Economic valuation of Ramla Bay

Abstract

This dissertation will attempt to put an economic value on Ramla Bay, Gozo - the largest sandy beach on the island of Gozo, Malta. It attracts large numbers of both tourists and locals during the summer months mainly for recreational purposes such as swimming, sun bathing and relaxing. Ramla Bay is also a location which is rich in cultural heritage and ecological diversity. Because intrinsically environmental assets such as a beach are of a public nature, the market mechanism is unable to place a value on it. Ramla Bay therefore falls into the category of being a public good and as such has no market value attached to it. It does however have an indirect value attached to it. There is a further cost in that if the site is not conserved there will be the loss of several endemic and threatened species and their natural habitats. As such a site is an environmental asset to the island of Gozo, an estimation of the value may be beneficial in making future decisions about the beach. The main conclusion of this dissertation is that considering the above, the value of this site could be understated. The approach taken in this study is based on Willingness to Pay. The hypothesis on which this study is based is that a valuation exercise would indicate that Ramla Bay does have a high economic value.