Financial and Economic Feasibility of Limiting the Area of Seaweed Farming in the Coastal Zone of Arena Blanco, Zamboanga City

Abstract

The general objective of the study was to determine the financial and economic feasibility of area limitation as a form of management to regulate the congestion of seaweed farming establishment in the coastal zone of Arena Blanco in Zamboanga City. The specific objectives were to: (1) estimate the cost associated “with” and “without” area limitation management; (2) estimate the benefits associated “with” and “without” area limitation management; (3) determine the indicators of financial and economic feasibility; and (4) recommend appropriate coastal zone management practice.

Primary and secondary data were used in the study. Primary data collection was conducted last March, 2004. The financial feasibility of seaweed farming with and without area limitation was computed using a one-hectare seaweed farm area. On the other hand, the economic feasibility of area limitation was determined in the context of the general society. Data were extracted from all of the seaweed farmers, fishermen and navigators of Arena Blanco in Zamboanga City.

The study employed simple random sampling in collecting data from the community. People residing at the coastal zone of Arena Blanco were considered as the sampling frame population. A total of 146 respondents were randomly selected for the interview. Key informants were identified to provide relevant information on the following topics: (I) feasibility of seaweed farming, (ii) activities and associated costs relevant to the implementation of area limitation, and (iii) associated costs and benefits of area limitation to navigation.

Results of the study revealed that the benefits generated with the proposed seaweed farming area limitation far outweigh the benefits generated without the area limitation in financial and economic terms. Sensitivity analysis of the financial feasibility study reveals that a 30 percent decrease in seaweed price or production will make seaweed farming not feasible financially. On the other hand, even if there will be an increase in production costs of seaweed farming at 30 percent, seaweed farming will still be feasible financially.

Results of the study can be used as a basis for policy recommendation of the management of the coastal zone of Arena Blanco to continuously provide benefits not only to the major coastal resource users but also to the community as a whole.