Koh Tao: A Model for Sustainable Tourism and Coral Reef Conservation

Koh Tao, also known as Thailand's Turtle Island, is one of Southeast Asia's most unique and attractive tourist destinations. Its rich biodiversity, crystal-clear waters, jungle habitats, and famous coral reefs draw between 300,000 to 500,000 tourists annually. Many come to enjoy the island’s world-renowned dive sites and various attractions, but the increasing number of visitors has created significant environmental challenges.

Tourism activities on the island, while beneficial for the local economy, are taking a toll on Koh Tao’s delicate marine ecosystems, particularly the coral reefs. Damage from boat anchoring, kicking and trampling during dives, littering, and wastewater discharge are all contributing to the degradation of this once-pristine underwater world.

Unlike Thailand’s national parks, which collect entrance fees ranging from US$6 to $12 per visitor, Koh Tao, being outside the protected area network, did not have a formal user fee system. As a result, the funds generated by tourism on the island have been insufficient to cover the costs of biodiversity conservation. This lack of financing has contributed to the slow deterioration of the coral reefs, while waste has become a widespread issue threatening the island's marine environment.

In April 2022, Koh Tao municipality responded by introducing a modest fee of 20 baht (about US$0.60) per visitor. Since then, this initiative has raised over $450,000, with expectations of generating around $360,000 annually. The funds are being directed towards the restoration of coral reefs and improvements in waste management, offering a much-needed boost to the island’s conservation efforts.

Photo credit: UNDP Thailand. In April 2022, Koh Tao municipality with the help of BIOFIN introduced a fee of 20 baht (about US$0.60) per visitor. Since then, this initiative has raised over $450,000, with expectations of generating around $360,000 annually.

The project, supported by the UNDP’s Biodiversity Finance Initiative (BIOFIN), was implemented with a four-year budget of $290,000. The financial results have already been impressive, with an ROI of 55%. As this funding mechanism becomes more established, the returns are expected to grow, ensuring long-term sustainability for the island’s conservation initiatives.

Photo credit: UNDP Thailand. Tourism activities on the island are taking a toll on Koh Tao’s delicate marine ecosystems, particularly the coral reefs. Damage from littering and wastewater discharge are contributing to the degradation of the pristine underwater world.

Following the success of the Koh Tao model, the initiative is set to expand to three other tourist-heavy island municipalities in Pa-Ngan District of Surat Thani, Yao Noi of Phang Nga, and Klong Prasong of Krabi. These areas, like Koh Tao, are located outside the protected area network. The replication of this model is expected to create a robust finance solution and establish a strong legal framework and policy for biodiversity conservation at the sub-national level.

It is estimated that the user fee system across these three islands will generate approximately $670,000 annually. This revenue will be used to conserve rich biodiversity, including coral reefs, seagrasses, mangroves, wetlands, and key species like dugongs, sea turtles, and the Oriental Pied Hornbill. Additionally, the funds will help improve the livelihoods of local communities who depend on the island’s natural resources.

Koh Tao’s approach demonstrates that even small efforts, like a simple visitor fee, can make a significant difference in preserving our planet’s biodiversity. It serves as a powerful reminder that sustainable tourism practices can protect natural wonders while still allowing people to enjoy them for generations to come.

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