Estimating the potential impact of entry fees for marine parks on dive tourism in South East Asia

Pascoe, Sean, Doshi, Amar, Thébaud, Olivier, Thomas, Colette R., Schuttenberg, Heidi Z., Heron, Scott F., Setiasih, Naneng, Tan, James C.H., True, James, Wallmo, Kristy, Loper, Christy, and Calgaro, Emma (2014) Estimating the potential impact of entry fees for marine parks on dive tourism in South East Asia. Marine Policy, 47. pp. 147-152.

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Abstract

Marine reserves are increasingly being established as a mechanism to protect marine biodiversity and sensitive habitats. As well as providing conservation benefits, marine reserves provide benefits to recreational scuba divers who dive within the reserve, as well as to recreational and commercial fishers outside the reserve through spill-over effects. To ensure benefits are being realised, management of marine reserves requires ongoing monitoring and surveillance. These are not costless, and many marine reserve managers impose an entry fee. In some countries, dive tourism is major income source to coastal industries, and a concern is that high entry fees may dissuade divers. In this paper, the price elasticity of demand for dive tourism in three countries in South East Asia – Indonesia, Thailand and Malaysia – is estimated using a travel-cost model. From the model, the total non-market use value associated with diving in the area is estimated to be in the order of US$4.5 billion a year. The price elasticity of demand in the region is highly inelastic, such that increasing the cost of diving through a management levy would have little impact on total diver numbers.

Item ID: 32218
Item Type: Article (Research - C1)
ISSN: 1872-9460
Keywords: coral reef management; non-market valuation; travel cost model; entry fee
Funders: Department of Environment, Water, Heritage and the Arts, Department of Sustainability, Environment, Population and Communities, CSIRO Wealth from Oceans Flagship, NOAA's Coral Reef Watch Program, NOAA's Coral Reef Conservation Program, The Nature Conservancy
Date Deposited: 23 Oct 2014 01:34
FoR Codes: 14 ECONOMICS > 1499 Other Economics > 149902 Ecological Economics @ 100%
SEO Codes: 96 ENVIRONMENT > 9606 Environmental and Natural Resource Evaluation > 960601 Economic Incentives for Environmental Protection @ 100%
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