Islanders are to be asked to put a price on Bermuda's coral reefs which could help determine compensation for ship groundings and other damage by marine users.

An international team is to survey the ecosystem in an attempt to find its monetary Total Economic Value (TEV). If approved by Parliament, penalties of thousands of dollars could then be levied against anyone who damages the coral.

Bermuda's pristine reefs are a recreational wonderland, bringing in many tourists year on year. They are valuable in so many ways - enhancing quality of life, economy and fisheries, while also acting as a buffer against hurricane storm surge.

Residents will be asked to quantify what the reefs mean to them through a series of household surveys.

It could be recreational enjoyment, such as diving or snorkelling; appreciation of coastal protection; or even a cultural or spiritual value.

In determining their value, this will then serve as a factor in the Cost Benefit Analysis of any marine development or policy.

Despite their beauty, Bermuda's reefs are increasingly vulnerable to over-development and shipping damage.

By determining how much they are worth in monetary terms, penalties can be introduced for ship grounding, anchoring or propeller scarring.

The study could therefore have an impact on the arrival of larger ships to the Island from 2009.

Asked whether this could have implications for the Panamax mega-ships, Dr. Samia Sarkis of the Department of Conservation Services said: "Yes, that's definitely one of the concerns right now, as they're going through the North Channel but this is quite tight and so if there's squalls, there is a safety concern.

"There is some concern as to what kind of damage would occur. There's been quite a few ship groundings in recent years but no damage compensation provided.

"The mega-cruise ships are coming to Bermuda but this study can assist us in developing a safe passage of the ships to Dockyard itself.

"I don't know what the exact modifications would be but the point is, if there are modifications to be made, the Total Economic Value could be determined in the Cost Benefit Analysis."

Dr. Sarkis, project coordinator, said: "This study was triggered by threats to the marine environment associated with an increase in the size and number of ships coming to Bermuda.

"We have a changing cruise ship industry so any kind of modifications required to accommodate this change will also have to use our Total Economic Value (TEV) to estimate the impact on the coral reefs."

Another example would be if Belco decided to build offshore wind turbines. Dr. Sarkis said the TEV of the threatened reefs would have to be taken into account in the Cost Benefit Analysis of the project.

"What we are doing will integrate the coral reefs in any development," she said.

"We would be able to say, this is how much these reefs are worth and this is how much we are losing. The company then might even look at an alternative plan which is less costly."

She added: "A study of this kind is complex, and needs robust techniques to ensure that the final value is justified and credible. All services are valued using a number of techniques."

The ten experts from Bermuda, the UK and the Netherlands will also employ data from the Bermuda Institute of Ocean Sciences (BIOS) and Conservation Services. The $180,000 two-year project - funded by the UK Overseas Territories Environment Programme (OTEP), is expected to be completed in May, 2009.

Bermuda's coral reefs were chosen from 15 ecosystems or issues put forward by conservationists, Government and NGO representatives.

"It's the first study which gives a voice to the environment, so when people are trying to make decisions and policies, we can bring the environment to the table on an equal footing," said Dr. Sarkis.

"We will be collecting data for every service that the reef provides, such as fisheries revenue, tourism revenue, to try and quantify the economic value of various activities.

"There is currently very little data on recreational use, which is where the household surveys can help a great deal. The goal is to find out what people appreciate most about the reefs. It could even be something spiritual or cultural. We know very little in Bermuda and so feel we will receive many new insights.

"The reefs are very healthy and pristine. I think that in the quality of life in Bermuda the marine environment plays a huge part."

By identifying the services the reefs provide, and placing a monetary value on a prioritised ecosystem, conservationists say this will influence Government policy and decision-making.

Dr. Sarkis, a marine biologist, said: "The reefs are pristine and quite healthy, but they are in close proximity to human development. If they are damaged or destroyed, it means we will lose some of these services and so lose money.

"Having a monetary value specific to Bermuda's coral reefs will enable decision-makers to make informed decisions by incorporating environmental considerations in various development scenarios or options. It puts the environment on an equal footing with other factors."

Ironically, the impact of global warming could bring an even greater value to Bermuda's reefs, as they are presently less damaged by climate change due to the steep Bermuda pedestal. If the reefs of our Caribbean neighbours continue to deteriorate, this could bring more tourism dollars to the Island.

Environmental Economist Dr. Pieter van Beukering said: "Bermuda is unique. Given the future threat of climate change, we could call it a Noah's Ark.

"If we think of coral reefs as a tourist attraction, the relative attraction of Bermuda will increase if other reefs are more damaged."

Dr. Sarkis said: "However, in order to be successful, this project needs to be widely accepted by the community and the decision-makers."