Advanced Search
MyIDEAS: Login

User-based Financing of Marine Protection in the Maldives


Author Info

  • Mahadev G. Bhat
  • R. C. Bhatta
  • Mohamed Shumais
Registered author(s):


    Maldivian atolls are known for their beautiful coral structures, fish abundance, white sandy beaches, coastal vegetation and mangroves. This paper provides an economic valuation of the recreational uses of atoll-based marine resources in the Republic of the Maldives. We use a travel demand model to estimate the benefits of atoll-based marine tourism. We contribute to the literature by estimating two separate travel demand models-one without and one with endogenous costs. Our results suggest a large disparity between the amount of economic value generated from nature-based tourism and the amount going into atoll conservation. Currently, more than half the Maldivian government's annual environmental protection expenditure comes from unstable international aid, which makes it imperative that more stable financing sources be found. Our study shows that transferring four percent of the total annual recreational benefits from visitors as a one-time conservation fee would generate enough resources to cover government and foreign donor contributions towards environmental protection. The additional per tourist tax or user fee necessary to raise funds at the current level of conservation funding (domestic and overseas) is USD 41. This amount constitutes only a small percentage of what an average tourist spends on each trip (1.25 percent) and the economic surplus (benefit) s/he derives from each trip (3.98 percent). The paper concludes with a discussion of the policy implications of sustainable user-based financing mechanisms.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL:
    Download Restriction: no

    Bibliographic Info

    Paper provided by The South Asian Network for Development and Environmental Economics in its series Working papers with number 24.

    as in new window
    Date of creation:
    Date of revision:
    Handle: RePEc:snd:wpaper:24

    Contact details of provider:
    Postal: South Asian Network for Development and Environmental Economics PO Box: 8975, EPC: 1056 Kathmandu, Nepal

    Related research

    Keywords: Atolls; Coral reef; Travel cost model; User-based finance; the Maldives.;


    No references listed on IDEAS
    You can help add them by filling out this form.



    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.


    Access and download statistics


    When requesting a correction, please mention this item's handle: RePEc:snd:wpaper:24. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Anuradhak).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.