The Hoi An World Heritage site in Vietnam has faced increasing coastal erosion as a result of both natural and anthropogenic causes since the 2010s. Main drivers are the construction of hydropower dams on the Vu Gia and Thu Bon Rivers, illegal sand mining in the South China Sea, and sea level rise along the Central Coast Vietnam. Coastal erosion affects the tourism attraction of this area. A challenge for both the national government and the local authorities is understanding the nature of the contemporary coastal erosion; this includes the beach erosion and tourism relationship. This study deals with the damage valuation of the beach erosion in relation to the tourism revenue based on the hedonic pricing method. Cua Dai beach of Hoi An is structured into 23 beach sectors along the shore, each of which shows a relative homogeny in physical characteristics, anthropogenic activities, and socioeconomics. The beach value is function of morphological variables such as beach width and distance to the city center, and tourism variables such as tourist area, coastal businesses, the number of hotels, and the number of hotel rooms. The two-stage least squares (2SLS) of the custom-log model is the most accurate approach. The total projected revenue losses are more than an estimated 29 million US dollars by 2040. The present values of the total annual revenue losses in 2020, 2030, and 2040 are about 29.6, 21.4, and 14 million US dollars, respectively, at an interest rate of 5%. The results suggest mitigation strategies and policy recommendations. The proposal includes improving the adaptation capacity to coastal erosion using innovative, smart, and wise solutions. Beach nourishment and coastal defense structures can be sustainable management tools combating coastal erosion only if the multicausal coastal processes are properly considered and a detailed cost-benefit analysis is performed. |
