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40 <br />E�] <br />W <br />3.0 RECREATIONAL BENEFITS <br />This section provides an analysis of recreational benefits for the proposed beach <br />nourishment projects in Sectors 1, 2, 3, 5 and 7. Recreational benefits are <br />difficult to calculate. Constructed beachfront is provided to users free of charge; <br />thus, there is no market test or valuation of the recreational benefits derived. <br />Estimates of recreation benefits are sensitive to the number count of tourists and <br />resident users and the imputed value they place upon a day of beach usage. <br />Techniques for estimating recreational benefits have improved greatly over the <br />last 30 years. <br />3.1 RECREATIONAL BENEFITS METHODOLOGY <br />Theoretical Background of Recreational Benefits <br />Since the beach experience or daily visitation is free of charge to users, the total <br />benefit derived by all users is the entire area under the aggregate demand curve <br />for beach use. As shown in Figure 4, if D is the demand curve for beach <br />visitation, without beach nourishment, then area OP Q is the total benefit derived <br />by users. This integral sums the maximum amount each and every user would <br />be willing to pay for beach visitation rather than do without. Some users are <br />willing to pay a high price, around P', while others would pay much less. Since <br />the actual price charged is zero the quantity of beach visits demanded in total is <br />OQ. <br />Beach nourishment improves the beach by increasing recreational area between <br />the dune -construction line and the shoreline and lowering congestion costs. This <br />raises the demand for beach visitation, illustrated in Figure 4 as a shift from D to <br />U. Total benefits are now area OP'Q' and net benefits attributable to the project <br />