The annual Total Economic Value (TEV) of Bermuda's coral reefs has been estimated at more than $722.4 million.

Estimated values of six key ecosystem goods and services were identified as: Coral reef-associated tourism; reef-associated fisheries; amenity or reef-associated surplus value on real estate; coastal protection; reef-associated recreational and cultural values; and research and educational values. Their values were calculated using 2007 data.

TOURISM

The team placed its value at $405.9 million or 56 percent of TEV based on the results of two surveys revenue from 13 snorkel/dive/boat operators, and a tourist exit survey. More than a third (38.3 percent) of 407 air and cruise ship visitors said they were visiting Bermuda for the coral reefs.

COASTAL PROTECTION

Its value was put at $265.9 million or 37 percent of TEV. Coral reefs protect the shoreline from erosion and property damage from storms. The research estimated the potential damage to the coastline from a storm with and without the presence of a reef. Property damage information was based on reports for Hurricane Fabian in 2003, which caused an average damage share of 27.5 percent.

RECREATIONAL AND –CULTURAL VALUE

The team placed its value at $36.5 million or five percent of TEV. A questionnaire was presented to three focus groups recreational fishers; snorkellers and scuba divers; and Bermuda residents who do not fish or scuba dive.

Expert consultation was also held with coral reef and fisheries experts from Government departments and the Bermuda Institute of Ocean Sciences. Five attributes determined residents' use values for the ecosystem: recreational fishing; coral/fish diversity; recreational activities such as diving and snorkelling, water quality and an environmental levy.

The survey found less than half of residents were willing to pay a levy to preserve their marine environment.

AMENITY VALUE

Its value was put at $6.8 million or one percent of TEV, based on the relationship between house prices and beach distance. A total of 593 homes were used as a sample, with the average price of a two-bedroom house at $1.5 million.

FISHERY

Its value was put at $4.9 million or 0.7 percent of TEV. The value of coral-reef associated fisheries refers to both the market value of fish catch and the cultural and recreational importance of fishing in Bermuda. The direct value was obtained from the Marine Resources Section and interviews with fishermen. The indirect value was obtained from a survey of 400 households.

RESEARCH AND –EDUCATIONAL VALUE

Its value was put at $2.3 million or 0.3 percent of TEV. This was based on Government and non-governmental organisations' budgets for research and education activities associated with coral reefs.