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Effects of Great Barrier Reef Degradation on Recreational Demand: A Contingent Behaviour Approach

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Author Info
Kragt, M.E.
Roebeling, P.C.
Ruijs, A.

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Abstract

Agricultural run-off from the Great Barrier Reef catchment area may cause degradation of coral reefs, affecting the tourism sector that relies on healthy reefs for its income generation. A Contingent Behaviour approach is used to determine the effect of reef degradation on demand for recreational dive and snorkel trips, for a case study of the Great Barrier Reef (GBR) in Australia. We assessed how reef degradation affects GBR tourism and to what extent reef-trip demand depends on the visitors’ socio-economic characteristics. A count data model is developed, and results indicate that an average visitor would undertake about 60% less trips to the GBR per year, given a combined 80%, 30% and 70% decrease in coral cover, coral diversity and fish diversity, respectively. This corresponds to a decrease in tourism expenditure for reef trips in the Great Barrier Reef Marine Park area of about A$ 136 million per year.

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Publisher Info
Paper provided by International Association of Agricultural Economists in its series 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia with number 25753.

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Date of creation: 2006
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Handle: RePEc:ags:iaae06:25753

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Keywords: Coral reef; Recreation; Contingent Behaviour model; Count data models; Resource /Energy Economics and Policy; Q26; Q51; Q57;

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  1. Hu, Wuyang, 2008. "Modeling Yeah- and Nay-Saying to Alternatives in Conjoint Experiments," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6346, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
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