The Washington Post reported that some people might state that the Great Barrier Reef, in Australia is a natural wonder that is priceless. However, economists have just determined its financial value.
To the fishing industry, tourism, and visitors, the coral reef is valued simply for its existence. These are the different factors used in estimating its monetary worth. The Washington Post issued a new report that stated the financial value is $42.4 billion. The final amount was commissioned by the Great Barrier Reef Foundation and analyzed by Deloitte Access Economics.
However, other experts on the natural wonder said, calculating a monetary value for the Great Barrier Reef may not grant helpful data about the condition of the natural resource. Also, it does not contain accurate information on ways to protect it.
A report on the current state of the natural wonder, released on Sunday, June 26, was developed to provide the value of the Great Barrier Reef as an environmental benefit to Australia. The writers of the report stated that their work is more important now than any other time in history.
The creators of the report fused information from different economic Australian factors. Several of the different factions of the survey included management activities, tourism, and fisheries.
The populous was then asked about their willingness to protect the natural resource and its importance. The Great Barrier Reef is one of the seven natural wonders of the world.
Two massive bleaching events occurred within the last 12 months, severely damaged the reef. Australia wants to protect the natural resource, as it is considered to be one of their most treasured features.
CNN reported that financial consultants placed a monetary value on the Great Barrier Reef in the hope it will influence decision making. The media network stated the factors Deloitte used to create the value for the underwater ledge.
Economists considered the social, economic, and asset value, plus the GDP contribution of reef related activities in determining its worth. Deloitte then used scientific research to come to a conclusion.
Over half of the $42.4 billion derives from tourists that visit the Great Barrier Reef. Approximately $18 billion is derived from people who have not seen the natural wonder but value them for their iconic status. Two billion dollars come from people who use the reef in their everyday lives.
Deloitte composed the figure from the total social, economic, and iconic status of the Great Barrier Reef. Statistics showed that the area has contributed 64,000 jobs and $6.4 billion to the Australian economy. The report also stated more practices to protect the Great Barrier Reef are essential.
By John A. Federico
Edited by Jeanette Smith
The Washington Post: The Great Barrier Reef is literally a treasure. It’s worth $42 billion.
CNN: How much the Great Barrier Reef is worth, and what there is to lose
BBC: Great Barrier Reef worth A$56bn, report finds
Featured Image Courtesy of Pete Edgeler’s Flickr Page – Creative Commons License