Using integrated coastal management and economics to conserve coastal tourism resources in Sri Lanka

Coastal areas in the tropics are increasingly being developed for tourism. The combined natural features of beaches, coral reefs, warm marine waters and often a friendly culture of people, offer desirable destinations for many travelers. Although coastal tourism generates substantial economic benefits to local and national economies, the trade-off of such development is usually degradation of coastal environment. Poor environmental planning and lack of consideration of social-cultural issues are usual causes. This article examines the case of Hikkaduwa town and marine sanctuary, Sri Lanka, where tourism development has nearly ruined the coastal environment. Integrated coastal management in Sri Lanka through a community-based ''Special Area Management'' (SAM) plan for Hikkaduwa is examined. The ongoing and proposed management actions required to solve the environmental and social problems are analyzed in a cost-benefit framework. Financial, socialeconomic and environmental economic analyses for a 20-year project life all strongly support investment in SAM plan implementation. Untapped consumer surplus of visitors to Hikkaduwa has a large potential to contribute to costs. To ensure sustainability of tourism and resources, policies on how to finance plan implementation through profit sharing and locally collected fees are suggested.