Losing mangroves also costs money: study estimates an economic exposure of USD$75 million per year in the Dominican Republic
The research, titled “Mangrove Degradation and Tourism-Driven Economic Dynamics in a Small Caribbean Island Developing State: Evidence from a VECM Model,” was published in the scientific journal Ocean & Coastal Management, which specializes in the management of marine and coastal ecosystems. The research concludes that the degradation of these ecosystems affects economic growth and tourism, and argues that their conservation should be considered a priority for the country's development.
SANTO DOMINGO - Mangroves not only protect coastlines and harbor biodiversity, but they also help sustain the Dominican economy. That is the main conclusion of research conducted by specialists from Instituto Tecnológico de Santo Domingo (INTEC), which estimates that the degradation of these ecosystems exposes the country to an approximate economic impact of USD$75 million per year, by affecting activities closely linked to tourism and economic growth.
The study, published in the scientific journal Ocean & Coastal Management, analyzed the evolution of the Dominican economy between 1995 and 2023 using a co-integration econometric model known as the Vector Error Correction Model (VECM), which allows relating the short and medium-term orders of magnitude of the relationship of mangrove natural capital with the variables analyzed.
Thus, it is possible to consistently link the dynamics of gross domestic product (GDP) growth with the arrival of international tourists, hotel capacity and infrastructure, and the state of the natural capital of mangroves. The research was developed by Dr. Víctor Gómez-Valenzuela (principal investigator), Dr. Katerin Ramírez, and Dr. Solhanlle Bonilla-Duarte, from INTEC.
The results show that mangrove degradation is associated with reductions in both economic growth and visitor arrivals, as well as in the development of tourism infrastructure. Furthermore, the researchers identified a long-term relationship between the conservation of these ecosystems and the performance of the national economy, which is highly dependent on coastal enclave tourism.
The amount of US$75 million represents the estimated economic exposure to mangrove degradation and is obtained by applying the long-term elasticity identified by the model to the total value of the services generated by the country's various coastal and marine ecosystems, estimated at approximately US$1,800 billion annually. According to Dr. GomezValenzuela, during his participation in a panel of the first National Oceans Forum, said this amount represents 20% of the income that “sustains the Dominican tourism industry” and 1.8% of the national Gross Domestic Product (GDP).
The authors emphasize that this figure is a conservative estimate, as it does not incorporate all the benefits provided by mangroves, such as carbon sequestration, protection against hurricanes, support for fishing, or biodiversity conservation.
To understand this finding, researchers explain that mangroves function as a natural infrastructure. Their roots help reduce coastal erosion, buffer the impact of storms, protect beaches and reefs, provide refuge for numerous marine species, and contribute to maintaining the landscapes that underpin much of the country's tourist appeal. When these ecosystems are degraded, the environmental benefits that support economic activity in coastal areas also diminish.
In an island state like the Dominican Republic, highly dependent on tourism, the conservation and restoration of mangroves and other critical coastal-marine ecosystems such as coral reefs, seagrass beds or marshes should not be seen solely as an environmental measure, but also as an investment in economic resilience.
Thus, the authors argue that the results support the incorporation of coastal natural capital into tourism development strategies and coastal management policies. Among the suggested measures are strengthening mangrove protection, improving tourism growth planning, and promoting economic instruments that incentivize the conservation of these ecosystems.
The research was funded by the National Fund for Innovation and Scientific and Technological Development (FONDOCYT), of the Ministry of Higher Education, Science and Technology.
About INTEC
El Instituto Tecnológico de Santo Domingo (INTEC) is a Dominican institution of higher education of a private, non-profit nature, which since its founding in 1972 has stood out for its academic excellence and its contribution to the social transformation of the country through science and technology.