8 authors, including: Samia Sarkis Living Reefs Foundation 13

Fig. 15.1 Service and valuation techniques used in determining TEV for Bermuda’s coral reefs


Fig. 15.2 Bermuda’s known coral reef cover including hard and soft coral species (Taken from Sarkis et al. 2010)

Table 15.1 Motivation to visit Bermuda for both air and cruise tourists, expressed as a percentage of total interviewed. Significant difference between the two types of tourists is shown

the business, and that most visitors to Bermuda are sensitive to the health of the environment.

Air Cruise

Significant

different Total

Business	4.5%	4.3%	No	4.4%
Snorkeling	7.3%	9.6%	Yes	8.6%
Diving	5.9%	5.5%	No	5.7%
Touring the reef	7.4%	9.1%	Yes	8.3%
Visiting the beach	16.1%	15.4%	No	15.8%
Shopping	11.1%	11.3%	No	11.2%
Sailing	6.2%	6.6%	No	6.4%
Sightseeing	13.7%	15.3%	Yes	14.5%
Playing golf	5.5%	5.4%	No	5.4%
Fishing	4.6%	5.2%	Yes	4.9%
Eating and drinking	16.0%	11.5%	Yes	13.7%
Other	1.5%	0.7%	Yes	1.1%
Total	100%	100%		100%

Consumer Surplus- Visitor’s Perception of Coral Reef Value

Estimate of the reef-associated tourism value is based on the percentage of reef-associated recreation, stemming directly (such as diving) and indirectly (such as beach enjoyment) from the coral reef ecosystem. The consumer component of the coral-reef related tourism value of Bermuda’s coral reefs in 2007 was calculated to be US$343 million, approximating US$190 million for the cruise ship sector and US$154 million for the air tourism sector.

Total reef related	36.8%	39.7%	38.3%	Producer Surplus- Value of Marketed Goods
				Provided by Coral Reefs

resulting in the “producer surplus”, or the value of coral reefs in the production of a marketed good generated through paid activities such as SCUBA diving and snorkeling, and (3) the contingent valuation method, providing a ‘Willingness to Pay’ value for coral reef conservation, an additional measure of “consumer surplus”.

Current Bermuda Tourism Market

A total of 407 tourists were interviewed for this study, dis- tributed evenly between cruise and air tourists. The cruise ship sector is substantial; in 2007, 53% of the total 663,767 visitors to the island, arrived by cruise ship. Survey results indicate that 38.3% of the tourists interviewed are motivated to visit Bermuda for a coral reef-associated reason, with snorkeling and touring the reef being the most popular activ- ities (Table 15.1). Bermuda’s “pristine” reefs are evidently well appreciated and 14% of interviewees confirmed they would not come to Bermuda should the coral reefs lose this quality. This translates into a loss of 90,000 tourists per year if coral reef health declines.

Operator Survey

Thirteen of the existing 40 reef-associated tour operators in Bermuda were interviewed, including all dive operators, a sample of glass bottom and rental boat operators, as well as charter boat operators. The reef-associated tourism gross revenue for Bermuda is estimated at $7.4 million (in 2007), with a profit margin estimated at 28%. Results concur with the tourist survey in that reef quality is important to

Producer surplus is calculated from the expenditures of tour- ists visiting coral reefs, minus the cost of production. The producer surplus of reef-associated operators is based on the reported tourist expenditures for both air and cruise ship tourists. This is estimated at US$139 per tourist for air visitors and at US$55 per tourist for cruise ship passengers. Based on 663,767 visitors in 2007, the reef-related producer surplus value totals US$62.5 million in that year, the greatest part being attributed to the air tourism sector amounting to $42.9 million per year, more than twice the value of $19.5million per year contributed by the cruise ship tourism sector.