Economic impact of artificial reefs: A case study of small scale fishers in Terengganu, Peninsular Malaysia

Abstract

This paper examines the economic benefits of artificial reefs (ARs) on artisanal fishers in Terengganu in the east coast of Peninsular Malaysia. The data for this study was obtained from interviews with 290 artisanal fishers from three districts of Terengganu, using a structured questionnaire. The study found that for fishers, income from fishing was significantly lower in AR areas, compared to non-AR areas. The income of the fishers who used drift nets as their main fishing gear was significantly lower in AR areas. This indicates that income from fishing was not attributable to the AR programme in Malaysia. The results suggest that artificial reefs may not be effective at increasing catch and income for artisanal fishers in Terengganu. Furthermore, the larger-engined boats gained substantial fishing income, which seems to reflect unequal distribution of benefits, because only those who could invest in fishing equipment and who spent more on fishing operations were able to gain maximum benefits. The results suggest that the current use of multiple gear in the same fishing locations created conflicts between various groups of fishers, and increased fishing costs. These conflicts could be reduced if the artificial reef locations are clearly marked and they established user rights among various fisher groups. The fisheries agencies involved in artificial reefs programme should ensure that artificial reef development produces positive social and economic benefits for the local fishing communities through sustainable fisheries management in Malaysia.

The bio-economic effects of artificial reefs: mixed evidence from Shandong, China

“…Whitmarsh et al (2008) showed that in southern Portugal the fishing revenue from AR sites is 1.7 times of that from the control sites. On the contrary, Islam et al (2014) did not find benefits provided by concrete-based AR structures to the drift net users in Terengganu, Malaysia. Some studies have found that ARs can bolster local economy through ecotourism (Leeworthy et al, 2006;Kirkbride-Smith et al, 2013), but their ability to reduce pressure on the surrounding natural reefs may be limited (Oliveira et al, 2015).…”

“…Japan has been one of the pioneers in fishing reef technology, aided by generous subsidy programs: during 1976-1987, Japanese government invested nearly $100 million annually to construct a total of 1.4 million m 3 of ARs (Grove et al, 1989). Over the years, ARs have been spreading to many parts of the world, including Southeast Asia (Islam et al, 2014), the Persian Gulf (Feary et al, 2011), North America (Thanner et al, 2006), Australia (Branden et al, 1994), and Europe (Santos and Monteiro, 1997;Jensen, 2002).…”

“…Moreover, the motivating effect of VPUE in fishermen's targeting decisions is well documented (e.g., Marchal et al, 2007;Bastardie et al, 2013). By contrast, methods based on interviews or questionnaires (Polak and Shashar, 2013;Islam et al, 2014), often used in consumer surplus studies, may be susceptible to the 'cheap talk' problem (Farrell and Rabin, 1996): the extent of the true information that is revealed might be limited when communication is direct and costless.…”

“…If the main goal is to restore biological and ecological functions, mechanisms to avoid companies from abusing resources is critical in the design of a PPP model. AsWilson et al (2002) pointed out, the artificial reefs are just one of many solutions to restore fisheries, and combining artificial reefs with instruments to reduce fishing intensity such as 'no-take zones' is essential Islam et al (2014). emphasized that non-restricted harvesting is the reason that ARs failed to bring economic benefits to artisanal fishermen in Malaysia.…”

Feasibility of a single‐species quota system for management of the Malaysian multispecies purse‐seine fishery

“…In this study, three field surveys (Table 1) at six fishing landing centres in those states were taken as the research sites (Table 2). Fishing in Malaysian waters is generally conducted throughout the year, although fewer vessels operate during the monsoon season between November and January (Islam et al., 2014). In the ECPM during the post‐monsoon season, the catches are dominated by smaller fish groups (Isa et al., 1999), which might not reflect the actual catches.…”