The document discusses various revenue generation mechanisms in coastal zones, highlighting the importance of diverse natural resources for income through activities like tourism, fishing, and aquaculture. It emphasizes sustainable tourism practices to balance economic benefits with environmental protection, and explains various government revenue avenues through taxation, user fees, and concessions associated with coastal activities. Additionally, it addresses the economic contributions of coastal fishery sectors and the potential of marine protected areas.

1. Revenue Generation Mechanisms
in Coastal Zone

2. What is Revenue?
• Also called sales, or turnover.
• The total income generated from the sale of
goods or services, or any other use of capital or
assets, associated with the main operations of
an organization before any costs or expenses
are deducted.
• Revenue is shown usually as the top item in an
income (profit and loss) statement from which
all charges, costs, and expenses are subtracted
to arrive at net income.

3. What is “Revenue Generation”
The process by which a company markets and
sells a product or service to produce income.

4. Revenue Management is simply "selling the
right thing to the right person at the right
price on the right day".
Therefore, income is generated reliably and
sustainably year after year.
Revenue Management

5. • Pays the running costs (almost) of the service.
• Eases the pressure on the national budget. (Can
capture economic benefits from resource uses.)
• Income generated can be used to generate
additional flows of funding from international
investors. Eg. There will be many foreign
investors if a country is rich.
• Make enough revenue above expenses to make a
profit.
Why is revenue important?

6. Coastal zone as a revenue generation site …
• Coastal zones are enriched with so many natural resources.
– Mangroves
– Sandy beaches
– Coral reefs
– Fishes
– Salt marshes
– Tides/waves etc
• Each and every natural resource provides lot of products and
services itself.
• Most of the time these products and services can be sold to
prospective customers generate an income.

7. Revenue
generating
activities
Sand
mining
Power
generation
Recreational
activities
Marine
protected
areas
Turtle
hatcheries
Fishing and
aquaculture
Tourism
Offshore oil
and natural
gas

8. 1. Coastal Tourism
Tourism has become one
of the world’s fastest
growing industries,
providing a significance
proportion of the GDPs
of many developing
countries.
Eg. In Caribbean Islands
the tourism industry
accounts for a quarter of
the total economy and a
fifth of all jobs.

9. • South coast Resort region- Most popular
• Wadduwa, Kaluthara, Beruwala,
Benthota, Madu ganga,
Hikkaduwa, Unawatuna, Galle,
Koggala, Mirissa
• East coast Resort region
• Arugambe, Pasikudah,
Trincomalee, Nilaveli
Coastal tourism in Sri Lanka
The beach sector in Sri Lanka remains the biggest
tourist market in Sri Lanka.
Coastal zones identified as suitable areas for tourism
development are as follows;

10. Tourism based revenue generation
activities
• Hotels and resorts
• Aurvedic Spas
• Tour guides
• Shops along the beach area
– Batiks shops
– Souvenir shops
– Jewelry shops etc.
• Recreational activities

12. Sustainable Tourism
• Tourism aiming at short-term benefits
often results in negative impacts, harming
the environment and societies, and
destroying the very basis on which tourism
is built and thrives.
• Sustainable tourism development can be
thought of as meeting the needs of
present tourists and host regions while
protecting and enhancing opportunities for
the future.
• When tourism is planned, developed and
managed using sustainable criteria, its
benefits can be spread through society and
the natural and cultural environments.

13. Concept of sustainable tourism

14. As an example,
• Hikkaduwa and Benthota attract
both foreign and local tourists.
• In general Benthota tourism
development has proceeded
according to a plan. So a steady
tourism industry can be seen.
Tourists are well satisfied with the
quality of the natural and built
environment because they
maintain the ecological balance.
• Compared to Benthota, Hikkaduwa
has impaired environment quality,
and the cultural identity. Therefore
decrease in economic benefits. So a
sustainable tourism development
have failed to be met in Hikkaduwa.

15. Eco Tourism in the
coastal zone.
Ecotourism is
defined as
"responsible travel
to natural areas
that conserves the
environment and
improves the well-
being of local
people." (TIES,
1990).
Principles of
Eco Tourism
Provide
financial
benefits and
empowerment
Minimize
impact
Build
environmental
and cultural
awareness
Raise
sensitivity to
host countries
Provide
positive
experiences

16. 2. Coastal Fishery
• Fishing remains the key livelihood activity for the
coastal populations of Sri Lanka.
• In Sri Lanka, the fisheries sector plays an
indispensable role in the economy by contributing
around 1.2% to the GDP.
• It provides direct and indirect employment to around
650,000 people and is directly linked with the lives of
approximately 50% of the population who resides in
the coastal belt.

17. • Fisheries sector contribution to the total export
earnings of the country is around 2.5%.
• The coastal fish production contributes to more than
half a percent (53%) of the total fish production.

19. Recreational Fishing in the coastal zone
• Recreational fishing, also
called sport fishing, is fishing for
pleasure or competition.
• The most common form of
recreational fishing is done with
a rod, line, hooks and any one of a
wide range of baits.
• Big-game fishing is conducted from
boats to catch large open-water
species such as tuna, sharks and
marlin.

20. 3. Recreational activities in the coastal
zone
• Usually these activities target local and foreign tourists.
1. Coral watching through glass bottom boats
2. Scuba diving
3. Swimming
4. Snorkeling
5. Surfing
6. Ballooning
7. Boating
8. Under water photography
9. Sunbathing
10. Walking
11. Water skiing
12. Beach carnivals eg. HIKKA 2014
13. Beach parties
14. Beach competitions eg. Beach volleyball games, Beach
cricket, Kite competitions etc.

22. Beach Volleyball Surfing

23. Beach festivals & beach dances

24. Beach wedding ceremonies

25. Leisure time activities for kids
Traditional talent shows Water skiing

27. Water ski
pyramid with 18
skiers Lake
Zumbro,
Minnesota,
August 2010

28. Beach book selling centers Jem and jewelry Vendors

29. Exercising programmes in beach
Beach walking
Beach Spas

30. Horse Riding
Cycling
Whale watching

31. Beach Vendors
Diving Swimming

32. Beach Photography

33. 4. Coastal Turtle hatcheries
• Breeding turtles in captivity before releasing them into the oceans is
primarily done via turtle hatcheries.
• In Sri Lanka, Turtle hatcheries are located in Kosgoda, Habaraduwa and
Rakawa.
• A turtle hatchery typically consists of an enclosure to bury the eggs, a
tank for the hatchlings and another tank for the juveniles and the adults.
• After being fed, the baby turtles are taken to the sea and released when
they are 2-4 days old.
• Revenue is generated by entry fees collected at the entrance and
souvenirs and others.
• These are non profitable organizations operated by the cooperation of
the local people and international volunteers.

34. • These projects are operated by donations.

36. 5. Coastal Aquaculture
• Shrimp farming is the only commercial aquaculture
industry in the coastal zone in Sri Lanka.
• While development has occurred only in the
northwestern province, lagoons, bays of the eastern and
northern coasts have the greatest potential for the
future development of the coastal aquaculture.
• Most of the shrimp farming has occurred without
regulation and due concern for the environment.
• But zoning for coastal aquaculture development can
avoid many of the problems that confront the shrimp
farming industry in Sri Lanka.

37. • Farmed shrimp export accounts for approximately 50%
of the total export earning from Sri Lankan fishery.
• Shrimp species which are currently commercially
cultured in Sri Lanka
Penaeus monodon
Penaeus indicus
• Other potential species includes;
Scylla sp
Artemia
Perna sp
Gracilaria sp
Marine finfishes such as milkfish, sea bass, grouper, rabbit
fish and sea beam

38. Penaeus monodon
Penaeus indicus
Perna
Artemia
Gracilaria

39. Milk fish
Sea bass fish
Grouper
Rabbit fish
Sea beam

40. 6. Marine Protected areas
Any area of the marine environment that has
been reserved by federal, state, territorial, tribal,
or local laws or regulations to provide lasting
protection for part or all of the natural and
cultural resources therein.( MPA Executive
Order 13158).

42. Marine Protected areas in Sri Lanka
• Hikkaduwa national park, Pigon island, Muthurajawela
marsh etc.
• There are many types of fees and related revenue
sources associated with visitation at these MPAs.
Entrance fees to enter a park.
 Admission fees to enter a building offering an exhibit or
show (e.g., a visitor center).
 Rental fees for use of equipment such as boats and user
fees for facilities such as a campsite.
 Sales revenue from operation of retail stores and rental
income from concessionaires.
Licenses and permits, such as for fishing or rafting.
Special service fees

43. 7. Diving and Coral Watching
• Diving is the sport of jumping or falling into water from a flat form
or springboard sometimes while performing acrobatics.
• Diving suits and the other equipments are provided/rented by the
adventure camps.

44. WHY ARE CORALS MINED AND HARVESTED?
• for building construction
• for calcium supplements eg. Dead corals
• for souvenirs
• for marine aquaria eg. Live corals
• for lime and cement industry
• for medical use eg. Researchers have been using corals for
bone graph clinical trials
8. Coral Mining

46. 10. Sand Mining
• Unlike coral mining sand mining is widely distributed
along the coast.
• If sand dunes along the coast heavily mined it will
instabilize the entire beach area.
Sand-mining on beaches within a few
kilometers of Sierra Leone’s capital Freetown
Illegal sand mining, near
Tangier, Morocco.

47. 9. Power generation in Solar and Wind
Power Plants
• Wind and tides are renewable power generation
sources which are freely available.
• Wind power is the conversion of wind energy into a
useful form of energy, such as using
– wind turbines to make electrical power,
– windmills for mechanical power,
– wind pumps for water pumping or drainage,
or sails to propel ships.

49. How to make Taxes and Surcharges
for the services mentioned above??
The government will be benefitted by taxing

50. 1. Taxation
• The major source of government revenue in Sri Lanka is taxes
(86%)
• There are direct and indirect taxes in the coastal zone. Indirect
taxes dominate government revenue such as;
1. Purchases of certain kinds of recreational equipment
(boats, fishing gear, health spas etc.) are subject to a special
surtax.
2. Licensing fees for recreational vehicles (boats, trailers,
campers), as well as fishing license fees. (Eg- merchant
shipping division).
** Tax deductions and exemptions can be offered to encourage financial
support of conservation as well as specific kinds of conservation
activities. Eg. Several states in the USA include a voluntary “checkoff”
on state income tax forms that allow taxpayers to donate a portion
of their tax or refund to coastal conservation.

51. 2. User Fees
1. Entry fees collected at the entrance of the site
eg- picnic shelter use fees
2. Admissions fees for special attractions within the site
eg- museums and exhibitions, films and
entertainment,
3. Fees for camping and picnicking facilities within the
site
eg- reservations and permits

52. 4. Fees charged to concessionaires who profit from
operating lodging, food and beverage
5. Guiding - guided hikes, float trips, lectures, maps
and guides (Kirinda, Hikkaduwa)
6. Boats for diving or fishing (these include fees
that may be charged per person)
7. Fees for Cruise–ship visit permits.
boat launching and anchorage fees

53. 3. Concessions and Leases
Concession operations typically include gift shops, souvenirs,
beverage and food sales, equipment rentals, and sales or rental of
other similar items.
Leases can also be used to generate revenue. The protected area
can grant a physical or legal person the use and enjoyment of
land or infrastructure for an agreed-upon fee.

54. 4. Sale of Goods and Services
Some protected areas obtain revenues by charging
“publicity fees” to corporations using the protected
area as a location or backdrop for advertising, films,
posters, and other uses.
Some charge fees for the installation and use of such
facilities.
- transmission towers, marine platforms, or research
stations.

55. • Coast conservation act requires a permit for
any development activity taking place with in
the coastal zone.
– Sand mining
– Constructions of buildings
– Dredging and filling
• Fine system is introduced for any violence of
existing rules and regulations.
5. Imposing fines through the
judiciary system

56. References :
• http://www.protectplanetocean.org/introduction/introbox/mpas/in
troduction-item.html(Date : 30/10/2013)
• http://ocean.nationalgeographic.com/ocean/take-action/marine-
protected-areas(Date :30/10/2013)
• http://www.mpag.info(Date :30/10/2013)
• http://www.slideshare.net/chua.geog/sec-3-na-coastal-protection-
measures-presentation(Date: 01/11/2013)
• http://www.fao.org/docrep/010/ag127e/ag127e09.htm(Date
:01/11/2013)
• http://pdf.usaid.gov/pdf_docs/PNABZ462.pdf(Date:02/11/2013)
• http://50.116.64.171/~joomla/coastalgov/web/
• downloads/pdf/CZMP%20English.pdf(Date:02/11
• /2013)