Economic Valuation of Coral Reefs in the Caribbean Summary of Workshops. St. Lucia - March 14 th -15 th, 2006 Tobago - March 21 st 22 nd, 2006

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1 Economic Valuation of Coral Reefs in the Caribbean Summary of Workshops St. Lucia - March 14 th -15 th, 2006 Tobago - March 21 st 22 nd, 2006 Workshop summary prepared by: Lauretta Burke lauretta@wri.org Suzie Greenhalgh suzieg@wri.org Daniel Prager dprager@wri.org People and Ecosystems Program World Resources Institute 1

2 Table of Contents Table of Contents... 2 Overview of Workshops... 3 Project Context... 3 Workshop Goals... 3 Workshop Participation... 4 Key Conclusions from Workshops:... 4 Overview of St. Lucia Workshop... 6 Program Overview St. Lucia... 6 Key Issues, Observations and Ideas St. Lucia... 7 Overview of Tobago Workshop... 9 Program Overview Tobago... 9 Key Issues, Observations and Ideas Tobago... 9 Fisheries Component Fisheries Breakout Group St Lucia Fisheries Breakout Group Tobago Tourism Component St. Lucia Observations Tobago Observations Shoreline Protection Component Proposed Methodology Presented Comments on Proposed Methodology Shoreline Protection Setting and Context for St. Lucia Shoreline Protection Setting and Context for Tobago Conclusion Annex 1a attendance list for St. Lucia Annex 1b attendance list for Tobago Annex 2 -- Implementation Plan for Shoreline Protection Evaluation

3 Overview of Workshops In conjunction with local partners, the World Resources Institute (WRI) held two workshops on economic valuation of coral reef goods and services in St. Lucia (March 14-15) and Tobago (March 21-22). The workshop in St. Lucia was co-hosted by the Ministry of Physical Development, Environment and Housing (MPDEH) and facilitated by the Caribbean Natural Resources Institute (CANARI). The workshop in Tobago was co-hosted by the Buccoo Reef Trust (BRT). The focus of the workshops was to present a proposed economic valuation methodology for measuring the value of coral reef-related goods and services in St. Lucia and Tobago. In addition, during each workshop policy applications of economic valuation, data gaps within each country, and opportunities for applying the methodology were discussed. Three simultaneous breakout sessions focused on measuring three individual goods and services (coral reef-associated tourism, fisheries, and shoreline protection.) Project Context These workshops are part of a project on the economic valuation of coral reef goods and services in the Caribbean, which is being lead by WRI. The project has the goal of developing a valuation methodology that can be broadly and cost-effectively applied across the Caribbean and is based largely on existing data compiled by government agencies and non-governmental organizations (NGOs). The project began in 2005 and currently has pilot analyses in St. Lucia and Tobago. The methodology is being developed in collaboration with local partners, acknowledging the realities of local data availability and quality and aims to quantify the economic value associated with current coral reef condition. In addition it strives to evaluate the economic value of coral reefs under future scenarios of resource degradation or improvement resulting from economic changes or policy interventions. Workshop Goals The workshops had six goals: 1) Raise awareness about the value of goods and services provided by coral reef ecosystems; 2) Raise awareness about the utility of economic valuation techniques and their associated estimates; 3) Share a proposed approach to economic valuation of coral reefs in the Caribbean and get feedback on the approach (goods and services included; ease of implementation; value of outputs); 4) Share the data and data sources that have been used utilized with preliminary valuation estimates, and learn of additional and more appropriate sources of information; 3

4 5) Obtain feedback on what products or outputs are desirable from this project (i.e., pamphlet on results; Adobe Acrobat document on the web; technical notes on web; spreadsheet-based valuation tool) 6) Encourage application of the methodology to explore particular policy questions. Workshop Participation The workshops in both St. Lucia and Tobago were highly productive and informative; participants were very enthusiastic about the project activities and opportunities for collaboration. Ample feedback from both workshops will be invaluable for refining the valuation approach, improving estimates in both countries and designing useful products and outputs. St. Lucia - The workshop in St. Lucia had thirty participants from government agencies (Ministry of Physical Development, Environment and Housing (MPDEH); Ministry of Agriculture and Fisheries; Ministry of Finance; Ministry of Tourism; National Emergency Management Agency (NEMO); Soufriere Marine Management Area (SMMA)), NGOs (CANARI, ), the tourism sector, fisheries sector, both independent and hotel-based dive operators, as well as representatives from the press. (A full list of workshop attendees is included in Annex 1a.) Tobago The workshop in Tobago included over forty participants from the Tobago House of Assembly (Division of Agriculture, Marine Affairs and Environment; Division of Tourism; Department of Natural Resources and Environment; Department of Fisheries; and Policy Research Development Institute); Government of Trinidad and Tobago (Institute of Marine Affairs, Central Statistics Office, Environmental Management Authority, and Water and Sewerage Authority, Tourism Development Company (TDC), and Town and Country Planning Division); NGOs (Buccoo Reef Trust, CANARI, Environment Tobago); the University of the West Indies Sustainable Economic Development Unit (UWI SEDU); representatives of the tourism industry (the Travel Foundation, and R & Sea Divers); Pigeon Point Heritage Park; the United Nations Development Programme, the Inter-American Development Bank, and Associated British Ports marine environmental research. (A full list of workshop attendees is included in Annex 1b.) Key Conclusions from Workshops: 1) Economic Valuation Methodology The draft economic valuation methodology was well-received as reasonable, practical and a good start. A few enhancements were suggested: a. Greater emphasis should be placed on capturing local use values for coral reef associated recreation and fishing; b. The current methodology does not capture yachting; 4

5 c. The approach needs to consider future scenarios population growth, coastal development, sea level-rise, as well as interventions that might improve coral reef condition; d. The methodology should capture the harm to reefs from economic activities, such as tourism, for which their value is derived. 2) Data Gaps and Information Limitations A good deal of discussion at the workshops focused on limitations of data collection, data quality issues or problems with access to data and how to address these limitations. Of note: a. Neither Tobago nor St. Lucia has an adequate, comprehensive map of their coral reefs. This is a significant data limitation for this project and many other applications in both countries. This data need should be given high priority; b. No official fisheries data have been calculated for Tobago (the data have not been raised from sampled data).the Fisherfolk association has information on commercial fisheries in Tobago; c. There is limited information on the amount of snorkeling that takes place, though many dive operators also collect data on snorkeling. 3) Applications of the Methodology Workshop participants were enthusiastic about policy applications of the methodology for economic valuation of coral reefs. Some key application ideas include: General Applications a. To evaluate tourism carrying capacity and limits of acceptable environmental change; b. To evaluate the percentage of GDP coming from coral reefs / ecosystem services; c. To set user fees high enough to capture some of the non-use values of coral reefs (such as existence value); d. To examine changes in fisheries management and their impact on short-term livelihoods versus long-term benefits. St. Lucia Applications e. To evaluate potential changes resulting from Marina development near Soufriere and on the East Coast of St. Lucia. f. To guide management planning for the Soufriere Marine Management Area (SMMA); g. To guide future development in St. Lucia impacts of coastal development, population growth; h. To evaluate the loss of local use value resulting from resort development along the coast of St. Lucia. Tobago Applications i. To evaluate the impact of establishment of a user fee at Pigeon Point Heritage Park, Tobago; j. To evaluate appropriate damage compensation for groundings or damage of shallow coral reefs in Tobago; k. To evaluate the costs and benefits of investing in more active management of Buccoo Reef Marine Park; 5

6 l. To evaluate the benefits of investment in improved sewage treatment in SW Tobago. 4) Products and Tools Many participants emphasized the role of politics in forcing a short time-horizon for decision-making on the order of five years and the limited time decision-makers have to evaluate individual topics. Suggestions for products include: a. Any written products should have a short summary version (a couple-page pamphlet or a video) to make communication of results more efficient and effective; b. The approach should try to use a short-time frame for the analysis so that policy-makers can relate. Participants said that the maximum time-frame generally used by politicians was one year, so the benefits within that time should be separated out from long-term benefits; c. An Excel (XLS)-based tool for application of the economic valuation methodology would greatly aid both repeat examination of valuation changes and broad application of the tool; d. A tool should strive to be accessible, intuitive, and not require particular technical knowledge or knowledge of economic valuation methodologies. Overview of St. Lucia Workshop March 14 th and 15 th 2006, Cara Suites Hotel, Castries, St. Lucia The economic valuation workshop in St. Lucia was attended by approximately 30 people (see Annex 1a for list of attendees.) Program Overview St. Lucia Day one opened with an introduction by Crispin d'auvergne (MPDEH); an overview of the project and goals of the workshop by Lauretta Burke (WRI); an introduction to ecosystem goods and services by Lauretta Burke; a discussion of the policy implications of economic valuation by Justin Ram (UWI/SEDU); and a discussion of application of economic valuation in St. Lucia facilitated by Bishnu Tulsie (St. Lucia National Trust.) After lunch, Suzie Greenhalgh (WRI) gave an overview of economic valuation methodologies; Daniel Prager presented the proposed methodology for tourism and fisheries; Lauretta Burke presented the proposed shoreline protection methodology and Sylvester Clauzel (CANRI) facilitated a discussion of the methodology. The second day began with Suzie Greenhalgh providing a recap of the previous day s discussion, followed by three simultaneous break-out groups on the proposed economic valuation methodology and data availability for fisheries, tourism and recreation, and shoreline protection services. A plenary on the results of the breakout groups was followed by a discussion of strengths and weaknesses of the methodology (facilitated by 6

7 Justin Ram). Lauretta Burke provided an overview and led a discussion on how threats to reefs can be linked with coral degradation and diminished economic value. The workshop concluded with a general discussion on project approach, facilitated by Allan Smith, CANARI. Key Issues, Observations and Ideas St. Lucia The following provides an overview of some general issues related to application of the economic valuation methodology in St. Lucia. Specific comments on the economic valuation methodology and data issues for fisheries, tourism and shoreline protection are provided in those sections below. Key Goods and Services The key goods and services were identified as important in St. Lucia: - Provisioning food, genetic resources, natural medicines - Regulating erosion control, storm protection - Cultural recreation and tourism, knowledge and education - Supporting sand, primary production Policy Context for Application The implications of policy decisions for coral reefs and the marine environment occur in the long term, but policy makers are only concerned with the short term (5 year) outlook, as driven by the political processes. There is a need for coordination at a regional level, especially in regards to commercial entities like cruise ship operators, who play individual countries off of one another in order to get better rates. Economic context (dollars and cents) does get policy makers attention. Therefore, it would be very good to have the value of reefs expressed in economic terms. The methodology should include both scenarios of growth, development and degradation, and well as scenarios of improved coastal condition. Outreach Proposed activities need to include education of the general public at the same time that outreach to policymakers is made. Any written products should have a short summary version (a couple-page pamphlet or a video) to make communication of results more efficient. Physical Environment Development has decimated the coral reefs along the northwest coast of St. Lucia. The reefs of the Soufriere Marine Management Area (SMMA) are in the best condition in St. Lucia. It would be useful to look at the historic change (decline) in coral reef resources and see what has been lost to make a stronger case for what to do now. 7

8 It may be useful to look at the amount that hotels or other developments have spent on groins, seawalls, etc for property protection as well as the effects that these interventions have had on surrounding beaches. Information Policy Issues St Lucia lacks a clear data infrastructure. Despite many meetings and discussions on this topic, there has not yet been a concerted effort to set up an infrastructure. The data are scattered, disorganized, and often not systematically backed-up. This project could play a role in helping to organize some of the data holdings. In collaboration with MPDEH, the project could organize relevant GIS data in a single projection, in a catalogue structure, with projection defined and at least basic metadata defined. The government is not investing sufficiently in physical and environmental monitoring. This project could make recommendations on priorities for monitoring. Coral Reef Base Data An important data set for economic valuation work and for many partners is the base map of coral reefs. The project has assembled a very rough base map at present. With (potential) funding from the Global Environment Facility (GEF) there is good potential to develop a collaboration to improve this key data set. Laverne Walker of MPDEH has offered to develop a list of the coral reef data scattered around from different agencies at present, which will aid this effort. Some Policy Applications The economic valuation methodology could be used to guide future development in St. Lucia, it could be applied to evaluate the impacts of coastal development and population growth. The tool could be applied to guide management planning for the Soufriere Marne Management Area (SMMA). Outputs from the analysis will provide valuable estimates of the percentage of GDP coming from coral reefs or ecosystem services. The methodology could be applied to evaluate the loss of local use value of beaches resulting from resort development along the coast of St. Lucia. It was suggested that the economic impacts (losses and gains) resulting from Marina development near Soufriere and on the East Coast of St. Lucia could be evaluated with the tool. The tool could be applied to evaluate tourism carrying capacity and limits of acceptable environmental change. The generation of quantitative information from applying the methodology makes it more likely that sound environmental thinking would guide development 8

9 Overview of Tobago Workshop Program Overview Tobago The workshop in Tobago began with the National Anthem played on a steelpan by Rayshon Alleyne, followed by a welcome by Ms. Kaye Trottman and an address by Mrs. Joan Hannibal-Phillips; this was followed by Dr. Owen Day (Buccoo Reef Trust) who emphasized the importance of coral reefs in Tobago; Lauretta Burke framed the workshop and listed desired outcomes; Williard Phillips (UNDP) followed with an overview of economic valuation methods;. The morning ended with a discussion facilitated by Owen Day. Following lunch, Charmaine O brien-delpesh (Institute of Marine Affairs) described the coastal protection afforded to Tobago by its reefs; Daniel Prager described the proposed economic valuation methodology for measuring tourism and fisheries; Lauretta Burke spoke to the valuation of shoreline protection; and Williard Phillips facilitated a discussion. The second day of the workshop opened with Suzie Greenhalgh giving a recap of the first days events; Zakiya Daniel discussed some of the impediments to collecting data in Tobago; Justin Ram led a discussion; this was followed by three concurrent breakout groups in each of the main components of the methodology (fisheries, tourism, and shoreline protection); Owen Day facilitated the discussion after lunch followed by a presentation on capturing ecosystem degradation in economic valuation estimates by Lauretta Burke; Sean Padmanabhan facilitated a discussion; Daniel Prager depicted a possible tool for applying the methodology and Williard Phillips facilitated a closing discussion. Key Issues, Observations and Ideas Tobago The following provides an overview of some general issues related to application of the economic valuation methodology in Tobago. Specific comments on the economic valuation methodology and data issues for fisheries, tourism and shoreline protection are provided in those sections below. Policy Context There was an expressed need for better information to influence change. Decision-makers need to learn both sides of a development scenario the benefits and costs. Many economic valuation efforts have gone on in the Caribbean. How will this one make a difference? It is important that a good tool is developed and that key points of intervention and policy questions for application are identified. There is a need for broad outreach to inform the general public, business leaders and policy makers. 9

10 It will be important to get good information into the schools to inform the young, to begin to build a case for change. The time frame of the analysis is important it should be a 5 year time frame for policy makers, but a 20 year time frame for planning. Outreach The messaging and packaging is key coral reef advocates need to provide clear reasons for conservation. Printed documents on their own do not achieve much there is a need to work directly with Ministers and technical leads in Ministries. When written materials are developed they should be targeted to policy issues two pages maximum. Video can also be a useful tool in communicating. Involve stakeholders in data collection to advance engagement and appreciation. It was suggested that CSO disseminate information on non-market values. Methodology and Approach There is concern that the methodology will set a lower bound on true values that it will underestimate values, and therefore will not be effective as a way to get policymakers fully engaged in protecting reefs. Participants urged for the inclusion of non-market values and option values. In looking at the value of ecosystem use, we also need to include costs and impacts of that use on the environment Should include surfing as a use, as Tobago has a world-famous wave-break. Yachting is missing from the methodology. It will probably make sense to attempt an economic valuation of coral reefs for all of Tobago, but apply the tool for policy analysis in more limited locations. Physical Environment Nutrient outflow from sewage is a big problem in parts of Tobago. This is a more significant problem than loss of herbivorous fish. Siltation from storm-water runoff is also a problem; improved watershed management is needed. Impacts from excessive or poorly managed reef visitation is a problem in some areas. The geologic history of Tobago is significant in influencing landform and vulnerability of the land to erosion. SW Tobago is sedimentary limestone and is much more erosive than NE Tobago which is comprised of hard metamorphic ad volcanic rocks. Sand mining is the main cause of beach erosion in Tobago. Information Policy Issues 10

11 Data policy for Tobago is still being formulated. Much of the data that is necessary for Tobago is housed in Trinidad and it is difficult in certain situations to extricate the data. It was generally agreed that there needs to be a greater capacity for housing data in Tobago and inside of THA specifically. Coral Reef Base Data An important data set for economic valuation work and for many partners is the base map of coral reefs. The project has assembled a very rough base map at present. With (potential) funding from the Global Environment Facility (GEF) there is good possibility of developing a collaboration to improve this key data set. In addition, the Buccoo Reef Trust (BRT) is exploring teaming up with Coral Cay Conservation and the THA to map the islands coral reefs. Some Policy Applications To evaluate the impact of the established user fee at Pigeon Point Heritage Park, Tobago. To evaluate appropriate damage compensation for groundings or damage of shallow coral reefs in Tobago. To evaluate the costs and benefits of investing in more active management of Buccoo Reef Marine Park. To evaluate the benefits of investment in improved sewage treatment in SW Tobago. To set user fees that capture existence values of coral reefs. To examine changes in fisheries management and their impact on short-term livelihoods versus long-term benefits. To evaluate the environmental and economic impacts of sand mining. Fisheries Component The proposed Fisheries component looks to value fisheries by looking at the following areas: commercial fishing, fish processing, local and subsistence fishing, and economy wide-effects of fishing. A proposed survey will capture the cultural value of fishing. There was a general consensus in both workshops that fisheries are vitally important to both islands. The importance of fisheries was underscored by its historical role. Villages were formed in areas where fishing was available and productive. It was emphasized that a good deal of community cohesiveness comes out of the fisheries sector; that the ability of locals to fish (as well as the ability for locals to use beaches) means a great deal to them. In both countries, the fisheries sector around reefs had eroded somewhat there 11

12 are very few, if any, fishermen who only fish reef fish. While data on fish catch is readily available for St. Lucia, the numbers for Tobago are incomplete (see below). For both countries, data on spear fishing will not be available and will need to be captured in a local fishing survey or otherwise estimated. Fisheries Breakout Group St Lucia General The majority of fisherman are catching multiples species using a variety of methods, including pot and seine. The Fisheries department classifies fishers as either (a) Part time fishers (2-3 days per week) or (b) Full time fishers (5-6 days per week). In St. Lucia, fishing acts a socio-economic safety net people turn to fishing when they lose other gainful employment. The average age of a fisher is 45yrs, therefore difficulty in retraining fishermen for other jobs. There has been a move towards pelagics and away from reef fish in recent years. While boat building is in decline, boat repair is a growing business. Spear-Fishing and Subsistence In the past, spear fish permits were given to spear gun owners, however, now they are only granted to fishers that depend on spear-fishing for their livelihood. Nevertheless, there is much illegal spear fishing which goes on, especially among adolescent boys and young men. All commercial fisherman also catch for themselves, each have a subsistence component to their fish catch. It was generally agreed upon that there is a strong cultural value to spear fishing and fishing in general (fathers will often take their sons out fishing, for instance), but there have not been any attempts to measure it. Pot Fishing Fish pots are not of a standard size, volume (and catch) varies by location. Tampering with fish-pots through theft and sabotage by tourist-divers leads to a loss of approximately 40% of potential fish pot catch. Ghost-fishing is a significant issue where pots are abandoned and continue to attract fish dead fish attracting more live fish. Pot fishing has generally been in decline in recent years due to an increase of pot theft incidences, though demand for pot fish is still very high. Fishermen have no trouble selling all of the pot fish which they catch and prices are rising. Pot fish is priced $6-10 per lb is caught depending on the location. (in Soufriere $10/pound, in Gros Islet $6-7, pound) 12

13 Most fish traps are made by fishers themselves, not bought from others. No one is dependent on pot fishing alone for their livelihood. There was a study in 1997 estimating that the average pot fisher earned EC$400 to $600 per month from pot fishing. Subsidies Fishermen can get duty-free fuel through Co-operatives (only boat owners). There is a (Owner-boat-engine-crew) breakdown of earnings from catch. Yachting Approximately 5-10% of yachts do not moor within SMMA--mostly up in Rodney Bay. (Customs would have more specific information.) Sea Urchin Sea Urchins are considered a delicacy in St. Lucia and sell for EC$30 - $45 a pound when they are in season. Fisheries Breakout Group Tobago General Fish species in Tobago include conch, grouper, grunts, snapper, lobster, crab, squirrelfish and parrot fish. CSO has information on 7 processors one plant used to export reef fish, but none still do. Cultural value is most likely important as many villages were established as fishing villages. Speyside would be a good place to look more closely at how to think about policy that could implement and try to mobilize action. Fishing communities of Speyside, Charlotteville would not like to be excluded from their fish zones. In those areas, it s mostly pelagic fishing. There is an ongoing issue with sampling and raising the figures. The Tobago House of Authority (THA) collects information on fish catch at various sites and times, creating sample data. This data needs to be raised in order to create meaningful statistics on overall fish catch. This function was previously performed by Dr. Elizabeth Mohammed, but is not currently done at all. Therefore, the sampled fish data which we currently have is not meaningful. THA tracks information on boat engines registration and this should present an accurate portrayal of the number of fishing boats. There are subsidies for boats, concessions on the value added tax (VAT) and on fishing gear. There is an available fuel rebate as well. There are seven fish processing plants. 13

14 While there used to be one person (Lincoln Yeats) who would purchase small snappers and export them, there is currently no exportation of reef fish. It was noted that the largest fishing village is Charlotteville with 40 to 50 boats each with 2-3 people. Tourism Component The proposed Tourism component was presented and discussed in detail in both workshops. The component looks at the value of reefs in the areas of accommodation, tourist-related reef recreation, local reef recreation, cruise ship lines, and economy-wide effects (so-called multipliers ). There was a general consensus that reefs are extremely important to tourism in both countries. A preliminary estimate of the value of reefs to the accommodations sector of Tobago was presented at both workshops, and for the value of Tobago dive sector tourism at the Tobago workshop. There were no major objections to the methodology used to generate that estimate. Key Observations Data from individual dive operators will need to be collected in order to obtain a full picture of the value of dive tourism to islands. It was noted that tourists are surprisingly indifferent to major changes in the status and quality of reefs. Declines in reef health may not translate to declines in the amount of tourism. Local reef recreation is very hard to measure. A survey, which is currently being developed jointly between WRI and the Sustainable Economic Development Unit (SEDU) of UWI, will be undertaken to obtain a better picture of the value of local reef recreation. Capturing the full value of snorkelling will be difficult to measure because much of it may happen outside of professional tour operators, from either hotels or beaches. Damage to the reef from tourism is important and should be included in any valuation of the tourism sector. For instance, all bathers wear suntan lotion which affects the reef. St. Lucia Observations General: It is important to examine links between the fisheries industry and tourism almost all of the lobster catch is sold to hotels and restaurants on St Lucia. 14

15 Impact of Tourism on the Reef Sewage is a large problem: o In general, hotels with less than 50 rooms discharge untreated sewage while hotels with more than 50 rooms have a sewage systems, although many small hotels in the north of the island are connected to the Beasejour treatment plant; o It is hard to discern where and who is discharging sewage due to currents; o WASA, Depts of Public Health or Planning would be good sources for more information on sewage. Accommodation: Room Rates many hotels have specials, and website rates probably do not reflect what people are truly paying discount the rack rate by 10-20% to get closer to what people are really paying or what hotel is receiving. It was suggested that for accommodation related to reef count all hotel rooms on the beach, but only take a portion of those more than 1 km from the coast (or from the beach). It is hard to generalize the number of employees per room. Anse Chastenet has 49 rooms and 200 employees, all-inclusives/luxury hotels may have more. o Participants suggested using an average of 1.75 employees per room; o Govt statistics may collect this information as part of a survey. Statistics are most likely 4 years old and one need s to look at category of worker as this is how it is classified; o National Insurance Corporation may also have these statistics. St Lucia Tourist Board or St Lucia Hotel Association may have some information on operating costs. General notes on taxes and subsidies: o Hotels put together a tax-free list they would like (can often be 50% duty concession). However, no duty free concession on alcohol; o There is a 100% duty free concession on construction materials but pay some duty on supplies; o Should look at Tourism Incentive Act and Fiscal Incentives Act for information on concessions; o Income tax waivers vary, and the maximum tax holiday is 20 years. For World Cup new hotels over 50 years received a 15 year tax holiday while hotels over 100 rooms received a 20 year tax holiday; o The property size influences length of tax holiday (larger properties get larger holidays ); o Reality is most hotels continue with tax free status as once tax holiday comes to an end they rename the hotel and get new tax free holiday; o The government imposes a 8% tax on food, drinks, and accommodation; o The service charge goes to employees, not to government or hotel. Service charges are approximately 10 % but vary by hotel. Diving 15

16 The St. Lucia Dive Association which was very active a number of years ago is currently inactive. There are two types of divers ones that make a special trip to dive and those that dive opportunistically. Dive operators are required to send to Dept of Fisheries the number of dives at each dive site by month. Each dive operator or Dept of Fisheries should be able to provide this information. Snorkelling Many snorkelling tours are via dive/snorkel operators but a lot of independent snorkelling occurs directly off the beach at the hotel. Many hotels include free use of snorkels. On average a majority of guests in hotels close to the beach do at least one snorkel. As with the accommodation related to reef activities, we could assume that all guests that stay in hotels on the beach snorkel, while only take a portion of guests in hotels 1km from the beach. Cruise Ships: The biggest incentive to visit an island is the type of port facility they first look for convenience. Passengers may choose cruise based on destination. However, not many dive, e.g., of the 3000 passengers who arrive in St Lucia on one day only about 60 may dive. Cruise ships are not an important source of income to the reef, probably more of a detriment that a benefit, e.g., discharge effluent. St Lucia Port Authority would be the data source for cruise ship information. Local Recreational Use Snorkelling in the south not many locals snorkel, more locals snorkel in the north. Beach recreation o More locals use beaches in the north, less use beaches in the south; o Small villages probably don t use the beaches much; o Children tend to use beaches a lot but as they get older they stop using the beach. Very little known about the local use of beaches use a survey to better understand local beach recreation use. o Suggestion to just survey schools do a couple of primary and secondary schools in the north and south. Tobago Observations General 16

17 WASA s new treatment plant could be used to give an idea of what the value of the reef is. However, the main reason for building the plant is for health reasons. Sedimentation from roads and development is believed to cause more damage to the reefs than any decrease in nutrients that would be related to the WASA plant. Visitor Arrivals THA is about to do another customer satisfaction survey asking people where they stayed and what they did while staying in Tobago anticipate they will do a peak, high and low season sampling survey due to start the Friday after the Jazz Festival. Port information will be important to determine Trinidadian visitor use. There should be 2001 survey of departures from the port, which is available from THA or PRDI. There is a disparity in the numbers from CSO and PRDI due to the number of visitors that come to Tobago via Trinidad most visitors from US. Ministry of Tourism (MIST) most likely has all arrivals information (Tobago direct and via Trinidad) but it is probably not analysed. Opinion regarding the number of domestic air arrivals from Trinidad coming to Tobago for holidays Travel Foundation suggests ~20% and PRDI suggests 25-30%. Portion of visitors that use the Reef People visit Tobago for the package reef is part of the package. PRDI has a survey of why people come to Tobago (and should be able to extract % of visitors coming for the reef). Accommodation Occupancy rates vary each year (for instance, 2006 figures are down already). The calculation could base variance in occupancy rate on CTO figures for arrivals to the Caribbean in general. Many hotels, guesthouses, etc are not officially registered therefore not all pay correct level of taxes. Only VAT registered hotels pay the government hotel tax (10%). 95% of business in Tobago comes via tour operators should take 20% off rack rate to get rates that hotel receive. Trickle down effect of all-inclusive hotels is higher than one might think they do purchase food, etc. locally (based on Travel Foundation study). Diving 4 operators estimated that 40% of international visitors, 3% of domestic visitors and 13% of regional visitors dive. However, this may be biased upwards. Other dive operators thought this number should be much lower ~ 10-15% total visitors that dive. Snorkelling 17

18 Department of Fisheries has carried out surveys on how many people have snorkel boats and their carrying capacity Simons and Associates also did a survey of Buccoo Reef that talked to snorkel operators (this survey was done in the mid 90 s). Yachts Yachts cause environmental damage because yachting facilities are not available encourage public policy that promotes the establishment of pumping out stations, water replenishment stations, etc. Survey has been carried out of yachting sector Pat Turpin can share this report. Store Bay, Englishman s Bay, Castara, Mt Irvine and Charlotteville are most common mooring sites for yachts. Yacht visitors may use restaurants and so do spend some money could use the same multiplier as that for general restaurant expenditure. Yacht visitors spend on average TT$60 per day very low expenditure. Overall, believed to be minor contribution in terms of money spent on Tobago but very high environmental costs (e.g., dumping of waste, reef anchor damage, etc.). Local Recreational Use Local use should include Tobagonians, Trinidadians and ex-pat population in Tobago and Trinidad. The project has collected some figures on ferry boat arrivals but is unable to capture the portion that are Trinidadians coming for holiday/weekend and those that are local Tobagonian use: o Suggestion was to look at boat use from Monday-Thursday to get an idea of normal business travel, and then use the increase in passengers on Friday and weekend passengers to estimate those Trinidadians coming to Tobago for holiday purposes. Pigeon Point is a good example of how people value access to the reef. Could use the value that THA just paid (TT$110 million) for Pigeon Point as an option value for local beach use. (However, there was some price inflation so should consider this as an upper bound). Tobago Hospitality and Tourism Institute may also be interested in doing the local recreation use survey as a project. Shoreline Protection Component Proposed Methodology Presented The preliminary methodology for evaluating the shoreline protection services was developed in collaboration with the Institute of Marine Affairs. The key questions that need to be addressed were presented, along with a proposed methodology. The valuation focuses on damages avoided due to the presence of coral reefs. Question 1) How much protection is afforded to a shoreline by a coral reef? 18

19 o This includes protection from routine erosion due to waves; protection from winter storms; protection from major storm events (10, 20, 50, 100 yr storms). Physical factors that affect the protection afforded by the reef: 1) orientation of the coast (windward or leeward; high energy or low energy coast) 2) bathymetry and shoreline profile; slope of the beach 3) depth of the reef and geology (type of reef) 4) distance the reef is from land 5) nature of shoreline (bays, headlands, exposure, etc.) Question 2) What is at risk? o Natural habitats or biodiversity; valuable beaches; real estate; (in extreme cases) lives. Risk Factors that affect the economic value exposed: storm categories and frequency; associated wave height; elevation; and coastal vegetation, which is a mitigating factor. Development (adds to Risk) o Homes; hotels; beach facilities; infrastructure; other structures. Plan for Shoreline Protection component Work with local geologists on rules to: a) define categories and characteristics of reefs and coastlines (probably pairings) and b) develop rules for how much protection this reef affords this coastline situation. This will need to be done for different shoreline segments (reef and shore pairings); different storm categories; different elevations; different coral health scenarios (healthy, degraded, gone); and always considering the habitat and property within the at risk zone. Example (for each storm level): Risk = storm Prob x protection rule x property at risk Comments on Proposed Methodology 1) Sand grain size is a key factor related to shoreline erosion. 2) Wave breaks are a visual indicator of where coral reefs are providing protection to a coastal segment. Waves break on shallow reefs, which offer protection. Deep reefs do not offer much protection. 3) Recommendation to look at historic insurance claims to explore past losses during storms. 19

20 4) Focus on avoided damages provides a baseline of value. There are also ancillary benefits of healthy reefs protection to the shoreline. 5) We should include hotel capacity as an indicator of value of those properties. Much of the discussion in the breakout groups on shoreline protection focused on data sources and data availability for the proposed analysis. Data quality, data sharing, and information policy issues were discussed and are summarized below. Shoreline Protection Setting and Context for St. Lucia 1) In St. Lucia, participants encourage use of the official definition of the shoreline up to the 100 ft contour, except where a cliff exceeds 100ft (then up to 75 ft inland from the cliff), and 1 mile out from coast. 2) Sand mining is a threat in some areas. St. Lucia National Trust did a study on sand mining. 3) Beach profiles. The Coral Reef Inventory System (CRIS), which is available from MPDEH, contains beach profile information (as points). 4) Detailed data on beaches and erosion might be available for many areas from Environmental Impact Assessments (EIAs.) 5) Property values. Data should be available through the Inland Revenue Department or Tax Department. 6) Precipitation data Data should be available through the Meteorological Office. 7) Sedimentation Data on sedimentation for SMMA is available from SMMA. 8) St Lucia lacks a clear data infrastructure. Despite many meetings and discussions on this topic, there has not yet been a concerted effort to set up such an infrastructure. The data are scattered, disorganized, and often not systematically backed-up. 9) This project could play a role in helping to organize some of the data holdings. In collaboration with MPDEH, the project could organize relevant GIS data in a single projection, in a catalogue structure, with projection defined and at least basic metadata defined. Shoreline Protection Setting and Context for Tobago 1) Sand mining is a main cause of beach erosion. 2) Most natural erosion occurs between November and April, due to large waves. 3) Waves break on shallow reefs, such as Buccoo Reef, which offer protection. Deep reefs, such as those off Speyside, don t offer much protection. 4) IMA has recommended and Town and Country Planning have proposed a development setback of 50m in the past. Developers had this reduced to 10m. Setbacks are inadequate in many areas. 5) The project should examine loss of land abutting beaches. Crown Point, for example, has had a loss. 6) The Office of Disaster Preparedness Management should have data on vulnerability and historic losses. 20

21 7) Detailed data are not available for all areas. It might make sense to do a detailed analysis for some areas (such as the SW coast and possibly the Speyside area) and try to extrapolate for other areas. Focus on Bays where there is good knowledge. 8) There is not an adequate map of coral reefs for all of Tobago. However, there are detailed maps for SW Tobago. 9) Aerial photos (available from Lands and Survey) show historic building locations. The analysis of shoreline protection services for Tobago will be implemented at the Institute of Marine Affairs (IMA), in close collaboration with WRI. The analysis for St. Lucia will be implemented through a collaboration of WRI and the Government of St. Lucia, particularly the MPDEH, with guidance from IMA. The following table provides a summary of data set status and needs for the two countries. Category Tobago St. Lucia Aspect of Shore IMA to derive Needs to be derived. Geology of Shore IMA have Geologic Map of Tobago Coastal Type Partial. Needs additional work. Partial. Needs additional work. Bathymetry WRI to provide. WRI to provide. Wave / storm energy From NOAA, CSO, and CCCCC. From NOAA, and CCCCC. Elevation of land WRI / BRT from THA data. WRI derived from GoSL data. Coral Reefs Millennium Mapping project and SW Tobago reefs (until revised.) Needs data integration and improvement under this project. Basins WRI / BRT to delineate. WRI / MPDEH to delineate. A detailed description of the methodology and work plan is in Appendix 2. Conclusion The successful workshops will be followed by considerable amounts of work by the Caribbean Natural Resources Institute, the Institute of Marine Affairs, the Sustainable Economic Development Unit of UWI, Buccoo Reef Trust, and WRI over the following months. We plan to incorporate feedback from the workshop to update the methodology and, with help from many of the partners and participants of the workshop, gather the remaining necessary data to apply the methodology and produce valuation estimates. CANARI will be assisting with data gathering efforts in St. Lucia. IMA has pledged to help us implement the shoreline protection methodology in Tobago. UWI-SEDU is 21

22 working with WRI to develop a survey on local use. Buccoo Reef Trust continues to gather and analyze spatial data in Tobago. In addition, government agencies in both countries continue to be engaged in the project. At WRI, we will coordinate the creation of a valuation estimate tool (which was presented at the workshop in Tobago). This tool will allow for the stepwise and systematic entry and calculation of valuation estimates for reef-related goods and services. The Excel-based tool will be developed with the intention of stand-alone use in St. Lucia, Tobago and elsewhere in the Caribbean. WRI is pleased to share with workshop participants that the Medium Sized Proposal (MSP) we submitted to the Global Environment Facility has passed technical approval. It still remains to be seen if it will be funded if it does, there would be funds available to apply the methodology in many specific areas mentioned above. After valuation estimates are created, and the methodology is applied, WRI plans to hold follow-up workshops presenting the estimates and providing training in the valuation tool. In addition, we plan to expand this project s presence on the web. Please monitor reefsatrisk.wri.org for updates, we will post as they become available. 22

23 Annex 1a attendance list for St. Lucia Organization Name Telephone Department of Fisheries Susanna Scott Department of Fisheries Dawn Pierce-Nathoniel /42/35 National Development Corporation Perry Thomas /15 Sandals Resort Laurent John Ministry of Tourism Jacinta Francis Department of Fisheries Petronila Polius Department of Fisheries Seon D. Ferrari /35 Ministry of Health Emerson Vitalis Ministry of Physical Development Environment and Housing David Alphonse Department of Fisheries Cristopher James Department of Fisheries Thomas Nelson Department of Fisheries Ross Gardner St. Lucia National Trust Lavina Alexander Ministry of Physical Development Environment and Housing Marina Regis Ministry of Physical Development Environment and Housing Neranda Maurice Economic Planning and Policy Unit Norma Cherry-Fevrier NEMO A.L. Dawn French Biodiversity Office Amita V James /22 anitavj@yahoo.com Department of Fisheries Cullen Myers deptfish@slumaffe.org Department of Fisheries Jeannine Rambally deptfish@slumaffe.org CANARI Allan Smith allan@canari.org St. Lucia National Trust Bishnu Tulsie natrusted@candw.lc SMMA Kai Wulf kai@smma.org.lc Bernd Rac Scuba St. Lucia scuba@candw.lc UWI-SEDU Justin Ram jram@fss.uwi.tt Sustainable Development Environment Section LaVerne Walker lwalker@planning.gov.lc Sustainable Development Environment Section Crispin d Auvergne cdauvergne@planning.gov.lc Dive Fair Helen Andre St sam@divefairhelen.com SLASPA Dermut altibus saltibusd@slaspa.com 23

24 Annex 1b attendance list for Tobago Organisation Name Contact Number Address THA Division of Agriculture, Marine Affairs and Environment THA Division of Agriculture, Marine Affairs and Environment Mrs. Joan Hannibal-Phillips (Administrator) Ramon Marks (Advisor to the Secretary) THA - Department of Fisheries Erol Caesar (Director) /4354 eroldcaesar@yahoo.com THA - Department of Fisheries Keisha Sandy /4354 annemarie@tstt.net.tt THA - Department of Fisheries Calvin Alexander /4354 ddoctor2@yahoo.com THA - Department of Fisheries Petal Joseph /4354 tobagop@hotmail.com THA - Department of Fisheries Darion Fraser /4354 dscorpioprince@hotmail.com THA - DNRE Akeisha Phillips untofuhreal@yahoo.com THA DNRE Crystal Lawrence marinaclear@hotmail.com THA Division of Tourism Gail Bradshaw gailuck2000@yahoo.com THA PRDI Anslem Richards (Co-ordinator) / (w)/ (c) anslemr@hotmail.com THA PRDI Gillian John gillymj@yahoo.com THA PRDI Bobby Andrews /4 prdiagri@hotmail.com The Travel Foundation Chris James (Chairman) cbjames@tstt.net.tt The Travel Foundation Rosemarie Thomas tftobago@tstt.net.tt Oswyn Edmund (General WASA Manager) edmo4323@wasa.gov.tt Environment Tobago Pat Turpin (President) / pturpin@tstt.net.tt Environment Tobago Jean Cluade Petit jeanpetit2434@hotmail.com R & Sea Divers Wendy Austin rsdivers@tstt.net.tt Pigeon Point Heritage Park Jim Armostrong (Chairman) armstro7@hotmail.com UNDP Willard Phillips (Programme Specialist, Environment) ext 237 wllard.phillipips@undp.org.tt IADB Dorri Agostini ext 236 dorria@iadb.org IMA Dr. Rahanna Juman rjuman@ima.gov.tt IMA Sean Paddy spaddy@ima.gov.tt IMA Charmaine O Brien Delpesh cdelpesh@ima.gov.tt EMA Gayatri Badri Maharaj gbmaharaj@ema.co.tt SEDU Justin Ram justinram@hotmail.com CSO Harold Wall ext 4101 haroldwall@yahoo.com CSO Satee Boodoo ext 4450 satee.boodoo@statistics.gov.tt 24