The Economics
of Ecosystems
and Biodiversity
on Bonaire

Fishery value
of coral reefs
in Bonaire

2

The Economics of Ecosystems and Biodiversity on Bonaire

Fishery value of coral reefs in Bonaire
This study is part
of the “Economics
of Ecosystems
and Biodiversity
Netherlands”
(TEEB NL) study.
It is being conducted
for the Caribbean
Netherlands on behalf
of the Dutch Ministry
of Economic Affairs.

The Challenge
Fishing provides an important source of income and livelihood on the Caribbean Island
of Bonaire, also many people fish for recreational purposes. A large part
of the catch is composed of reef-dependent species, which rely on the health
and productivity of local coral reefs. To assist decision-makers in understanding
and managing these fragile ecosystems contributing to Bonairean well being the
economic value of reef-dependent fisheries is determined. Furthermore, the spatial
distribution of the economic value of the reef fisheries is revealed to help decision
makers understand which areas of reef are most economically important from
a fisheries perspectives.

The Approach
By estimating the economic value of the reef fisheries, which consists of both
recreational and commercial fishing, the total socio-economic value of reef fishing
on Bonaire is estimated. Commercial fishing is valued using the ‘net factor income
approach’. The recreational value of the reef fisheries is calculated using both the
‘choice modeling’ and the ‘market valuation’ method. The commercial and recreational
values are combined to arrive at a total, annual reef-fisheries value for the Island of
Bonaire. This aggregate value is then combined with spatial fisheries production data
using ArcGIS to create a fisheries value map of Bonaire.

Results & Recommendations
The reef-related total commercial fisheries are valued at almost $400,000 annually.
The recreational fishery value is estimated at an economic value of almost $700,000
per annum. These calculations have been used to create an allocation function,
which estimates the spatial distribution of the fisheries value along the coral reefs of
Bonaire. This in turn can be used to support long-term decision-making for example
regarding specific locations for coastal zone development and its impact on
commercial and recreational fisheries.

Fishery value of coral reefs in Bonaire

3

The Challenge
In the current era of financial insecurity and
environmental degradation it becomes clear
that classical investments in a strong economy
are not always contributing to a healthy
environment. In reaction, a growing minority
is working to demonstrate that the two are
interlinked, and that in fact a healthy
environment is critical to human as well as
financial wellbeing, especially in the longer
run. The challenge is to find methods to
accurately measure and valued these
ecosystem services.
This study deals with the socio-economic value
of Fisheries as a service of Bonaire’s coral
reefs. Fishing is an important activity on
Bonaire. Although it could be in conflict with
other ecosystem services, such as snorkeling
and diving, it is also a critical source of income
and livelihood for local people. Furthermore,
many people fish for recreational purposes.
While the export of fish is non-existent, both
locals and tourists consume the locally
caught fish. The study indicates that 15-20%
percent of the local population practice either
recreational or subsistence fishing.

Fishery value of coral reefs in Bonaire

A large part of the catch is composed of
reef-related species, which we define as
species that are reef-dependent for at least
one stage in their life cycle. The value of
the reef-related catch is related to the
health and productivity of local coral reefs.
Recent studies suggest that the health
of these coral reefs is declining due to
overfishing, nutrient pollution, and climate
change (Stokes et al, 2010). Thus, it is crucial
to estimate the socio-economic value of the
ecosystem service of reef-fishing, in order
to assist decision-makers with a better
understanding of the economic importance
of the coral reefs.
On Bonaire there is great dependence on
reef-fish as well as pelagic, migratory fish.
Reef-fisheries provide a significant source
of livelihood and economic activity on
Bonaire. Fishing is done mostly with hand
lines or by trawling. Estimating the socioeconomic value of the reef fisheries in
Bonaire helps demonstrate the importance
of the ecosystem services provided by the
beautiful coral reefs surrounding the island.

Fishing provides an
important source of
income and livelihood
on the Caribbean
Island of Bonaire

4

Figure 1:
Methodological
framework for the
calculation of the
total fishing value
and creation of a
value map

The Approach
‘Ecosystem services’ is a fairly new term,
and are defined as “the benefits that people
obtain from ecosystems” (MEA, 2005). The
goal of this study is to estimate the monetary
value of the ecosystem service Fisheries.
The fishery values, commercial as well as
recreational, are estimated by combining data
from two studies on the fisheries of Bonaire.
Jonhson (2011) interviewed 65% of active
fishers on Bonaire and Laclé et al. (2012)
surveyed 400 households asking questions on
recreational fisheries. During these interviews
fishermen with subsistence motives are found
in both categories. However, the importance
of the incentive varies between fishermen. To
calculate the value of commercial reef-fishing
in Bonaire, the net factor income approach is
used, in which the capital costs are subtracted
from the revenue of commercial fishing.
The recreational value of reef-fishing is
calculated based on the Willingness to Pay
(WTP) of fishermen to prevent decreases in
fish catch. A separate value is calculated for
the commercial value of the catch based on
the market-price technique.

Fishery value of coral reefs in Bonaire

These two values provide informative
comparisons. Once the two methods of
recreational value are reconciled, then the
final recreation and commercial fisheries
value are combined to calculate a total annual
reef-fisheries value. This number is then
combined with spatial, fisheries production
data to create a fisheries value map.

Figure 1

Commercial
fishery value

Recreational
fishery value

Fishery Survey
(N=40)

Fishery Survey
(N=400)

Fishery Income &
Consumer Surplus

Value of catch &
Willingness to Pay

Value map

5

Country Overview.
Bonaire is a Caribbean island of approximately 288 km2, with circa 16,000 permanent inhabitants.
Bonaire is a ‘special municipality’ of the Netherlands. The entire coastline of the island is designated
as a marine sanctuary in an effort to protect what are considered to be some of the most pristine
coral reefs in the Caribbean. Tourism accounts for the majority of economic activity on the island
and fishery hold significant economic and cultural influence. Much of Bonaire’s economy and
many of its residents rely on the quality of the island’s ecosystems. Bonaire currently has two
protected natural areas: the Bonaire National Marine Park (BNMP) set up in 1979 and the
Washington Slagbaai National Park (WSNP) set up in 1969. The national marine protected areas
include five Ramsar areas – Lac, Gotomeer, Pekelmeer, Slagbaai and Klein Bonaire.

Results
The analysis generates an economic value
of fisheries on Bonaire of approximately
$1 million per annum. The reef-related total
commercial fisheries are valued at almost
$400,000 annually. The recreational fishery
value is estimated at a market value of
almost $700,000 per annum. By asking the
best and worst year of fish catch to commercial
fishermen, it is possible to get an idea of the
extent to which fish stocks around Bonaire
are overexploited. The average worst year
reported was 2009, while the average best
year was 1998. Figure 2 shows the results
categorized by different age categories.
The best years are on average longer ago
for older fishermen. This data is a strong
indication that catches, and implicitly fish
stocks, are declining or a long time already,
with clear negative ramification on the
commercial, recreational, and subsistence
values of fishing. The figure also demonstrates
a shifting baseline regarding the fact that
the best perceived years by the younger
generation are close to the worst perceived
years by the older generation.

Fishery value of coral reefs in Bonaire

Using expert interviews with fishermen
to determine areas where fish are caught,
reef productivity, in terms of providing
habitat function for fish, is determined.
Mora and Sale, (2002) assume that reef-fish
populations are more closed then was
previously expected, which could mean that
fish are depended mostly on that particular
reef area where the fish has been caught.

Figure 2

2015
2010
2005
2000
1995
1990
1985
1980
young

middle

old

Age of the fishermen
best year

worst year

older

Figure 2:
Best and worst
years of catch
by age category

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7

Recommendations

Figure 3

Once the production of each area is determined,
an allocation function has been constructed
to give each area of the reef a value per
meter squared for both recreational and
commercial fishing. This function is used
to create two separate value maps for each
type of fishing (commercial and recreational)
using ArcGIS. The reef values in these maps
are then aggregated to create the final value
fishing map, shown in Figure 3. This map
indicates the most economically productive
areas of the reef, given fish yields reported
by fishermen.

Some interesting findings are presented
with regards to the different methods used
to estimate the economic value of the
reef-fisheries. As the WTP was much lower
than the market value of the catch for
recreational fishing, the importance of
fishing as an open access food source seems
to be significant, as does the benefit of fishing
to Bonaireans not practicing recreational
fishing. In local interviews it became clear
that fishing was used as a way to reduce food
expenses. It also demonstrates a healthy
protein intake, which contributes to human
wellbeing on Bonaire. In order to sustainably
manage reef resources, it is critical to quantify
pressures and manage the socio-economic
drivers behind them. While the calculations in
this analysis could be improved with additional
data at a finer resolution, it provides a useful
estimate of the magnitude, market value, and
spatial distribution of Bonairean fisheries that
can be used to inform management decisions.

Figure 3:
Spatial allocation
of coral reef fishery
values

References
Johnson, A.E. (2011) Fish, Fishing,
Diving and the Management of Coral
Reefs. Ph.D. Dissertation. University
of California, San Diego.
Lacle, FA, Wolfs E, Van Beukering P,
Brander L, (2012), Recreational and
cultural value of Bonaire’s nature to
its inhabitants, in assignment of the
Ministry of Economic Affairs
the Netherlands
Millennium Ecosystem Assessment
(MEA). 2005. Ecosystems and Human
Well-Being: Synthesis. Island Press,
Washington.

The study suggests that there are certain
areas of the reef (the areas in red in Figure 3)
that are the most economically significant
to reef-fisheries. These hotspots are mainly
created by the concentration of recreational
fishing; the commercial fishermen fish around
the entire island. The value map identifies
these key areas, and roughly estimates their
spatial value with regards to reef fisheries
(approximately 20 to 50 cents per meter
squared). The purpose is to elucidate economic
values, which must then be used by policy
makers to shape the future of the Bonaire
coral reefs.

Fishery value of coral reefs in Bonaire

Mora C, Sale PF (2002) Are
populations of coral reef fishes open
or closed? Trends in Ecology and
Evolution 17, 422-428
Schep S, Johnson AE, Van Beukering
P, Wolfs E, The fishery value of coral
reefs in Bonaire, Applying various

Further Information
For further information about valuing

valuation techniques, 2012
Stokes MD, Leichter JJ, Genovese
SJ (2010) Long-term declines in

Ecosystem Services on the island of Bonaire,

coral cover at Bonaire, Netherlands

contact Esther Wolfs (esther@wkics.com)

Antilles. Atoll Res Bull No. 502

or Pieter van Beukering at IVM

Van Beukering, P. et al. (2011) The

(pieter.van.beukering@vu.nl) and the webpage
www.ivm.vu.nl/en/projects/Projects/
economics/Bonaire

Economic Value of the Coral Reef
Ecosystems of the United States
Virgin Islands, Final Report, Report
number: R-11/06

Fishing is used as a way to
reduce food expenses
The Economics
of Ecosystems
and Biodiversity
on Bonaire

WKICS bv

IVM
Institute for Environmental Studies

Photo credits
Yvon Jaspers (cover and page 6),Shutterstock (page 3), Maarten de Coninck (page 4)