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SUSTAINABLE FINANCING OF MPAs IN THE MEDITERRANEAN: A FINANCIAL ANALYSIS

other coastal activities in the medium term. This value seems quite small when it is
considered that MPAs are a major contributor to international tourism activities in the
Mediterranean. This value (to be invested over 6 years) only represents 3.6% of annual
revenues from international tourism in the Mediterranean estimated to be €190bn in
2011.

5.1 Financial needs and financing gaps for optimal management

Resource mobilisation for the Mediterranean region over the period 2012-2014 was almost
€150M. International cooperation represents 18% of total funding and 82% of funding
originates from public budgets.
In 2014, total financial resources available for MPAs in the Mediterranean region amounted
to €54.5M, in which total national expenditures account for €45.1M and international funding
for €8.3M. Details of these figures are presented in the country profiles prepared as part of
the project.
This section first details financial needs for an optimal management scenario, extrapolating
local results from Chapter 2 to both national and regional levels. It then presents the funding
gap for this optimal management scenario. The difference between the available resources
described in Chapter 3 and the extrapolated financial needs as detailed in Chapter 2 yields
the financing gap.

5.1.1 Financial needs for optimal management

a) State-of-the-art regarding evaluation of national financial needs

A literature review was undertaken in order to gather national reports detailing financial
needs for effective management of PA systems. In general, such country reports found in
the literature were very incomplete and the data source unidentified. Only France, Albania
Croatia and Montenegro have undertaken processes to identify the financial needs of
national PA systems and, therefore, can attempt calculation of their financing gaps. Most of
these reports were directed by the United Nation Environmental Programs and GEF. They
are detailed below.
▪ In a report entitled “Sustainable Financing Review for Croatia Protected Areas”,
Croatia indicated that in 2009, of the 22.7M HRK (€3.01M) requested by the park
public institution, 46% was approved, whilst of the 33.7M HRK (€4.47M) requested in
2008, only 41% was approved. However, it was somewhat difficult to ascertain what
the true funding gap is, as many parks allegedly request just what they know they
might receive, while others request a far larger budget from the State government in
the hope of getting a larger sum (ERM, 2009);
▪ In 2010, Albania identified key qualitative gaps in the PA system in Albania and
more specifically marine areas. This analyses did not quantify the funding gap
(Kashta, 2010);

▪ In 2011, Montenegro, in an analysis of the economic value of its Protected Areas,
concluded there was significant public under-investment in PAs. At €2m a year in
2
total or €1,800/km in 2011, funding to PAs was insufficient to manage the PA
network effectively and was less than half of the actual financial needs for effective
PA management in Montenegro. Public income equated to only around 15% of

May 2015 – Vertigo Lab, for MedPAN, RAC/SPA and WWF Med. Page 71