TY - JOUR
T1 - Impact of SLR on beach-tourism resort revenue at Sahl Hasheesh and Makadi Bay, Red Sea, Egypt; A hedonic pricing approach
AU - Sharaan, Mahmoud
AU - Somphong, Chatuphorn
AU - Udo, Keiko
N1 - Funding Information:
This research received no external funding. The first author would like to thank Motaz Farid and Islam Elgammal, Faculty of Tourism and Hotels, Suez Canal University, for their kind support and technical assistance in data collection relevant to tourism facilities in the study area. We would also like to thank the anonymous reviewers and the editor for their constructive suggestions that improved the quality of the paper.
Publisher Copyright:
© 2020 by the authors.
PY - 2020/6/1
Y1 - 2020/6/1
N2 - Coastal erosion and inundation represent the main impacts of climate change and the consequential sea level rise (SLR) on beaches. The resultant deterioration of coastal habitats and decline in beach tourism revenue has been a primary concern for coastal managers and researchers. Nevertheless, the extent of SLR on beach tourism in Egypt remains relatively unknown. Therefore, this study investigates the relationship between beach width shrinkage due to SLR and the loss in tourist resort revenue. We use the hedonic pricing approach, which combines economic and environmental variables, to determine the environmental impact on beach tourism along 14 km of the coast of Sahl Hasheesh and Makadi Bay, Hurghada, Egypt. The resort revenue depends on the cumulative benefits from the market price of the resort rooms, which is a function of morphological variables and tourism variables. Three regression models (semi-log, double-log, and custom-log) were used to select the most appropriate functional hedonic model. Three coastal slopes were considered (0.03, 0.06, and 0.12) to address the uncertainty in beach width. When 0.06 coastal slope is used, the expected losses in revenue are 84,000, 220,000, and 546,000 USD/day period (representing 3%, 7%, and 18%) for 2030, 2050, and 2100, respectively, considering the lowest scenario representative concentration pathway (RCP2.6); for the worst case (RCP8.5 SLR), the expected losses are 142,000, 369,000, and 897,000 USD/day period (representing 5%, 12%, and 30%) for 2030, 2050, and 2100, respectively.
AB - Coastal erosion and inundation represent the main impacts of climate change and the consequential sea level rise (SLR) on beaches. The resultant deterioration of coastal habitats and decline in beach tourism revenue has been a primary concern for coastal managers and researchers. Nevertheless, the extent of SLR on beach tourism in Egypt remains relatively unknown. Therefore, this study investigates the relationship between beach width shrinkage due to SLR and the loss in tourist resort revenue. We use the hedonic pricing approach, which combines economic and environmental variables, to determine the environmental impact on beach tourism along 14 km of the coast of Sahl Hasheesh and Makadi Bay, Hurghada, Egypt. The resort revenue depends on the cumulative benefits from the market price of the resort rooms, which is a function of morphological variables and tourism variables. Three regression models (semi-log, double-log, and custom-log) were used to select the most appropriate functional hedonic model. Three coastal slopes were considered (0.03, 0.06, and 0.12) to address the uncertainty in beach width. When 0.06 coastal slope is used, the expected losses in revenue are 84,000, 220,000, and 546,000 USD/day period (representing 3%, 7%, and 18%) for 2030, 2050, and 2100, respectively, considering the lowest scenario representative concentration pathway (RCP2.6); for the worst case (RCP8.5 SLR), the expected losses are 142,000, 369,000, and 897,000 USD/day period (representing 5%, 12%, and 30%) for 2030, 2050, and 2100, respectively.
KW - Beach tourism
KW - Coastal erosion
KW - Hedonic pricing
KW - Resort revenue
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U2 - 10.3390/JMSE8060432
DO - 10.3390/JMSE8060432
M3 - Article
AN - SCOPUS:85087497695
VL - 8
JO - Journal of Marine Science and Engineering
JF - Journal of Marine Science and Engineering
SN - 2077-1312
IS - 6
M1 - 432
ER -