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•• 4D E 3.0 RECREATIONAL BENEFITS This section provides an analysis of recreational benefits for the proposed beach restoration projects in Sectors 1&2, 3, 5, and 7. Recreational benefits are difficult to calculate because constructed beachfront is provided to users free of charge. I hus, there is no market test or valuation of the recreational benefits derived. Estimates of recreation benefits are sensitive to the number count of tourists and resident users and the imputed value they place upon a day of beach usage. Techniques for estimating recreational benefits have improved greatly over the last 30 years. 3.1 RECREATIONAL BENEFITS METHODOLOGY Since the beach experience or daily visitation is free of charge to users, the total benefit derived by all users is the entire area under the aggregate demand curve for beach use. As shown in Figure 4, if D is the demand curve for beach visitation, without beach restoration, then area OPQ is the total benefit derived by users. This integral sums the maximum amount each and every user would be willing to pay for beach visitation rather than do without. Some users are willing to pay a high price, around P', while others would pay much less. Since the actual price charged is zero, the quantity demanded in total is OQ. Beach restoration i n the hcach h.. .�....,,... ............... a. a... .::il:.r :.vv ana. aia.ua.n yr 1nwlcAJinly lulwo Itivilal c1luct, UCiilill widths, between the dune line and the shoreline, thus lowering congestion. This raises the demand for beach visitation, illustrated in Figure 4 as a shift from D to U. Total benefits are now area OPV and net benefits attributable to the project are the trapezoid, PP'Q'Q. Ideally, the demand curves would be derived and the areas computed to obtain net gain. However, with freely distributed goods, data do not exist to use standard Ftatistical estimation procedures. Q6 -Q8 PMMEPORT/DWT=O1 MOM 21