5 September 2018

The main objective of the Economic Impact Analysis, commissioned by Conservation International in support of the business case development efforts in the Caribbean as part of the Common Oceans ABNJ Ocean Partnerships Project of the Food and Agriculture Organization of the United Nations (FAO), was to assess the business case value proposition associated with fishery interventions that reduce billfish mortality in Grenada and in the Dominican Republic.

© Freddy Arocha

The initial intervention candidates proposed by stakeholder groups included (1) examining compensation and/or value transfer pathways between the commercial and recreational sectors (2) outlining how such value transfers could be effectively used to finance innovations that improve the sustainability and management of billfish capturing fisheries, and (3) investigate the potential for transitioning low-value commercial artisanal billfish fishers in the pilot countries towards a higher-value recreational fishery. In order to assess the business case value proposition associated with these interventions, a more in-depth economic characterization of these fisheries was carried out, including collecting data on firm-level jobs, revenues, operation costs, profitability, supply chain pathways, supply chain margins and markets. The latter efforts were complementary to the Fishery Performance Indicator (FPI) assessments carried out previously in Grenada and in the DR, enabling the development of fishery supply-chain maps and cash flow models; these models were subsequently used to identify the full extent of potential rent that could be captured under a range of fishery intervention scenarios in Grenada and Dominican Republic. 

The main findings from the fishery characterization are included in the attached report, and indicate that the commercial fishing sector in Grenada generates considerably higher cash flows ($22.7 million USD) relative to the recreational fishing sector (15.7 million USD). By contrast, the recreational fishery in the Dominican Republic is much more economically important, generating $36.3 million USD in annual cash flows, compared to the commercial fishing sector, which generates less than $0.75 million USD annually.

Once the above information was collected, cash flow models were developed for the relevant parts of the recreational and commercial fishery supply chains, in order to evaluate the business case value proposition associated with a range of fishery intervention scenarios. Scenario 1, for instance, evaluated the impacts of Blue and White Marlin harvest reductions on food security and revenues, including an assessment of how much fishermen would have to be compensated for lost income associated with those harvest reductions. Scenario 2 examined the cash flow impacts of a 10%, 20% and 30% reduction in sailfish harvests in both pilot countries. Scenario 3 assessed the economic impacts of expanding the recreational fishing sector in each pilot country, including the additional cash flows and employment that would result from several tourism growth scenarios. Finally, scenario 4 assessed the viability of converting commercial fishermen to for-hire charter captains in each pilot country. The findings for each scenario are also documented in the attached report.

The Common Oceans ABNJ Ocean Partnerships Project of FAO, implemented by the World Bank and funded by the Global Environment Fund, aims to support investments in better managed fisheries targeting migratory stocks that straddle developing countries' coastal jurisdictions (the exclusive economic zones) and areas beyond national jurisdiction (ABNJ). The Project's six sub-projects addresses economic, social and environmental inefficiencies within their involved fisheries, and contributes to increasing sustainable and net economic benefits to coastal and island developing countries, while enhancing ocean biodiversity conservation.

• Mr Pablo Obregon, Fisheries Manager - Conservation International | [email protected]