Exploring Business Perceptions and Willingness to Pay for Coral Insurance in Hawaiʻi: A Study on Oʻahu and Hawaiʻi Island
Title: Study Reveals Business Perception of Coral Health and Value in Hawaii
A recent study conducted on two Hawaiian islands, Hawaiʻi Island and Oʻahu, has shed light on the perception of coral health and value among coastal businesses in the tourism industry. The research, which aimed to assess the economic benefits of coral reefs in Hawaii, found that despite the threats posed by marine heatwaves and hurricanes, coral reefs in Hawaii generate net economic benefits of $360 million per year.
The study, conducted by The Nature Conservancy (TNC), surveyed 202 coastal businesses operating at 259 locations between August 2021 and May 2022. The businesses were selected based on their proximity to coral reefs and their involvement in the tourism industry. The survey aimed to understand how businesses perceive the health and value of coral reefs, as well as their willingness to invest in coral conservation efforts.
One of the key findings of the study was the correlation between perceived coral health and actual coral cover near business locations. By comparing survey responses to remotely sensed data on coral cover, the researchers were able to assess the accuracy of business perceptions. The study also evaluated the perceived value of coral reefs to tourism and flood protection, comparing it to external ecosystem services datasets.
The study used a variant of a dichotomous choice stated preference survey to estimate business participation in a coral insurance program. The results showed that businesses in Hawaii were willing to pay for coral insurance, with varying levels of willingness based on different payment thresholds.
Overall, the study provided valuable insights into the motivations and perceptions of coastal businesses in Hawaii regarding coral conservation. The findings could help inform future conservation efforts and policy decisions aimed at protecting coral reefs in the region.
