8 authors, including: Samia Sarkis Living Reefs Foundation 13

Total Tourism Value

The total tourism value of coral reefs in Bermuda is the sum of the consumer surplus (based on travel costs), and the producer surplus (based on tourist reef-associated

Table 15.2 Total tourism value and potential extra value (WTP) of Bermuda’s coral reefs per year

Variable	Air	Cruise	Total
Consumer surplus	$153.7 million	$189.8 million	$343.3 million
Producer surplus	$42.9 million	$19.5 million	$62.4 million
Total tourism value	$196.6 million	$209.4 million	$405.8 million
WTP for conservation	$5.9 million	$9.7 million	$15.7 million

expenditures). All tourists add substantial reef related value to the island’s economy; the total tourism value of Bermuda’s coral reefs per visitor is US$611 per tourist. This value is slightly lower for cruise ship tourists (US$591 per visitor) than for air tourists (US$635 per visitor). This difference is due in great part to higher on- island expenditures incurred by air visitors, resulting in a twofold producer surplus spent by this sector; air tourists add US$43 million per year to the island’s reef-related economy, compared to less than half that added by cruise ship tourists (US$20 million per year) (Table 15.2). However, because of the higher volume of cruise ship visitors, the resulting reef-associated tourism value for cruise ship tourism (US$197 million) is similar to that of air tourism (US$209 million). In addition, appreciation of the reefs by cruise ship tourists is similar to that of air- plane tourists, reflected in their ‘Willingness to Pay’ for conservation (US$9.7million for cruise ship and US$5.9 million for air visitors). The reef-associated tourism value for Bermuda’s coral reefs is US$406 million per year (calculated in 2007). The ‘Willingness to Pay’ extra for ensuring the preservation of reefs per year by all tour- ists is US$16 million.