Valuation Study

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Fishery Economic Profitability


Medium: Water

Country: Philippines

Analytical Framework(s): Economic Analysis

Study Date: 2003

Publication Date: 2004

Major Result(s)

Category Resource/Environmental Good PHP
0.05 Discount Rate Total Annual Net Value of the municipal fishery of Danao Bay 109,054.00 169,526.62 3,790.37
0.05 Discount Rate Net Present Value 2,181,070.00 3,390,516.94 75,807.08
0.10 Discount Rate Total Annual Net Value 104,317.00 162,162.86 3,625.73
0.10 Discount Rate Net Present Value 1,043,170.00 1,621,628.63 36,257.28
0.15 Discount Rate Total Annual Net Value 99,587.70 154,811.07 3,461.35
0.15 Discount Rate Net Present Value 663,918.00 1,032,073.81 23,075.68

About the Inflation Adjustment: Prices in Philippines (PHP) changed by 55.45% from 2003 to 2014 (aggregated from annual CPI data), so the study values were multiplied by 1.55 to express them in 2014 prices. The study values could be expressed in any desired year (for example, to 2022) by following the same inflation calculation and being sensitive to directional (forward/backward) aggregations using your own CPI/inflation data.

Study Note: The potential of a community marine reserve (or marine protected area) in Baliangao, Misamis Occidental, in enhancing the coastal fishery of Danao Bay through the spillover of fish biomass was evaluated through a research study and analysis of biological and economic data. The aims of this research were to: a) determine if the marine reserve had contributed to the improvement of the ecological condition of the bay; b) evaluate the economic profitability of the municipal fishery; and c) determine how existing institutional arrangements influenced the management of the marine reserve and the surrounding fishery.

Study Details

Reference: Asuncion B. de Guzman. 2004. A Fishery in Transition: Impact of a Community Marine Reserve on a Coastal Fishery in Northern Mindanao, Philippines. EEPSEA Research Report, No. 2004-RR6.

Summary: Results of the study indicate a significant improvement in the overall ecological condition of the Baliangao marine reserve and even of the reefs outside it. Mean cover (46.24%) and species variety of corals (80 species) and fish (more than 240 species) are higher inside the reserve. However, some portions of adjacent reefs (Tinago and Tugas) also exhibit good coral growth and diversity. These observations can be attributed to the eradication of blastfishing and other destructive fishing practices since 1998. Abundance of fish inside the marine reserve supports the assumption that biomass builds up rapidly in the absence of fishing. The occurrence of large-sized target food fishes (i.e. choice fish for human consumption) for example, lethrinids, lutjanids and acanthurids inside the sanctuary core, indicates the potential of the Baliangao Marine Reserve (BMR) in exporting post-larval recruits (small fish that have passed the larval stage and which are new entries to the population) to adjacent fishing areas.

Site Characteristics: The municipal fishery is a multi-gear, multi-species system typical of tropical fisheries. Total annual fishery production from Danao Bay in 2001-2002 amounted to 14.28 tonnes/km2/year. Analyses of fishing costs and revenues indicate a differential profitability of certain gears (fishing equipment such as nets, hooks, and traps) over others. However, net incomes are low due to low average catch per effort (2.26 kg/fishes/day). Less capital- and manpower-intensive gears such as bamboo traps and fish corrals capture most of the rent (profits) from the Danao Bay fishery, which amount to a midpoint of PhP 104,317 annually. Results indicate that the coastal fishery surrounding the marine reserve is still open-access, characterized by high fishing effort and small profits. The fact that some fishery rent is being earned, however, indicates that the fishery is on a transition towards becoming a viable economic system.

Comments: Despite the array of problems confronting the management of the Baliangao marine reserve, (for example, sustainability, poaching, and poor local government support and enforcement), fishery resource management in Danao Bay has achieved a significant amount of success and is one of the few well-managed marine protected areas (MPAs) in the Philippines. Much of this success is attributed to the support and involvement of a large sector of the community under a federation of organizations called the Danao Bay Resource Management Organization (DB-REMO). Presently, resource management in the bay is undergoing a process of evolution, as the declaration of the marine reserve as the Baliangao Protected Landscape and Seascape (BPLS) under the National Integrated Protected Areas System (NIPAS) has led to the formation of a broader, more integrated and more complex institutional arrangement under a Protected Area Management Board (PAMB). Under this new management, the participation of local government units (Baliangao and Plaridel, both under the province of Misamis Occidental) and agencies such as the Department of Environment and Natural Resources (DENR) and the Department of Agriculture (DA), will become more prominent. This research has shown that the establishment of the Baliangao marine reserve has improved habitat quality, fish biodiversity, and fish biomass, and has enhanced the economic profitability of the coastal fishery. Community involvement in the management of the bay has also played a significant role in the successful implementation of the marine reserve and in sustaining the coastal fishery of Danao Bay.