2021-01-18 GC - Item 3 - Attachment 3 - Cost Benefit Analysis for Coastal Erosion Options

Public asset values were provided by Council’s finance branch. The benefits of protecting these
assets are quantified using value of these assets and the year in which they would be affected by
coastal erosion.


4.2.3.      Recreational use benefits

Beach users receive recreational benefits from undertaking activities on the beach. These benefits
are calculated based on annual beach visitation and the average value per recreational use taken
from studies by Raybould et al. (2011) and Blackwell (2007). The number of people visiting the beach,
and the value they place on visitation, are influenced by the width of the beach, with a narrower beach
negatively affecting visitation and benefit per visit. These benefits are calculated separately for locals
and tourists. For this analysis these benefits are only relevant under option 4, which is the only option
assumed to change the profile of the beach. As this option effectively leads to a permanent loss of
beach width and therefore a permanent loss of recreational value, these values are included in the
analysis as a loss, rather than a benefit. Other options allow for a beach to recover gradually under
natural coastal processes (i.e. sand accretion and vegetation regrowth). The losses from recreational
use accrue to all recreational users of the beach.


4.2.4.      Tourism benefits

Tourism associated with beach visitation, is a key benefit to the region. Tourism benefits are based
on:

•    beach recreational use by tourists

•    the proportion of tourists who would not visit the region without the beach

•    the average expenditure per tourist

•    the average benefit per dollar of expenditure to the local community.

For this analysis these benefits are only relevant under option 4, which is the only option assumed to
change the profile of the beach. Under all other options the beach width is assumed to be unaffected,
and therefore the tourism benefits are the same as under the base case, with no net benefits or
losses. As option 4 leads to a loss of beach width and therefore a loss of tourism these values will be
included in the analysis as a loss, rather than a benefit. These losses accrue mainly to the local
community who would otherwise receive profits from tourism expenditure.


4.2.5.      Non-use benefits

As well as providing individuals with benefits from recreational use, the beaches are also likely to
have significant non-use, or existence, values for the local community. Non-use benefits are based on
the value people assign to goods (including public goods) even if they never have and never will use
them. Non-use values can include ecological values which are valued purely for their own existence.
These non-use values for beaches can be related to the potential for use by future generations or by
other people, or simply valuing that the beach exists regardless of use. These benefits are quantified
based on the number of local households and the average non-use value per household. For this
analysis the local population includes:

•    Noosa LGA

•    Gympie LGA

•    Sunshine Coast LGA


AITHER | Final Report                                                                                  14
Noosa Shire Council – Coastal Hazard Adaptation Plan