Regional Studies in Marine Science 7 (2016) 142–149

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Regional Studies in Marine Science

journal homepage: www.elsevier.com/locate/rsma

Estimation of local tourists Willingness To PayMohamed Faizan a, A. Sasekumar a,∗, S. Chenayah b

a Institute of Biological Science, Faculty of Science, University of Malaya, 50603 Kuala Lumpur, Malaysiab Department of Economics, Faculty of Economics and Administration, University of Malaya, 50603, Kuala Lumpur, Malaysia

h i g h l i g h t s

• Cape Rachado FPA lacks basic elements of a properly managed coral reef area.• Cape Rachado reef is in poor condition with live coral in decline.• Majority of local tourists are WTP a conservation fee to manage Cape Rachado.• Median WTP for a conservation fee was estimated at MYR 3.00.• MYR 1.03 million per annum can be generated by levying an entrance fee of MYR 3.00.

a r t i c l e i n f o

Article history:Received 2 January 2016Received in revised form1 June 2016Accepted 16 June 2016Available online 23 June 2016

Keywords:Corals reefsFisheries prohibited areasContingent valuation management

a b s t r a c t

Coral reef around Cape Rachado, Malacca was among the first to be declared as a Fisheries ProhibitedArea (FPA) in Malaysia. Despite this declaration, there are no measures on the ground to effectivelyenforce this regulation, opening up the area for illegal fishing and harvesting of corals, seaweeds andsea-cucumbers. In addition, the reef is under constant stress from increased sediment run-off, dischargeof sewage/wastewater and other pollutants from the rapidly developing coastline of Port Dickson. Coralreef studies from 1976 to 2014 in the area indicate that the live coral coverage has declined from59.6% to 11.9%. In this study, Contingent Valuation Method (CVM) was adopted to elicit the willingnessto pay (WTP) by local tourists for an improved coral reef management scenario for this area, whichcomprises of enforcement of fisheries prohibition regulation, increasing awareness on FPA and the reef,implementation of regular coral reefmonitoring, and exploration ofways to improve the seawater qualityat this area. The contingent valuation survey demonstrated that the local visitors were supportive of aconservation fee, if the money was exclusively used to fund this coral reef management scenario. Theestimate ofmedianWTP for conservation feewasMYR 3.00. If a fee ofMYR 3.00 can be fully captured fromthe population of local visitors to the beaches along Port Dickson and Cape Rachado, it can conservativelygenerate as much as MYR 1.03 million per annum.

© 2016 Elsevier B.V. All rights reserved.

1. Introduction

Following a decline in fish catch in the early 1980s along withan increased understanding of the vital role coral reefs playedas habitat and breeding grounds for fishes, the government ofMalaysia initiated steps to protect, conserve, and manage thefragile coral reef resources of the country (Department of MarinePark Malaysia, 2012). A first major step taken under this initiativewas the enactment of the Fisheries (Prohibited Areas) Regulationin 1983, and the designation of Pulau Redang, located in the state of

∗ Corresponding author.E-mail address: sasekumarster@gmail.com (A. Sasekumar).

http://dx.doi.org/10.1016/j.rsma.2016.06.0052352-4855/© 2016 Elsevier B.V. All rights reserved.

Terrengganu, as a Fisheries Prohibited Area (FPA) in the same year.Since then, the Fisheries (Prohibited Areas) Regulation has beenamended in 1988 and 1994. Presently six areas are listed underthe regulation as FPAs, two in Sarawak (Pulau Talang-Talang Besar,and Pulau Talang-Talang Kecil) and four inMalacca (Cape Rachado,Pulau Besar, Tanjung Tuan, Tanjung Tuan 1, and Tanjung Tuan 2).

Nevertheless, FPAs face many challenges: lack of trained per-sonnel, logistical challenges, financial constraints, and difficultiesin enforcement of regulations and lack of regular monitoring ofcoral reef health are impediments to proper management (Burkeet al., 2002, p. 40). In addition, ambiguous national and local legisla-tive measures, and separation of responsibility for managing FPAsand their associated coastal areas between federal and state gov-ernments, are identified as key constraints for successful marineresource management in Malaysia (Islam et al., 2013, p. 133).

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Fig. 1. Location map of Cape Rachado, Malacca.

Inadequate management of FPAs leaves them vulnerable to abarrage of threats. Increased sediment and nutrient run-off fromagricultural and poorly planned developmental activities in-land,oil spillages, anchor damage, overfishing and destructive fishingpractices, are identified as the key anthropogenic threats to coralreefs in Malaysia (Burke et al., 2002, p. 39).

Cesar (2000, p. 7) suggested the key reason resources arenot adequately appropriated for proper management of marineprotected areas, is the lack of tangible figures to demonstratethe true economic value of coral reef ecosystems, and the cost ofcontinuing activities that destroy them. Furthermore, a significantportion of the services provided by an ecosystem such as coral reefsare invisible in the market, resulting in little or no considerationgiven to them in policy decisions (Costanza et al., 1997, p. 253).

The aim of this study was to estimate the local touristswillingness to pay (WTP) for an improved coral reef managementscenario at Cape Rachado (locally known as Tanjung Tuan) FPA.Cape Rachado was among the first reefs to be declared an FPA inMalaysia. The specific objectives of this study were:

1. To review the existing coral reef management practices andstatus of the reef at Cape Rachado, Malacca.

2. To formulate an improved coral reef management scenario forCape Rachado FPA.

3. To conduct a willingness to pay survey of tourists/visitors atCape Rachado and associated beaches along the Port Dicksoncoastline for the improved reef management scenario.

2. Methodology

The first step was to review literature on coral reef valuation,and select a suitable valuation method for this study. Based on thereview, Contingent ValuationMethod (CVM) was selected as it canbe used to determine economic benefits/loss of a shift in existingenvironmental quality, in this case, to estimate the economic valueof improving the coral reef health via an improved coral reefmanagement scenario.

Next the status of the reef and existing management measureson the ground at Cape Rachado (Fig. 1) were reviewed, to developan improved coral reef management scenario.

2.1. Contingent valuation survey

The contingent valuation survey comprises a questionnaire.Face-to-face interviews, and a self-administered online form wereused to obtain respondents. The CV questionnaire was developedwith four main sections.

Section A explained the purpose of the study followed withquestions regarding the respondents visit and experience in thearea. Section A also included questions exclusive to scuba diversrelating to their dive experience—whether or not they had divedat Cape Rachado reef and their views on the status of the reef.

Section B provided the responders with a detailed descriptionof the current status and threats to the reef at Cape Rachado, andproposed an improved management scenario. This included theinstitutional setting in which the scenario will be implemented,and a description of a proposed mechanism to finance thisprogram, i.e. a conservation fee levied on visitor.

Section C probed WTP. A payment ladder design was adoptedfor this section (Yeo, 2003), in which respondents were presentedwith a series of monetary values starting from MYR 0.50 up toMYR 100 and were asked for their maximum WTP within thisrange. Follow-up questions probed why they were willing to paythe amount they stated or why they were not willing to pay for thestated scenario.

Section D focused on socio-economic characteristics andemployment status of the respondents. This section also includedquestions to determine respondents’ awareness of threats to coralreefs and their attitudes towards environmental issues.

Raw data collected from the surveys was analyzed usingStatistical Package for Social Science (SPSS) version 17.0. Anindependent samples t-test was conducted to determine whetherthe mean WTP estimates using face-to-face and online methodswere statistically different, to determine whether the data can bepooled to estimate meanWTP. Following which mean and medianWTP was calculated.

2.2. Development of improved coral reef management scenario

All available literature related to Cape Rachado coral reef andthe FPAs was reviewed.

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Consultations with a local Non-Governmental Organization(NGO), the Malaysian Nature Society (MNS) that has been activelyinvolved in conservation of Cape Rachado forest reserve wereconducted. MNS organizes annual migratory bird watching eventsat the cape, has called for active monitoring of the FPAs, and hadreported incidences of fishing within the FPAs to the authorities inthe past (Malaysian Nature Society, 2007).

A local environmental consultancy firm, FANLI Marine &Consultancy Sdn Bhd was consulted. FANLI has been involved inthe preparation of the Integrated Shoreline Management Study forPort Dickson and Negeri Sembilan (FANLI Marine & ConsultancySdn Bhd, 2010).

In view of the limited literature available on the present statusof the reef, a local scuba dive instructor from the Malaysian DiversGroupwho frequently dives and organizes dive trips to reef at CapeRachado was interviewed to obtain his views on the current statusof the reef.

Following the literature review and consultations’ a siteinspectionwas conducted to verify the findings, and also to observethe current usage of the area.

A coral reef management scenario was developed to addressthe key issues that were identified. To ensure that the scenariois understandable and convincing to the survey respondents,measures that can be implemented in a near future were selected.In addition, expected benefits from implementation of thesemeasures were described along with them.

3. Results

3.1. Status of Cape Rachado FPAs

Cape Rachado is located on the western coast of PeninsularMalaysia, approximately 17 km south of Port Dickson, Negeri Sem-bilan. This is a small rocky cape of roughly one square kilome-ter, extending into Straits of Malacca from Si Rusa, Negeri Sem-bilan, but is an exclave of the state of Malacca. The cape forms ahill dipterocarp forest (Forestry Department Peninsular Malaysia,2014). Currently, the forest reserve and wildlife sanctuary is underthe management of Department of Forestry Malacca. This forestarea serves as a vital stopover point for migratory birds (BirdLifeInternational, 2013). The beaches adjacent to Cape Rachado alongthe coast of Port Dickson, were among the first areas developedfor coastal tourism in Malaysia, with a number of tourist accom-modations and recreational facilities established along the beaches(Wong, 1990, p. 217). These beaches are famous among week-enders and are reported to attract millions of holidaymakers (Ab-dullah, 1995, p. 158).

The cape is surrounded by a fringing reef, composed of threedistinctive reef environments extending from the cape’s rockyshore; an intertidal reef flat that extends roughly 50–60m into thesea, followed by reef edge which extends about 17 m composedof characteristic surge channels that terminate with a gentle reefslope to the flat muddy bottom into the Straits of Malacca (Gohand Sasekumar, 1980, p. 27). This reef is small and low in termsof diversity compared to most reefs that occur in the country(Spalding et al., 2001, p. 266). However, coral diversity at CapeRachado (41 coral species) is on a par with reefs that occurs inthe Straits of Malacca; like Pulau Payar (70 coral species) andPulau Sembilan (30 coral species) (Gopinath et al., 2000). Thereef is dominated by hard corals; near shore areas dominated byPorites species,middle byGoniastrea andGoniopora species (Phang,1995, p. 26). The reef flat supports seaweedbeds;mainly composedof Sargassum, Turbinaria and Padina species (Wong and Phang,2004, p. 80).

Part of the reef was designated a FPA in 1988, with a furthertwo sites at Cape Rachado designated as FPAs in 1994 under the

amended Fisheries (Prohibited Areas) Regulation 1994 (Depart-ment of Marine Park Malaysia, 2012). Collection of shells, harvest-ing of mollusks, corals and fishing in this area without prior per-mission from the Department of Fisheries Malaysia is strictly pro-hibited (Department of FisheriesMalaysia, 1994). Offenders caughtand charged could be fined up to MYR 20,000 or sentenced toprison for a period of two years. However there are no on-site ma-rine rangers or marine police to monitor the area for illegal fishingor harvesting of marine animals within the FPAs. The enforcementagency presently relies on reports by the public/NGOs to appre-hend offenders. Over the years the State Department of Fisheries ofMalacca and Negeri Sembilan have responded to reports of illegalfishing, harvesting of corals in this area and in some cases appre-hended the offenders (Cheema, 2015; Malaysian Nature Society,2007; New Straits Times, 2000). No other tangible measures canbe observed on the ground to manage the FPAs.

Currently there are no maps, signboards or markers to identifythe FPAs. There is no limitation on the number of visitors to thearea, andno fees are charged for the usage of this area. Furthermoreno regular monitoring is carried out to determine overall health ofthe coral reef ecosystem in this area. All of which are essential tomanage a coral reef area.

The earliest scientific study of the Cape Rachado coral reef wasin 1976 (Goh and Sasekumar, 1980); in this study the reef flat andreef edge to the north–west of the cape was reported to have a livecoral cover of 26.5% and 59.6% respectively. Nearly identical livecoral cover estimates (reef flat with 27% live coral reef edge with60% live coral cover)were reported in a study carried out from1987to 1988 at three different locations of the reef (Phang, 1995, p. 26).In contrast to these estimates, a study done in 2004 showed thatthe mean coral cover near Cape Rachado has declined to 16.8% andconcluded the reef was in poor condition (Lee et al., 2004, p. 599).Part of an ongoing study by Affendi Yang Amri from the Institute ofBiological Science, University Malaya, reported that coral coveragefor this area was at 11.9% in 2014 (Ying, 2015). These results areindicative of a decline in live coral coverage at this area.

Poorly planned tourism development, especially at coastal ar-eas, can potentially be the main driver of many negative pres-sures on a coral reef ecosystem; such as increased sedimenta-tion, damages to the reef by direct contact of tourists and manymore (Diedrich, 2007, p. 985). One example that highlights thisis the removal of a part of the mangrove along the coast of CapeRachado, for the construction of a condominium in 1985–1986resulting in excessive siltation over the corals causing significantdamages to corals and seaweed assemblages at the site (Phang,1995, pp. 23–24). Sedimentation on corals prevents ambient lightfrom reaching zooxanthellae—symbiotic algae on which major-ity of corals rely for energy- and reduces the overall photosyn-thetic productivity. Sedimentation also triggers corals to expendmore energy to clear sediment (e.g. by production and sheddingoff mucus sheets). Energy the corals would otherwise utilize forgrowth, reproduction and other metabolic activities (Riegl andBranch, 1995). Prolonged exposure to sedimentation rates above10mg cm−2 d−1 trigger stress responses inmany coral types,whilesedimentation rates above 200 mg cm−2 d−1 are lethal to mostcoral species (Erftemeiher et al., 2012). Furthermore, increasedsedimentation impedes successful coral reproduction, by prevent-ing coral larvae settlement, and decreasing survival rates of re-cruited and juvenile corals (Fabricius, 2005).

Sedimentation is a significant problem for coral reefs, especiallyon the western coast of Peninsular Malaysia (Tatsuki et al.,2007). The mean sedimentation rates of waters not subject tohuman disturbances are reported to be within the range of lessthan 1–10 mg cm−2 d−1 (Rogers, 1990, p. 189). Comparison ofsedimentation studies done at Cape Rachado in 1979 and 2004shows that the sedimentation levels were high and had increased

M. Faizan et al. / Regional Studies in Marine Science 7 (2016) 142–149 145

Fig. 2. Map showing sewage outfall pipes, natural drains, and concrete drains along Port Dickson coastline.Source: Adapted from Hamzah et al. (2011, p. 94).

from a range of 0.95–54.3mg cm−2 d−1 (Chark andHoare, 1979) to27.31±3.2–233.59±52.04mg cm−2 d−1 (Lee et al., 2004, p. 601).Themaximum sedimentation rate reported in this area in themostrecent study was 76.83 mg cm−2 d−1 (Lee and Mohamed, 2011),which can trigger stress responses in many coral species.

The problem is further intensified by the discharge of sewageand wastewater into the sea and the coastal geomorphology ofthe area that reduces dispersion of these stressors (Wong, 1990, p.217). A total of 82 wastewater pipes lines (Fig. 2) were reportedto directly discharge wastewater from homes and hotels into thesea at this area; and the waters were highly contaminated withfecal coliform and unsafe for recreational use by humans (Hamzahet al., 2011). Untreated sewage contains a number of stressors suchas freshwater, dissolved inorganic nutrients, endocrine disruptors,pathogens, solids, heavy metals and heavy metals that can havesub-lethal to lethal effects on corals (Wear and Thurber, 2015, p.17).

3.2. Improved coral reef management scenario

Fig. 3 shows the proposed implementation structure of themanagement scenario, along with brief summary of key playersand benefits of the scenario. The Coral Reef Management Unit(CRMU), is proposed to be housed under the Department of Fish-eriesMalaysia and comprised of members from the city councils of

Port Dickson andMalacca, Stakeholder group (NGOs, local schools,hoteliers, dive operators and scientists), the Department of MarineParks Malaysia, and the Department of Environment. Specific ac-tions proposed by CRMU can be implemented in liaisonwithNGOs,hotels, resorts, local schools and scientific community. Collabora-tion with all relevant stakeholders is key to the success of a coralreef management plan.

The first step in the improved coral reef management scenariowas setting up a funding mechanism for coral reef management.Malaysia has the legal instruments and experience in settingup similar conservation trust funds; for example a fee ischarged for entrance into Cape Rachado Forest reserve, similarlya conservation fee could be charged for entrance to marineparks in the country. The target respondents for the contingentvaluation survey are local visitors/tourists, hence they should befamiliar with concept of conservation fees. To fund the improvedmanagement scenario, visitors to the Cape Rachado beaches willbe required to pay a conservation fee that will be credited into theCape Rachado Coral Reef Conservation Fund.

Lack of enforcement of existing FPA regulation, opens up thearea for illegal fishing and harvesting of corals and other seacreatures. In the improved scenario, a mechanism was proposedto be set-up on the ground to enforce the existing FPA regulations.This will include stationing of marine rangers within the FPA, toregularly monitor the area for illegal activities and prevent such

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Fig. 3. Outline of improved coral reef management scenario.

activities. The aim was to reduce fishing and harvesting of coralsand sea animals that takes place within the FPA, hence reducingpressure exerted on the reef. This measure is expected, to improvefish and coral life at the Cape Rachado FPAs.

There is a need to increase environmental awareness amongpeople that use these beaches, especially on the consequencesof indiscriminate littering on this fragile ecosystem, and properbehavior in a coral reef environment to minimize damage to thecorals. In addition, there is also a need to raise awareness about theFPAs at CapeRachado, its purpose, and activities that are prohibitedwithin the FPAs. The improved coral reef management scenarioincludes setting up signs on-site clearly marking the FPAs alongwith a list of activities that are prohibited.

In addition, a well-organized programme targeted at visitorsand locals was planned increase awareness about coral reefecosystems and behavior at a coral reef to minimize damageto corals. This is expected to reduce illegal activities, harmfulbehavior, such as littering that occurs at Cape Rachado FPAs,reducing pressure on the reef.

Lack of coral reef monitoring, makes it impossible to determinethe effectiveness of any management measure. Formulating andimplementing a proper coral reef monitoring programmewill helpmonitor the health of the reef and also make managers betterinformed in using their limited resources, and take appropriatemanagement measures.

Good water quality is important to improve fish and coral lifeat the reef. As described earlier, this reef is subject to high levelof sedimentation and also sewage disposal near the area. Hence,there is a need to identify the sources of sedimentation and sewage,and assessmeasures that can be taken to reduce sedimentation andimpact of sewage disposal. The outcomes of these assessmentswillhelp to formulate proper, effective plans to reduce water pollutionand improve the quality of water at this area.

3.3. Willingness to pay for the improved coral reef managementscenario

A total of 211 people responded to the contingent valuationsurvey. A total of 163 people responded in the face-to-face survey,and 48 people responded in the online survey.

Responses with three or more missing data variables werediscarded resulting in a final sample size consisted of 210respondents.

All 163 respondents in the face-to-face survey answered theWTP elicitation question. However only 45 of the 47 respondersto the online survey answered theWTP elicitation question. Figs. 4and 5 shows the responses to theWTP question for the face-to-facesurvey and the online survey. Shapiro–Wilk test for normality ofthe WTP conservation fee distribution for the face-to-face surveygave a p-value of 0.365 and for the online survey gave a p-value of0.381. Since both these p-values are greater than 0.05, it indicatesthat the WTP conservation fee responses for both survey typeswere normally distributed.

Approximately, 12.8% of the respondents in the face-to-facesurvey and 4.4% of the online survey responders were not willingto pay a conservation fee to support the improved coral reefmanagement scenario. In contingent valuation literature, zerobids are classified as either ‘‘true zero’’ values or ‘‘protest bids’’.Respondents who give a zero bid despite having a positive WTPtowards the goods are classified as protest bids. This may bebecause they object to certain aspect of the scenario such as thepayment collection mechanism (Carson, 2000).

In order to determine whether the zero bids were true zerovalues or protest bids, respondents were asked why they werenot willing to pay. The following summarizes the responses to thefollow-up question;

1. Government, resorts, business owners and locals of PortDickson should pay for coral reef conservation effort.

2. Do not trust that the money will be used for this program.3. Concerned that tourist will not visit this area if a fee is charged.4. This is a public area, hence no fees should be charged for the use

of this area.5. Cannot afford to pay due to current financial situation.6. This site is not a suitable site for diving.

Responses that reflect points 1 and 2 were categorized asprotest bids and the rest as true zero values. The majority of zerobids were protest bids (69.5%).

There was no significant difference between mean WTP of theface-to-face survey (mean = 5.92, standard deviation = 13.78)

M. Faizan et al. / Regional Studies in Marine Science 7 (2016) 142–149 147

Fig. 4. Frequency distribution of WTP conservation fee (face-to-face survey).

Fig. 5. Frequency distribution of WTP conservation fee (online survey).

Table 1Comparison of mean and median WTP conservation fee, with and without protest bids.

Bid type Sample size Median WTP Mean WTP Standard deviation

Including protest bids 208 3.00 6.33 14.03Excluding protest bids 192 3.00 6.86 14.48

and the mean WTP of online survey (mean = 7.81, standarddeviation = 14.99); t(206) = −0.799, p = 0.425. Since thereis no significant statistical difference between WTP of two surveytypes, both data sets were combined for the following calculation.

The mean and median WTP conservation fee was calculatedincluding and excluding the protest bids (Table 1). Mean WTPcalculated without the protest bids was slightly higher, howeverit can be observed that the median WTP including and excludingprotest bids were the same at MYR 3.00. Hence, for furthercalculations median WTP is used.

The benefits that would be obtained by levying conservationfee on visitors to the beaches in Port Dickson and Cape Rachado,is calculated using the following formula;

Bt = Number of visitorst × median WTP (3.1)

where,

Bt:—benefits from revenues generated from levying a conserva-tion fee on visitors to the beaches in Port Dickson in year tNumber of visitorst :—total number of local visitors to PortDickson in year t , andMedian WTP:—median willingness to pay by visitors theconservation fee.

No official records are kept on the number of local visitors tothe beaches in Cape Rachado or Port Dickson. The data publishedby the Department of Statistics Malaysia provides the totalnumber of local visitors to Negeri Sembilan. The number of localtourists/visitors to Negeri Sembilan in 2010 was approximately1.4 million (Department of Statistics Malaysia, 2010, p. 31) and2012 was 3.5 million (Department of Statistics, Malaysia, 2012, p.31). It is reported that about 69% of visitors/tourists to NegeriSembilan are those visiting Port Dickson (Samad et al., 2011, p.41). To keep the estimate conservative, the following assumptions

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Table 2Annual potential value estimate for funding improved coral reef managementscenario.

Number of visitors Median WTP Potential value

345,000 MYR 3.00 MYR 1,035,000.00

were made: the total number of local visitors to Port Dickson wasconstant at 690,000 per year and at least half (345,000) visits thebeaches in Port Dickson or Cape Rachado. The median WTP withprotest bids included for the whole sample was MYR 3.00. Table 2shows the calculation of the potential value estimate for fundingthe improved coral reef management scenario.

4. Conclusion

In this study, the present status of the coral reef that occursat Cape Rachado FPAs was reviewed, along with existing coralreef management measures for this area. Based on the findings,a preliminary improved coral reef management scenario wasoutlined. Contingent valuation method was used to estimate theWTP of local visitors/tourists at this site for this improved coral reefmanagement scenario.

A review of the existing situation at Cape Rachado FPA, revealedthat coral reef is deteriorating with increased coastal developmentand tourism along the Port Dickson coast. The key threats, to thereef are from increased sediment run-off from rapid land clearanceand construction works along the coast, increased disposal ofwastewater and sewage from hotels, resorts etc. along the coast,and littering by tourists who uses the beaches associated with theFPAs. Furthermore, despite the prohibition of fishing within thisarea there are no measures in place to prevent illegal fishing orharvesting of marine creatures. In other words, the FPAs exist onlyon paper.

The improved coral reef management scenario comprised ofpreliminary steps that can be taken to address the key issues thatwere identified in this study. This included setting up of coralreef conservation trust fund, and a coral reef management unit forCape Rachado under the Department of Fisheries Malaysia. Thisunit is proposed to comprise of members from the Departmentof Fisheries, Marine Parks, Environment, the city councils of PortDickson and Malacca, which will execute development plans inliaison with relevant stakeholders such as local NGOs, schools,hotels, resorts and the scientific community. The scenario focuseson four main areas; enforcement of existing fisheries prohibitionregulation, increasing awareness of tourists and locals on the FPAand coral reefs, coral reef monitoring, and improving the seawaterquality of this area.

The median WTP for the improved coral reef managementscenario was estimated at MYR 3.00 from the CV survey, andthe survey shows that approximately 87% (face-to-face interviewsurvey) and 95% (online survey) were willing to pay for theimproved coral reef management scenario. The estimates from theCV study show significant economic benefits (MYR 1.035 millionper annum), of improving coral reef management at Cape RachadoFPAs. This is a significant amount, when compared to the averageannual cost that goes to managing marine protected area. Forexample the average annual costs of managing a marine protectedarea such as Sugud Island Marine Conservation Area in Sabah(SIMCA) (467 sq. km area) is reported at MYR 350,000.00 (Lydiaet al., 2007). Hence, it is highly recommended to further explorethe option of properly managing Cape Rachado FPAs.

Acknowledgments

The 1st author would like to express his deepest appreciationto Islamic Development Bank (IDB) for providing a scholarship

to undertake the M. Environ Tech. (Environmental Management)program in University of Malaya. Comments from Dr. Chua, Thia-Eng greatly improved the contents of the manuscript and Dr. JohnWilson of the Institute of Biological Sciences suggested changes tothe English language.

Our sincere gratitude to Malaysian Nature Society and FANLIMarine Consultancy Sdn Bhd, for sharing their insights onenvironmental issues in the coastal region of Port Dickson. Specialthanks to Mr. Sazali Bin Sakiran of Malaysian Divers Group (MDG)for sharing underwater photos of corals and sea animals at CapeRachado and his views on the status of the reef.

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