Recreational Value of a Coastal Area
Attributes
Medium: Land
Country: Vietnam
Analytical Framework(s): Contingent Valuation, Travel Cost
Unit(s): Mean WTP
Study Date: 2000
Publication Date: 2001
Major Result(s)
| Resource/Environmental Good | VND (2000) |
VND (2014)1 |
USD (2014)2 |
|---|---|---|---|
| Recreational value of the Hon Mun Islands (Zonal travel cost method), million currency units per year | 253,602.00 | 530,753.48 | 24.84 |
| Recreational value of the Hon Mun Islands (Individual travel cost method), million currency units per year | 123,259.00 | 257,963.83 | 12.08 |
| Mean WTP for funding a Marine Protected Area (MPA) project for the Hon Mun Islands per Vietnamese visitor | 17,956.00 | 37,579.39 | 1.76 |
| Mean WTP for funding a MPA project for the Hon Mun Islands per foreign visitor | 26,786.00 | 56,059.35 | 2.62 |
About the Inflation Adjustment: Prices in Vietnam (VND) changed by 109.29% from 2000 to 2014 (aggregated from annual CPI data), so the study values were multiplied by 2.09 to express them in 2014 prices. The study values could be expressed in any desired year (for example, to 2025) by following the same inflation calculation and being sensitive to directional (forward/backward) aggregations using your own CPI/inflation data.
Study Note: The estimated recreational value is particularly important in view of the fact that the Nha Trang Port is not the only one in the region that is suitable for expansion. There are alternatives. For example, Cam Ranh Port, situated 60 km south of Nha Trang City, is considered as one of the three best ports in the world in terms of natural characteristics and its strategic location near the point linking the highland area and the rest of the country. Then there is Vung Ro Port, situated 60 km north of Nha Trang City, next to the road to the central highlands of Vietnam.
Study Details
Summary: Understanding the recreational value of natural resources is crucial to effective conservation programmes. When natural resources are threatened with dire consequences by human activities, their recreational value is greatly reduced, thus affecting their contribution to conservation programmes. The purpose of this research is to explore the recreational value of the coral-surrounded Hon Mun Islands. The islands contain the richest coral biodiversity in the country and are only about six km from a port, which has been earmarked for expansion. This research employs the travel cost method and the contingent valuation method to measure and analyse impacts on the recreational value of the islands. The zonal travel cost model (ZTCM) estimates the annual recreational value at approximately USD 17.9 million while the result from the individual travel cost model (ITCM) is about USD 8.7 million. A 20% loss of the recreational value that is expected to ensue from the proposed port expansion is still larger than the expanded port's projected annual revenue of USD 3.1 million. Therefore, the port expansion proposal seriously needs reevaluation.
Site Characteristics: Coastal areas, which have high total economic value including use and non-use values, play an important role in the economic development of Vietnam. Vietnam has a large coastal area over 3000 km long with diverse ecosystems and landscape. The recreational value of this coastal area could yield potential economic benefits. However, the report by the Ministry of Science, Technology and Environment on the status of the marine environment of Vietnam in 1994 indicated increased levels of degradation and pollution in the coastal waters of Vietnam. Many important ecosystems in the coastal areas have been over-exploited, and marine biodiversity has decreased dramatically. Public recreational marine areas such as Ha Long Bay, the Son Tra Peninsula of Danang Province or the Hon Mun Islands of the city of Nha Trang have contributed significantly to the economy but have been polluted and over-exploited by various activities. It has been difficult for the Government to stem the loss of marine biodiversity due to the conflict between economic development and environmental protection. Nha Trang City is situated 450 km from Ho Chi Minh City and 1,280 km from Hanoi. Nha Trang, with its attractive marine features like coral reefs and bird nests, is one of the most important tourism sites in Vietnam. With an airport and a seaport, Nha Trang is also strategically located along National Route 1 and the railway route linking the North and the South. The Hon Mun Islands are located in the south of Nha Trang Bay. The islands support a variety of habitats and ecosystems including fringing coral reefs, mangrove and sea grass with an adjacent deep-water upwelling which supports the local fishing industry.
Comments: The authors noted that there is no national substitute for the Hon Mun Islands in terms of coral-related tourism and research. The estimated recreational value of the islands can be used to assess the economic impact of expansion of the port and to devise future recreational development plans for the islands. Policy-makers will obviously need to know the advantages of tourism over other activities at the islands (for example, fishing and bird nests collecting) in order to decide how to allocate resources among competing uses. Also, a willingness to pay (WTP) analysis will provide important supporting information to assess the financial sustainability. One problem that the study had to overcome was that of multi-site trips. The Hon Mun Islands form part of the recreational attraction of Nha Trang. Tourists to Nha Trang, visit not only Hon Mun but other sites as well, such as Chong Rock, Ponaga Tower or Nha Trang beach. Information collected in the questionnaire covered their travel expenditure for the whole trip to Nha Trang and not exclusively to the Hon Mun Islands.