The Economic Value of US Coral Reefs: 2001 – 2011

1

THE ECONOMIC VALUE OF

 U.S. CORAL REEFS

2001 – 2011

SUMMARY REPORT

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2

NOTE: This summary document is a companion document to another report entitled “The Total 

Economic Value of US Coral Reefs: A Review of the Literature” - Brander et al (2013). The Brander 

report presents a detailed analysis of US coral reef valuation studies. The authors conducted a metaanalysis of the seven studies presented in this report in addition to a few other valuation studies not 

included here. The Brander study is a more technical document than this summary report. However 

for those who require more in depth analysis they are free to refer to it at the web link provided 

here: http://coralreef.noaa.gov/Library/Publications/valuemetaanalysis.pdf

This report was made possible with support from NOAA's Coral Reef Conservation Program

EDITED BY Peter E.T. Edwards

Economist and Social Science Coordinator

NOAA Coral Reef Conservation Program. 2013. 

Summary Report, The Economic Value of U.S. 

Coral Reefs. Silver Spring, MD:NOAA

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Contents

Introduction.....................................................................................................................................3

Background......................................................................................................................................4

Florida................................................................................................................................................6

Hawaii................................................................................................................................................9

American Samoa...........................................................................................................................11

Commonwealth of the Northern Mariana Islands (CNMI): Saipan..............................14

Guam................................................................................................................................................16

Puerto Rico....................................................................................................................................18

US Virgin Islands..........................................................................................................................20

Conclusions...................................................................................................................................22

References.....................................................................................................................................23

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The Economic Value of US Coral Reefs: 2001 – 2011

Introduction 3

Coral reefs are among the most valuable ecosystems on Earth, they provide humans with billions 

of dollars in economic and environmental services (also known as ecosystem services) such as 

food, protection for coasts, and tourism. However, increasing population growth rates along with 

economic and industrial development has resulted in unprecedented pressure to coral reefs. These 

pressures include impacts from climate change, unsustainable fishing, and land-based pollution.

Domestically, the NOAA Coral Reef Conservation Program (CRCP) funds and equips reef conservation 

activities by NOAA and its partners in the seven US states and jurisdictions containing coral reefs 

(American Samoa, the Commonwealth of the Northern Mariana Islands, Florida, Guam, Hawai`i, 

Puerto Rico, and the US Virgin Islands), as well as in uninhabited islands including the Northwestern 

Hawaiian Islands and the Pacific Remote Island Areas.

Given some of the threats mentioned above, there are a few questions to consider. How much are 

coral reefs worth to society? How much do people care about coral ecosystems? Can we demonstrate 

the value of these unique ecosystems and account for what we stand to lose if they are irreparably 

damaged? Providing answers to these questions can assist with better decisions that influence coral 

reef resource management and policy. One way to provide answers is through the use of Economic 

Valuation techniques.

The CRCP recognizes the benefits gained from the strategic use of social science tools in US coral reef 

jurisdictions and one of these tools includes Natural Resource Valuation. Since 2001, the program 

has funded social science activities including, valuation studies in seven (7) US coral reef jurisdictions. 

This document attempts to summarize the major findings of these studies in order to provide an 

overall report on the value of US coral reefs. 

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4 Background

This document summarizes the work done over a ten year period on seven US coral reef 

jurisdictions. NOAA was a significant contributor to the seven valuation studies that were 

conducted during the period. It should be noted that while all the studies were economic 

valuation studies, they each may have used slightly different approaches. Additionally, 

each of these studies varies slightly in terms of the theoretical economic assumptions (Total 

Economic Value, Benefit Transfer, Economic Impact). A list of common valuation approaches 

is shown in the table below. The references provided for each individual study contain more 

details on methodology and findings. 

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Table 1 Common valuation techniques for goods and services of coral reefs

Technique Goods and services 

Directly applicable market techniques

Loss of earnings / Human capital approach (HC) Tourism/recreation 

Change in Productivity / Effect of production (EoP) Fisheries/ornamental use/tourism 

Stock (houses, infrastructure, land) at Risk (SaR) Coastal protection 

Preventive expenditures (PE) Coastal protection 

Damage Costs (DC) Coastal protection 

Replacement costs (RC) Coastal protection 

Revealed preference techniques

Travel-cost approaches (TC) Tourism/recreation 

Hedonic pricing method (HP) Amenity value 

Stated preference techniques

Contingent valuation methods (CVM) Cultural services, biodiversity 

Choice Experiment (CE) Cultural services, biodiversity 

Source: Adapted from Dixon (1990), Barton (1994).

Notwithstanding the application of slightly different methodological approaches, which 

produce different ranges of values1, the results and findings in each study support and confirm 

that coral reefs provide significant benefits to society. Understanding the value of coral reefs 

therefore provides information that can be used to improve the allocation of resources to ensure 

conservation.

The report summaries are presented in chronological order 

• Florida (2001)

• Hawaii (2002)

• American Samoa (2004)

• Commonwealth of the Northern Mariana Islands (CNMI-Saipan) (2006)

• Guam (2007)

• Puerto Rico (2008)

• US Virgin Islands (2011)

The table below outlines the annual values converted to 2012 dollars (real dollars) for comparison 

across jurisdictions. Results presented below are based on CRCP funded projects only.

Table 2 Total Economic Values of US Coral Reef Jurisdictions (2012$)

Location Study Year Present Value (2012$ Million/Year)

Florida 2001 324

Hawaii 2002 455

American Samoa 2004 11

CNMI – Saipan 2006 68

Guam 2007 150

Puerto Rico 2008 1,161

US Virgin Islands 2011 210

1

For example the Puerto Rico study used the Total Economic Valuation approach that sums different types of 

estimated values and this in turn results in a very high (aggregated) dollar amount.

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6 Florida

Title: Socioeconomic Study of Reefs in Southeast 

Florida: Final Report (2001)

Johns, Leeworthy, Bell and Bonn

This study determined the net economic value of southeast Florida’s natural and artificial 

reef resources to the local economies and the reef users. Southeast Florida is defined as the 

counties of Palm Beach, Broward, Miami-Dade and Monroe. The study area included, from 

north to south, the cities of West Palm Beach, Fort Lauderdale, and Miami, and the Florida Keys. 

Using survey research methods the researchers measured the economic contribution and 

the use values of artificial and natural reefs over the twelve-month period of June 2000 to 

May 2001. The reef users surveyed were boaters who are recreational fishers (commercial 

fishers were not included), reef divers, reef snorkelers and/or visitors viewing the reefs on 

glass-bottom boats. The study used a combination of approaches including estimating the 

economic contribution of visitor and Florida resident spending as well as reef users’ willingness 

to pay for maintaining the condition of the reefs. The study was funded by each of the four 

counties, the Florida Fish and Wildlife Conservation Commission through the use of Federal 

Aid in Sport Fish Restoration funds, and the National Oceanic and Atmospheric Administration 

through the Socioeconomic Monitoring Program for the Florida Keys National Marine 

Sanctuary. 

Between 2000 and 2001, surveys were conducted on the following groups of respondents: 

Resident boaters (mail survey), General visitors (intercept survey), Visitor boaters (intercept 

survey) and Charter/Party boats (mail survey). The surveys collected information that was 

used to estimate participation rates in reef related activities, expenditures related to reef use, 

willingness to pay and demographic information. 

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Findings

Contribution of Reef-Related Spending to the County Economies 

The total economic contribution of the reefs to each county is measured as the contribution of 

reef-related expenditures to county sales, income and employment. As residents and visitors 

spend money in the county to participate in reef-related recreation, income and jobs are created 

within the county. Economic contribution2 includes the direct, indirect and induced effects of 

visitor spending and the direct effects of resident spending.

Reef-related expenditures generated $505 million in sales in Palm Beach County, $2.1 billion in 

sales in Broward County, $1.3 billion in sales in Miami-Dade County and $490 million in sales in 

Monroe County during the 12-month period from June 2000 to May 2001. These sales resulted in 

$194 million in income to Palm Beach County residents, $1.1 billion in income to Broward County 

residents, $614 million in income to Miami-Dade County residents and $139 million in income 

to Monroe County residents during the same time period. Reef-related expenditures provided 

6,300 jobs in Palm Beach County, 36,000 jobs in Broward County, 19,000 jobs in Miami-Dade 

County and 10,000 jobs in Monroe County

Table 3 Economic Contribution of Reef-Related Expenditures to Each County* 

2

Please note, economic contribution (or impact) as described here is different from “economic benefit or value”. 

Economic value resides in the contributions that ecosystem functions make to human well-being, while economic 

impact describes localized economic effects on local businesses and communities (sales, employment, income and 

taxes). Economic impacts do not measure benefits to resource users.

Type of Economic Contribution Palm Beach Broward

County

Miami-Dade

County

Monroe

County

Sales – All Reefs

(in millions of 2000 dollars)

$505 $2,069 $1,297 $490

Artificial Reefs $148 $961 $419 $127

Natural Reefs $357 $1,108 $878 $363

Income – All Reefs

(in millions of 2000 dollars)

$194 $1,049 $614 $139

Artificial Reefs $52 $502 $195 $33

Natural Reefs $142 $547 $419 $106

Employment – All Reefs

(number of full- and part-time jobs)

6,300 36,000 19,000 10,000

Artificial Reefs 1,800 17,000 6,000 2,000

Natural Reefs 4,500 19,000 13,000 8,000

*The economic contributions cannot be summed over the four counties to get the total economic contribution of 

the reefs to southeast Florida. This is because the concept of economic contribution looks at the economy of the 

individual geographic area as a separate entity from its neighbors.

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June 2000 to May 2001 – Residents and Visitors

Economic Value that Reef Users Place on the Reefs 

While the results above highlight the economic impacts from sales and expenditures the researchers 

also conducted an economic valuation exercise. The researchers used a contingent valuation 

approach to derive the economic values Florida reef users have. Users were asked about their 

willingness to pay for specific reef programs. The study estimated four types of use values, these were: 

(1) the value to natural reef users of maintaining the natural reefs in their existing condition; (2) the 

value to artificial reef users of maintaining the artificial reefs in their existing condition; (3) the value 

to artificial and natural reef users of maintaining both the artificial and natural reefs in their existing 

condition; and (4) the value of adding and maintaining additional artificial reefs. The respondents 

were asked: “If your total cost per trip would have been $______ higher, would you have been willing to 

pay this amount to maintain the (kind of reef – artificial or natural or both) in their existing condition.” 

Estimates of value were derived from the survey data using econometric analytical techniques.

The report found that the aggregate value of visitor and resident reef users in all four counties 

was $255 million per year for the purpose of maintaining both the artificial reefs and the natural 

reefs in southeast Florida in their current condition by maintaining water quality, limiting damage to 

reefs from anchoring, and preventing overuse of the reefs. When the projects to protect the artificial 

and natural reefs are considered separately, visitor and resident reef users in all four counties are 

willing to pay $85 million per year to protect the artificial reefs and $228 million per year to protect 

the natural reefs in southeast Florida.

For further details see full study http://coastalsocioeconomics.noaa.gov/core/reefs/02-01.pdf 

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Economic valuation of the coral reefs of Hawaii 

(2002)

Cesar, van Beukering, Pintz and Dierking

Coral reefs are essential for the livelihood of many Hawaiians, through both the provision of tourism 

and fisheries. Reefs also protect coastal infrastructure, tourist beaches and communities through 

their ability to dissipate wave energy. In addition, coral reefs play an important spiritual and cultural 

role in Hawaiian society. The objective of the study were threefold: (i) to assess the economic value 

of selected case study areas (see below) and of Hawaii as a whole, (ii) to determine the economic 

costs of reef degradation; (iii) to compare the costs and benefits of various management options 

which aim to reverse these trends. The economic valuation of natural resources presents a major 

challenge: how to put a price-tag on goods and services from coral reefs that are not typically 

traded in the market. A host of valuation techniques are available to value these ecosystem goods 

and services. Those used in this study are the Effect on Production (EoP); Replacement Costs (RC); 

Damage Costs (DC); Travel Costs (TC); and the Contingent Valuation Method (CVM)2. 

Findings

The average annual benefits that accrue from Hawaiian coral reefs amount to $364 million. This 

leads to a net present value of nearly $10 billion (at a discount rate3 of 3%). This figure represents 

the asset value of the coral reefs of the Main Hawaiian Islands. Sensitivity estimates suggest that 

without discounting, this asset value would be as much as $19 billion, while a discount rate of 15% 

would produce a corresponding net present value of $2.8 billion. The largest contribution (85%) 

to the yearly benefits of $364 million is the annual value added by recreation and tourism ($304 

Hawaii 

2 Refer to Table 1

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million). Second contributor to overall value is the amenity/property value, with benefits of $40 

million per annum. The impact of reefs on the total property value in Hawaii is modest, but as total 

property values are so high in Hawaii, a high coral reef related value is still generated. The third most 

important benefit is biodiversity. This is partly expressed in terms of reef-related research expenditures 

($10 million per year) and partly in terms of non-use value ($7 million per year). The latter value was 

estimated through benefit transfer4.

Table 4 Annual benefits and the net present value of the Hawaiian coral reefs and the 

different study sites

The table above shows the various benefits for the three case studies, as well as the figures for the 

State of Hawaii. For Hawaii overall, the asset value of its coral reefs are estimated to be $ 9.7 billion.

This is the determined as the sum of all future quantified benefits streams over a 50-year period and a 

3% discount rate. The last column in the table shows the composition of the main economic benefits 

of the coral reefs in Hawaii. 

The average annual value of the coral reef ecosystem amounts to $364 million. This leads to a net 

present value at a discount rate of 3% of nearly $10 billion. Without discounting this value would 

be nearly $19 billion, while at a discount rate of 15% the net present value amounts to $2.8 billion. 

These high numbers certainly indicate that it is important, both from an ecological and an economic 

perspective, to take care of this valuable resource. (For more on discount rates http://www.iearesearch.

com/papers/discounting.pdf)

It should be noted that a related study was sponsored by NOAA’s Office of Response and Restoration. 

A choice experiment study of the Northwestern Hawaiian Islands was conducted and the researchers’ 

estimated a coral reef value of approximately $34 Billion dollars (Bishop et al 2011). This figure 

represents non-use value5

 for the entire US Population. However as mentioned previously, the results 

of that study are not included in this report. 

For further details on the 2002 Hawaii study, go to: http://www.hcri.ssri.hawaii.edu/files/research/pdf/

cesar_noaa_final_report_01-02.pdf 

3 Similar to “interest rate”, discount rate is used in cost-benefit analysis and discounted cash flow analysis to calculate 

the present value of profits that will be received in the future.

4

 Benefit transfer involves transposing existing monetary environmental values estimated at one site (study site) to 

another (policy site), usually with similar context or physical characteristics. 

5

 Economists classify ecosystem values into several types. Two common categories are use values and non-use, or 

“passive use” values. Use values are based on actual use of the environment (diving, fishing) while non-use values 

are values that are not associated with actual use (direct use) of an ecosystem or its services. Another category is 

“existence value”, which is the non-use value that people place on simply knowing that something exists, even if they 

will never see it or use it.

Hanauma

Bay, Oahu

Kihei Coast,

Maui

Kona Coast,

Hawaii

Hawaii -

overall

Recreational value Million$/year 36.23 8.02 8.06 304.16

Amenity value Million$/year 0.00 18.26 4.47 40.05

Biodiversity value Million$/year 1.11 1.71 4.35 17.00

Fishery value Million$/year 0.01 0.10 0.7 2.50

Education spill-over value Million$/year 0.22 - - -

Total annual benefits Million$/year 37.57 28.09 17.68 363.71

Net Present Value @ 3% Million$ 1,503 522 389 9,722

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Economic Valuation of Coral Reefs and Adjacent 

Habitats in American Samoa (2004)

Spurgeon, Roxburgh, O’ Gorman, Lindley, Ramsey and Polunin 

The coral reefs of American Samoa are one of its most valuable assets, providing benefits to 

generations of islanders. However, with one of the fastest population growth rates in the world 

and rapid economic and industrial development the island’s coral reefs have come under pressure 

from habitat loss, over fishing and pollution. In December 2003, the Department of Commerce 

commissioned a study to undertake an economic valuation of the coral reefs and adjacent habitats 

of American Samoa. The overall aim of the study was to undertake an economic valuation of coral 

reefs and adjacent habitats in American Samoa, of sufficient quality and content, to guide future 

use of resources and management for the territory. In particular, the aim was to focus on current 

and potential values for corals and mangroves focusing on artisanal and subsistence fisheries, 

shoreline protection and recreation/tourism (ecotourism). The study also attempted to estimate 

potential nonuse values. That is, values that were predominantly related to social, cultural and 

biodiversity aspects. Potential nonuse values result from the fact that people may have a value 

for maintaining coastal resources irrespective of their actual use of the resource. The ultimate hope 

of this effort was that the study information produced would be used to assist in overall policy 

decision-making, particularly to guide resource management for future generations. 

A general public contingent valuation questionnaire was designed and used to collect 

information about the use and importance of coral reefs and mangroves to the local residents 

on American Samoa. The main aim was to elicit a willingness to pay value covering use and nonuse values. The survey was initially piloted amongst a small sample (14 persons) in January 2004 

before being modified and conducted island wide in February 2004. Responses were obtained 

from 300 residents from 44 villages on Tutuila, Ofu and Olosega. Interview sampling locations and American Samoa 

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respondents were selected to be reasonably representative of population distribution (e.g. 90% in 

southern Tutuila) and socio-economic characteristics (e.g. gender, age, place of birth). Potential 

future values were calculated based on two scenarios; a business as usual (BAU) scenario and an 

optimum sustainable management (OSM) scenario.

Findings

The coral reefs and mangroves of American Samoa both provide significant benefits to the territory 

and mainland US. Total benefits to American Samoa residents and visitors are estimated to be worth 

around US$ 5 million/year for coral reefs and US$ 0.7 million/year for mangroves. When potential 

non-use benefits accruing to US citizens are included, overall benefits could be in the order of at 

least US$ 10 million/year for coral reefs and US$ 1.5 million/year for mangroves. The economic 

value of corals in American Samoa was shown to be relatively low when compared to other US coral 

reef jurisdictions. This is because tourism and recreational access to corals is limited, extensive manmade shoreline defenses have already been constructed (due to significant beach sand and rubble 

mining) and because there is a relatively small and poor population.

Table 5 Current coral reef annual values (US$/year)

Table 6 Current mangrove annual values (US$/year)

Type of benefit Residents Visitors US public Total

Use benefits Direct subsistence fishery products 572,000 - - 572,000

Direct artisanal fishery products 44,000 - - 44,000

Direct subsistence fishing CS1 73,000 - - 73,000

Direct snorkelling/diving CS1 38,000 12,000 - 50,000

Direct snorkel/dive expenditure2 17,000 7,000 - 23,000

Indirect artisanal fishery products3 70,000 - - 70,000

Indirect shoreline protection 447,000 - - 447,000

Non-use benefits 3,598,000 216,000 4,964,000 8,778,000

Total benefits 4,858,000 235,000 4,964,000 10,057,000

Type of benefit Residents Visitors US public Total

Use benefits Direct subsistence fishery products 29,000 - - 29,000

Direct subsistence fishing CS1 4,000 - - 4,000

Indirect fishery products2 13,000 - - 13,000

Indirect shoreline protection 135,000 - - 13,5000

Non-use benefits 541,000 32,000 745,000 1,318,000

Total benefits 722,000 32,000 745,000 1,499,000

1. CS = Consumer Surplus

2. Visitor expenditures are actually a cost to visitors and a benefit to local businesses/residents

3. Offshore reef-associated bottomfish.

1. CS = Consumer Surplus

2. Component of the direct coral reef fishery (accounted for in Table 1)

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The tables above also highlight that with US public non-use values included, around 50% of coral 

reef and mangrove values accrue to residents of American Samoa, equivalent to US$ 4.9 million/

year and US$ 0.7 million/year respectively. Around 75% of the resident values are related to 

non-uses, which partly capture traditional and social values. However, of particular significance for 

residents are subsistence fishery catches (worth US$ 0.6 million/year), shoreline protection services 

(US$ 0.5 million/year) and subsistence consumer surplus, which represents part of the way of life in 

American Samoa (US$ 73,000/year).

When considered at a macro-scale (e.g. the entire territory or an individual island), the total values 

appear reasonably large. For instance, the annual coral reef resident and visitor use and non-use 

values (US$ 5 million) outweigh the current coastal zone management expenditure of around US$ 

2 million per year by two and a half times. Including non-use values for the US population, the total 

of US$10 million outweighs the management expenditure by five times. Without this investment in 

management, the coral and mangrove values would rapidly decline to virtually zero.

For more details you can find the full report here http://www.coralreef.gov/meeting18/

ascoralvaluation_samoa_2007.pdf 

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14 The Economic Value of the Coral Reefs of Saipan 

(2006)

van Beukering, Haider, Wolfs, Liu, van der Leeuw, Longland, Sablan, Beardmore, 

di Prima, Massey, Cesar and Hausfather

van Beukering et al (2006) estimate the total economic value of coral reefs and associated 

resources on Saipan in the CNMI. This study was commissioned by the US Department of the 

Interior and NOAA. The main objective of the study was to carry out an economic valuation of 

the coral reefs and associated resources on Saipan and examine the potential for sustainable 

financing of conservation efforts. The primary purpose of the household survey (of 375 local 

residents) was to determine the nature and level of the use and non-use values of coral reefs, 

from the perspectives of local communities on Saipan.

The survey covered a number of issues, such as respondents’ level of beach and marine 

recreation, environmental awareness, fishing activities and the importance of fish in their diet. 

The survey showed that the residents of Saipan are strongly connected to the coral reefs and the 

ocean. Citizens of Saipan heavily use the marine environment surrounding the island for fishing 

and recreational activities. As such, there is strong concern about further deterioration of the 

marine environment on Saipan and stong support policy interventions by the CNMI government 

to reverse the negative trend.

Commonwealth of the Northern Mariana Islands Saipan

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To estimate the economic value of the above-mentioned non-market values, a Discrete 

Choice Experiment (DCE) was used. Respondents were presented with a series of choice sets, 

composed of different attributes associated with reefs and their management (e.g. recreation, 

fisheries, tax payments). They were then asked to choose between these choice sets. Saipan’s 

residents appeared to place a similar value on the ability of reefs to provide local recreational 

benefits and supply culturally significant fish species. Although there is some indication that 

Saipan’s residents may support increasing the size of the MPA in the lagoon, they are much 

more concerned with the effects of pollution and managing pollution as a threat to the reefs. 

They are generally willing to pay more tax for this issue to be addressed. The total annual 

values for each service are summarized in Table 7 below. The table shows that reef related 

tourism values account for the largest share of total economic value.

Table 7 Total coral reef values for CNMI (millions US$/Year; 2007 prices)

The researchers also investigated the spatial dimension of interactions between the economy 

and coral reefs. They found that in general, the beneficiaries of the reefs’ goods and services 

were not spread evenly throughout Saipan, but varied from location to location. They used 

Geographic Information System (GIS) tools to analyze this spatial variation in economic values. 

They found that the average value of reefs per square kilometer amounted to $0.8 million 

however the highest value per square kilometer was around $9 million. The highest value 

categories were attributed to the most popular diving and snorkeling sites. Based on their 

comparison of the distribution of reefs’ total economic value and their anthropogenic threats, 

the authors conclude that, in general, the more valuable the reef, the poorer their condition 

and the greater their threats.

Based on the study findings and in conjunction with Saipan’s Local Action Strategy, the 

following policy recommendations were provided;

1. Tackle the problem of non-point and point source pollution;

2. Make use of the cultural importance residents place on marine ecosystems to improve 

coral reef management;

3. Develop a comprehensive system of user fees for visitors of the Marine Protected Areas 

on Saipan.

For further details the full study can be found here: http://www.crm.gov.mp/pubs/22.pdf 

Ecosystem service Valuation method Total value (millions, US$)

Amenity Value transfer 3

Commercial fishery Net factor income 1

Tourism Travel cost method 45

Recreation Travel cost method 6

Coastal protection Avoided damage costs 9

Research Net factor income 1

Total Economic Value 65

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Economic Value of Guam’s Coral Reefs (2007)

van Beukering, Haider, Longland, Cesar, Sablan, Shjegstad, Beardmore, Liu, Garces 

The objective of this study was to carry out a comprehensive economic valuation of the coral reefs 

and associated resources in Guam. The focus was on valuing the five main uses of coral reefs in Guam. 

Some of these are extractive uses, such as fisheries (i); others are non-extractive, such as recreation/

tourism (ii), cultural/traditional uses (iii), and education and research (iv). Indirect uses such as shoreline 

and infrastructure protection (v) are also included in the study. The aim being that with a better 

understanding of the economic importance of coral reefs, Guam’s decision makers can formulate more 

effective policies utilizing limited funds.

The valuation of Guam’s coral reefs involved a series of steps leading to the estimation of the total 

economic value. The researchers also examined the underlying motives and mechanisms that lie behind 

the estimated values. In particular, they focused on (1) people’s relationships with marine ecosystems; (2) 

local willingness to pay for coral reef conservation; (3) the economic importance of Guam’s reefs; and (4) 

the spatial variation of reef-associated values and threats. The main purpose of the household survey (of 

400 local residents) was to determine the nature and level of the cultural value of coral reefs. The survey 

covered a number of issues, such as respondents’ level of beach and marine recreation, environmental 

awareness, fishing activities and the importance of fish in their diet.

Findings

The study found that local residents utilize the coastal marine ecosystems for recreational purposes. 

A majority of the respondents in Guam have barbeques, swim or wade at the beach. Nevertheless, 

only a minority can actually swim. A significant share of respondents participates in snorkeling and 

diving. Clean, clear and safe water and good public facilities were considered to be the most important 

recreational amenities. Coral reefs and fish abundance were also mentioned as relevant, but were 

not considered to be crucial amenities. Most local residents reported witnessing a degradation of the Guam

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marine environment in recent decades, in particular a decline in both water quality and fish abundance. 

Between 35% and 45% of respondents were active fishermen. On average, fishermen go fishing around 

once a week. Despite the depleted fish stocks, fishing has not declined in popularity. In fact, because 

fishermen have grown older and have more time available, they now go fishing more frequently. 

Residents of Guam use the marine environment for fishing and recreational activities. As a result, 

people are concerned about degradation of the marine environment and are willing to support policy 

interventions that will address the issue. In fact, residents of Guam have clear ideas about the direction in 

which these policies should move.

The researchers also conducted a Discrete Choice Experiment valuation survey to estimate total 

economic values (TEV) for Guam’s coral reefs. The study valued the six main ecosystem services provided 

by coral reefs in Guam, namely support for commercial fisheries, recreation, tourism, cultural/traditional 

uses, research, and shoreline protection. The total annual values for each ecosystem service and the 

valuation methods used are summarized in Table 8. The total economic value of Guam’s coral reefs is 

dominated by the value of tourism activities, which represents approximately three quarters of the TEV.

Table 8 Total coral reef values for Guam (millions US$/year; 2007 prices)

The authors identified a number of important areas in need of protection:

• The most valuable coral reefs are located within 200 meters of the most popular diving and snorkeling 

spots. 

• Coral reefs in the inner areas of Tumon, Agana and Piti Bays are valuable because of their 

proximity to the numerous hotels, beaches and parks in these bays.

• Coral reefs along the southern coastline of Guam have a relatively high economic value because 

of their roles in tourism, fisheries, coastal protection and amenities provision. However, due to 

serious sedimentation, these reefs are highly threatened.

• The coral reefs located in the north and northeast of the island are in better condition, but their 

economic (use) value is relatively low.

The report offered some policy recommendations for consideration. The authors suggest that in order 

to provide economically-sound guidance to decision makers on the management of coral reefs, it was 

important to:

1. Identify both the most valuable, and most seriously threatened, reefs in Guam;

2. Determine the type of threat endangering a specific reef and select a number of potentially 

worthwhile interventions;

3. Evaluate the economic benefits and financial costs associated with these interventions, and;

4. Find sustainable sources of funding for management interventions.

For more details go to: 

ftp://data.nodc.noaa.gov/pub/data.nodc/coris/library/NOAA/CRCP/project/1029/econ_value_guam_

coral_reefs.pdf 

Ecosystem service Valuation method Total value (millions, US$)

Tourism Travel cost method 104

Recreation Value transfer and net factor income 10

Commercial Fishery Net factor income 4

Amenity Hedonic pricing 11

Coastal protection Avoided damage costs 9

Research Net factor income 2

Total Economic Value 139

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Economic Assessment of Eastern Puerto Rico’s Coral 

Reefs and Associated Environments (2008)

Estudios Técnicos Inc

The Puerto Rican Department of Natural and Environmental Resources hired the consulting firm 

Estudios Técnicos Inc., to carry out an economic assessment of the coral reefs and associated 

environments of eastern Puerto Rico, namely Fajardo, the Cordillera reef system, Vieques and Culebra. 

The objective of the study was to calculate the total economic value of the coral reefs and associated 

resources in this part of eastern Puerto Rico. 

Approach

The report calculated total economic value on the basis of goods, roles, and services provided by this 

ecosystem. Using the TEV approach they arrive at this value by adding the use values (value of goods 

and services) and passive values (future value, legacy value, existential value, and biodiversity value). 

Findings

The non-use values for the Puerto Rican population are estimated through the application of the 

contingent valuation method and again show that these types of values, when estimated, dominate 

the total economic value of coral reefs. The total annual values for each service are summarized in 

Table 9. Puerto Rico

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Table 9 Total coral reef values for Puerto Rico (millions US$/year; 2007 prices)

Coral reef resources, however, continue to deteriorate, mostly due to poor land use practices 

and improperly regulated tourist/recreational activities. Over the course of this study, factors 

were identified that have the potential to impact the effective management of these resources, 

including the following:

1. A lack of understanding on the part of the general population of the importance of coral 

reefs and their interconnectedness with other costal resources;

2. A lack of understanding on the part of the general population of what types of tourism/

recreational activities are harmful to the resources;

3. The extension and condition of these resources are unknown;

4. Information on research and researchers of these resources is scattered; and

5. The Commonwealth has laws and regulations on the books to protect the reefs, but their 

enforcement has been inadequate.

Based on the analysis of uses, users, and threats uncovered in the economic assessment exercise, a 

number of recommendations were put forward. They were roughly grouped under Management 

and Financing Recommendations.

The management recommendations were:

• Establishment of areas where fishing is permanently banned

• Significantly increase penalties for violations of environmental law

• Implement a study that details the characteristics and demarcation of the zone

• Engage in ecosystem surveillance and supervision

• Limit access to the most sensitive areas

• Buoy placement

• Promotion of sustainable tourism

• Ongoing restoration and monitoring programs

• Implementation of a system for boat access to the area

• Visitor information program

While the suggested financing recommendations were:

• Impose an environmental tax to finance a small fund for maintaining the natural resources 

of eastern Puerto Rico

• Include tourists and users in the protection and management of the area

Ecosystem service Valuation method Total value (millions, US$)

Small-scale fishing Gross revenue 1

Recreation and tourism Travel cost 192

Coastal protection Value transfer 1

Education and research Gross revenue 1

Existence value Contingent valuation 306

Future value Contingent valuation 193

Bequest value Contingent valuation 210

Biodiversity Contingent valuation 191

Total Economic Value 1,093

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The Economic Value of the Coral Reef Ecosystems of 

the United States Virgin Islands (2011)

van Beukering, Brander, van Zanten, Verbrugge and Lems

The objective of this study was to provide a quantitative measure of how important the reefs are to 

the USVI in monetary terms and also to generate a reference point with which to compare possible 

alternative development/conservation plans. The assumption being that information on the Total 

Economic Value (TEV) of reefs should provide a basis for advocating the preservation of the coral 

reefs in USVI, establishing damage compensation, setting fees for permit applications or determining 

potential user fees for residents and tourists.

Approach

The approach for this study was to focus on valuing the six main uses of coral reefs and adjacent 

habitats in selected sites on the USVI: (1) fishery value; (2) tourism value; (3) recreational and cultural 

value; (4) real estate value; (5) shoreline protection; and (6) education/research values. Based on the 

overall approach mentioned, the study involved a wide range of research activities. These include the 

following:

1. An elaborate local resident survey aimed at estimating the local cultural and recreation 

attachment to the marine environment;

2. An extensive tourist survey with the objective to get a comprehensive insight into the 

importance of the marine environment for visitors to the USVI;

3. A thorough analysis of the coastal protection function of reefs thereby revealing the role of coral 

reefs in avoiding storm damage to properties and infrastructure; US Virgin Islands

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4. A hedonic pricing analysis based on real estate transactions which demonstrated the positive 

impact of healthy reefs on house prices;

5. A spatial analysis aimed at preparing value maps of the coral reefs of the USVI.

6. An aggregation exercise combined with a rapid scenario analysis leading to the estimation of 

the TEV of coral reefs of the USVI.

Findings

The above activities resulted in the estimation of the main ecosystem services provided by coral reefs 

in the USVI. However estimation of the various ecosystem service values involved a large number 

of assumptions that simplify the underlying dynamics and complexity of coral reefs in the USVI. The 

authors of this study presented lower and upper bound estimates determined for each ecosystem 

service, recognizing the uncertainty surrounding the economic analysis. In the case of coastal 

protection, for example, the different storm frequencies available in the literature were used to create 

a range of values. In the case of the fishery values, the wide range of financial cost estimates was used 

to set the upper and lower bound of the value. The ranges estimated for each ecosystem service is 

presented in Table 10 below. 

With an average estimate of US$ 202 million per year, the lower bound estimate is determined at 

almost US$100 million per year while the upper bound is set at US$273 million per year. The authors 

suggest that further study could allow for the reduction of uncertainties and thus the narrowing of 

the value range.

Table 10 Upper and lower bound estimates of the annual benefits of coral reefs in the 

USVI (2010US$ million/year)

The study provides various insights that may be used to develop policy measures which directly 

contribute to more sustainable management of coral reefs in the USVI. It also provided a clear 

perspective of who benefits most from healthy coral reefs. Those who stand to gain the most 

may be ideal contributors to the preservation of the USVI coral reefs. The study shows that next 

to tourists, the second most important beneficiary of the coral reefs is the local community, who 

benefits from the reef in various ways (e.g. recreation, culture, coastal protection). Through stronger 

engagement of the local public in marine management, decision makers may build more local 

support for conservation oriented measures while at the same time enhancing the awareness of local 

communities.

For further details see full study:

http://www.ivm.vu.nl/en/Images/The%20Economic%20Value%20of%20the%20Coral%20Reefs%20

of%20the%20USVI_tcm53-232341.pdf

Ecosystem Service Lower bound Average Upper bound

Tourism 64.7 102.9 141.0

Recreation & Cultural 17.5 51.1 66.7

Amenity 9.7 37.1 47.2

Coastal protection 3.4 6.7 13.4

Fishery 3.1 3.3 3.4

Research & Education 0.5 1.0 1.5

Total annual economic value 98.9 202.1 273.2

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Conclusion

This document presents a brief summary of seven NOAA Coral Reef Conservation Program funded 

studies. Other valuation studies were conducted in some of the same jurisdictions over this period. 

For the purposes of this summary report, we have focused only on these seven studies. However, 

Brander et al (2013) present a detailed analysis of US coral reef valuation studies in which they 

include the seven studies discussed here as well as a few others. As part of their summary report, 

Brander et al conducted a meta-analysis of valuation data. They combined the data from all studies 

and ran multiple regression models that allowed them to examine relationships between variables, 

for example the statistical relationships between people and their demand (willingness to pay) 

for particular coral reef attributes. For example, they found that bundles of tourism/recreation 

activities were more highly valued that individual activities and non-use values for coral reefs were 

found to be substantially higher than other values.

Brander et al have estimated total economic value of coral reef services for all US coral reef 

jurisdictions at just over US$ 3.4 billion per year. The authors consider this value to be a partial 

estimate due to (1) the limited geographical coverage of some state/territory level TEV estimates 

and (2) the limited set of services that are valued for some states and territories. They have 

recommended that in order to develop a full picture of the TEV of US coral reefs it is necessary to fill 

the information gaps on non-use values for the remaining coral reef regions. 

Like the report discussed above (Brander et al 2013), this report also comes to a similar conclusion. 

Coral reefs contribute significant economic value to the US public. These studies also confirm 

that in order to continue to address the management needs and to build public support for 

conservation of these resources, economic values must be considered. 

Better consideration of these economic values should lead to more efficient decision making that 

balances the needs of development and conservation. The findings summarized here demonstrate 

a need for new valuation studies in order to update some of the more dated coral reef valuation 

estimates. In some cases, these studies are over 10 years old and would benefit from advances 

in valuation approaches and econometric techniques. New valuation studies should incorporate 

attribute based choice experiment survey approaches as well as the use of cutting edge hedonic 

analyses. 

The results from new studies should not only contribute to increased awareness of coral reef values 

but also could provide useful information that can lead to improvements in policy and decisionmaking. 

Total Economic Value of US Reefs by Jurisdiction (2012$)

Location Study Year Present Value (2012$ Million/Year)

Florida 2001 324

Hawaii 2002 455

American Samoa 2004 11

CNMI – Saipan 2006 68

Guam 2007 150

Puerto Rico 2008 1,161

US Virgin Islands 2011 210

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References

Bishop, R.C., Chapman, D.J., Kanninen, B. J., Krosnick, J.A., Leeworthy, V.R., and Meade, N.F. 

(2011). Total economic value for protecting and restoring Hawaiian coral reef ecosystems: Final 

Report. Silver Spring, MD: NOAA Office of National Marine Sanctuaries, Office of Response and 

Restoration, and Coral Reef Conservation Program. NOAA Technical Memorandum CRCP 16. 406 

pp.

Brander, L. and van Beukering, P. (2013) The Total Economic Value of US Coral Reefs : A Review of 

the Literature. February 2013. NOAA Coral Reef Conservation Program.

Cesar, H.J., van Beukering, P., Pintz, S., Dierking, J. (2002) Economic valuation of the coral reefs of 

Hawaii. December 23, 2002. NOAA Coastal Ocean Program and University of Hawaii Coral Reef 

Initiative Research Program.

Estudios Técnicos, 2007. Economic Assessment of Eastern Puerto Rico’s Coral Reefs and Associated 

Environments. San Juan, Puerto Rico

Johns, G.M., Leeworthy, V.R., Bell, F.W., and Bonn, M.A., 2001. Socioeconomic Study of Reefs in 

Southeast Florida. National Oceanic and Atmospheric Administration, National Ocean Service, 

Special Projects

Spurgeon, J., Roxburgh, T., O’ Gorman, S., Lindley, R., Ramsey, D., Polunin, N. (2004) Economic 

Valuation of Coral Reefs and Adjacent Habitats in American Samoa. Final Report. Department of 

Commerce and Government of American Samoa. November 2004

van Beukering, P, Wolfgang Haider, W., Wolfs, E., Liu, Y., van der Leeuw, K., Longland, M., Sablan, J., 

Beardmore, B., di Prima, S., Massey, E., Cesar, H., and Hausfather, Z. (2006). The Economic Value of 

the Coral Reefs of Saipan, Commonwealth of the Northern Mariana Islands. Cesar Environmental 

Economics Consulting, Arnhem, The Netherlands. Department of the Interior and National 

Oceanic and Atmospheric Administration. Washington DC. 

van Beukering, P., Haider, W., Longland, M., Cesar, H., Sablan, J., Shjegstad, S., Beardmore, B., Liu, 

Y., and Omega Garces, G. (2007) The Economic Value of Guam’s Coral Reefs. University of Guam 

Marine Laboratory Technical Report No. 116

van Beukering, P. Brander, L., Van Zanten, B., Verbrugge, E., Lems, K., (2011). The Economic Value of 

the Coral Reef Ecosystems of the United States Virgin Islands. IVM Report number: R-11/06.

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http://coralreef.noaa.gov/

NOAA Coral Reef Conservation Program, N/OCRM

1305 East West Highway, 10th Floor

Silver Spring, MD 20910-3281

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