Abstract
This paper presents a deterministic bioeconomic model in which the creation of a marine protected area (MPA) is not only a fisheries management tool but also introduced in order to provide tourism amenity benefits. The theoretical model is illustrated with analysis of the Nha Trang Bay (NTB) MPA in Khanh Hoa province in Vietnam, where the anchovy purse seine fishery is considered. An amenity value function of the NTB MPA is estimated from a discrete choice experiment among national tourists. A weighting parameter is added to the bioeconomic model to allow the establishment of a tradeoff between management preferences regarding the two sectors affected by the MPA, fisheries and tourism. Both the theoretical models and the empirical application show how the added amenity values affect optimal fishing practices as well as the identification of the optimal MPA size. Our applied analysis shows that contrary to the argument in most MPA studies with multiple stakeholders, the current management practice in Khanh Hoa prioritizes the fisheries sector heavily compared to tourism, despite high economic cost.
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25 September 2018
During the correction stage, the author requested that “302 be in line with NPV* and NPV*<Subscript>f</Subscript>” in Table 4.
Notes
See Hannesson (1998) for more detailed explanation.
The constant price of fish is a reasonable assumption when the species studied is traded in a large world market, of which the local harvest share is small as is the case here, and therefore does not impact price, and therefore fishers accept exogenous market prices.
In this optimal control model, with α = 0, we follow Conrad (1999) where MPA size is not explicitly considered as a control variable, but utilized MPA size is reflected through varying the reserve size, m, in the applied analysis.
Tourism development in the MPA contributes to the increase in use value of the MPA. However, when there is intensive and unregulated tourism development in MPAs, this can have direct or indirect negative impacts on marine species (e.g. sessile invertebrates) and habitats (i.e. seagrass beds, macroflora; see Milazzo et al. 2002 for more discussion). If this is the case, a function describing environmental damage could be included in the model to give a broader picture. However, in this study, the empirical data applied in the model comes from the NTB MPA, which we will assume has necessary solutions and regulations to limit the negative effects caused by tourism within the MPA, as indicated by Van (2013). We therefore do not include environmental damage from tourism in this model.
Note that we do not use α here in the total net present value function, as the final net present values are only indirectly affected by α via the determination of the optimal stock, MPA and harvest sizes.
As current Vietnamese open access fisheries result in many depleted fish populations as well as serious conflicts of interests among fishing groups (Pomeroy et al. 2007), it is imperative to assess more appropriate governance and management approaches for the fisheries operating in nearshore waters.
Khanh Hoa Department of Capture Fisheries and Resources Protection (DECAFIREP), 2015.
Khanh Hoa Deparment of Statistics.
Khanh Hoa Department of Culture, Sports and Tourism.
On 9/12/2014, the Khanh Hoa government issued some new regulations for the NTB MPA. Firstly, The NTB MPA core zone was expanded and named a strictly protected area; the buffer zone is also renamed as the ecological rehabilitation zone. Secondly, fishing is not allowed in either area. However, in this paper we use the secondary data before 2011 so we still keep the former NTB MPA scheme for our analysis.
Source: NTB Border Defense, 2015.
Thi et al. (2007) report that the intrinsic growth rates of anchovy species in southeast Vietnamese are relatively high, ranging from 0.53 to 0.90 per year. We choose the most conservative measure.
77% of all visitors to the NTB are Vietnamese tourists (Xuan et al. 2017), where the remainder are largely Chinese and Russian.
The survey design is described in detail in Xuan et al. (2017).
See Xuan et al. (2017) for the specification of the model, the discussion on selecting the distribution of random parameters, and measurement of consumer surplus, in detail.
It is possible that tourists’ WTP for coral cover may be influenced by their preferences for environmental quality and fishermen job loss, we therefore include the interaction effects in the model to estimate the tourism value of different MPA management policies.
The estimated parameters of the interactive variables between coral and job loss are excluded when calculating CS for different management scenarios, due to their being statistically insignificant. As indicated by Armstrong et al. (2017), all coefficient, significant or insignificant, could be included, this would however give a higher standard error.
Though the good valued is a hypothetical core zone expansion of the NTB MPA, we chose not to include the MPA core zone size as an attribute, due to causality. That is, the increase in coral cover, environmental quality, and fishermen’s job losses can be seen as a result of an increase in the MPA core zone size. Hence, inclusion of the core zone size attribute may encourage respondents to try to understand the causal relations among attributes and potentially to simplify their decision making process, resulting in a reduction in marginal WTP for the other attributes (Bennett and Blamey 2001), which are indicated as the most important for tourists choosing to visit the NTB MPA.
The value of the estimated parameter, b, indicates that when the size of protected area increases 1%, the average consumer surplus per individual increases by 0.148 USD.
The study site is Khanh Hoa waters which includes the NTB MPA where the DCE survey took place. Hence the tourism value function will depend on the RZ size which is proportional to the total area of study, i.e. the Khanh Hoa inshore waters.
Note that for the values of α greater than 0.537, the optimal values are unstable.
The fishing effort in 2011 reported by Thuy and Flaaten (2013) was 581 vessels, while the optimal fishing effort calculated from the estimations of this study is E* = Y*/(q × 1*) = 120,182/(0.00069*545,085) = 319 vessels.
Though the NTB MPA core zone size has been expanded in recent years, it comes nowhere close to the expansion our results suggest.
At the current MPA core zone size (m = 0.56%), the values of the total NPV, the fisheries’ NPV, and the tourism NPV are 366; 300; and 66 million dollars, respectively.
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Acknowledgements
We would like to thank Ola Flaaten, Ngoc Quach Thi Khanh for their valuable comments on previous versions of the paper. Thanks to Erlend Dancke Sandorf and Margrethe Aanesen also, for their collaboration. Funding from the Norwegian Agency for Development Cooperation (NORAD) is acknowledged.
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The original version of this article was revised: “302 be in line with NPV* and NPV*f” in Table 4.
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Xuan, B.B., Armstrong, C.W. Trading Off Tourism for Fisheries. Environ Resource Econ 73, 697–716 (2019). https://doi.org/10.1007/s10640-018-0281-5
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DOI: https://doi.org/10.1007/s10640-018-0281-5