Conservation Versus Development: Valuation of Coral Reefs Questions Port Expansion Plan in Vietnam

Coral reefs in Nha Trang City have been threatened by human activities such as use of dynamite, illegal harvesting, shipping, and pollution from the nearby port development project. How much recreational benefit from coral reefs is lost if these activities are not held in check? Using travel cost method, this study estimated the recreational value of coral reefs in Nha Trang to be VND 259.8 billion (USD18.3 million) annually, of which Hon Mun’s consumer surplus was estimated to be VND 45.4 billion (USD3.2 million). If this coral reef benefits were to be reduced by 20 % due to increased pollution created by the nearby expanded port, the resulting decrease in the recreational value would be more than the projected annual revenue of the port. The proposed port expansion plan needs to be seriously reconsidered.