Abstract:
Coral reefs are a vital resource in the low-island Republic of Maldives, where the sustainable use
of these resources is central to the continued economic success of the country’s two largest
sectors: tourism and fisheries. This recognition has led to numerous reef conservation and
protection activities, including the establishment of Marine Protected Areas (MPAs). As in many
MPAs of the world, those in the Maldives exist only as paper parks: areas protected on paper but
not in practice. Despite general recognition of the importance of reef resources, insufficient
funds are allocated by government to implement these parks. This situation is compounded by
the absence of specific information and detailed understanding by policy makers of the true
value and economic benefits of reef resources. This thesis examines the an economic valuation of improved management of MPAs in the
Maldives using Dhigali Haa, an MPA in Baa Atoll, Maldives, as a case study. A contingent
valuation survey to elicit the willingness to pay of tourists visiting Baa Atoll to see improved
management at the MPA was used in estimating the potential benefits. In addition, local
community consultations were conducted to understand local perceptions of MPAs and their
effectiveness, and to develop a feasible improved management scenario. The local consultations confirmed that Dhigali Haa was not effectively managed, leading to
continued illegal use and degradation of the reef. The results of the CV survey revealed support
from tourists visiting Baa Atoll to pay for improved management of Dhigali Haa. A one-off
conservation fee per visit for all tourists visiting Baa Atoll was preferred over a user fee solely
for divers visiting Dhigali Haa. The estimate for the mean WTP for the conservation fee was
US$35±5 compared to a mean WTP of US$15±5 for the user fee. Comparisons between the cost
of implementing improved management and the benefits gained from tourist fees showed that a
conservation fee would be more beneficial than a user fee. The estimated net present value for
funding the improved management via a conservation fee was US$8.65 million.
