the ecological integrity of the coral reefs and socio-economic conditions, ranges from $488 million to The Total Economic Value (TEV) of Bermuda’s coral reef reefs is based on 6 key ecosystem goods and services. These more tangible direct and indirect use values are: (1) Coral reef-associated tourism, (2) Reef-associated fisheries, (3) Amenity or reef-associated surplus value on real estate, (4) Physical coastal protection, (5) Reef-associated recreational and cultural values, and (6) Research and education value. The study area is estimated to be 400 km2, encompassing the reefs of the Bermuda platform, excluding those of the outer edge of the North Lagoon. Quantification of each value, including data collection and decision-making, is summarized. The TEV of Bermuda’s coral reefs, dependent on the ecological integrity of the coral reefs and socio-economic conditions, ranges from $488 million to $1.1 billion per year, with a yearly average of $722 million, equivalent to 12 % of Bermuda’s GDP. The contribution of ecosystem services to this value are on average: (1) Tourism (US$406 million per year, or 56 % of TEV), (2) Coastal Protection (US$266 million per year, or 37 %), (3) Recreational and Cultural (US$37 million per year, or 5 %), (4) Amenity (US$ 6.8 million per year, or 1 %), (5) Fishery (US$5 million per year, or 0.7 %), and (6) Research and Education (US$2.3 million, or 0.3 %). Additionally, the Willingness to Pay extra by both cruise ship and air visitors, for ensuring the preservation of reefs per year is US$16 million. Four recommendations are given, focusing on (a) the use of TEV in policy interventions through improved legislation, integration of strategic environmental assessments (SEA), extended cost-benefit analyses, and damage compensation fees, (b) making use of the cultural importance of marine ecosystems to residents, (c) actively involving the tourism industry, and (d) strategizing spatial management and protecting critical marine areas..1 billion per year, with a yearly average of $722 million, equivalent to 12 % of Bermuda’s GDP. The contribution of ecosystem services to this value are on average: (1) Tourism (US$406 million per year, or 56 % of TEV), (2) Coastal Protection (US$266 million per year, or 37 %), (3) Recreational and Cultural (US$37 million per year, or 5 %), (4) Amenity (US$ 6.8 million per year, or 1 %), (5) Fishery (US$5 million per year, or 0.7 %), and (6) Research and Education (US$2.3 million, or 0.3 %). Additionally, the Willingness to Pay extra by both cruise ship and air visitors, for ensuring the preservation of reefs per year is US$16 million. Four recommendations are given, focusing on (a) the use of TEV in policy interventions through improved legislation, integration of strategic environmental assessments (SEA), extended cost-benefit analyses, and damage compensation fees, (b) making use of the cultural importance of marine ecosystems to residents, (c) actively involving the tourism industry, and (d) strategizing spatial management and protecting critical marine areas.