Recreational Benefits of Ecosystem Services on and around Artificial Reefs: A Case Study in Penghu, Taiwan

In Penghu, artificial reefs (ARs) have been established to enhance fish stocks and create fishing grounds since 1974, but few studies have examined the other ecosystem services of ARs. Because the recreational benefits of ecosystem services provided by ARs are valuable and within the scope of public goods, they should be evaluated. In this study, two non-market methods, the Travel Cost Method (TCM) and the Contingent Valuation Method (CVM), were used to estimate the recreational value of ARs in Penghu, Taiwan. Estimations based on TCM results showed that boat anglers' recreational benefit (consumer surplus) was US$281.9 per trip and that scuba divers' recreational benefit (consumer surplus) was US$348.5 per dive. The CVM estimation results indicated that the projected ticket fares were US$13 and US$12.7 for boat fishing and scuba diving, respectively. When the yearly tourist numbers were taken into account, yearly revenues of approximately US$1.7 million and US$1.9 million were estimated from ticket sales, whereas the yearly economic values of boat fishing and scuba diving were US$37 million and US$52 million, respectively. The development of recreational activities on and around ARs could provide substantial economic benefits.