Working Paper

Economic Value of the Kogelberg Coast, Western Cape, South Africa

Nov 29, 2015 | Jane Turpie, John de Wet

This was created in partnership with Environment for Development .


The amenity value of the Kogelberg Coast of South Africa was estimated on the basis of a survey of users, property data and park visitor statistics, as well as spatial data on coastal features, development and recreational activities. In addition to the permanent population of about 13 000, visitors spend an estimated 4.3 to 5.3 million visitor days per year, of which holiday home owners, other overnight visitors and day visitors account for about 22 percent, 56 percent and 21 percent, respectively. Coastal activities contributed 71 percent to all users’ enjoyment of the area. Two-thirds of visitors in summer were beach-oriented visitors and the remainder were fishing and water sport-oriented. While most South Africans were on single destination trips, going to the Kogelberg area was only 59 percecnt of the reason for their trip for foreign visitors, who tended to be visiting multiple destinations. Coastal cleanliness and bathing safety were the most essential coastal attributes for visitors, followed by the adjacent mountainous terrestrial environment and marine wildlife. Visitor expenditure attributable to the Kogelberg coast, in Rands, was estimated to be in the range of R191 to 235 million per annum. Boat-based whale-watching in the area brought an additional R1.39 million accruing to towns outside the area. Coastal property in the area was worth approximately R7.3 billion, generating an estimated annual economic output of R59 million. Thus, the recreational value of the coast was estimated to be on the order of R272 million per annum. Simple scenario evaluation suggested that the value of the coast could be increased most by eradicating crime. Other scenarios that result in a significant increase in value include expanding the marine protected area system, as long as fishing catches in surrounding areas increase, and better enforcement of environmental laws. Litter would have the greatest negative impact on value, followed by a substantial increase in the number of houses or a substantial decrease in the number of cetaceans.