Valuation of beach recreations: an agenda for improving resource management
2005
Nik Fuad Mohd Kamil
In Malaysia beaches are the number one recreational destination for the domestic population as well as the foreign tourists. Therefore beaches, sea, and other water based resources are important as far as the tourism industry is concerned. However in many parts of the Malaysian coastal areas, beaches are not properly managed. Non-market valuation of natural resources, ecosystems and the environment is becoming an important aspect in efforts towards sustainable development. This paper uses the results of a study which captures the non-market values of services provided by the ecosystem as a basis for arguing that the beach resources in Malaysia are undervalued; consequently they are not considered seriously in decisions affecting resource use and allocation. An environmental valuation technique - the Travel Cost Method (TCM) was adopted to measure recreational service flows of two popular beaches in the state of Terengganu - Pantai Bukit Keluang and Pantai Batu Buruk. The model estimated the economic values of the on-site current use value of recreational services at the selected beaches. In the case of Pantai Bukit Keluang the consumer surplus was valued at $77 per trip resulting in the total social welfare estimate of RMO.92 million while for Pantai Batu Buruk the respective values were RM168.86 and RM2.02 million. If other recreational values were considered, net benefits of beach recreation would certainly be much higher. Relatively high values of beach recreation suggest that the recreational functions of beach ought to be seriously considered in decisions affecting the allocation and use of such resources. Valuation of natural resources would therefore lead to better resource management decisions in Malaysia.
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