Posted on: Friday, August 23, 2002
European economists value Hawai'i's coral reefs at $10 billion
By Jan TenBruggencate
Advertiser Science Writer
A team of European economists has established the economic value of Hawai'i's coral reefs at $10 billion — most of it attributable to tourism and real estate.
"Hawai'i is clearly a place that depends very heavily on its natural resources," said Peter van Beukering, a consultant with Amsterdam-based Cesar Environmental Economics Consultants. The firm was hired by the Hawai'i Coral Reef Initiative Research Program to establish an economic basis for valuing the reefs.
The reefs produce about $360 million in economic benefits for the Islands every year, their survey said, including $325 million spent on things like dive and snorkel trips and related purchases, $2.5 million in the value of aquarium fish collections, and $10 million in money brought in for reef-related scientific research.
The study did not attempt to calculate the value of the reefs as natural barriers against erosion of the coastline, cultural values of healthy reefs or other characteristics whose economic impact would be difficult to measure.
Van Beukering and Herman Cesar, president of the consulting firm, were in the Islands this week to discuss their report. Both are environmental economists with experience valuing natural resources for the World Bank and other organizations.
Cesar said Hawai'i needs to address threats that are reducing the value of its 410,000 acres of reefs. They include sedimentation, overfishing, excessive nutrients from fertilizer and soil runoff, invading species like aggressive seaweeds, and the damage from tourism.
"These reefs are very fragile, and if not properly protected and managed, could turn into an incalculable financial and environmental loss for the people of Hawai'i," Cesar said.
He said, for example, that tourists walking on live reefs, breaking off corals and otherwise damaging the reefs can have a big impact. The consultants found that a project like the city's new education center at Hanauma Bay can make good economic sense.
"As a result of the education they get there, people are more cautious, and appreciate the reefs more. That avoids damage at Hanauma Bay and at other locations when they go snorkeling there. (The visitor center) pays for itself in better reefs," van Beukering said.
The consultants found the economic value of the bay itself was more than $1 billion, and that the annual benefit from the existence of the $13 million visitor center could reach $44 million.
Similarly, research that solves reef problems — like the big seaweed blooms off Kihei on Maui — pays off in ways that may not immediately seem clear. Limu blooms can reduce the value of nearby properties, reduce rental income and can create cleanup costs. If the blooms can be stopped, it could result in a $72 million economic gain, Cesar said.
"The conclusion of our project is that Hawai'i's coral reefs are an invaluable economic asset, not only as a major attraction for the visitor industry, but as a valuable fisheries resource," Cesar said.
For more information on the state's coral reefs, visit www.hawaii.edu/ssri/hcri Reach Jan TenBruggencate at jant@honoluluadvertiser.com or (808) 245-3074.
