Title: Users manual : tourism and recreation valuation tool, World Resources Institute
CITATION PDF VIEWER THUMBNAILS PAGE IMAGE ZOOMABLE
Full Citation
STANDARD VIEW MARC VIEW
Permanent Link: http://ufdc.ufl.edu/UF00095896/00001
 Material Information
Title: Users manual : tourism and recreation valuation tool, World Resources Institute
Physical Description: Book
Language: English
Publisher: World Resources Institute
Place of Publication: Washington, D. C.
Publication Date: 2009
Copyright Date: 2009
 Record Information
Bibliographic ID: UF00095896
Volume ID: VID00001
Source Institution: University of Florida
Holding Location: University of Florida
Rights Management: All rights reserved by the source institution and holding location.

Downloads

This item has the following downloads:

PDF ( PDF )


Full Text



WORLD
RESOURCES
INSTITUTE



Users Manual
Tourism and Recreation Valuation Tool
World Resources Institute


This document serves as a Users Manual for the Recreation and Tourism Component of the Coral Reef
Valuation Tool. This Tool was developed at the World Resources Institute (WRI) with intended use
throughout the Wider Caribbean. The purpose of the Tool is to serve as a guidebook and calculator: a way
for policymakers, civil society or other interested parties to assess the value to their economies of goods
and services provide by coral reefs and to aid in setting coastal management policies. To that end, we
have developed a tool we hope to be flexible enough to accommodate the many different types of data
necessary for valuing coral reefs, while simple enough to be implemented by those not intimately familiar
with the economics of natural resource valuation.

The Tool, which is comprised of three individual spreadsheets, calculates the net benefits from fisheries
and tourism values separately, then adds them together (optionally with shoreline protection values) to
estimate use value from coral reef goods and services. The Tool is a guide to the implementation of the
more formal Coral Reef Economic Valuation Methodology found at
http://www.wri.org/proiect/valuation-caribbean-reefs.



Contents:
A ckn ow ledgm ents ...................................... ........................................ ............... 2
R ead B before U sing the T ool .................................................. ................................................... 2
Structure of the Tool ............................................................................. 3
N avigating the Tool ............................................................................. 4
T tourism V valuation T ool............................................................... .. .. .......... .. ............. 5
Accomm odation Valuation Component ............................... .. .................................. 5
M arine Parks V aluation C om ponent.............................................. ................................... 9
D giving V valuation Com ponent........... ....................................................... .. .............. 9
Snorkel and Boating Valuation Component............... .. ....................................... 14
Local Use Valuation Component......................... .... ................................. 17
Other Values Calculation .............................. ....... .............................................. 19
Recreation & Tourism Summary W orksheet..................... ................ .................. 20
Appendix I. Calculations used in the Tourism and Recreation Valuation ................................ 21
Appendix II. Data Requirements for Tourism and Recreation Coral Reef Valuation Tool ......... 27
Appendix III Glossary.................................... ...................... .. ............29










Acknowledgments


The Coral Reef Valuation Tool was developed at the World Resources Institute by Amy Cassara,
Suzie Greenhalgh, and Daniel Prager. Additional work on the tool was carried out by Lauretta
Burke, Emily Cooper and Anthony Dvarskas.

Thanks to the following people for helping test the Tool:

Stephen Adam, WRI
Venetia Hargreaves-Allen, Imperial College
Susanna Scott, St. Lucia Department of Fisheries
Zach Sugg, WRI
Caitlyn Toropova, The Nature Conservancy


The Valuation Tool and Manual were developed through the generous support of the John D. and
Catherine T. MacArthur Foundation, the United Nations Environment Program Caribbean Environment
Program, the Ocean Foundation, the Henry Foundation, the Curtis and Edith Munson Foundation, the
Netherlands Ministry of Foreign Affairs, SwedBio, the Chino Cienega Foundation, the International Coral
Reef Action Network and the Buccoo Reef Trust.


WORLD
RESOURCES
INSTITUTE



n imenwerl inf
aEhl f-


The John D. and CatherineT. MacArthur Foundation


THE OCEAN FOUNDATION


research education conservation


Li r'E P











Read Before Using the Tool


Macros triit,
The Tool uses Excel macros to perform calculations and assist in entering data. In order to use the Tool,
please make sure that the security level on Excel is set to Medium or below. (To change this setting, open
Microsoft Excel, and select "Options" from the Tools menu. Then select the "Security" tab and choose
"Macro Security," set the security to "Medium"). While some Microsoft Excel files could contain macros
which pose a danger, the Valuation Tool will not harm your files or operating system.

Data Collection
Using the Valuation Tool will require collecting data on the fisheries and tourism sectors within your site,
island, country or region. To get a sense of the data required for Tourism and Recreation, please see
Appendix 2, "Data Needs for Tourism and Recreation Valuation." Not all data are required to do a
valuation as several options are available depending on the level of detail possible. For the tourism
accommodation section, for example, data can be entered a) for each individual property; b) for each
category of accommodation (i.e. average values for all guest houses); and c) based on total units and
average price and occupancy for the year. In addition, one can do a partial valuation and save the results
until more data are available. In Fisheries, for instance, one could calculate the value from commercial
fisheries, leaving sections on fish processing and local use of fisheries empty. These values could be filled
in once additional data is available.

For the more data-intensive elements of the valuation accommodation by individual property, for
instance you may wish to collect and organize data in an external spreadsheet, and then import into the
Tool when doing the final valuation. Cutting and pasting data into the Tool is discouraged as this may
introduce errors. Instructions on how to import data can be found on the relevant pages of the Tool and
manual.

Caution: Do not delete or otherwise alter the contents of "grayed out" cells. This will
introduce errors into the Tool.

Structure of the Tool

The Tool consists of two separate Microsoft Excel files one for the fisheries valuation, and one for the
tourism and recreation valuation.

Fisheries Component
The Fisheries component of the Tool allows for the valuation of coral reef-related services in four areas:
(1) commercial fishing, (2) commercial fish processing and cleaning value added, (3) local non-
commercial fishing, (4) and the multiplier impacts of fisheries-related sectors upon the overall economy.
The first three areas each have a page allowing the user to input data as well as a page showing the
economic analysis for that area. The fourth area can be estimated using standard default or user-defined
multipliers. There is also a summary value page showing the total estimated value of coral reef associated
fisheries. The Tool offers the option of exporting the results from the summary page to an external
spreadsheet.

Tourism Component
The Tourism component of the Tool has detailed valuation calculations for Accommodations and
Recreation (diving and snorkeling sections) as well as for Marine Park Revenue, Local Use, and other









spending by tourists who visit because of the reef. In the Tourism tool, users may enter accommodations
data by hotel or hotel type and can enter data on dive operations in aggregated or detailed form. The
options for entering data should be easily accessible on worksheets within the Tool. The tourism
component also has a summary page with an option to export final results.


Navigating the Tool

The Tool may be navigated through the linked underlined cells available on many pages. In the upper left-
hand comer of the page, short text containing information on the current location with a link back to the
top of the section can be found. In the upper right-hand comer are links to the previous and next pages.
The Help button, found on the upper-right of each page, also contains a navigation menu.

Both the Tourism and Fisheries Tools have been developed so that one can start at the beginning of the
Tool and work forward in a stepwise manner. Please work through the pages, entering data in the
appropriate fields. On the valuation calculation pages, the Tool will use entered data, automatically
generating estimates of coral reef associated values. If at any time you want to see how the Tool
calculates an estimate, see the Calculations Appendix at the end of this manual or on the "Calculations"
tab in the Tool.

Data may be entered in a number of different ways, to account for the different types of data that may be
available for the selected study area. For instance, if detailed dive revenue data is available in your island,
enter that type of information. If only aggregate numbers (or best guesses) will likely be available, use
that method for calculation.

Multiple Years
Data in the Tourism Tool can be entered for one year. In the Fisheries Tool, data can be entered for one or
more years. While data for all components ideally would be for the same period, availability may require
different components to use data from different time periods. If data for only one year are entered,
information for that year alone will be calculated. If data exist for multiple years, an average will be
computed, generating a value for a "typical year." The subcomponents of each of the Tools are calculated
discretely and added together even if data are for different years.











Tourism Valuation Tool


The tourism component of the Coral Reef Valuation Tool currently calculates revenue generated from
four elements of tourism and recreation: (1) accommodation, (2) marine park visitation, (3) reef recreation
(diving, snorkeling and boating), and (4) local use of the resources. In the next version of the Reefs
Valuation Tool, the revenues and costs from cruise tourism will be included in the calculation of coral
reef value.

This document gives an overview of the method behind the Tourism Valuation Tool and serves as a brief
guide to entering data and calculating value.

The Tourism Tool is designed to offer a stepwise progression of the subcomponents information can be
entered in order, with the total valuation coming at the end. However, users may choose to enter in data in
any order, and have the option of using different valuation options, exploring how alternate methods of
entering data may yield different results.

At this time, all information should be entered for annual revenue and costs in US dollars. Additional
currencies and study durations will be included in future versions if there is demand for such options. The
Tool contains the worksheets described below:

Site Description Worksheet

This is identical to the "Site Description" worksheet on the Fisheries tool. Information about the study site
is entered here. This information will be helpful for others evaluating the valuation and some of these data
will be used in other portions of the tourism valuation tool. At present all values in the tourism tool are set
to US dollars.

Recreation and Tourism Profile and Defaults Worksheet

The data required for this worksheet are:
Total number of tourists
Average length of stay
Percent of visitors using the reef either engaging in reef recreation (diving, snorkeling, etc.) or
visiting white sand beaches (of coralline origin).

Estimating the percent of visitors using the reef is a critical step in the valuation. This information enables
the valuation estimate to focus on only those visitors who came to the study site at least partially because
of its coral reefs. Revenues from the major tourism categories accommodation, miscellaneous spending,
etc. will be prorated using the percentage of visitors using the reef. When more specific data are not
available in the reef recreation sections, these values can also be used to approximate user numbers.


Accommodation Valuation Component

Accommodation Defaults Worksheet
The Tool offers three different methods for calculating accommodation revenues, each suited to different
levels of data:
Method 1. Revenues for the sector as a whole










Method 2. Average revenues by accommodation type
Method 3. Revenues by hotel

The Accommodation Defaults worksheet covers the first two methods, and provides default values that
can be used to fill in data gaps if the third option is used.

Costs, Taxes and Service ( /ii ,, g

The costs, taxes, and service charges section will be used to estimate the costs for the tourist
accommodation sector, regardless of the method selected for estimating accommodation revenues. Any
information entered on this page will override matching information previously entered on the Tourism
Profile and Defaults Worksheet.

To calculate the costs, taxes, and service charges in the accommodation sector, you will need to enter:

1. Average hourly wage in US dollars
2. Average hours worked per week
3. Average number of persons employed by room
4. Non-labor operating costs as a percentage of base revenue
5. Tax rate
6. Service charge rate

If you do not have data available for each of these variables click "Use Defaults" and the tool will
automatically enter default values for costs, taxes and service charges.

In order to estimate the amount of revenue that remains in the local economy, enter the percent of rooms
that are foreign-owned in the box under "Leakages." Accommodation revenues will be adjusted using
foreign ownership as a proxy for leakage of profits out of the country. At this time, the Tool assumes that
no foreign profits are spent in the local economy. This may overestimate the effect of foreign ownership,
making the accommodation value estimate a conservative one.

Average Revenues

This section enables you to calculate reef-related accommodation value using only national-level
accommodation data. The data required for this section are:

1. Average room rate in US dollars excluding taxes and service charges
2. Average occupancy rate in the accommodation sector
3. Average number of rooms per hotel
4. Number of accommodations in study area

If this information is available, please enter it even if you plan to calculate accommodation revenues at
the accommodation type or hotel level (options 2 and 3 above). The Tool will use the sector (national)
averages to fill in gaps (for instance, occupancy rate in a given hotel) if you opt for one of these more
data-intensive options. Note: The tool calculates taxes and service charges separately from room
revenues. To avoid double-counting, check to see that your estimate of average room rate does not
include taxes and service charges. Adjust downwards using the tax rate if they are included.


Default Revenues by Accommodation Type










The lower section of this worksheet should be used to provide a more specific picture of the types of
accommodation in the study area': how many hotels, guesthouses, apartments, etc. there are, the average
room rate for that category, how many rooms are in these types of accommodations, and their average
occupancy rates. These numbers can be estimated based on existing data for individual hotels, even if this
information is incomplete. Please note: The Tool will not be able to process information on individual
hotels without at least two pieces of information: a listing of the different types of properties in the
study area and the estimated number of each type of property (hotel, apartment, guesthouse, etc.)
that exists. Where possible, also fill in:
1. Average room rate in US dollars excluding taxes and service charges
2. Size
3. Occupancy information
4. Percent of visitors using the reef

These data will provide a more accurate estimate of the revenues from the accommodation sector than the
average information described in method 1 above.

You may specify whether each given property type should be included in the valuation calculation. (For
example, you might want to exclude categories with very unreliable data.)

Accommodation Revenues Worksheet

The "accommodation revenues" sheet is optional. Any information that you can enter about individual
hotels-how many rooms they have, their occupancy rate in different seasons, their cost-will allow the
tool to calculate a more precise valuation of revenues, and subsequently, what portion of these revenues
can be attributed to coral reefs. Ideally, information on all of the hotels in the study area would be entered
on this sheet.

Implorting data from a separate file
Users may enter values into this sheet by directly filling in cells on the "accommodation revenues"
worksheet. If there are a large number of hotels in the study area, or if there is a pre-existing list of
accommodations, it may be easier to enter the values in a separate file called "Worksheet 1. Hotel
Revenues." Data entered into this separate worksheet must follow the format guidelines provided at the
top of the sheet. Once the sheet is filled out, the information can be imported into the Tool by clicking on
"Import Values from Worksheet 1." Be sure to enter the path containing the file (such as "c:\tool_data\")
and include the final "\".
Note: Do not cut and paste hotel information into the Tool. Enter the information directly or
import using the method described above.

Entering Data by Season
In both the Tool and the Worksheet, users need to enter information based on season. This allows for
estimates of different room rates and occupancies at high, middle, and low season. If data for a hotel
cannot be distinguished in this way, simply enter data for one season, and have it begin on January 1 and
end December 31. If the user only enters information for part of the year say March 1 to May 1 they
will be given the option of either disregarding this hotel in the final revenue calculation or scaling
revenues from this hotel. In this example, if revenues from March 1 to May 1 are $10,000, the Tool would
scale this value to a total revenue of $60,000.



1 You may also choose to differentiate accommodation options in other ways. For example, if the country collects
hotel data by district, and the easiest way to estimate reef visitation is also by district, you may choose to group
accommodations by district, rather than by type.










Accommodation Valuation Worksheet


Click on the "Calculate Revenues" button on this worksheet to direct the tool to calculate reef-related
accommodation revenue using the values provided in the "Accommodation Defaults" and
"Accommodation Revenues" worksheets. For more information on the specific calculations used in this
section, see the appendix.

Net Accommodation Revenue Due to Reefs
The "accommodation valuation" sheet calculates total accommodation revenues in one of three ways,
based on the amount of data entered in previous sheets:
1. As a product of sector-level averages of room rate, occupancy rate and number of rooms, and
number of accommodations in the study area.
2. As a product of the average number of rooms by property type by average room rates and
occupancy rates.
3. As a product of specific pricing and occupancy data for high-, mid-, and low-seasons in
individual hotels.
Methods 2 and 3 may use more aggregated information on each accommodation type (e.g., each hotel,
guest house, etc.), depending on data availability.
Since many tourists may not come to a site for its coral reefs, all of the accommodation revenues listed
here have been pro-rated by the proportion of visitors engaging in reef-related activities or visiting a
coralline beach. The percentage of reef usage is calculated at the national, accommodation type, or hotel
level, depending on which method is used to calculate total revenue.

Accommodation Costs
Accommodation costs are separated into labor and non-labor operating costs. Labor costs are estimated
based on the average hourly wage, the total number of hotel rooms, and the average number of employees
per room in the study area. Non-labor operating costs are estimated as a percentage of total revenue, using
the figure entered in the "Accommodation Defaults" worksheet. As with accommodation revenues, the
costs estimates are pro-rated by the percentage of visitors using the reefs.

Net Revenue Remaining in the Country
Net revenue remaining in the country is calculated as (1 Leakage Rate) X (Net Revenue). Leakage of
accommodation revenues is approximated using the percent of accommodations that are foreign owned,
entered on the Accommodation Defaults page.

Transfers within the Economy
Transfers within the economy are separated into (1) Transfers to employees (total wages and service
charges) and (2) Transfers to the government (taxes). These transfers are assumed to reenter the economy
and create additional spending. The taxes and service charges are calculated by multiplying the tax and
service charge rates entered on the "Accommodation Defaults" worksheet by the gross revenue in the
accommodation sector. Taxes and service charges are assumed to be added on top of the posted room
rates unless specified otherwise.

Total Reef-Related Accommodation Revenue
The total reef-related accommodation revenue is calculated as: net revenue remaining in the country +
transfers (wages, taxes and service charges).

Accommodation Sensitivity Analysis Worksheet











The Sensitivity Analysis portion of the tool allows users to adjust average occupancy rates, room rates,
wages, and additional operating costs relative to the values calculated in the accommodation revenues
section. By using the up and down scroll arrows next to each of the four parameters, or by changing the
percent variation, users can see-both visually in a graph and in the calculations below the parameters-
how revenue is affected by changes in prices, occupancy, and labor. Use the radio buttons below the chart
to view revenue estimates in thousands, millions, or billions.


Marine Parks Valuation Component

To calculate revenue generated from Marine Parks, users fill in the table on the "MP Net Revenue" sheet,
and revenues are calculated directly on this sheet. To adjust the number of columns in the Marine Parks
revenue table, enter the number of marine parks in the text box at the top of the page and click the "Adjust
Revenue Worksheet" button (the worksheet will always retain at least 2 columns).

The table is divided into (A) general visitation information and (B) total fees collected in study year.
Enter as much information as is available for section A, beginning with the park name/description, as this
may be useful for providing an overview of marine park visitation in the region of interest. The total
number of divers entered here may be used to calculate dive revenues in the following section. If the
marine park does not collect fees, leave the fee section blank. Marine Parks costs should only include the
costs of collecting and administering the fees (if available), not the cost of administering the marine park.

The Tool will automatically sum the fees for each park in the bottom of the column and then the gross and
net revenues for all of the parks listed in the "Total" column.




Diving Valuation Component

There are four sections of the diving valuation, divided into two sections on the "Dive Revenues 1"
worksheet and two sections on the "Dive Revenues 2" worksheet. These four sections are:
(1) Tax rates ("Dive Revenues 1" worksheet)
(2) Annual number of divers ("Dive Revenues 1" worksheet)
(3) Dive price ("Dive Revenues 2" worksheet)
(4) Equipment price ("Dive Revenues 2" worksheet)

Dive Revenues 1 Worksheet

To complete this worksheet, enter:
Tax rates
Service charge rates
Number of dives taking place in the study area in the "Dive Revenues 1" worksheet.

The number of dives can be calculated one of four ways, depending on available information. Use the
radio buttons to select one of the following options:
1. Using total visitors to the study area, estimate proportion that dive. For this approach, you will
need:
o Percentage of visitors diving
o Average number of dives per year











The total annual visitors will automatically be taken from the "Tourism Profile and Defaults" worksheet.
The sheet will calculate the annual number of dives by multiplying the total annual visitors by the
percentage of visitors diving and the average number of dives per year.

For this approach, you may also enter the number of dive certifications issued as well as the proportion of
dives taken at all-inclusive resorts to improve the dive valuation estimates. Entering the number of dive
certifications will allow for revenue from the certifications to be included in the gross dive revenues
estimate. Since dives taken at all-inclusive resorts would already be captured in the accommodation
section, the tool will exclude those dives from the calculation of dive revenues. The revenue from dive
certifications at all-inclusive resorts will be included in the estimate of dive revenue as it is assumed these
revenues would not be part of the all-inclusive fees. The number of dives at all-inclusive resorts vs. those
at other locations will be reported on the "Dive Valuation" worksheet.

2. Use total divers, average number of dives in study area. For this approach you will need:
o Total annual number of divers (annual in entire region or estimated from marine parks)
o Average number of dives per diver

To begin with this approach, first select whether or not you would like to calculate total number of divers
based on marine park dives, clicking the radio button next to "Yes" or "No" as appropriate. Use of the
marine park dives to estimate total divers may be appropriate if the values for marine park dives are
believed to be more accurate than the figures for the total number of divers each year in the study site.

If you select "Yes" the boxes next to "Total Number of Divers Each Year" will be grayed out and the
boxes next to "Number of Divers in Marine Parks" and "Proportion of all divers using parks" will come
into focus.
o The data for "Number of Divers in Marine Parks" will automatically be taken from the
"MP Net Revenue" worksheet if it has been entered.
o Enter the proportion of all divers who use parks. The total number of divers will then be
estimated by scaling the "Number of Divers in Marine Parks." For example, if 50% of
divers use marine parks and there are 600 divers in marine parks, the total number of
divers would be calculated as 600/.50 or 1200.
o Enter the average number of dives per diver
o Total dives will be calculated by multiplying the number of divers by the number of dives
per diver and reported on the "Dive Valuation" worksheet

If you select "No" the boxes next to "Number of Divers in Marine Parks" and "Proportion of all divers
using parks" will be grayed out and the box next to "Total Number of Divers Each Year" will come into
focus. You should then enter:
o Total number of divers each year
o Average number of dives per diver
o Total dives will be calculated by multiplying the number of divers by the number of dives
per diver and reported on the "Dive Valuation" worksheet

For either of the two methods indicated here (marine park dives or total number of divers) you may also
enter the proportion of dives taken at all-inclusive resorts and number of dive certifications issued to
improve the dive valuation estimate as described in method 1 above. The revenue from dive certifications
at all-inclusive resorts, but not revenue from the dives themselves at all-inclusive resorts, will be included
in the estimate of dive revenue as it is assumed these revenues would not be part of the all-inclusive fees.
The tool will separate the total number of dives for those at all-inclusive resorts vs. those at all-inclusive
resorts on the "Dive Valuation" worksheet.











3. Use individual dive shop and all-inclusive resort data. This approach requires the most detailed
level of information as it uses data from individual dive shops in the study site. Dive operators
charging fees are counted separately from all-inclusive resorts.

Under section A, "Dive Shops," enter:
Number of dive shops that will be included in the calculation and click "Adjust Worksheet"
so the tool will add the appropriate number of rows
Information on the dive shop name, location, size, average annual number of dives, and
annual number of certifications issued
Proportion of all dives taken at shops listed the Tool uses this proportion to account for
missing data and scale up dive revenues accordingly

Under section B, "All-Inclusive Resorts," enter:
Number of all inclusive resorts that will be entered and click "Adjust Worksheet" so the tool
will add the appropriate number of rows
Information on the resort name, location, size, average annual number of dives, and annual
number of certifications issued will not be included in the calculation of dive revenue as these
revenues would be captured by the accommodation sector. The revenue from dive
certifications at all-inclusive resorts will be included in the estimate of dive revenue as it is
assumed these revenues would not be part of the all-inclusive fees.
Proportion of all dives taken at resorts listed the Tool uses this proportion to account for
missing data and scale up dive revenues accordingly

The Tool will report the number of dives occurring at dive shops and all-inclusive resorts on the "Dive
Valuation" worksheet. Dives occurring at all-inclusive resorts

Dive Revenues 2 Worksheet

Enter dive prices and equipment prices in the "Dive Revenues 2" worksheet. These dive and dive
certification prices will be multiplied by the number of dives and the number of certifications to attain the
gross revenue from diving on the "Dive Valuation" worksheet.

Dive Prices
Dive prices are entered one of three ways:
The average price of a single tank dive and the average price of dive certification;
Average dive prices with a bit more detail: dives can be priced by type (single, two-tank dive,
package often dives, etc.). In order to calculate average dive prices here, users need to enter the
proportion of all dives sold under each type. Enter the price per dive in this section: if a 10-dive
package sells for $300, the average dive price would be $30.
Average dive prices of individual shops. If shops were entered on the previous worksheet, they
are copied here, although users can enter and delete shops as needed. To weight averages
properly, users must indicate the number of dive shops, and the proportion of dives taken by type
(see above) and by shop size. If a shop does not sell a certain kind of dive or offer certification,
leave these values blank. Prices in this section should be per single dive: if a 10-dive package
sells for $300, the average dive price would be $30.

Use the radio buttons to select one of the above methods to calculate dive price and follow the
instructions below.










1. Average Price of Dive


To calculate the dive price using this method enter:
Average price for a single dive be sure to adjust multiple dive packages to the value of a single
dive; for example a $450 10-dive package would represent an average dive price of $45
Average price for a dive certification

For both of these values, do not include taxes and service charges.

2. Price by Type of Dive, with Distribution

To calculate the dive price using this method enter:
Average price for each of the dive groups shown as well as night dive and certification
Proportion of all dives represented by each of the categories

Again, for these values, do not include taxes and service charges.

3. Use Dive Shop Prices

To calculate dive price using this method:
Add new rows or delete rows as needed and click "Copy Shop Information From Previous
Screen" if it does not already appear; this will bring in the company name, location, and size of
shop information from the "Dive Revenues 1" worksheet
Enter the average price per dive of the various dive packages listed
Enter the price for dive certification
Enter the percent of dives taken at each type of shop
Enter the proportion of all dives that fall into each of the package categories shown

Equipment Prices
Equipment prices are entered one of two ways:

(1) Using average equipment price and rental rates
(2) With specific shop equipment information. With the specific shop option, shops from the
previous worksheet (if entered) are copied here, although users may enter and delete shops as
needed. To weight averages properly, users must weight the proportion of dives taken by shop
size, if these proportions weren't entered in the dive pricing section.

Use the radio button to select the method you would like to use, and follow the instructions below.

1. Average Price of Equipment

To use this method, enter:
Average price per dive of equipment rental
Proportion of all dives with equipment rental

The average price per dive for equipment rental will be multiplied by the total number of dives and the
proportion of all dives with equipment rental. The resulting dollar amount will be added to the gross
revenue for the diving sector.

2. Specific shop information











To use this method:


Click "Add New Row," "Delete Current Row" to adjust the worksheet as necessary and click
"Copy Shop Information From Previous Screen" if the company name, location, and size of shop
do not already appear.
Enter the price of daily equipment rental and percentage of divers at each shop renting equipment.
Note the percent of all dives taken at each of the shop types to allow for averaging of the numbers
listed in the table.

The equipment price and percentage of divers renting will be averaged across all shops and multiplied by
the total number of divers. This figure will then be added to the gross revenue from diving in the
calculation on the "Dive Valuation" worksheet.


Dive Costs Worksheet

Dive operation costs are calculated as a percentage of total revenue. Users should enter:
Estimated labor costs as a percentage of revenue
Estimate non-labor costs as a percentage of revenue

If you do not have estimates available, click on the "Use Defaults" button to have the tool automatically
enter values in these two boxes.


Dive Valuation Worksheet

The total valuation of coral reefs from diving is calculated as the sum of gross dive revenue less costs plus
transfers within the economy (total wages, service charges, and taxes).

Gross Dive Revenue = Total Annual Dives x (Avg. Price per Dive + Equipment Rental Price per Dive x
Proportion of Divers Renting Equipment) +
Total Annual Certifications x Average Price per Certification

No revenues for all-inclusive resorts are included here; these dive revenues are captured in the
accommodation revenues for all-inclusive properties.

The dive costs are equal to the sum of total wages plus non-labor operating costs as calculated below. Net
revenue is calculated by subtracting the dive costs from the gross dive revenue.

Transfers within the economy are separated into (1) Transfers to employees (total wages and service
charges) and (2) Transfers to the government (taxes). These transfers are assumed to reenter the economy
and create additional spending. The taxes and service charges are calculated by multiplying the tax and
service charge rate entered on the "Dive Revenues 1" worksheet by the gross revenue in the diving sector.

The net revenues are summed with the transfers to the economy to give a total diving valuation.

NOTE: The tool also provides an estimate of the all-inclusive resort revenue that is attributable to diving,
but this figure is excluded from the dive value calculation in order to avoid double counting.










Snorkel and Boating Valuation Component


As with the Dive Valuation Component, the Snorkel and Boating Valuation Component has four sections
for calculating revenues that are divided into two worksheets ("Snorkel Boat Rev 1" and "Snorkel Boat
Rev 2"). The four sections for calculating revenue are:
(1) Tax rates ("Snorkel Boat Rev 1" worksheet)
(2) Annual number of snorkel trips ("Snorkel Boat Rev 1" worksheet)
(3) Average price of snorkel trip ("Snorkel Boat Rev 2" worksheet)
(4) Equipment price ("Snorkel Boat Rev 2" worksheet)

In addition to these two worksheets, there is also a worksheet for calculating the costs from the snorkel
and boating component.

Snorkel Boat Rev 1 Worksheet

The first section of this worksheet requires the user to enter:
Tax rate
Service charge

As in the diving worksheet, these values will be used to estimate the transfers to the government in terms
of taxes and transfers to employees in the form of service charges.

In the section 2 of the worksheet -"Annual Number of Snorkel Trips" the user should select one of the
methods below to calculate the annual number of snorkel trips using the radio buttons:
(1) Use total visitors to study area, estimate proportion that snorkel or take boat trips
(2) Use total snorkelers, average number of trips in study area
(3) Use data from individual snorkel tour operators and all-inclusive resorts

If option 1 above is selected, you should enter:
Percentage of visitors snorkeling
Average number of trips per snorkeler
Proportion of trips taken at all-inclusive resorts

Information on total annual visitors will be automatically entered from the "R & T Profile and Defaults"
worksheet. The proportion of trips taken at all-inclusive resorts will be used, as in the diving section, to
avoid double counting revenues already captured in the accommodation component of the Tool.

Using this method, the annual number of snorkel trips will be equal to the total annual visitors multiplied
by the percentage of visitors snorkeling and average number of trips per snorkeler.

If option 2 above is selected, you should enter:
Total number of snorkelers
Average number of trips per snorkeler
Proportion of trips taken at all-inclusive resorts

The annual number of snorkel trips will be calculated by multiplying the total number of snorkelers each
year by the average number of trips per snorkeler. As mentioned previously, the number entered for the
proportion of trips taken at all-inclusive resorts will be used to separate out the trips that occur at all-
inclusive resorts and omit these from the calculation, to avoid double counting revenues from the
accommodation sector.











If option 3 above is selected, you should:
Enter number of individual tour operators that will be included in this component of the
valuation
Click "Adjust Worksheet" to have the tool automatically insert the correct number of rows
Fill in the information for each individual tour operator
Enter the proportion of trips taken at the operators) listed; this will be used to scale for any
missing data on snorkel trips
Enter the number of individual all-inclusive resorts that will be included in this component of
the valuation
Click "Adjust Worksheet" to have the tool automatically insert the correct number of rows
Fill in the information for each all-inclusive resort
Enter the proportion of total all-inclusive trips; this will be used to scale for any missing data
for all-inclusive trips

The information on all-inclusive resorts will only be used for informational purposes and will not be
included in the valuation for the snorkel component.


Snorkel Boat Rev 2 Worksheet

On this sheet, you will enter data for sections (3) Average Price of Snorkel Trip and (4) Equipment Price
of the snorkel and boating revenue component.

Average Price of Snorkel Trip

As with other sections of this tool, multiple methods are available for calculating trip prices depending
upon the type of data that is available for the study site. For the average price of the snorkel trip, you
should choose one of the following three calculation methods:
(1) Average Price of a Snorkel Trip
(2) Price by Type of Trip, with Distribution
(3) Use Prices From Individual Operators

If you choose method 1 above, enter:
Average trip price for a single trip

This will be directly multiplied by the total number of snorkel trips to be included in the gross revenue
from snorkeling.

If you choose method 2 above, enter:
Average price for a short trip (1/2 day), long trip, and (if needed) miscellaneous trip
Proportion of all trips accounted for by each trip type (this should equal 100 percent): If there
are no trips of a certain type, enter 0 for the percentage for that trip type

The price will be averaged across each of the trip types according to their proportion of all snorkeling
trips; this value for price will then be multiplied by the total number of trips to be included in the gross
revenue from snorkeling.

If you choose method 3 above:
Select the "Add new row" or "Delete current row" to adjust the worksheet










Information for each trip type for the individual tour operators; you may import shop
information from the "Snorkel Boat Rev 1" worksheet
Enter the percent of all trips taken with large, medium, and small operators; this can be
estimated by dividing the sum of trips taken by all operators of a certain size by the total
number of trips taken. For example if there are 2 small shop operators with 10 trips each, one
medium shop with 20 trips and one large shop with 60 trips, the proportion of trips at small
operators would be 20/100, or 20%.
Enter the proportion of all trips that are short trips, long trips or miscellaneous trips (again
should equal 100 percent)

An average for the snorkeling price will be calculated for each trip type by size of shop. This number will
then be multiplied by the number of trips of that type and at that operator size grouping. For example, if
the average price of a short trip is $20 for the grouping of small operators and 20% of 100 total trips take
place at small operators and 10 % of all trips are short trips, the estimate for revenue from short tips at
small operators would be ($20) x (100) x (.2) x (.1) or $40. This is then repeated for each of the other
snorkel boat operator categories (medium, large). The overall results will be reported on the "Snorkel and
Boat Valuation" worksheet.

Equipment Price

For the final segment of calculating snorkel boat revenue, you must estimate the equipment price. This
will be added to the revenue from snorkel trips to arrive at an estimate of gross revenue for the snorkeling
section. The two methods available are:
(1) Average price of equipment
(2) Average prices from individual operators

If you choose option 1 above, enter:
Average price of equipment rental per trip (if there is a charge for snorkel rental)
Proportion of all snorkelers that require equipment (those that do not bring their own)
Proportion of trips charging for equipment rental (in addition to the advertised trip price)
Number of independent snorkel rentals per year

The average price of equipment rental per trip will be multiplied by the total number of trips, the
proportion of snorkelers that require equipment, and the proportion of trips charging for equipment rental
to estimate the revenue from snorkeling equipment rental. The number of independent snorkel trips (those
not part of an organized excursion), if applicable, will be multiplied by the average price of equipment to
attain the revenue from snorkeling rental on independent trips; this value will be added to the equipment
rental from organized trips, and both values will be added to the gross revenue from the snorkeling sector.

If you choose option 2 above:
Adjust the rows of the worksheet as needed using the "Add New Row" or "Delete Current
Row" buttons
Enter the information for individual shops on the rental price per trip, percentage of
snorkelers renting equipment, and number of independent equipment rentals per year
Enter the proportion of shops that charge an additional fee to rent equipment

The rental price per trip will be multiplied by the number of independent equipment rentals per year and
the percentage of snorkelers renting equipment on each trip to determine the added revenue from
equipment rental from individual operators. This will be added to the gross revenue from the snorkeling
sector.











Snorkel Boat Costs Worksheet


For the snorkel and boating costs worksheet, you will need to enter:
Estimates of labor costs as a percentage of revenue for snorkeling and boating operations
Estimates of non-labor costs as a percentage of revenue for snorkeling and boating operations

If you do not have estimates available, you may click on "Use Defaults" to have the tool automatically
enter values in these cells.

Snorkel and Boat Valuation Worksheet

Select "Calculate Revenues" and the tool will automatically calculate the values for the snorkel and
boating component of the tourism and recreation component.

Gross Revenue = (Number of snorkel trips X Price per snorkel trip) + (Number of snorkel trips X
Proportion of snorkel trips requiring equipment X proportion of trips charging additional fees for
equipment rental) + (Number of independent snorkel trip equipment rentals X Price for equipment rental)

Total wages and non-labor operating costs are calculated as the indicated percentages of gross revenue
and these values are subtracted from the estimated gross revenue to obtain net revenue from the
snorkeling sector.

Transfers within the economy are separated into (1) Transfers to employees (total wages and service
charges) and (2) Transfers to the government (taxes). These transfers are assumed to reenter the economy
and create additional spending. The taxes and service charges are calculated by multiplying the tax and
service charge rate entered on the "Snorkel Boat Rev 1" worksheet by the gross revenue in the snorkeling
sector.

The net revenues are summed with the transfers to the economy to give a total snorkel component
valuation.

NOTE: The tool also provides an estimate of the all-inclusive resort revenue that is attributable to the
snorkel boat component, but this figure is not considered as part of the snorkel and boat valuation in order
to avoid double counting with the accommodation valuation.


Cruise Ships Worksheet

This component of the coral reef tourism and recreation economic valuation is under development and not
yet functional. Eventually this tool will allow the user to calculate the benefits and costs of coral reef-
related cruise ship tourism.




Local Use Valuation Component

Local Use Worksheet










This worksheet allows for the calculation of the local use benefits from visits to coral reefs and coralline
beaches (beaches whose sand is of coral reef origin). To calculate this component of the valuation, you
will need data on:
Population of study area
Average hourly wage
For Coralline Beach Benefits:
Percentage of local population visiting coralline beaches for pleasure
Average number of visits per person per year to coralline beaches
Average duration of visit to coralline beaches
For reef recreation benefits
Percentage of local population engaging in reef recreation outside of organized tours
Average number of visits per year per person
Average duration of visit

To conduct this calculation:
1. Enter the population of the study area or click on "Import from Site Description" to import this
value from the Site Description Worksheet.
2. Enter the average hourly wage
3. Under coralline beach benefits, enter the percentage of local population visiting coralline beaches
for pleasure, the average number of visits per year per person, and the average duration of visit in
hours. This information may be obtained from survey data.
4. Under reef recreation benefits, enter the percentage of the local population engaging in reef
recreation outside of the context of organized tours (organized tour travel would be captured in
prior tool calculations), the average number of visits per year per person to coral reefs, and the
average duration of a visit in hours. Again, this information may be collected through surveys.

Coralline beach benefits are calculated by multiplying the population of the study area by the percentage
of the local population visiting coralline beaches for pleasure, the number of visits per year per person,
the average duration of visit, and the prevailing average hourly wage.

Reef recreation benefits are similarly calculated by multiplying the population of the study area by the
percentage of the local population engaging in reef recreation outside of organized tours, the number of
visits per year per person, the average duration of visit, and the prevailing average hourly wage.

The tool automatically sums both of these values to attain the total benefit from local use.

Local Use Sensitivity Worksheet

The local use sensitivity worksheet allows the user of the tool to vary selected parameters to see how each
variation impacts projected benefits from local use. To change a parameter click on the up or down arrow
located in its row. Clicking up will increase the value of that parameter by 1%, while clicking on the
down arrow will decrease that parameter by 1%. You may also directly enter percentages into the
appropriate box in the percent change column. The changes will be reflected in the table below the
parameters as well as the bar graph to the right of the parameters. Such a sensitivity analysis can be useful
in determining the relative contributions of each of the parameters to the local use valuation estimate.










Other Values Calculation


This worksheet allows the user to calculate values that might not have been captured elsewhere in the
coral reef recreation and tourism valuation tool. The two sections for input on this sheet are (1) other
revenue, (2) consumer surplus, and (3) multipliers.

Other Revenue

To calculate other revenue that should be included in this valuation exercise:
Enter the percent of visitors using the coral reef or click "Import from Rec & Tourism Defaults"
to have the tool pull this value from the earlier worksheet
Enter a description of each revenue source, the gross value of that revenue source, and whether or
not it should be prorated by reef usage (for example, departure taxes, in country transportation,
meals, and other shopping by visitors can all be added here all of these should be prorated by
reef usage)
Enter non-labor operating costs (as a percent of revenue) for each listed revenue source

The tool will automatically calculate the "Contribution to total value" as the gross revenue less the non-
labor operating costs. This value will be summed across each of the revenue sources to give a total for
"Other Revenue" that will be reported in the "Rec & Tourism Summary" worksheet.

Consumer Surplus

Consumer surplus is the additional value or satisfaction derived by a consumer above and beyond the
price he or she actually paid for the experience. This is often considered an important component of
natural resource valuations because the total enjoyment people take from natural resources often exceeds
the market price paid to enjoy those resources. This tool provides a rough method to estimate consumer
surplus for the diving and snorkeling sectors. Consumer surplus is typically evaluated by administering
surveys. If resources are available to conduct surveys, this is the preferred approach. In the absence of
local surveys, the tool provides lower-end estimates typical of the region. Before using these default
values, it is recommended that you look for any consumer surplus studies that may already exist for the
study site.

Gross revenues from diving and snorkeling are automatically imported from the earlier valuation
worksheets. You then need to enter a "CS (consumer surplus) Factor" a value that will calculate total
consumer surplus based on gross revenue. Consumer surplus is typically estimated as a dollar value or as
a percentage of trip price. To convert a CS percentage into a CS Factor, divide the percentage by 100 and
add 1. For example, if the consumer surplus of divers is estimated to be 50%, the CS Factor will be 1.5.
The tool will automatically sum the values for total consumer surplus from the diving and snorkeling
sectors, and report this value on the "Rec & Tourism Summary" worksheet.

The default consumer surplus factors in particular are to be used with caution, as consumer surplus often
varies considerably by site. Because the consumer surplus calculation has a high level of uncertainty, it is
included on the "other values" worksheet as a component that users may choose to exclude if good data
on consumer surplus for the study site is not available. In the final summary of results, consumer surplus
is counted as uncapturedd value" because it represents value that does not actually make its way into the
economy.

Multipliers










Multipliers are used to estimate the indirect effects arising within the economy of the study site when
direct expenditures in one industry are transferred through backward-linked industries to the economy.
For example if $1 spent on tourism accommodations leads to an additional 70 cents in the economy of
interest, the multiplier would be 1.7 and the indirect impacts for each dollar spent in tourism would be 70
cents. NOTE: Multipliers should only be used if they are developed for an economy similar to the region
of interest so that the estimates of indirect impacts are reliable. If you do not have applicable multipliers
available, it may be preferable to not include multipliers in the valuation exercise.

To use this section of the worksheet:
Provide a short description of the multiplier available
Indicate whether you would like to include the multiplier estimate in the valuation
Enter the multiplier value
Enter the value of revenue being multiplied; for example if gross revenue from
accommodation were $20,000 and the multiplier was a tourism multiplier, you would enter
20,000 under the value of revenue being multiplied

The tool will then automatically calculate the indirect impacts by multiplying the gross revenue by the
multiplier value and then subtracting the gross revenue (direct impacts). The tool will then sum all of the
indirect impacts included and report this value on the "Rec & Tourism Summary" worksheet.


Recreation & Tourism Summary Worksheet

This worksheet lists all of the values calculated throughout the tool. Total direct economic impacts are
equal to the total values estimated for accommodation, diving, snorkeling and boating, and marine parks
as well as other revenues from the "Other Values" worksheet. Total indirect impacts are estimated in the
multiplier calculations) on the "Other Values" worksheet. Uncaptured values from local use and
consumer surplus are then added to total direct and indirect impacts to give the total economic impact of
reef-related tourism and recreation. The "export to spreadsheet"button enables users to export and save
final results in a separate sheet.

Scenarios Worksheet
As with the sensitivity analyses included earlier in the tool, this worksheet enables the user to vary
different components of the total economic impact of reef-related tourism and recreation. To increase the
value of a certain parameter by 1% click on the up arrow in its corresponding row and to decrease the
value of a certain parameter click on the down arrow in its corresponding row. You may also directly
enter percentages into the appropriate box in the percent change column. Changes in the parameters will
be reflected in the table below the parameters list and the bar graph to the right.

This feature allows a user to explore the sensitivity of the valuation results to particular assumptions. It
can be used to establish error bounds around estimates, or to explore alternative potential futures.










Appendix I. Calculations used in the Tourism and Recreation
Valuation


1. Accommodation component

la. Reef related Accommodation revenues

i. Using default values for the accommodation sector as a whole

Gross Room Revenue = Occup Rate, X Roomnum, X Room_cost, X AccNum, X Reef Usage,

Where:
Occup Rate, = Average occupancy rate (% of 365 days when rooms are occupied) in study site i
Roomnum, = Average number of rooms per accommodation in study site i
Roomcost, = Average cost of room in study site i
AccNum, = Number of accommodations in study site i
Reef Usage, = % of total visitors who visit coral reefs or coralline beaches in study site i


ii. Using default revenues by accommodation type

Gross Room Revenue = C Occup Rate,J X Roomnum,, X Room_cost,j X AccNum,j X Reef Usage,j

Where:

Occup Rate1j = Average occupancy rate for accommodation type j in study site i
Roomnumj = Average number of rooms per accommodation type j in study site i
Room_cost, = Average cost of room in accommodation type j in study site i
AccNum,, = Number of accommodations of accommodation type j in study site i
Reef Usagej= % of visitors to accommodation type j who visit reefs or coralline beaches in study site i.


iii. Using individual accommodation information

Gross Room Revenue = Occup Ratel,k X Roomnum1,k X Room_costi,k X Acc_Num,k X Reef Usagei k

Where:

Occup Ratel,k = Average occupancy rate for accommodation k in study site i
Roomnum, k = Average number of rooms per accommodation k in study site i
Roomcosti,k = Average price of room in accommodation k in study site i (average prices by season if
available)
Reef Usage k= % of visitors to accommodation k who visit the reefs or coralline beaches in study site i.

lb. Accommodation Costs

TotalWages = Wage, X Hours, X Weeks X Employee Number, X RoomNumber, X AccNum, X
Reef Usage,

Where:











Wage = average hourly wage in study site i (if available, average wage in the hotel industry)
Hours = average hours worked per week by accommodation staff in study site i
Weeks = weeks worked per yr (52 assumed)
EmployeeNumber = average numbers of employees per room in study site i
RoomNumber = average number of rooms per hotel in study site i
AccNum, = total number of accommodations in study site i.
Reef Usage, = % of visitors who visit coral reefs or coralline beaches in study site i

Total Non-Labor Operating Costs = PercentNonLabor X Gross_RoomRevenue

Where:

PercentNonLabor = percent of gross revenue from the accommodation sector that is spent on non-labor
operating costs (average percentage is estimated for the study site)
Gross_RoomRevenue = gross revenue from rooms in accommodation sector

Ic. Net Revenue Remaining in Country

NetRevenue = GrossRoomRevenue Wages Total Non-Labor Operating Costs

Net Revenue Remaining in Country = Net Revenue X (1-Leakage,)

Where:

Leakage, = leakage rate or percentage of foreign-owned accommodations in region i

Id. Transfers Within the Economy

TotalWages (see Total Wages calculation under Accommodation Costs above)

Service Charges = Gross_RoomRevenue X ServiceRate,

Where:

ServiceRate, = charge for service included on accommodation bills in region i

Taxes = Gross Room Revenue X Tax Rate,

Where:

TaxRate, = tax rate charged on accommodation revenues in region i

le. Total Reef-Related Accommodation Value

Total Reef-Related Accommodation Value = Net Revenue Remaining in Country + Total Wages +
Service Charges + Taxes


2. Dive Component










2a. Dive Revenues


DiveRevenues = (Dives, X Price,) + (Certifications, X Cert Price) + (Rentals, X RentalPrice1)

Where

Dives, = Number of dives occurring in region i as calculated through multiple available methods
Price, = Price of dives in region i as calculated through multiple available methods
Certifications, = Number of certifications issued in study site i
CertPrice, = Price of certification in study site i
Rentals, = Number of equipment rentals occurring in study site i as calculated by multiple available
methods
RentalPrice, = price of equipment rental as calculated by multiple available methods

2b. Dive costs

Total Labor Costs = Percent Labor X Dive Revenue

Where:

Percent Labor = percent of gross revenue that is labor operating costs
DiveRevenue = gross revenue from diving sector

Other Costs = Percent Non Labor X Dive Revenue

Where:

PercentNonLabor = percent of gross dive revenue that is non-labor operating costs
DiveRevenue = gross revenue from diving sector


2c. Net Dive Revenue

Net Dive Revenue = Dive Revenue Total Labor Costs Other Costs

2d. Transfers Within the Economy

Total Wages = Percent Labor X DiveRevenue

Where:

Percent Labor = percent of gross revenue that is labor operating costs
DiveRevenue = gross revenue from diving sector

Service Charges = Dive_Revenue X ServiceRate,

Where:

ServiceRate, = charge for service included on diving bills in study site i


Taxes = Dive Revenue X Tax Rate,










Where:

TaxRate, = tax rate charged on diving revenues in study site i

2e. Total Diving Valuation

Total Diving Valuation = Net Dive Revenue + Total Wages + Service Charges + Taxes

3. Snorkel and Boat Component

3a. Snorkel and Boating Revenues

SnorkelRevenue = (Snorkels, X Price,) + (Rentals, X RentalPrice,)

Where

Snorkels, = Number of snorkel trips occurring in study site i as calculated through multiple available
methods
Price, = Price of snorkel trips in study site i as calculated through multiple available methods
Rentals, = Number of snorkel equipment rentals occurring in study site i as calculated by multiple
available methods
RentalPrice, = price of snorkel equipment rental as calculated by multiple available methods

3b. Snorkel and boating costs

Total Labor Costs = Percent Labor X Snorkel Revenue

Where:

Percent_ Labor = percent of gross revenue that is labor operating costs
Snorkel_Revenue = gross revenue from snorkel and boating sector

Other Costs = Percent Non Labor X Snorkel Revenue

Where:

PercentNonLabor = percent of gross snorkel revenue that is non-labor operating costs
Snorkel_Revenue = gross revenue from snorkel and boating sector

3c. Net Snorkel Revenue

Net Snorkel Revenue = Snorkel Revenue Total Labor Costs Other Costs

3d. Transfers Within the Economy

Total Wages = Percent Labor X Snorkel_Revenue

Where:

Percent_ Labor = percent of gross revenue that is labor operating costs
Snorkel_Revenue = gross revenue from snorkel and boating sector











Service Charges = Snorkel_Revenue X ServiceRate,


Where:

ServiceRate, = charge for service included on snorkel and boating bills in study site i

Taxes = Snorkel Revenue X Tax Rate,

Where:

TaxRate, = tax rate charged on snorkel and boating revenues in study site i

3e. Total Snorkel and Boating Valuation

Total Snorkel and Boating Valuation = Net Snorkel Revenue + Total Wages + Service Charges + Taxes

4. Marine Park Component

4a. Gross Revenue

Marine_Revenue = Visitor, k + Marine_Vessell,k + Other, k + Taxes,,k

Where:

Visitor, k = fees charged to visitors to marine park k in study site i
MarineVessell,k = fees charged to operators of marine vessels in marine park k in study site i
Other, k = other fees charge at marine park k in study site i
Taxesl,k = taxes collected from users of marine park k in study site i


4b. Net Marine Park Revenue

Net Marine Park Revenue = C(Marine Revenuel,k Collection, k)

Where:

Marine Revenuel,k = gross revenue from marine park k in study site i
Collection, k = collection costs for marine park k in study site i


5. Local Use Component

5a. Coralline Beach Local Use Benefits

Coralline_BeachBenefits, = Wage, X Pop, X Percent, X Visits, X Length Visit,

Where:

Wage, = average hourly wage in study site i
Pop, = population of study site i
Percent, = percent of local population of study site i visiting coralline beaches for pleasure
Visits, = average number of visits per person to coralline beach for pleasure in study site i










Length Visit, = average length of visit to coralline beach in study site i


5b. Local Use Reef Recreation Benefit

ReefRecreationBenefits, = Wage, X Pop, X Percent, X Visits, X Length Visit,

Where:

Wage, = average hourly wage in study site i
Pop, = population of study site i
Percent, = percent of local population of study site i engaging in reef recreation outside of organized tours
Visits, = average number of visits per person for reef recreation outside of organized trips in study site i
Length Visit, = average length of visit for reef recreation outside of organized trips in study site i


5c. Total Local Use Benefit

Total Local Use Benefit = Coralline Beach Benefits, + Reef Recreation Benefits,


6. Other Values

6a. Other Revenue

OtherRevenue = yRevenue_Sourcel,k X Reef Usage, X (1-NonLabor,k)

Where:

Revenue_Sourcel,k = gross revenue from other revenue source k not already captured in tool for study site i
Reef Usage, = percent of visitors using the reef in study site i (if applicable to prorate revenue source k)
Nonlabor, k = percent of gross revenue for revenue source k that is non-labor operating costs in study site i

6b. Consumer surplus

Diving Consumer Surplus = DiveRevenue X CS_Factor
Snorkel Consumer Surplus = SnorkelRevenue X CS Factor
Total Consumer Surplus = Diving Consumer Surplus + Snorkel Consumer Surplus

Where:
Dive_Revenue = gross revenue from diving component
Snorkel_Revenue = gross revenue from snorkel component
CS Factor = factor relating consumer surplus to diving or snorkeling sectors, respectively

6c. Multipliers

Indirect Impacts = Gross_Revenue,k X (Multiplierl,k -1)

Where:

Gross_Revenuel,k = gross revenue in study site i coming from economy sector k
Multiplier, k = multiplier developed for economy sector k in study site i (ideally)










Appendix II. Data Requirements for Tourism and Recreation
Coral Reef Valuation Tool

1. Accommodation Component

At a minimum, to fully calculate this component, you will need:

Average hourly hotel wage
Hours worked per week per employee
Employees per room
Non-labor operating costs as a percentage of gross accommodation revenue
Tax rate
Service charge
Leakage estimate
Average room rate for accommodation sector as a whole
Average occupancy rate for accommodation sector as a whole
Average number of rooms for accommodation sector as a whole
Number of accommodations in study area
Percent of visitors using reef

For more specific and accurate calculation, you could include the number of rooms, occupancy rate, and
room rate by either accommodation type or individual accommodation

2. Diving Component

At a minimum, to fully calculate this component, you will need:

Total annual visitors to study site
Percentage of visitors diving
Average number of dives per diver
Average price of dive
Number of dive certification
Price per dive certification
Proportion of dives taken at all-inclusive resorts
Average price per dive of equipment rental
Proportion of all dives with equipment rental
Percent of gross revenue for labor costs in diving
Percent of gross revenue for other costs in diving
Tax rate in diving
Service charge in diving

For more specific and accurate numbers, you may estimate the number of dives using specific number of
divers (in marine park or otherwise), prices by type of dive, and individual dive shop information on
number of divers, dive price, equipment rentals, and equipment rental prices.

3. Snorkel and Boating Component

At a minimum, to fully calculate this component, you will need:











Total annual visitors to study site
Percentage of visitors snorkeling
Average number of snorkel trips per snorkeler
Average price of snorkel trip
Proportion of snorkel trips taken at all-inclusive resorts
Average price per snorkel trip of equipment rental
Proportion of all snorkel trips with equipment rental
Percent of gross revenue for labor costs in snorkeling
Percent of gross revenue for other costs in snorkeling

For more specific and accurate numbers, you may estimate the number of snorkel trips using specific
number of snorkelers, prices by type of snorkel trip, and individual snorkel operator information on
number of snorkelers, snorkel trip price, snorkel equipment rentals, and snorkel equipment rental prices.

4. Marine Park Component

At a minimum, to fully calculate this component you will need:
Fees collected (visitor, marine vessel, or other)
Any taxes collected if applicable
Collection costs if applicable

5. Local Use Valuation

At a minimum, to fully calculate this component you will need:
Population of study area
Average hourly wage
Percentage of local population visiting coralline beaches for pleasure or engaging in reef
recreation outside of organized trips
Average number of visits per person per year (to coralline beaches and for reef recreation)
Average duration of visit (to coralline beaches and to reefs for recreation)









Appendix III. Glossary


All-inclusive resorts: hotels/resorts that offer package deals that include room, meal, and
recreation costs, including reef-related activities such as diving, snorkeling, and reef tours.

Area of Coral Reefs: total area of coral reefs in the study site. For a comparison of three recent
estimates of reef extent in Caribbean countries, see Appendix A, Table Al in Reefs at Risk in the
Caribbean (Burke et al. 2004): http://pdfwri.org/reefs_caribbean_appl.pdf. Reef estimates are
sensitive to the definition of coral reef, as well as the data sources and mapping techniques used.

Area of Mangroves: land area currently covered by mangroves in the study site. The user may
decide to limit this to mangroves within 1 km (or another reasonable distance) from the coast.

Average unit price of Reef Fish / Shellfish: market price of reef-associated fish or shellfish,
preferably by species, averaged over the course of 1 year. Market price tends to vary seasonally;
average price can be weighted, if the user has the data and wishes to be more precise.

Coastal Shelf Area (to 30 meter depth): If detailed local data is not available, shelf area
estimates for many Caribbean countries can be found in Appendix A, Table A2 in Reefs at Risk
in the Caribbean (Burke et al. 2004): http://pdf.wri.org/reefs_caribbean_appl.pdf. Shelf areas in
Reefs at Risk were defined based on a bathymetric data set developed at WRI from depth point
data from the Danish Hydrologic Institute's (DHI) C-MAP data product, interpolated at 1-km
resolution.

Consumer Surplus: the difference between the total value consumers receive from a good or
service and the total amount they pay for it. This is calculated by analyzing the difference
between what consumers are willing to pay for something and its market price. In the case of reef
recreation, for example, divers often state that they would have been willing to pay $X more than
the actual price charged.

Coral Reef Valuation Tool: The Tool is made up of two separate components: the Fisheries
Valuation, the Tourism Valuation.

Current Exchange Rate: So that the final values can be in a single currency, the Tool requires
users to enter the current exchange rate between local currency and the US dollar. Both current
and historic exchange rates are available online at sites such as oanda.com. If available data on
fisheries, tourism, etc. are primarily a year or two old, the average exchange rate from that earlier
year can be substituted for the current rate. Note: The Tourism Component is implemented in
$US only, while the Fisheries Component offers the option of enter data in the local currency.

Discount Rate: the interest rate at which an agent discounts future events in preferences in a
multi-period model. A present-oriented agent discounts the future heavily and thus has a high
discount rate.

Gross revenue: total revenues (income from sales) collected by a business or industry









Land Area: the total land area, including land under crops, urban land, forested land, etc. within
the study site.

Land area under Permanent Crops: land cultivated with crops that occupy the land for long
periods and need not be replanted after each harvest, such as cocoa, coffee and rubber; this
category includes land under flowering shrubs, fruit trees, nut trees and vines, but excludes land
under trees grown for wood or timber.

Leakage rate: the percentage of tourist spending that leaves the country (does not benefit the
local economy), due to foreign ownership or reliance on imports. In the Tool this is measured
only in the accommodation sector, by estimating the percentage of total hotels that are foreign
owned.

Local Currency: the currency used in the site, if different from United States (US) dollars.

Local Use: Local use of a natural resource for recreation or enjoyment. In the Tourism Tool,
this includes visits to coralline beaches and visits to reefs outside of the context of an organized
trip.

Marine Protected Area: any area of the intertidal or subtidal terrain, together with its overlying
water and associated flora, fauna, historical and cultural features, which has been reserved by
law or other effective means to protect part or all of the enclosed environment (IUCN World
Conservation Union).

Multipliers: Multipliers are used to capture the indirect impacts arising within an economy of
interest as the expenditures in one industry filter through its backward-linked supplying
industries.

Net Revenue: total revenue (income from sales) collected by a business minus the total costs of
running that business.

Occupancy Rate: ratio that shows rooms sold over a fixed period of time as a percentage of
total available rooms in a property over the same period of time.

Operating costs:

Labor costs: the amount a business spends on paying its employees. In the Tool, this is
sometimes calculated by multiplying average wage in the industry by number of
employees and hours worked. For industries where this information is more difficult to
collect, average labor costs for the industry can be estimated as a % of gross revenue.

Non-labor operating costs: all expenses incurred by a business except payment of
wages, expressed as a % of gross revenue.

Population of site: total population living within the area being studied (if a national-level
valuation national population).









Population within 10km of the coast: total population living within 10km of the coast. (There
may or may not be a reef present at the coast).

Reef Extent: see Area of Coral Reefs

Reef Productivity: Average weight of fish and shellfish produced (caught?) per unit area of
coral reef over a one-year time period. Similar to Maximum Sustainable Yield (MSY) per unit
area.

Sensitivity analysis: investigation into how the output of the model in this case, economic
value varies along with changes in the key assumptions on which the estimates are based.

Service Charge: A percentage of the bill (usually 10% to 20%) added to the guest charge for
distribution to service employees in lieu of direct tipping.

Stay-over Visitors: includes visitors staying in the country at least 24 hours.

Study Area: The geographic area included in the coral reef valuation. This may be a region,
country, island, or sub-national site such as a Marine Protected Area.

Transfers:

To the economy: Includes wages and service charges, for example, which transfer to the
economy to be spent by the employees in a given industry elsewhere in the economy.

To the government: Includes taxes as these involve the movement of money from
expenditures in a given industry to the government.




University of Florida Home Page
© 2004 - 2010 University of Florida George A. Smathers Libraries.
All rights reserved.

Acceptable Use, Copyright, and Disclaimer Statement
Last updated October 10, 2010 - - mvs