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2017SUMMARY

Actions for a Sustainable Future

Reviving the economy oF the mediteRRAneAn SeAin association with

| Summary | Reviving the Economy of the Mediterranean Sea: Actions for a Sustainable Future Summary | Reviving the Economy of the Mediterranean Sea: Actions for a Sustainable Future | page 3

SUmmARy

The Boston Consulting Group (BCG) is a global management consulting firm and the world’s leading advisor on business strategy. We partner with clients from the private, public, and not-for-profit sectors in all regions to identify their highest-value opportunities, address their most critical challenges, and transform their enterprises. Our customized approach combines deep insight into the dynamics of companies and markets with close collaboration at all levels of the client organization. This ensures that our clients achieve sustainable competitive advantage, build more capable organizations, and secure lasting results. Founded in 1963, BCG is a private company with more than 90 offices in 50 countries. For more information, please visit bcg.com.

WWF is one of the world’s largest and most experienced independent conservation organizations, with over 5 million supporters and a global network active in more than 100 countries.

WWF’s mission is to stop the degradation of the planet’s natural environment and to build a future in which humans live in harmony with nature, by conserving the world’s biological diversity, ensuring that the use of renewable natural resources is sustainable, and promoting the reduction of pollution and wasteful consumption.

The designation of geographical entities in this report, and the presentation of the material, do not imply the expression of any opinion whatsoever on the part of WWF concerning the legal status of any country, territory, or area, or of its authorities, or concerning the delimitation of its frontiers or boundaries.

Published in September 2017 by WWF-World Wide Fund For Nature (Formerly World Wildlife Fund).

Any reproduction in full or in part must mention the title, the lead author, and credit the above-mentioned publisher as the copyright owner.

© Text 2017 WWF. All rights reserved

Citation of this report: Randone. et al. 2017. Reviving the Economy of the Mediterranean Sea: Actions for a Sustainable Future - Summary. WWF Mediterranean Marine Initiative, Rome, Italy. 16 pp.

Front coverView of Ustica from a fishing boat returning to the harbour © Claudia Amico

Lead author: Mauro Randone (WWF)

Co-authors: Giuseppe Di Carlo (WWF), Marco Costantini (WWF)

The Boston Consulting Group: Thalia Tzanetti, Dominique Haferkamp, Adrien Portafaix, Marty Smits, Vassilis Antoniades, Nicolas Kachaner, Andrew Osborne, Taz Chaudhry, Jen McPhillips, Camille Astier

Edited by: Demetres Karavellas, Paolo Lombardi

We would like to thank the following people in particular:Paul Gamblin, Yaprak Arda, Catherine Piante, Samantha Burgess, Rita Santos, Evan Jeffries, Alessandro Buzzi, Catherine Roberts, Raul Garcia Rodriguez, Jose Luis Vargas, Oscar Esparza Alaminos, Giorgos Paximadis, Maud Busuttil, Sian Owen, Valerie Burgener, John Tanzer, Sofiane Mahjoub, Giulia Prato, Julien Le Tellier, Jeremy Fosse, Erika Harms, Luca Santarossa, Amy Strong. The team from the University of Bologna – Center for Advanced Studies in Tourism: Riccardo Andolina, Ilaria Balletto, Cristina Bernini, Maria Laura Gasparini, Alessia Mariotti, Paolo Pizzasegola, Marcio Verde Selva, Annalisa Spalazzi, Tania Schleef.

Design/layout: Bianco Tangerine Snc (Erika Vicaretti, Maria Isabella Reggio)

Infographics: Catalyze Communications

This report is available at: ocean.panda.org

The Mediterranean is one of the most highly valued seas in the world. It includes a vast set of coastal and marine ecosystems that deliver essential benefits to its inhabitants. The Mediterranean region attracts over 340 million visitors every year1, accounting for around a third of all global tourism. Other key economic sectors include fisheries, aquaculture, maritime transport, and oil and gas extraction. However after decades of excessive and often unregulated economic activity, the health of the Mediterranean Sea is in steep decline. Ecosystems and the services they provide have been degraded rapidly, putting at risk the economy and livelihoods of those that depend on the sea.

In this report we have used two key concepts: 1) ‘gross marine product’ (GMP), which can be compared to a country’s annual gross domestic product (GDP); and 2) ‘shared wealth fund’ which represents the total “asset” base of the ocean, to illustrate the economic value of the Mediterranean Sea which directly relies on healthy ocean assets.

Our analysis (see Figure 1) demonstrates that ocean-related activities in the Mediterranean Sea generate an annual economic value of US$450 billion, which compared to the regional GDPs, make it the fifth largest economy in the region after France, Italy, Spain and Turkey. This value represents about 20% of the world’s annual Gross Marine Product (GMP)2, in an area which makes up only 1% of the world’s ocean. Furthermore the economic assets of the Mediterranean Sea are conservatively valued at a staggering US$5.6 trillion. Although these figures are impressive, they only partially demonstrate the economic significance of the Mediterranean Sea, as the intrinsic value of biodiversity and the numerous intangible benefits of a healthy sea cannot be adequately reflected in economic terms.

The population of the region is expected to grow, as will most of the economic activities in the region, causing potential conflicts over space and other resources (see Figure 2). We must therefore take advantage of the window of opportunity still open to us today to reset the agenda, before the shared wealth fund of the Mediterranean Sea is driven to collapse by unsustainable development.

1 UNWTO (2016) Tourism Trends Snapshot: Tourism in the Mediterranean, 2015 edition. 2 Hoegh-Guldberg, O. et al. (2015) Reviving the Ocean Economy: The Case for Action - 2015. WWF International,

Gland, Switzerland., Geneva, 60 pp.

the vALUe oF thetotAL oceAn ASSet

BASe oF themediteRAneAn SeA iS At

LeASt US$5.6 tRiLLion


(data from 2016) (data from 2016)

1. FRANCEUS$ 2463.2 bn

2. ITALYUS$ 1850.7 bn

3. SPAINUS$ 1232.6 bn

4. TURKEYUS$ 857.4 bn

6. EGYPTUS$ 332.4 bn

7. ISRAELUS$ 318.4 bn

8. GREECEUS$ 194.3 bn

9. ALGERIAUS$ 160.8 bn

10. MOROCCOUS$ 103.6 bn

11. LEBANONUS$ 51.9 bn

12. CROATIAUS$ 50.4 bn

13. SLOVENIAUS$ 44 bn

14. TUNISIAUS$ 41.9 bn

HOW DOES THE MEDITERRANEAN SEA’S GROSS MARINE PRODUCT COMPARE TO REGIONAL GDPs?MEDITERRANEAN SEA GROSS MARINE PRODUCT (GMP)

92%Marine & coastal tourism

2%Fisheries & aquaculture

Marine assets in the Mediterranean Sea generate much more value than we are aware of and could provide even more if well managed.

6%Direct services enabled by the ocean

US$ 39.0 bn

US$ 716.9 bnSeagrass

PRIMARY ASSETS

US$ 4,650.6 bnProductive coastline

US$ 173.5 bnCarbon absorption

ADJACENT ASSETS

US$5.6 tn TOTAL SHARED WEALTH FUND ASSET BASE

OCEAN ASSET VALUE OF THE MEDITERRANEAN SEA - SHARED WEALTH FUND

Gross Marine Product (GMP) is the ocean’s annual economic value.

US$ 450 bn5. MEDITERRANEAN GMPThe Mediterranean Sea economy is the 5th largest in the region.

is the total sum of the ocean’s assets - such as coastlines,

- from which annual economic production (the Gross Marine Product) is drawn.

20%

THE MEDITERRANEAN SEA REPRESENTS JUST

1%

OF THE TOTAL OCEAN, BUT COMPRISES

OF THE GLOBAL GMP

Greece

Malta

SloveniaMonaco Croatia

Montenegro

Albania

Bosnia &Herzegovina

Algeria

Tunisia

LibyaEgypt Israel

CyprusLebanon

Palestine

Syria

Morocco

Gibraltar

SpainFrance

Italy

Turkey

THE SHARED WEALTH FUND

* Countries with GDP below US$ 40 bn are not displayed (data from 2015-2016)

IMF World Economic Outlook 2016.SOURCES:© The Boston Consulting Group, Inc.

All rights reserved. For more informationon the BCG methodology, please visit:ocean.panda.org

Analysis for this section is provided by:

FigURe 1 WhAt iS the economic vALUe oF the mediteRRAneAn SeA?


Decades of damaging, and often unregulated, economic activity in the Mediterranean Sea have taken a toll—and the region’s ecological health is in decline.

SOURCES: 1.Piroddi et al., 2017. 2.Dulvy et al., 2016. 3.IUCN Red List, 2017. 4.Telesca et al., 2015. 5.Otero et al., 2017. 6.Galassi et al., 2014.

the Mediterranean has lost 41% of marine mammal populations -

- and 34% of the total 1

MARINE MAMMALS AND FISH IN DECLINE SHARKS UNDER THREAT

53% of Mediterranean sharks at risk of EXTINCTION.2

41%34%

53%

13%

34%

SEAGRASS IN DECLINE

34% decline in distribution areas or degradation in the last 50 years.4

TURTLES AT RISK

The green turtle population in the Mediterranean is ENDANGERED.3

SEA LEVEL RISESea levels could rise up to 25 cm by 2040–2050.6

Over the past 50 years,

ANTHOZOANS UNDER THREAT

More than 13% of anthozoan species in the Mediterranean Sea – which include corals and related species – are threatened with EXTINCTION.5

FigURe 2 StAte oF mARine ASSetS in the mediteRRAneAn SeA


© M

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er

The management of a natural resource system as complex as that of the Mediterranean Sea requires an integrated approach. Integrated ocean planning and management, including integrated coastal zone management (ICZM) and maritime spatial planning (MSP), should be an ecosystem-based process, supporting nature conservation and leading to a sustainable Blue Economy.

Countries should invest in carbon-neutral policies to enhance their development potential. Carbon finance mechanisms can also enhance the value of living natural capital assets, such as the Payment for Ecosystem Services1 schemes for coastal habitats that sequester carbon. Mediterranean seagrass beds, for instance, are among the most efficient ecosystems for sequestering carbon, and are therefore a clear example of an investment priority for all Mediterranean countries.

Public and private sector financing can be a valuable tool to generate income from natural assets and to support development. It is particularly important to introduce financing mechanisms that drive sustainability standards in the Mediterranean. Sustainable development guidelines for investment should be adopted and implemented regionally.

We need to ensure that economic activity in the Blue Economy does not have a negative impact on the marine ecosystem, or on efforts to reduce carbon emissions, the revenue streams of ocean-based businesses or the way of life of people who depend on them. Principles underpinning a sustainable Blue Economy, as defined by WWF and others, should become standard for all relevant marine industry development, activity, and investment, including terrestrial industries with a significant impact on ocean ecosystems.

To ensure that tourism continues to benefit the Mediterranean economy, steps need to be taken to address its environmental and social impacts. The traditional model geared to mass tourism and large, all-inclusive coastal developments needs to change. For existing developments, sustainable retrofitting and sustainable operations need to become the norm.

Urgent action is required to ensure a positive future for commercial fishing in the Mediterranean. The existing complex dynamics require a holistic approach. Habitat protection and fisheries management must go hand in hand, and cross-border cooperation must be facilitated. The needs of small-scale fishers must be considered alongside the semi-industrial and industrial fleets. Consumers need to be increasingly conscious of the impact their purchasing decisions have on the marine environment. Above all, stakeholders need to work together and have a plan for the whole region.

StRAtegic pRioRity 1 impLement integRAted And ecoSyStem-BASed oceAn pLAnning And mAnAgement

StRAtegic pRioRity 2 Adopt A SUStAinABLe BLUe economy AppRoAch

StRAtegic pRioRity 3 Achieve cLimAte-ReSiLient And cARBon-neUtRAL economieS

StRAtegic pRioRity 4 UnLock the pRodUctive potentiAL oF nAtURAL ASSetS thRoUgh pUBLic And pRivAte FinAncing

StRAtegic pRioRity 5 RedUce the FootpRint oF mASS toURiSm And pURSUe moRe SUStAinABLe toURiSm modeLS

StRAtegic pRioRity 6 enSURe the SUStAinABiLity oF the FiShing SectoR

StRAtegic pRioRitieS

We propose six Priority Actions—to be implemented both at regional and national levels—that would enable a transformational change towards a sustainable economic model for the Mediterranean Sea.

FocUS on toURiSm And FiSheRieS: potentiAL dRiveRS oF A SUStAinABLe BLUe economyIn addition to the strategic priorities, we explored two key sectors in depth on the basis of their their economic and cultural importance for the Mediterranean region: tourism and fisheries.

tourism (Figure 3) Of all sea-related sectors, tourism is the number one contributor to the region’s economies, accounting for 11% of Mediterranean countries’ cumulative gross domestic product (GDP). However, the current mass tourism model—which often involves aggressive coastal development, excessive water and energy consumption and unsustainable management of solid waste and sewage, among other things—has degraded both the marine and the coastal environment. Mass tourism, along with rapidly emerging consumer trends, endangers the long-term economic sustainability of tourism in the Mediterranean; tourists’ willingness to pay and the average amount they spend is expected to continue to decrease, even if the total number of arrivals does not decline in the short term.

Fisheries (Figure 4) The Mediterranean fisheries sector, another key contributor to the region’s economy, has been in a deepening crisis in recent years. It still has an estimated collective worth of over US$3 billion and directly employs more than 180,000 people. But overfishing and other human factors (e.g., pollution, habitat destruction) have dramatically affected the industry, and more than 80% of the assessed fish stocks in the Mediterranean are overfished.

For these two sectors we offer a series of recommendations for policy makers, investors and developers. These recommendations are intended to improve the sustainability of the tourism and fisheries sectors and to shift towards a Blue Economy development model that will sustain ocean assets and contribute to the region’s prosperity at the same time.

© c

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2030Over 500 million touristarrivals by

HOTEL

HOTEL

of the Mediterranean’sGross Marine Product

92%Generates

3-4x Tourists use

as much water as a local resident

CRITICAL ISSUES KEY ACTIONS FOR A SUSTAINABLE MEDITERRANEAN TOURISM SECTOR

Adopt standards and implement best practices

Protect environmental assets and use smart coastal planning and zoning

Leverage research and innovation

Develop comprehensive national strategic frameworks for sustainable tourism

Improve incentives and disincentives related to

tourism sustainability €€€

Put in place adequate governance structures at local,

national and regional levels

Length of Italian coastline

0 km

43%

7,600 kmArea that is completely urbanized, mainly

linked to tourism development

1/3 of tourismglobally

Accounts for about

Proportion of the Mediterranean population employed in the tourism sector (directly and indirectly)

16%

€52%

KEY FACTS

TOURISM

Contribution of coastal/beach tourism to marine/beach litter(EU member states)

Source: Arcadis (2015)

Source: ARLEM (2013)Source: UNWTO (2015)

UNWTO (2016)

Source: WTTC (2016)Source: Borelli (2000)

FigURe 3 mediteRRAneAn toURiSm: StAte And RecommendAtionS


360,000people employed

(direct and indirect employment)

US$ 3 BILLIONcollective worth ofthe Mediterranean

fisheries sector

Small-scalefisheriesmake up

of all assessed fish stocks in the region are threatened by overfishing

captured incidentally duringfishing activities

KEY RECOMMENDATIONS FOR A SUSTAINABLE MEDITERRANEAN FISHERIES SECTORKEY FACTS CRITICAL ISSUES

132,000 turtles/year

80%

5XHake catches CURRENT level

RECOMMENDED target

Ensure effectivemonitoring andcontrol systems

Regulaterecreationalfisheries

Promote moresustainablefishing techniques

Consumeresponsibly

Use marinemanaged areas to

protect key speciesand habitats

Empowersmall-scalefishers

Plan with along-term

regional focus

Source: GFCM (2016)

Source: GFCM (2016) Source: GFCM (2016)

Source: GFCM (2017)

Source: GFCM (2016)

Source: Casale (2011)

Source: GFCM (2016)

80%of the total fleet of employment

60%

13 SPECIES account for

of thelandings65% Annual fishery

discards representof totalcatches18%

FISHERIESFigURe 4 mediteRRAneAn FiSheRieS: StAte And RecommendAtionS


The Mediterranean Sea provides a direct and significant contribution to the region’s economy. It is an integral part of people’s culture and identity, and we closely depend on it for economic prosperity and a wealth of other benefits. However, unsustainable development and human pressures, including pollution, habitat destruction and overfishing have taken a heavy toll on the sea’s health, causing substantial damage to its assets. Industries, governments, civil society and other stakeholders should act now to change the current development model and shift to a sustainable Blue Economy for the Mediterranean, based on healthy and productive ocean assets.

The UN’s 2030 Agenda for Sustainable Development provides an important framework for moving beyond the current economic model. The SDGs maintain an unprecedented focus on the natural, social and economic rights and governance dimensions of healthy societies. Mediterranean countries should therefore implement the SDGs at the national level, adapting policies and development plans where necessary to support their economies and citizens while preserving the environment. At the regional level, the Mediterranean Strategy for Sustainable Development (MSSD 2016-2025), adopted by the COP 19 of the Barcelona Convention in 2016, takes into account the UN SDGs, particularly in its Objective 1 (Ensuring sustainable development in marine and coastal areas) and Objective 5 (Transition towards a green and blue economy).

The challenges inherent in reviving the ocean economy are not trivial, but failing in our efforts to restore our oceans would imperil the lives and livelihoods of hundreds of millions of people. The strategic priorities and recommendations provided in this report are meant to underpin informed policy decisions to promote economic development, while preserving the ocean’s underlying assets.

© W

WF

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• Reviving the economy oF the mediteRRAneAn SeAoceAn.pAndA.oRg

100%RECYCLED

WWF Mediterranean Marine InitiativeVia Po 25/c, 00198, rome, Italy.

[email protected]

US$5.6 tnThe overall value of ocean assets in the Mediterranean Sea is more than 5.6 trillion US$

5thThe economic output of the Mediterranean Sea makes it the fifth largest economy in the region

250 miLLionAbout 250 million people (or 55% of the total population) resides in coastal hydrological basins

onLy 7.14%of the Mediterranean Sea is under some form of protection

the mediterranean Sea in numbers

Why we are hereTo stop the degration of the planet’s natural environment and to build a future in which humans live in harmony with nature.

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