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Valuing Blue Flag Status And Estuarine Water Quality In Margate, South Africa1

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  • Anton Nahman
  • Dan Rigby

Abstract

This study estimates the costs associated with reduced water quality and withdrawal of Blue Flag status in Margate, Kwazulu‐Natal, based on travel costs and contingent behaviour (reported change in visits contingent on a hypothetical scenario). Costs associated with hypothetical loss of Blue Flag status (based on reduced visits) range between R17 and R25 million per annum. Interestingly, Blue Flag status was withdrawn shortly after completion of the survey, owing to reduced water quality. This study therefore provides an estimate of the associated welfare losses, and of the benefits of actions to improve water quality and restore Blue Flag status.

Suggested Citation

  • Anton Nahman & Dan Rigby, 2008. "Valuing Blue Flag Status And Estuarine Water Quality In Margate, South Africa1," South African Journal of Economics, Economic Society of South Africa, vol. 76(4), pages 721-737, December.
    • Handle: RePEc:bla:sajeco:v:76:y:2008:i:4:p:721-737
    DOI: 10.1111/j.1813-6982.2008.00208.x
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    1. Deborah E. Lee & Mario du Preez & Stephen G. Hosking, 2011. "The recreational value of beaches in the Nelson Mandela Bay area, South Africa," Working Papers 239, Economic Research Southern Africa.
    2. Halkos, George, 2012. "The use of contingent valuation in assessing marine and coastal ecosystems’ water quality: A review," MPRA Paper 42183, University Library of Munich, Germany.
    3. Tobias Börger & Kolobe Mmonwa & Danny Campbell, 2024. "Hazardous human–wildlife encounters, risk attitudes, and the value of shark nets for coastal recreation," American Journal of Agricultural Economics, John Wiley & Sons, vol. 106(2), pages 925-945, March.
    4. Kono, Tatsuhito & Yoshida, Jun, 2020. "Travel Cost Method Considering Trip-day Counts as Integers," MPRA Paper 99244, University Library of Munich, Germany.
    5. McKenna, John & Williams, Allan T. & Cooper, J. Andrew G., 2011. "Blue Flag or Red Herring: Do beach awards encourage the public to visit beaches?," Tourism Management, Elsevier, vol. 32(3), pages 576-588.
    6. Halkos, George & Matsiori, Steriani, 2012. "Determinants of willingness to pay for coastal zone quality improvement," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(4), pages 391-399.
    7. Halkos, George, 2011. "Economic valuation of coastal zone quality improvements," MPRA Paper 35395, University Library of Munich, Germany.
    8. Lucrezi, Serena & Saayman, Melville & Van der Merwe, Peet, 2015. "Managing beaches and beachgoers: Lessons from and for the Blue Flag award," Tourism Management, Elsevier, vol. 48(C), pages 211-230.

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