Philippine Coral Reefs Under Threat: The Economic Losses Caused by Reef Destruction

In the Philippines, coral reef fisheries provide livelihood for more than a million small-scale fishers who contribute almost US$ 1 billion annually to the country’s economy. The rapidly growing population needs increasing amounts of fish and other marine organisms. However, overfishing, destructive fishing methods and sedimentation have damaged or destroyed many reef areas. Fish catches have fallen well below the sustainable levels of healthy reefs. The economic losses to the coastal fishing population are considerable. Various programmes have and are trying to counter coral reef decline by establishing sustainable management regimes. The economic benefits of such programmes appear to exceed their investment costs. As an example, the start-up and maintenance costs of a successful island marine reserve project have been compared to the losses caused by reef destruction and the gains from reef management. The results clearly show that the economic benefits from a managed reef area due to higher catches and revenue from small-scale tourism far exceed costs. Coral reefs are also a major attraction for an increasing number of local and international tourists. In addition to providing income for the tourism industry, these reef visitors are often willing to contribute to the costs for reef management. The annual willingness-to-pay assessed in three popular diving destinations are significant. An estimated US$ 300 000 could be collected annually as entrance fees or donations in Mabini, Batangas alone. It is estimated that the 27 000 km2 of reef in their degraded condition still contribute at least US$ 1.35 billion annually to the economy. Reef management involving local fishing communities, local governments and other concerned organizations is a cost-effective way to alleviate the pressure on the numerous threatened coral reefs. In addition, economic valuation and cost-benefit analysis can provide essential information to support more investment in reef conservation.