Bermuda and Tourism
CASE NUMBER: 83
CASE MNEMONIC: BERMUDA
CASE NAME: Bermuda Tourism
A. IDENTIFICATION
1. The Issue
In the 1980s many species of fish in Bermuda's reefs were
overfished, nearly to extinction. "In a perfect example of what
Garrett Hardin once described as a `tragedy of the commons,' too
many people exploited the fish in ways that made economic sense
for each individual but that spelled disaster for the resource
and the community." The Bermuda tourism situation is one
example of a growing trend of conflicts between cultural heritage
and the environment. In the case of Bermuda, two distinct
sectors of the economy clashed -- fishing and tourism -- over
what each believed was their right to the resource. The
fishermen are trying to earn a living by providing domestically
caught fish to the visitors, while the hotel managers, sports
fishermen, and aquatic tour guides are trying to preserve the
fish because their livelihood depends on a vibrant aquatic life.
2. Description
There were two decades of decline in the catch of grouper
fish from the Bermuda reefs and a concurrent increase in the
catch of herbivorous reef fish, such as parrotfish. In the
1980s, there was concern not only that the desirable fish stocks
might soon be exhausted but also that the integrity of the reef
community was in danger.
The Bermuda conflict is similar to those over many natural
resources -- cultural exchanges versus the environment. In the
case of the Bermuda fisheries this dispute was mainly between the
fishing and tourism industries while numerous other actors played
minor roles. In short, the fishing industry wanted to increase
the allowable quantity of fish it could catch to satisfy a local
demand, increase market share, and henceforth, increase income.
Conversely, the tourism industry wanted to decrease the allowable
quantity because it needs a thriving aquatic life for tourists to
enjoy.
To track the decline of the fish population, the Bermuda
government passed the 1972 Fisheries Act, which required local
fishermen to submit data on the weights and types of fish they
caught. Despite these regulations, various species of fish
(e.g., grouper and snapper) were almost exterminated as total
annual food catch rose dramatically in Bermuda (see figure 1).
Thus, the Bermuda government reacted in 1990 by enacting the Fish
Pot Ban to help solve this problem.
The area at issue is "Bermuda platform which includes more
than 100 closely linked islands covering about 50 square
kilometers on the southeastern rim of a seamount in the Western
North Atlantic." There are numerous fishing banks in the
region, which equates to approximately 1,000 square kilometers.
Bermuda has both a reef fishery as well as a pelagic fishery.
The reef fishery is home primarily to groupers, snappers, and
jacks; the offshore fishing consists primarily of marlin, wahoo,
large tuna, sharks, and dolphin fish (see SHARK case).
The Bermuda economy is one of the fastest growing and
wealthiest in the Caribbean. The country has developed rapidly,
building its economy on the tourism and financial services
industries, and has one of the world's highest per capita
incomes. Besides these two sectors, Bermuda has also had a
specialized fishing industry since 1945, but had subsistence
fishing dating back to its early settlement. The crisis became
notable worse in Bermuda in the 1980s when years of use began to
strain the environmental and ecological limits of the region.
Although the total number of tourists declined somewhat in the
early 1980s (principally due to the massive recession in the
United States), it became evident that no longer were fishermen
able to supply enough of the "primer" (i.e., white meat).
In the 1950s and 1960s two-thirds of all fish consumed in
Bermuda were caught locally; however, by the 1980s that number
declined to one-third. Furthermore, what was accounting for a
large percentage of the total fish caught were no longer the
snapper and grouper, but the more miscellaneous fish --
parrotfish, angelfish, and the like -- substituted to fill
demand. The Bermuda government reports that the number of
miscellaneous fish caught increased from 1 percent to 31 percent
in approximately 30 years. One of the main reasons for the rapid
depletion of the fishery was the method used. In Bermuda, like
many other Caribbean countries, reef fish have traditionally been
caught by traps or pots. The problem with pots is that they are
nonselective -- catching any fish over a certain size.
Additionally, it was not until recently (1990) that pot fishing
was significantly regulated. In short, these fish were those
which were most important to a beautiful and exciting aquatic
life that many of the tour guides, hotels, and others were
dependent on to attract tourists to their island.
Another factor involved in the depletion of the fish
population in Bermuda was pollution -- mainly from sewage
disposal, eutrophication, dredging, and atmospheric deposition.
Furthermore, the exploitation of herbivorous reef fish, which was
caused by the methods of fishing and the decline in the preferred
fish of the reef (white-meat fish including snapper and grouper),
heightened attitudes about the ecological consequences of the
"coral reefs as well as for the fishery." Exploiting the
herbivorous fish population has serious consequences for the
coral reefs. Without a significant number of herbivorous reef
fish to consume the growing algae, the reefs would be overgrown
with algae, thus leading to the coral's decline as well. Coral
reefs are extremely important to sustaining an active and healthy
aquatic life. Moreover, these concerns about coral reef
degradation and the exploitation of various species of fish were
based on some fact, as was demonstrated in Jamaica when a similar
problem occurred (see BAUXITE case).
This case appears to be a conflict between ecological
concerns -- the depletion of the fishery -- as well as a cultural
heritage concern of the rights of generations of fishermen and
others who use the fish to survive. When reviewing the economic
impact of the ban it becomes clear that one of the major reasons
for it was that the tourism industry was/is significantly more
profitable than the fishing industry. For example, in 1988
various reef using activities (excluding fishing) yielded
approximately $9 million for the local economy, where as in this
same period the fishing industry (reef fishing only) generated no
more than $2 million. Thus, from a "strictly cash viewpoint,
reef preservation appears to be more than four times more
valuable than the pot fishery." Thus, in this case of the
clashing between trade and the environment it appears that trade
(tourism) and the environment worked together to save the reef
and the fishery from the exploitation of the local fishing
community.
3. Related Cases
SHARK case
BAUXITE case
JAMTOUR case
BARRIER case
CORAL case
Keyword Clusters
(1): Trade Product = TOURism
(2): Bio-geography = TROPical
(3): Environmental Problem = HABItat Loss
4. Draft Author: Mark P. Stevens
B. LEGAL Cluster
5. Discourse and Status: AGReement and COMPlete
The Bermuda government created the 1990 Fish Pot Ban to
address the problem of fish decline. While some initial reaction
to the ban was critical, the majority of the displaced workers
have since moved on and there is a general agreement over the
success of the ban. As for now, early results conclude that the
ban has been extremely effective in saving the aquatic community.
6. Forum and Scope: BERMUDA and UNILATeral
Under the British legal system and the Bermuda Fisheries Act
of 1990, the government regulates the industry. The Bermuda
government, under this arrangement, has total control over the
use of pots in the fishing industry through the issuing of
licenses. The actors involved, all domestic, include the
following (see Table 83-1).
Table 83-1
Demands of Bermuda's Oceans
(1) Short-Term Users
A. Commercial fishermen.
B. Residents and tourists -- who want to eat locally caught
fish.
C. Restaurants and hotels -- whose customers prefer locally
caught fish.
D. Sport fishermen
E. Divers and tourists
F. Charter boat operators
(2) Long-Term Users
G. Marine transportation -- who need to dredge channels
H. Bermuda government -- a duty to conserve for the future,
but also to provide employment opportunities for its
citizens, either through the fishing industry and/or
tourism.
I. Residents -- who want to protect the reef environment for
future generations.
7. Decision Breadth: 1 (USA)
8. Legal Standing: LAW
The regulations fall under the British Common Law and
Bermuda Fisheries Act.
C. GEOGRAPHIC Cluster
9. Geographic Locations
a. Geographic Domain: North America [NAMER]
b. Geographic Site: CARIBbean
c. Geographic Impact: BERMuda
10. Sub-National Factors: NO
11. Type of Habitat: OCEAN
Key products include fish, coral, and other aquatic life.
D. TRADE Cluster
12. Type of Measure: LICENsing
The Bermuda government issued a licensing requirement to
change the behavior of pot fishermen. The government reserves
the right to sell licenses to use fish pots once the stock levels
increase to what they believe to be a reasonable level. For now,
the licensing ban has been extremely effective in stopping the
depletion of the miscellaneous reef fish and other fish
populations, such as the grouper, from becoming extinct in the
region.
13. Direct versus Indirect Impacts: DIRect
14. Relation of Measure to Resource Impact
The law was enacted to stop the depletion of the fish.
Exploiting the herbivorous fish population has serious
consequences for the coral reefs. Without a significant number
of herbivorous reef fish to consume the growing algae, the reefs
would be overgrown with algae, thus leading to the coral's
decline as well. Coral reefs, are extremely important to
sustaining active and a healthy aquatic life (see CORAL case).
The law was created to stop the use of pots as a fishing
technique.
a. Directly Related: YES FISH
b. Indirectly Related: YES TOURism
c. Not Related: NO
d. Process Related: YES Species Loss Sea [SPLS]
15. Trade Product Identification: TOURism
16. Economic Data
The output of the impacted fishing industry would be $2
million and employs 1.5% of total population. The tourism
industry output was $9 million and employed 32% of the total
population.
Another factor adding difficulty in analyzing the net impact
of the ban is due to the fact that the Bermuda government
requires no record keeping on the part of the fishermen for tax
purposes. "Most fishermen simply did not know how profitable
their businesses were; they simply hoped to make enough money to
cover operating costs, maintain their accustomed standard of
living, and perhaps put some savings aside."
17. Impact of Measure on Trade Competitiveness: MEDium
The coverage of the ban removed all fish pots from use in
Bermuda, but it still allows for line and net fishermen. The
government also reserved the right to issue licenses for the use
of pots when the fishery stock reached levels that decreased the
possibility of extinction.
While the ban caused a shut-off of domestic supply, there
are plenty of fish in the region either by trade, or other
methods (e.g., line fishing) that kept the price of fish
relatively unchanged.
18. Industry Sector: FOOD
19. Exporters and Importers: MANY and BERMuda
Leading worldwide tourist importers include the United
States ($13 billion), Spain ($12.2 billion), Italy ($10
billion). For tourists to Bermuda the leading exporters are the
United States (84%), Canada (8%), and the United Kingdom (4%).
In terms of tourist arrivals in the region, Puerto Rico leads
($702 million), followed by the U.S. Virgin Islands ($507
million), Jamaica ($407 million), Dominican Republic ($368
million), and Bermuda ($357 million).
E. ENVIRONMENT Clusters
20. Environmental Problem Type: Species Loss Sea [SPLS]
21. Name, Type, and Diversity of Species
Name: Fish
Type: Animal/Vertebrate/Fish
Diversity: Sustainable yields of
3,850,000 metric tons
per year (Northwest
Atlantic)
The major impacted species include Grouper (various types),
Coney, Parrotfish, Snapper (various types), Porgy, Jacks, Blue
Runner, Lobsters, Pelagic Fish (various types, e.g., marlin),
Squirrel Fish, and Angel Fish.
22. Resource Impact: HIGH
23. Urgency of Problem
24. Substitutes: LIKE
It does not appear that possible extinction of various
species is still a critical issue, but in the interim, Bermuda
has been importing fish from such countries as the Bahamas to
satisfy local demand.
F. Other Factors
25. Culture: YES
On the one hand there was the tradition of the fishermen of
Bermuda. On the other was that the local population had been
consuming these various species for hundreds of years. Noting
these factors, and bringing tourists into the equation (who come
to Bermuda primarily to see this vibrant reef culture), one could
argue that cultural factors did play a part in this decision.
However, economic concerns seem to be the most influential in
this case.
26. Trans-Boundary Issues: NO
27. Human Rights: NO
28. Relevant Literature
Allen, William, H. "Increased Dangers to Caribbean Marine
Ecosystems." Bioscience. 1992. 42/5: 330-335.
"Arrivals at Frontier of Tourists from Abroad." World Tourism
Organization: Yearbook of Tourism Statistics, 11/44,
1992.
Barrett, G. "The Fish Pot Ban: Reef Overfishing and State
Management in Bermuda." Maritime Anthropological
Studies 4/2, 1991: 17-39.
Bermuda Government Fisheries Regulations of 1972, created under
the Fisheries Act of 1972.
Butler, James, N., Burrnett-Herkes, James, Barnes, John A., and
Ward, Jack. "The Bermuda Fisheries: A Tragedy of the
Commons Averted?" Environment 35/1/1, 1993: 6-33.
Economist Intelligence Unit, Belize, Bahamas, Bermuda, Country
Profile, 1993-1994. London: Economist Intelligence
Unit, 1993.
Economist Intelligence Unit, West Indies, Belize, Bahamas,
Bermuda, Guyana, 1984. London: Economist Intelligence
Unit, 1984.
Hayward, S.J., Gomez, V., and Sterrer, W. Bermuda's Delicate
Balance: People and the Environment. Hamilton,
Bermuda: Bermuda National Trust, 1981.
Lewis, S.M. "The Role of Herbivorous Fishes in the Organization
of a Caribbean Reef Community." Ecological Monographs.
56/3, 1983: 183-200.
Luckhurst, B.E. "Discovery of Deep Water Crabs at Bermuda:
A New Potential Fishery Resource." Proceedings of the
Gulf and Caribbean Fisheries Institute,, 37, 1986: 209-
211.
McPhee, R. "Our Threatened Fishing Industry." The Bermudian.
May, 1990.
Mooyang, R. Jamaica Fisheries Director. Quoted in "Bermuda
Called Lucky to Have Chance to Save Fish Population."
Royal Gazette, February 5, 1990: 5.
Peterzell, Jay. "Blame it on the Bermuda Triangle." Time.
140, 1990: 26.
Smith, S.R. "Patterns of Coral Recruitment and Post-Settlement
Morality on Bermuda's Reefs: Comparisons to Caribbean
and Pacific Reefs." American Zoologist 32/6: 663-73.
Trade and Tourism Data. Arizona: Euromonitor Publications
Limited, 1989.