An Economic Analysis of Coral Reefs in the Andaman Sea of Thailand

Abstract

This study valued the benefits of coral reefs in the Andaman Sea in a proposed project development area known as the Southern Seaboard Development Project. The specific area of interest was the Phi Phi Islands, which is a highly valued group of islands both in terms of its use values and non-use values. Accordingly, this project calculated the recreational values of coral reefs in the Andaman Sea of Thailand. The specific objectives were (1) to estimate the recreational benefits of Phi Phi Islands, (2) to estimate consumer willingness to pay for improved coral reef quality at Phi Phi Islands and (3) to use these values to determine an appropriate entrance fee for visiting the reef sites at Phi Phi Islands. This study employed both travel cost method and contingent valuation method to generate estimates of the reef value at Phi Phi. The consumer surplus associated with visits to Phi Phi represents an annual value of THB 8216.4 million (USD 205.41 million).