Question

Palau, one of the Hawaii islands, aims to establish the Palau National Marine Sanctuary (PNMS) protecting 80% of its Exclusive Economic Zone from export-driven fishing. Preliminary results show that reducing the fishing from foreign vessels will produce environmental benefits. However, several lobbying groups argue that the PNMS will damage the local economy (e.g. reducing fishermen’s profits, raise the cost of fish for locals, etc.). The Nature Conservancy supports the creation of the PNMS but has appointed a dedicated consultant to identify and value the main ecosystem services of the marine environment.
2(a) Identify the main ecosystem services influenced by this policy and suggest how would you value them.

2(b) Dolphin viewing excursions might be also impacted by the PNMS and the local group of tourist operators have commissioned a survey. The consultant is considering a travel cost or a choice experiment. Describe how you would conduct the two surveys and identify the main pros and cons.

Answer 1

Ans- 2(a) Identify the main ecosystem services influenced by this policy and suggest how would you value them.

The ecosystem that will be impacted with this policy is as below.

1) Fishing

2) Tourism and Recreations sector

3) Travel

4) Revenue

If PNMS is being created by protecting 80% of the area, it will impact on below aspects.

1) Fishing- It will lead to less area for fishing this less revenue for the local fishers. It may lead to loss of employment as fisher for the locals.

2) Tourism and Recreations sector- As there be less fishing protected area can be grown as major tourism hub and recreational activities can be encouraged there. It will lead increase in revenue and employment for the local economy.

3) Travel- Once palau being developed as a major tourism hub, it will see lot of economical activity and travel is one of them. People will come there for tourism and it will lead to increased spending and consumption which is going to play a major role in developing the region

4) Revenue- Government may see fall on reveneue on the fishing, but due to increase recreation and tourism activity in Palau government can expect a steep rise in tax revenue which they can use to fund exchequer.

5) Flaura and Flauna- As 80% of Palau region being declared as protected region, nature can take lead there and we can expect restoration of national climate, less pollution to the see and comfort for the animals and other species residing there.

2(b) Dolphin viewing excursions might be also impacted by the PNMS and the local group of tourist operators have commissioned a survey. The consultant is considering a travel cost or a choice experiment. Describe how you would conduct the two surveys and identify the main pros and cons.

Ans- There involve two things there for Dolphin viewing excursions and recreational means 1) Travel cost 2) Choice Experiment

- Travel cost-

- Pros-

It is obvious if most of the area is protected from un-necessary human degradation then Dolphin viewing excursion will become more pleasurable. A travel cost should be imposed on the tourist to make the most of it. For example, if daily there are 1000 foot falls per tourist fee is $10 then easily revenue of $10,000 earned. It will be helpful for government as well as locals. Locals will be getting more jobs and entrepreneurship opportunity there.

           Cons

- Travel cost- If Palaue region being opened up for the tourist and a cost being set up for the recreational activities like Doplhin viewing excursions etc then it may lead to un-necessayr burden on the local environment with increase in wastage, pollution and un-necessary disturbance to the natural habitat.

- Choice Experiment

Pros

It will lead to balance for the locals for fishing or local tourism activities, they will have choice which profession to opt for.

           Cons

             As 80% of the area being declared as protected and most of the local population is dependent on fishing income then it will be major set back for the local economy. They will be needing economic rehabilitation package from the government as it will take some time for them to adept to the new environment

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