Title
Economic Valuation of Tourism and Fisheries in the Vatu-i-Ra Seascape, Republic of Fiji
Author(s)
Brian Kastl; Stuart Gow
Published
2014
Abstract
The Vatu-i-Ra Seascape in Fiji is a region of valuable natural resource abundance that supports livelihoods and the Fiji economy. Tourism and fisheries are highly dependent on its coral reefs, which can be further protected through integrated policy development that considers the connectivity between terrestrial, inshore, and offshore ecosystems. Establishment of the Vatu-i-Ra Seascape therefore offers an opportunity to capture and maintain the wealth of benefits – ecosystem service values – provided by prolific ecosystems in the seascape. This report aims to illuminate the monetary values of tourism and fisheries production, associated with the coral reef. It also demonstrates the potential costs that can be avoided through informed decision making about oil exploration and mining in the seascape.
The annual value of tourism and fisheries in the Vatu-i-Ra Seascape is estimated at FJ $71,821,300. Interviews with the tourism sector indicated that all 16 providers in the Vatu-i-Ra seascape are heavily reliant on the aesthetics and biodiversity of marine species, especially for dive tourism. Boutique/luxury resorts, generating 50% of gross tourism revenue in 2013, reinforce the reputation of Fiji for world-class coral reef-related tourism. Over the year, dive live-aboard ships, mid-market, high-end, and boutique/luxury all-inclusive resorts employed 767 workers, hosted 35,700 guests, and generated gross revenue of FJ $47,240,700, including FJ $5,919,700 in VAT and FJ $2,160,500 in Service Turnover Tax (STT). Net revenue (producer surplus) was calculated at approximately FJ $5,644,100.
Results on the value of fisheries in the Vatu-i-Ra Seascape indicate that inshore fishing has exceeded the recommended sustainable yield. If recent extraction rates are maintained, available biomass may be depleted and the value of the stock may be lowered over time. The total annual maximum sustainable yield over the seascape’s marine area of 26,584 km2 was estimated to be approximately 5,500 tonnes, valued at FJ $24,097,900. Using representative proportions of commercial versus subsistence fishing quantities from 2007, the annual maximum sustainable commercial catch for the seascape was estimated at 2,030 tonnes and valued at FJ $8,987,700, while the sustainable subsistence catch is estimated at 3,470 tonnes and valued at FJ $15,615,000. In 2007 the inshore catch was at least 6,280 tonnes, representing an overharvest of 17% above the sustainable yield, while the offshore catch was minimal, at a maximum of 140 tonnes and valued at FJ $482,700.
Seascape fish extraction rates may be approaching a threshold for impending reef degradation. The Natovi Fishery Center poses an extreme risk to the sustainability of fisheries in the Vatu-i-Ra Seascape, if unregulated, due to potential increases in fisheries pressure on local marine ecosystems. Similarly, oil exploration in and around the seascape presents a potential high future threat to the stability of reefdependent tourism and fisheries. It was calculated that an oil spill covering only 20% of the area covered by the Deepwater Horizon Oil Spill of 2010 in the Gulf of Mexico, could cost Fiji an annual loss of ecosystem services worth FJ $1.353 billion. Pollutants from ongoing land-based mining in watersheds, which drain into the coral reef, may also have devastating impacts on the fisheries and tourism industries. Therefore it is highly recommended that future development in the Vatu-i-Ra Seascape take into consideration the ecosystem service values of the seascape, including tourism and fisheries to ensure these services continue to be available and provide for future generations.
Full Citation
Kastl, B. and S. Gow (2014). Economic Valuation of Tourism and Fisheries in the Vatu-i-Ra Seascape, Republic of Fiji. Suva, Fiji: Wildlife Conservation Society, Fiji, 1-19. https://doi.org/10.13140/RG.2.2.34480.87048
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