Overview: The Seychelles Fishing Authority (SFA) would like to undertake a cost and revenue analysis of its fisheries to understand how much money SFA is receiving from vessels (from licensing agreements, violations/penalties, etc.), how much SFA may be subsidizing vessel activities, and what are some potential options for covering the full costs of fisheries management in the future. The goal is to assess the basic financial costs and benefits that Seychelles receives from vessels to determine how much SFA is truly spending on/subsiding fleets to inform how these costs can be internalized in the future. The fundamental problem is that fleets are engaging in IUU practices, but SFA is not collecting fees or penalties for these IUU events to cover the true costs associated with the IUU practices. The reality is that the fleet will need to internalize these costs or the fishery will not be financially feasible to continue in the future.
Phase 1: Cost and revenue data collection and analysis
UCSB will collaborate with TNC and and local partner,
- Description of current fishery
- Species, effort, catch, stock status
- What are the current costs of managing the SFA fleets?
- What is the current government budget allocation for SFA fleet management?
- What is the average amount that SFA may be subsidizing vessel activity?
- How much do industrial longline, semi-industrial, and purse seine vessels pay SFA to fish in Seychelles EEZ?
- How much does SFA collect in violation/penalties fees on average from each vessel gear type?
- What fraction of management costs are covered from current revenue generating mechanisms?
- What is the current value of the fishery?
- How much revenue do industrial longline, semi-industrial, and purse seine vessels collect each year on average from fishing in Seychelles EEZ? (e.g., landings, prices)
TNC is interested in replicating this study in other regions, including Chile and Costa Rica. As part of the deliverables for this project, we will include an overview of the approach and data needs so that this type of cost analysis can be replicated in other regions.
Phase 2: Evaluation of cost recovery options under different fishing effort scenarios
Building on the baseline analysis in the first phase of this project, UCSB will collaborate with TNC and SFA to develop and evaluate a suite of scenarios for cost recovery of the fishery under different potential fishing effort scenarios. The questions we seek to answer in phase 2 of this project include:
- How could SFA fully cover management costs and internalize costs of IUU events?
- What types of cost recovery mechanisms are feasible under different fishing effort scenarios and how would you structure them? (e.g., violation/fee structure, issuing fewer fishing licensing agreements at a higher price, buy-out, improved monitoring)
- How can you compare the costs and benefits of different cost recovery scenarios?
- What is the current status/health of the fishery and how might the value of the fishery change under different scenarios?