8 authors, including: Samia Sarkis Living Reefs Foundation 13

Introduction

The economic valuation of ecosystem goods and services is increasingly used worldwide because it offers a useful means of including the concept of ecosystem value into policy dis- cussions and decision-making (Van Beukering and Slootweg 2010). Currently, Bermuda supports one of the “healthiest” coral reef systems of the Wider Caribbean Region, with a coral cover ranging from 22% to 70%. Owing its presence to the proximity of the Gulf Stream, Bermuda’s reef system is of global importance as the northernmost reef system in the Atlantic Ocean. The colder temperatures associated with its northerly latitude have mitigated, to a certain extent, climate change impacts such as “bleaching” events, especially that of 2005 which had a devastating effect on Caribbean reefs in general. Nonetheless, Bermuda’s reefs are ranked worldwide at “high risk” by the World Resources Institute (Burke et al. 2008) attributed in great part to the island’s high human pop- ulation density within 20 km of the reefs. More specifically, immediate threats to Bermuda’s coral system relate to increasing maritime traffic associated with the import of goods and to the changing tourism industry. Developments necessary to accommodate larger ships have potential direct and indirect impact on the reef system, leading to the loss of ecosystem goods and services provided by the reefs to Bermuda’s community. An economic value can be attributed

S. Sarkis

Department of Conservation Services, Government of Bermuda, 17 North Shore Road, Smith’s Parish FL 03, Bermuda

e-mail: [e-mail]

P.J.H. van Beukering • L. Brander • S. Hess • T. Bervoets

L. Looijenstijn-van der Putten • M. Roelfsema

Institute for Environmental Studies (IVM), University of Amsterdam,

Amsterdam, The Netherlands

e-mail: [e-mail]; [e-mail]; [e-mail]; [e-mail]

E. McKenzie

Joint Nature Conservation Committee, Peterborough, UK e-mail: [e-mail]

to both commercial and non-commercial goods and services, though non-commercial values are difficult to measure quan- titatively and have the greatest uncertainty attached to them.

Bermuda’s reef value involves six key ecosystem goods and services which can be quantified and compiled to provide a Total Economic Value (TEV) of Bermuda’s reef (see Sarkis et al. 2010 for further detail). The greatest part of the TEV obtained for Bermuda’s reefs refers to the more tangible direct and indirect use values. This study focused on these values in order to provide a TEV which is understood and widely accepted by the community and the government, and ultimately used in future policy and decision-making. The six key ecosys- tem goods and services used here are: (1) Coral reef-associated tourism, (2) Reef-associated fisheries, (3) Amenity or reef- associated surplus value on real estate, (4) Physical coastal pro- tection, (5) Reef-associated recreational and cultural values, and (6) Research and education value. The approach used to quantify values for each are summarised in Fig. 15.1 including both data collection and valuation techniques.

The study area, estimated to be 400 km², is illustrated in Fig. 15.2, and does not include reefs on the outer edge of the North Lagoon.