Sustainable Ocean Resources Network

Abstract

Maduganga is a Ramsar wetland in Sri Lanka, an area of high biodiversity and a unique ecosystem receiving high visitation (52,726 local visitors in 2012). Although tourism causes negative impacts on the environment, the welfare benefit it enjoys (in terms of consumer surplus) should be considered while taking natural resources management decisions on Maduganga. The study shows that the value of the annual welfare benefit at Maduganga is about SLR 19.96 million, but the total economic value could be many times higher than this. However, the present value of non-market benefits from preserving the site remains at a figure of SLR 199.6 million per year. The revenue from Maduganga could be maximized if the passenger boating fee were raised to SLR 378.56. It is estimated that this may reduce the present number of visitors by 45%, but enhance total revenue by 294%. The outcome of such a strategy would resolve the crisis caused by the insufficient allocation of manpower and funds for wetland conservation.