Estimating Economic Values for Pigeon Island National Park, Sri Lanka: Towards Designing Economic Instruments to Minimize Anthropogenic Degradation
Abstract
Pigeon Island National Park (PINP), a vital Sri Lankan Marine Protected Area, faces severe anthropogenic degradation stemming from rapid post-conflict tourism growth, excessive plastic accumulation, and illegal fishing. Institutional financing failures, where tourism revenue bypasses local conservation efforts, necessitate the design of sustainable, market-based instruments. The primary objectives of this study were to examine threats, estimate visitor Marginal Willingness to Pay (MWTP) for conservation improvements, and design novel, non-tax economic instruments.
The Choice Experiment Method (CEM) was employed to quantify attribute-specific visitor preferences, with face-to-face interviews conducted on a sample of 200 visitors (Jan-Aug 2022). Attributes included reductions in plastic/polythene, illegal fishing nets, crowding, and a monetary contribution (Cost). The resulting Conditional Logit Model was highly significant (p=0.000), showing a positive MWTP for all conservation attributes. Key results indicated visitors were willing to pay LKR 564.55 to reduce plastic by 50% and LKR 568.35 to reduce illegal nets by 50%.
These values inform the design of a complementary package of non-tax instruments: 1) A Refundable Deposit System (LKR 564.55) for plastic to address diffuse pollution; and 2) An Annual Insurance Surcharge (LKR 568.35) on boat owners to target sectoral risk. Implementation of these instruments provides a dedicated, re-investable funding source, bypassing the socio-political friction of imposing direct taxes, and offers a crucial blueprint for PINP’s sustained ecological health.
References
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[33] Noe, M. M. et al. (2025). Estimating Tourists' Willingness to Pay for Conservation of Natural Resources in Thailand: Evidence from Khao Laem Ya-Mu Ko Samet National Park. Tourism and Hospitality, 6(2), 109. https://doi.org/10.3390/tourhosp6020109
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[39] Villaseñor‐Derbez, J., Lynham, J., & Costello, C. (2020). Environmental market design for large-scale marine conservation. Nature Sustainability, 3, 234-240. https://doi.org/10.1038/s41893-019-0459-z
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[2] Ahmad Sufi, A. N. et al. (2024). Public willingness to pay for an entrance fee at the newly proposed Marine Protected Area in Malacca. Malayan Nature Journal, 76(2), 171–183.
[3] Baskara, K. A., Hendarto, R. M., & Susilowati, I. (2017). Economic's Valuation of Marine Protected Area of Karimunjawa, Jepara-Indonesia. AACL Bioflux, 10(6), 1554 - 1568.
[4] Bohorquez, J., Dvarskas, A., Jacquet, J., Sumaila, U., Nye, J., & Pikitch, E. (2022). A New Tool to Evaluate, Improve, and Sustain Marine Protected Area Financing Built on a Comprehensive Review of Finance Sources and Instruments, 8. https://doi.org/10.3389/fmars.2021.742846.
[5] Booth, H., Mourato, S., & Milner-Gulland, E. J. (2022). Investigating acceptance of marine tourism levies, to cover the opportunity costs of conservation for coastal communities. Ecological Economics, 201, 107578.
[6] Börger, T., Hattam, C., Burdon, D., Atkins, J. P., & Austen, M. C. (2014). Valuing conservation benefits of an offshore marine protected area. Ecological Economics, 108, 229-241.
[7] Cabral, R. B. et al. (2014). The Philippine marine protected area (MPA) database. Philippine Science Letters, 7(2), 300-308.
[8] Can, Ö., & Alp, E. (2012). Valuation of environmental improvements in a specially protected marine area: A choice experiment approach in Göcek Bay, Turkey. Science of the Total Environment, 439, 291-298.
[9] Casimiro, D., Ventura, M., Botelho, A., & Guerreiro, J. (2023). Ecotourism in Marine Protected Areas as a tool to valuate natural capital and enhance good marine governance: A review, 9. https://doi.org/10.3389/fmars.2022.1002677.
[10] Choi, K. R., Kim, J. H., & Yoo, S. H. (2022). Public Willingness to Pay for the Preservation of Marine Protected Species Zostera marina: A Contingent Valuation Study. Journal of the Korean Society of Marine Environment & Safety, 28(5), 681-691.
[11] Coastal Conservation & Coastal Resources Management Department. Ecological profile of Pigeon Island National Park and Surrounding Coastal Ecosystems. (2013) Coast Conservation & Coastal Resources Management Department.
[12] Davis, K. J., Burton, M., Rogers, A., Spencer-Cotton, A., & Pandit, R. (2019). Eliciting public values for management of complex marine systems: an integrated choice experiment. Marine Resource Economics, 34(1), 1-21.
[13] Emerton, L. (2014). Assessing, demonstrating and capturing the economic value of marine & coastal ecosystem services in the Bay of Bengal Large Marine Ecosystem. Phuket: Bay of Bengal Large Marine Ecosystem Project.
[14] Estoque, R. C. et al. (2018). Assessing environmental impacts and change in Myanmar’s mangrove ecosystem service value due to deforestation (2000–2014). Global change biology, 24(11), 5391-5410.
[15] Gelcich, S. et al. (2013). Financing Marine Protected Areas through Visitor Fees: Insights from Tourists Willingness to Pay in Chile. Ambio: A Journal of the Human Environment, 42(8), 975–984. DOI:10.1007/s13280-013-0453-z
[16] Grilli, G., Andrews, B., Ferrini, S., & Luisetti, T. (2022). Could a mix of short-and long-term policies be the solution to tackle marine litter? Insights from a choice experiment in England and Ireland. Ecological Economics, 201, 107563.
[17] Halkos, G., & Galani, G. (2016). Assessing willingness to pay for marine and coastal ecosystems: A Case Study in Greece.
[18] Himes-Cornell, A., Grose, S. O., & Pendleton, L. (2018). Mangrove ecosystem service values and methodological approaches to valuation: where do we stand? Frontiers in Marine Science, 5, 376.
[19] Hynes, S., Chen, W., Vondolia, K., Armstrong, C., & O’Connor, E. (2021). Valuing the ecosystem service benefits from kelp forest restoration: A choice experiment from Norway. Ecological Economics, 179, 106833.
[20] Jayaratne, C. T. et al. (2023). Valuation of the Bar Reef Marine Sanctuary from the Perception of the Visitors. In Proceedings of the 27th International Forestry and Environment Symposium. University of Sri Jayewardenepura. https://doi.org/10.31357/fesympo.v27i.7022
[21] Jayaratne, C., & Gunawardena, U. (2018). Economic Value of Marine Ecosystems: A Review, 23. https://doi.org/10.31357/fesympo.v23i0.3784
[22] Jayaratne, C. et al. (2023). Assessing visitor preferences and willingness to pay for Marine National Park Hikkaduwa: Application of choice experiment method. Sri Lanka Journal of Social Sciences, 45(2), 185–204.
[23] Jiang, X., & Cao, H. (2024). Implementing the debt-for-nature swaps for marine protected areas: case studies from Seychelles and Belize. Humanities and Social Sciences Communications, 11, 1-9. https://doi.org/10.1057/s41599-024-02855-3.
[24] Kelemen, E. et al. (2023). Signposts on the road toward transformative governance: how a stronger focus on diverse values can enhance environmental policies. Current Opinion in Environmental Sustainability, 64, 101351.
[25] Keohane, N. O., Revesz, R. L., & Stavins, R. N. (2019). The choice of regulatory instruments in environmental policy. Environmental law, 491-545.
[26] Kirkbride-Smith, A. E., Wheeler, P. M., & Johnson, M. L. (2016). Artificial reefs and marine protected areas: A study in willingness to pay to access Folkestone Marine Reserve, Barbados, West Indies. PeerJ, 4, Article e2175. DOI: https://doi.org/10.7717/peerj.2175
[27] Lancaster, K. J. (1966). A new approach to consumer theory. Journal of Political Economy, 74(2), 132-157.
[28] Laurans, Y., et al. (2013). Economic valuation of ecosystem services from coral reefs in the South Pacific: Taking stock of recent experience. Journal of Environmental Management, 116, 135-144.
[29] Lee, C.-H., Chen, Y.J. and Chen, C. W. (2019). Assessment of the economic value of ecological conservation of the kenting coral reef. Sustainability, 11(20): 5869
[30] McFadden, D. (1974). The measurement of urban travel demand. Journal of public economics, 3(4), 303-328.
[31] Mwebaze, P., & MacLeod, A. (2013). Valuing marine parks in a small island developing state: A travel cost analysis in Seychelles. Environment and Development Economics, 18(4), 405–426. https://doi.org/10.1017/s1355770x12000538
[32] Nitiratsuwan, T., Sirivithayapakorn, S., & Pradit, S. (2022). Are Tourists Willing to Pay for a Marine Litter-Free Coastal Attraction to Achieve Tourism Sustainability? Case Study of Libong Island, Thailand. Sustainability, 14(8), 4808.
[33] Noe, M. M. et al. (2025). Estimating Tourists' Willingness to Pay for Conservation of Natural Resources in Thailand: Evidence from Khao Laem Ya-Mu Ko Samet National Park. Tourism and Hospitality, 6(2), 109. https://doi.org/10.3390/tourhosp6020109
[34] Oosterhuis, F., Papyrakis, E., & Boteler, B. (2014). Economic instruments and marine litter control. Ocean & coastal management, 102, 47-54.
[35] Panaiotov, T. (1994). Economic instruments for environmental management and sustainable development.
[36] Pascal, N., Brathwaite, A., Philip, M., & Walsh, M. (2021). Impact investment in marine conservation. Ecosystem Services, 28, 199-220. https://doi.org/10.1016/j.ecoser.2021.101248
[37] Smith, A. E., Wheeler, P. M., & Johnson, M. L. (2016). Artificial reefs and marine protected areas: a study in willingness to pay to access Folkestone Marine Reserve, Barbados, West Indies. PeerJ, 4, e2175-e2175.
[38] Tinch, R. et all. (2019). Economic valuation of ecosystem goods and services: a review for decision makers. Journal of Environmental Economics and Policy, 8(4), 359-378.
[39] Villaseñor‐Derbez, J., Lynham, J., & Costello, C. (2020). Environmental market design for large-scale marine conservation. Nature Sustainability, 3, 234-240. https://doi.org/10.1038/s41893-019-0459-z
[40] Wallmo, K., & Kosaka, R. (2017). Using choice models to inform large marine protected area design. Marine Policy, 83, 111-117.
[41] Wattage, P. et al. (2011). Economic value of conserving deep-sea corals in Irish waters: a choice experiment study on marine protected areas. Fisheries Research, 107 (1-3), 59-67.
[42] Webb, A. E. et al. (2021). Quantifying functional consequences of habitat degradation on a Caribbean coral reef. Biogeosciences, 18(24), 6501-6516.
[43] Wijethunga, A.R.L. & Subasinghe D. (2024). Assessment of the Potential to Promote Nature-based Tourism Industry in the Protected Area Network of Sri Lanka. Proceedings of International Forestry and Environment Symposium. https://doi.org/10.31357/fesympo.v27.7114
[44] Windayati, R. et al. (2022). Assessment of coral-reef ecosystem services in West Buleleng conservation Zone, Bali, Indonesia. Journal of Coastal Conservation, 26(5), 43.
[45] Xiao, J., Wang, W., Wang, X., Tian, P., & Niu, W. (2022). Recent deterioration of coral reefs in the South China Sea due to multiple disturbances. PeerJ, 10, e13634.
[46] Xue, Y., Yan, J., Li, D., & Zheng, H. (2023). Integrated Ocean Management (IOM) for Marine Sustainable Development Goal (SDG) 14: A Case Study of China’s Bohai Sea. Sustainability. https://doi.org/10.3390/su15075979.
Published
2026-02-27
How to Cite
JAYARATNE, Chamathi; WATTAGE, Premachandra; GUNAWARDENA, Prasanthi.
Estimating Economic Values for Pigeon Island National Park, Sri Lanka: Towards Designing Economic Instruments to Minimize Anthropogenic Degradation.
Journal of Environmental Management and Tourism, [S.l.], v. 17, n. 1, p. 5 - 18, feb. 2026.
ISSN 2068-7729.
Available at: <https://journals.aserspublishing.eu/jemt/article/view/9338>. Date accessed: 04 mar. 2026.
doi: https://doi.org/10.14505/jemt.v17.1(81).01.
Section
Article
Copyright© 2025 The Author(s). Published by ASERS Publishing 2025. This is an open access article distributed under the terms of CC-BY 4.0 license.