Political economy of protecting unique recreational resources: Hanauma Bay, Hawaii

Ambio

Volumn 27, Issue 3, 1998, Pages 217-223

  Mak, James ^a   Moncur, James E T ^a  

^a UNIVERSITY OF HAWAII   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

ENVIRONMENTAL MANAGEMENT; POLITICAL ECONOMY; PROTECTED AREA; RECREATIONAL MANAGEMENT; TOURISM DEVELOPMENT;

USA, HAWAII, HANAUMA BAY;

EID: 0031833351     PISSN: 00447447     EISSN: None     Source Type: Journal    
DOI: None     Document Type: Article

References (61)

1. Clawson, M and Knetsch, J.L. 1966. Economics of Outdoor Recreation. Johns Hopkins Press, Baltimore.
2. Clarke, H.R. and Ng, Y-K. 1993. Tourism, economic welfare and efficient pricing. Ann. Tourism Res. 20, 613-632.
3. Knapman, B. and Stocckl, N. 1995. Recreational user fees: an Australian empirical investigation. Tourism Econ. 1, 5-15.
4. Forsyth, P., Dwyer, L. and Clarke, H. 1995. Problems in use of economic instruments to reduce adverse environmental impacts of tourism. Tourism Econ 1, 265-282.
5. Wilson Okamoto and Associates, Inc. 1977. Hanauma Bay Beach Park Site Development Plan. City and County of Honolulu, Honolulu.
6. State of Hawaii. 1980B1990. Data Book. Department of Business, Economic Development and Tourism, Honolulu.
7. Wilson Okamoto and Associates, Inc. 1992. Hanauma Bay Nature Park Master Plan. City and County of Honolulu, Honolulu.
8. Wagner, P. 1993. Hanauma Bay, Visitors threaten the bay's fragile treasure. Honolulu Star Bulletin, July 30, pp. A-1 and A-8.
9. Hastings, B. 1989. The spoiling of Hanauma Bay. Honolulu Star Bulletin. September 3, pp. A-1 and A-4.
10. . A Case Study, M.A. thesis, University of Hawaii at Manoa, Honolulu.
11. Twigg-Smith, D. 1990. More sand seen at bay. Honolulu Advertiser, February 19, p. A-3.
12. Travers, D. 1993. Hanauma Bay Task Force, Final Report Submitted to the Eighteenth Legislature, State of Hawaii. University of Hawaii Sea Grant Extension Service, Honolulu.
13. Honolulu Advertiser, July 28, 1993, p. A-6.
14. Wright, W. 1994. Hanauma puffers outlawed, unless you're a blowfish. Honolulu Advertiser, November 2, p. A-1.
15. Hong, A. Presentation to the Environmental Economics class, University of Hawaii at Manoa, November 1, 1994.
16. State of Hawaii. YEAR?? Statewide Marine Research and Surveys, Survey of Fish and Habitat. Project No. F-17-R-18, Department of Land and Natural Resources, Honolulu.
17. Dixon, J.A., Scura, L F. and van't Hof, T. 1993. Meeting ecological and economic goals: Marine parks in the Caribbean. Ambio 22, 117-125.
18. Wagner, P. 1993, Taxis, vans bypass bay's drop-off law. Honolulu Star Bulletin, July 30, p. A-8.
19. Vickers, M. 1994. Only one cab drop-off per day to Hanauma. Honolulu Star Bulletin, January 5, p. A-3.
20. Tangonan, S. 1994. Folks keep on truckin' to Hanauma even when lot full. Honolulu Advertiser, January 6, pp. A-1 and A-2.
21. Seto, B. 1990. New rules help Hanauma Bay. Honolulu Star Bulletin, September 24, p. A-2.
22. Mariam, J. 1991. City has a winner at Hanauma Bay. Honolulu Advertiser, October 11, pp. A-3 and A-6.
23. Hong, A. 1994. Status Report on Hanauma Bay. Presented to the Honolulu City Council, July 26.
24. "Economic rents," or returns in excess of the total social cost of supplying tourism services, often arise when a travel destination has some market power in tourism. This can arise when the destination has unique natural attractions such as Niagara Falls or Lake Tahoe, market dominance in a tourist activity such as casino gambling in Las Vegas, or advantages conferred by climate or location. Taxes levied on tourist purchases or tourist enterprises are one way to extract rents for the benefit of the general public
25. Suen, however, demonstrates that when consumers have different time costs and personal valuations, rent dissipation will be reduced. Thus some rents remain to be appropriated at Hanauma Bay. Suen, W. 1989. Rationing and rent dissipation in the presence of heterogeneous individuals. J. Polit Econ. 97, 1384-1398.
26. City does not support bill to charge bay fees. Hawaii Kai Sun Press, December 30, 1993-January 5, 1994, p. A-4.
27. Mak, J. and Moncur, J.E.T. 1995. Sustainable Tourism Development' Managing Hawaii's 'Unique' touristic resource - Hanauma Bay J. Travel Res. Spring, 51-57.
28. When asked how much they would be willing to pay to visit Hanauma Bay, nonresidents' responses averaged USD 4.19 per person per day; residents, USD 2.27. With no admission or parking fees in place at the time of the survey, these numbers imply consumer surplus of at least the same amounts. By comparison, data on the 470 786 nonresident visitors (Table 4) imply willingness to pay at least USD 4.39. Prior to the imposition of the admission fee, between 4000 and 4500 people visited Hanauma Bay daily, with a lower bound estimate of 1.5 million per year. Assuming that 13 percent were residents, the above willingness-to-pay estimates imply aggregate annual consumer surplus (or economic rents) of at least USD 6 million per year.
29. Harris, J. 1996. Harris. City faces smaller budget, more cops, special-needs housing. Honolulu Advertiser, January 12, p. A-18.
30. Yoshishige, J. 1995. Hanauma Bay fee real moneymaker; visitors not put off. Honolulu Advertiser, September 28, p. A-2.
31. City and County of Honolulu. 1995 and 1996. Daily Attendance Summary for the Months of July, 1995-Febntary, 1996. Department of Parks and Recreation, Honolulu.
32. Although there appears to be extensive violation of the rule by taxi operators (Alan Hong, pers. comm., February 27, 1996).
33. Iida, S. 1995. Hanauma: Tourists have paid USD 1.2 million in fees to visit popular bay. Hawaii Kai Sun Press. Week of October 5B11, pp. A-1 and A-7.
34. Croot, D. 1995. Council panel backs USD 1 Hanauma Bay fee. Honolulu Star Bulletin. July 19, p. A-5.
35. Yoshishige, J. 1995. Hanauma bill: Residents in free. Honolulu Advertiser, September 28, p. A-1.
36. Yoshishige, J. 1995 Council bill would end fees at Hanauma. Honolulu Advertiser, October 12, p. A-1.
37. Kresnak, W. 1995. City may raise fees if it loses Hanauma's. Honolulu Advertiser, December 13, p. A-1.
38. Yoshishige, J. 1996. New Hanauma fee structure to be offered. Honolulu Advertiser, January 9, pp. A-1 and A-2
39. An intercept survey of 301 visitors at Hanauma Bay on the Veterans Day holiday in 1994 found that 31.9 percent of the visitors did not participate in snorkeling or diving activities at the bay (27).
40. According to Alan Hong (pers. comm., February 27, 1996) Council members were informed in March by the City Budget Director that the money was to be set aside in a special account in the General Fund to maintain Hanauma Bay as well as parks in District 5, which stretches from Waikiki to Sandy Beach. The area includes Ala Moana Park, Kuhio Beach Park (i.e., Waikiki) and Kapiolani Park. These parks, though not adjacent to Hanauma Bay Nature Park, are most heavily used by tourists. Council members still felt that spending the money from Hanauma Bay outside its immediate environs constituted unauthorized taxation. In these discussions, it is curious that no mention was made of the fact that the City was collecting nearly USD 1 million annually in concession revenues at Hanauma Bay for the General Fund.
41. Yoshishige, J. 1995. City Council repeals Hanauma Bay fees. Honolulu Advertiser, December 7, p. A-1.
42. The Administration explained that since the booths were not permanent structures but script-vending booths on wheels like those used by the local amusement company, no permit was required Nonetheless a "minor permit" was subsequently obtained in November (Alan Hong, pers. comm., February 27, 1996) However, Councilman Hannemann questioned the legality of the "minor permit" issued for two ticket booths, utility poles and wiring at the bay (38).
43. The Administration offered to redirect excess revenues at Hanauma Bay from the maintenance of parks in District 5 and instead use them in the parks and a shooting range on lands adjacent to Hanauma Bay that were part of the original deed to the City. This alternative was acceptable to the Estate (Alan Hong, pers. comm., February 27, 1996)
44. The lone dissenter said the Council should welcome the revenues and allow the City to collect the money while debating the merits of the user fees (41).
45. Rees, R.M. 1996. Punchout on Punchbowl. Honolulu Weekly, vol. 6, no. 1, January 3, p. 5
46. World Travel and Tourism Council (WTTC). 1996. State of Hawaii Travel & Tourism: A New Economic Perspective. WTTC, New York.
47. LaCroix, S., Mak, J. and Miklius, W. 1986. Airport taxi service regulation: An analysis of an exclusive contract. Transportation 13, 145-161.
48. The figure is computed at twice the amount actually collected from category 1 commercial vehicles between July 1 and December 31, 1995.
49. The signs simply state: "Suggested donation $5 per person. Your gift will help support Hanauma Bay Nature Preserve."
50. Hannemann, M. 1996. New bill pending on Hanauma Bay. Honolulu Advertiser, January 8, p. A-7.
51. Overturning the expected mayoral veto would have required six votes.
52. Kresnak, W. 1996. City Council okays new fees for Hanauma. Honolulu Advertiser, April 11, p. A-1.
53. The 1994 Veterans Day survey found that 90 percent of the residents visiting Hanauma Bay came by car compared to 60 percent of nonresidents. Assuming that residents comprised 17 percent of all visitors at Hanauma Bay (Table 3), then about 65 percent of all visitors came by car.
54. The total amount of voluntary fees collected in 1996 was about USD 1.37 million. Dingeman, R. 1997. Fees expected soon at Hanauma Bay. Honolulu Advertiser, March 11, p. B-1.
55. Tangonan, S. 1993 Some residents say no way to Hanauma Bay fee plan. Honolulu Advertiser, October 1, p. A-9.
56. It is equal to twice the sum of the values of reduced admissions fees (USD 827 548) and the elimination of commercial vehicle fees (USD 262 510), minus the additional parking fees paid by nonresident tourists (USD 91 120), July-December, 1995
57. Gray, H.P. 1974. Toward an economic analysis of tourism policy. Soc. Econ. Studies 23, 386-397.
58. Libecap, G.D. 1989. Contracting for Property Rights. Cambridge University Press, Cambridge.
59. See Knapman and Stoeckl (3) for the example of Kakadu National Park, Australia. As at Hanauma Bay, entry fees alone are not an effective means of controlling visitor numbers.
60. We are indebted to Sumner LaCroix for helpful comments and to Alan Hong for generously providing us with Parks Department data on Hanauma Bay. We take full responsibility for all remaining errors.
61. First submitted 8 May 1996. Accepted for publication after revision 17 April 1997.