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Effects of Great Barrier Reef degradation on recreational reef-trip demand: a contingent behaviour approach

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  • Marit E. Kragt
  • Peter C. Roebeling
  • Arjan Ruijs

Abstract

There is a growing concern that increased nutrient and sediment runoff from river catchments are a potential source of coral reef degradation. Degradation of reefs may affect the number of tourists visiting the reef and, consequently, the economic sectors that rely on healthy reefs for their income generation. This study uses a contingent behaviour approach to estimate the effect of reef degradation on demand for recreational dive and snorkel trips, for a case study of the Great Barrier Reef in Australia. Results from a negative binomial random effects panel model show that the consumer surplus current reef visitors derive from a diving or snorkelling trip is approximately A$185 per trip. Furthermore, results indicate that reef trips by divers and snorkellers could go down by as much as 80 per cent given a hypothetical decrease in coral and fish biodiversity. This corresponds to a decrease in tourism expenditure by divers and snorkellers on full-day reef trips in the Cairns management area of the Great Barrier Reef Marine Park of about A$103 million per year. Copyright 2009 The Authors. Journal compilation 2009 Australian Agricultural and Resource Economics Society Inc. and Blackwell Publishing Asia Pty Ltd.

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  • Marit E. Kragt & Peter C. Roebeling & Arjan Ruijs, 2009. "Effects of Great Barrier Reef degradation on recreational reef-trip demand: a contingent behaviour approach ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 53(2), pages 213-229, April.
  • Handle: RePEc:bla:ajarec:v:53:y:2009:i:2:p:213-229
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    1. Fitzpatrick, Luke & Parmeter, Christopher F. & Agar, Juan, 2017. "Threshold Effects in Meta-Analyses With Application to Benefit Transfer for Coral Reef Valuation," Ecological Economics, Elsevier, vol. 133(C), pages 74-85.
    2. Windle, Jill & Rolfe, John & Pascoe, Sean, 2017. "Assessing recreational benefits as an economic indicator for the Gladstone Harbour Report Card," 2017 Conference (61st), February 7-10, 2017, Brisbane, Australia 258681, Australian Agricultural and Resource Economics Society.
    3. Beaumais, Olivier & Appéré, Gildas, 2010. "Recreational shellfish harvesting and health risks: A pseudo-panel approach combining revealed and stated preference data with correction for on-site sampling," Ecological Economics, Elsevier, vol. 69(12), pages 2315-2322, October.
    4. Rolfe, John & Windle, Jill, 2010. "Valuing environmental improvements in the Great Barrier Reef: Ecological and preference heterogeneity in local area case studies," Research Reports 95052, Australian National University, Environmental Economics Research Hub.
    5. Jerrod Penn & Wuyang Hu & Linda Cox & Lara Kozloff, 2016. "Values for Recreational Beach Quality in Oahu, Hawaii," Marine Resource Economics, University of Chicago Press, vol. 31(1), pages 47-62.
    6. Yamazaki, Satoshi & Grafton, R. Quentin & Kompas, Tom, 2010. "Non-consumptive values and optimal marine reserve switching," Ecological Economics, Elsevier, vol. 69(12), pages 2427-2434, October.
    7. Okubo, Nami & Onuma, Ayumi, 2015. "An economic and ecological consideration of commercial coral transplantation to restore the marine ecosystem in Okinawa, Japan," Ecosystem Services, Elsevier, vol. 11(C), pages 39-44.
    8. Farr, Marina & Stoeckl, Natalie & Alam Beg, Rabiul, 2014. "The non-consumptive (tourism) ‘value’ of marine species in the Northern section of the Great Barrier Reef," Marine Policy, Elsevier, vol. 43(C), pages 89-103.
    9. Folkersen, Maja Vinde, 2018. "Ecosystem valuation: Changing discourse in a time of climate change," Ecosystem Services, Elsevier, vol. 29(PA), pages 1-12.
    10. Amelung, Bas & Nicholls, Sarah, 2014. "Implications of climate change for tourism in Australia," Tourism Management, Elsevier, vol. 41(C), pages 228-244.
    11. Bartkowski, Bartosz & Lienhoop, Nele & Hansjürgens, Bernd, 2015. "Capturing the complexity of biodiversity: A critical review of economic valuation studies of biological diversity," Ecological Economics, Elsevier, vol. 113(C), pages 1-14.
    12. Stoeckl, Natalie & Farr, Marina & Larson, Silva & Adams, Vanessa M. & Kubiszewski, Ida & Esparon, Michelle & Costanza, Robert, 2014. "A new approach to the problem of overlapping values: A case study in Australia׳s Great Barrier Reef," Ecosystem Services, Elsevier, vol. 10(C), pages 61-78.
    13. Leonardo Corral & Maja Schling & Cassandra Rogers & Janice Cumberbatch & Fabian Hinds & Naijun Zhou & Michele H. Lemay, 2016. "The Impact of Coastal Infrastructure Improvements on Economic Growth: Evidence from Barbados," IDB Publications (Working Papers) 95978, Inter-American Development Bank.
    14. Syezlin Hasan & James C. R. Smart & Rachel Hay & Sharyn Rundle-Thiele, 2021. "Changing Fertilizer Management Practices in Sugarcane Production: Cane Grower Survey Insights," Land, MDPI, Open Access Journal, vol. 10(2), pages 1-14, January.
    15. Coghlan, Alexandra, 2012. "Facilitating reef tourism management through an innovative importance-performance analysis method," Tourism Management, Elsevier, vol. 33(4), pages 767-775.
    16. Mercado, Waldemar & Vásquez Lavín, Felipe & Ubillus, Karina & Orihuela, Carlos Enrique, 2020. "¿Es relevante la biodiversidad en la decisión de visita a los parques nacionales en el Perú?," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 20(02), December.
    17. Rolfe, John & Windle, Jill, 2012. "Testing benefit transfer of reef protection values between local case studies: The Great Barrier Reef in Australia," Ecological Economics, Elsevier, vol. 81(C), pages 60-69.
    18. Corral, Leonardo R. & Schling, Maja, 2017. "The impact of shoreline stabilization on economic growth in small island developing states," Journal of Environmental Economics and Management, Elsevier, vol. 86(C), pages 210-228.
    19. Corral, Leonardo & Schling, Maja & Rogers, Cassandra & Cumberbatch, Janice & Hinds, Fabian & Zhou, Naijun & Lemay, Michele H., 2018. "The Impact of Coastal Infrastructure Improvements on Economic Growth: Evidence from Barbados," IDB Publications (Working Papers) 7860, Inter-American Development Bank.
    20. Abbie A. Rogers, 2013. "Public and Expert Preference Divergence: Evidence from a Choice Experiment of Marine Reserves in Australia," Land Economics, University of Wisconsin Press, vol. 89(2), pages 346-370.

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