Valuing blue flag status and estuarine water quality in margate, South Africa

This study estimates the costs associated with reduced water quality and withdrawal of Blue Flag status in Margate, Kwazulu-Natal, based on travel costs and contingent behaviour (reported change in visits contingent on a hypothetical scenario). Costs associated with hypothetical loss of Blue Flag status (based on reduced visits) range between R17 and R25 million per annum. Interestingly, Blue Flag status was withdrawn shortly after completion of the survey, owing to reduced water quality. This study therefore provides an estimate of the associated welfare losses, and of the benefits of actions to improve water quality and restore Blue Flag status. © Journal compilation © 2008 The Economic Society of South Africa.