A Bioeconomic Analysis of Traditional Fisheries in the Red Sea

We undertake a bioeconomic analysis of the aggregate traditional fisheries in the Northern and Central areas of Red Sea off the coast of the Kingdom of Saudi Arabia (KSA). Results of our analysis using a Fox model and the Clarke-Yoshimoto-Pooley (CY&P) estimation procedure suggest that the aggregate traditional fisheries have been overfished since the early 1990s. The estimated stock size in recent years is as low as 6,400 MT, while the estimated stock size associated with the maximum economic yield (MEY) is 19,300 MT The socially optimal level of fishing effort is about 139,000 days. Thus, the current effort level of 300,000 to 350,000 days constitutes a problem of overfishing. The estimated current total gross revenue from the traditional fisheries is Saudi Rids (SR) 147 million with zero net benefit. If total fishing effort is reduced to the socially optimal level, then we estimate gross revenue would be SR 167 million and the potential net benefit from the KSA Red Sea traditional fisheries could be as large as SR 111 million.