Article Commercial Development and Conservation Values: The Case of Rosh Haniqra Marine Reserve in Israel Nir Becker Department of Economics and Management Tel-Hai College Upper Galilee, 12210 Israel, nbecker@telhai.ac.il Doron Lavee * Department of Economics and Management Tel-Hai College Upper Galilee, 12210 Israel, doronl@telhai.ac.il Abstract As pressures mount to develop intensive business operations along a coastline prized for its natural beauty, varied plant and wildlife and archeological sites, it is important to present decision makers with a full analysis of all values associated with the area. In this study, we examine whether the benefits of business development along the Rosh Haniqra Marine Reserve in northern Israel indeed outweigh the costs of potential damages to the region’s delicate natural balance. The analysis of business value was carried out on the basis of a detailed survey of facilities operating within the proposed reserve area and assessment of their expansion plans. The non-market benefits associated with conservation of the reserve were estimated according to two independent methods—Contingent Valuation (CVM) and Travel Cost (TCM). Our analysis reveals that under certain assumptions, non-market values of the coastline are higher than its commercial value. Thus, while further analysis is required to investigate the interaction between the number of visitors and the ecological performance of the site, it may already now be concluded that the preservation value is quite significant and should be taken into account in development plans for the region. JEL Classification: Q26, Q27, Q51, Q57 Keywords: Marine reserves, valuation, conflicts Journal of Infrastructure Development 1(2) 193–217 © 2009 India Development Foundation SAGE Publications Los Angeles, London, New Delhi, Singapore, Washington DC DOI: 10.1177/097493060900100206 http://joi.sagepub.com *The following people helped us in the research effort: Hagit Snir-Salinger, Liat Krichly, Ariela Cohen, Sharon Goldzon, Guy Cohen and Reuven Ortal. NOT FOR COMMERCIAL USE