An economic valuation and the sustainable development of a marine protected area: A case study of Cu Lao Cham, Vietnam: A thesis submitted in partial fulfilment of the requirements for the Degree of Doctor of Philosophy at Lincoln University

Abstract

The Vietnamese shoreline stretches for over 3,200 km with over 3,000 islands but the marine and coastal resources of Vietnam are under increasing threat from human activities. This includes Cu Lao Cham (Cham Island Marine Protected Area (CLC MPA)), which is recognised as an important area in terms of biodiversity and fish stocks in Vietnam. The important habitats in CLC MPA, such as coral reefs, seagrass beds, rocky shore, and sandy bottoms in the waters surrounding the CLC, have been seriously over-exploited. This exploitation is blamed as the main cause of the decline in marine resources. Conservation efforts have recently been implemented in the CLC MPA. However, economic analysis of the CLC MPA’s natural values has not yet investigated what may affect policy decisions on CLC MPA’s sustainable development. An economic valuation of the CLC MPA marine and coastal resources can provide a framework to sustainably manage the allocation and use of the resources. This study estimates the recreation and conservation values of marine resource in the CLC MPA using an onsite survey with a structured questionnaire. The Travel Cost Method was used to estimate the recreational values for respondents based on their visitation rate and their trips to the CLC MPA from 2013 to 2018. The results show that the respondents’ visitation rate and trips are significantly affected by their socio-economic characteristics (such as income, household size, gender, occupation and education), their transport means to travel between home and the CLC MPA, and other factors (travel and other expenses, time and purpose for visiting CLC MPA). Empirical evidence from Zonal Travel Cost Models (the OLS log-log form) suggests that the relationship between the respondents’ visitation rate and their travel cost is inelastic, which means that a change in the respondents’ travel costs nominally affects their visitation rate. The findings from the zero-truncated Poisson count models reveal that the aggregate recreational benefits in 2018 from the CLC MPA are estimated to be approximately VND950 billion (US$42.4 million). The consumer surplus is overestimated if multi-destination trips are omitted from the demand model, with approximately a 2.7% difference. The Contingent Valuation Method is used in this study to estimate the respondents’ willingness to pay (WTP) for the conservation of the CLC MPA (paying additional entrance fees). The results from Generalised Linear Models show that the WTP estimation varied among three different groups of respondents (combined, Vietnamese, and foreign visitors). Foreign respondents were willing to pay the highest amount and Vietnamese respondents pay the lowest amount (US$3.56 and US$1.99 per person per visit, respectively). On average, respondents visiting CLC MPA were willing to pay US$2.26 per person per visit.