An economic valuation of Comino, Malta

Abstract

This dissertation evaluates the importance of Comino from an economic and an environmental standpoint and provides tangible policy implications as to how Comino’s status quo can be conserved. The study identifies and estimates the socio-economic benefits of Comino as a Natura 2000 site and the site’s total value from a socio-economic perspective. A mixed methodology is applied, including the toolkit proposed by the Institute for European Environmental Policy to value Natura 2000 sites, an online survey (𝑁 = 427), a logit regression analysis, stakeholder consultations and secondary data. The toolkit provides a comprehensive analysis of all the socio-economic benefits offered by the site. The benefits were analysed from a qualitative, quantitative, and monetary perspective. The most important services within the SPA & SAC are the cultural and social services, with ecotourism and recreational activities having an estimated value of €62,686,536. Furthermore, national historical monuments found on Comino have an estimated combined value of €1,344,687. The provisioning services are valued at €17,472,500. Albeit no monetary estimates could be generated, Kemmuna u il-Gzejjer ta’ Madwarha also provides regulating services, namely water regulation, regulation of human health, and genetic/species diversity maintenance, and supporting services. Through a contingent survey which utilises two payment vehicles, the total value of Comino from a socio-economic perspective was found to range between €987,118 and €8,410,248. Regression analyses indicate that education, and household size have a positive and significant effect on a person’s WTP for a fixed monthly contribution, while being female has a negative effect. Only age was found to have a significant (negative) effect on a person’s WTP for a fixed amount per visit. Results also indicate that the various activities taking place on site generate circa 467 jobs. This dissertation highlights the need for Comino to have an appropriate managing authority on site with a proper budget in place to tackle issues such as maintenance and upkeep. The most imminent need is the reduction of overcrowding within the Blue Lagoon area. Lastly, a rabbit control and rat eradication program need to be implemented to conserve Comino’s flora and fauna.