The Abu Dhabi Contingent Valuation study estimated that the amenity supplied by the coastal and marine resources in Abu Dhabi was worth some US $141million to only 15 Abu Dhabi hotels/year equaling a Net Present Value (NPV) of between US $1.3 and US $2.1billion over 13 years, the average period before major refurbishment is expected. In addition, the coastal and marine resources supplied a value of US $683 million to beach users/year.
The project will be carried out in partnership between Dubai Municipality (DM) and the Abu Dhabi Global Environmental Data Initiative (AGEDI).
In this analysis, we are interested in continuing the amenity values people derive from the coastal and marine resources within the Emirate of Dubai. This has become an important consideration given the rapid rate of economic development, and the fact that the city is being marketed as a destination of choice for the global traveller and business person using amenities, such as beach and ocean views, recreation and sport opportunities and facilities, as attractions. The consequences of urban growth, however, are an increase in waste, energy and water use. Furthermore, there is active reclamation of the ocean leading to an increase in the canalisation of the coastal area, reducing water flow; as a result, the city could experience an increase in eutrophication and the number of red algae blooms.
To estimate the economic value of Dubai’s coastal amenities we will consider both the Willingness To Accept Compensation (WTAC) for a deterioration in quality of the coastal amenity values, and the Willingness To Pay (WTP) and/or contribute to a hypothetical restoration fund to avoid a loss in the value of these amenities.
The priorities for valuation will be towards the increasing incidence of Harmful Algal Blooms (HAB), otherwise known as red tides, as a useful proxy for the declining water quality. This can therefore be a means to quantify the value of a pristine coastal water quality environment to key stakeholder groups that utilise the coast both commercially and for leisure purposes.
To check out the previous Abu Dhabi results please click here