Tourism versus Real Estate Development: a Contingent Valuation Study of Estonian Coast MART REIMANN Department of Leisure Sciences Tallinn University Tondi 55, 11316 Tallinn, ESTONIA Institute of Ecology and Earth Sciences Tartu University Vanemuise 46, 51014, Tartu, ESTONIA mart.reimann@tlu.ee ÜLLAS EHRLICH Tallinn School of Economics and Business Administration Tallinn University of Technology Akadeemia tee 3, 12618 Tallinn, ESTONIA Ullas.Ehrlich@tseba.ttu.ee HANNES TÕNISSON Institute of Ecology Tallinn University Narva mnt 25, 10120 Tallinn, ESTONIA hannes.tonisson@tlu.ee Abstract: The paper seeks to investigate the willingness to pay of Estonian population for preserving the Estonian seashore in its natural condition. Using the Contingent Valuation Method (CVM) a representative sample of Estonian working-age population was interviewed to find out their willingness to pay. Annual willingness to pay is asked separately for all main natural seashore types in Estonia, which are silty shore, till shore, cliffed shore, gravel shore, sandy shore. The biggest average willingness to pay of individuals was for sandy shore (20.1 €/year) and the smallest for gravel shore (7.2 €/year). Total annual demand for preserving the Estonian seashore in its natural condition is ca 42.7 million euros. Key-Words: Estonian coast, nature values, coastal values, contingent valuation, nature tourism, coastal tourism, monetary demand for shores 1 Introduction Estonia is a relatively small country (45,227 km 2 ), but due to its geographical location between major geological structures (Fenno-scandian Shield and East European Platform) and comparatively long coastline (nearly 3,800 km) due to numerous peninsulas, bays and islands (over 1,500 island), it is rich in different shore types and valuable coastal ecosystems. During the Soviet Union era, most of the 3,800 km long coastline was closed for ordinary people and development activity and therefore the impact of human activity was minimal. Most of the seashore was preserved in its natural condition. Few natural seashores are left in Europe and residents regard them as very valuable. After regaining independence, pressure of human activity on Estonian seashores increased. The government measures have to be implemented to preserve the shores in their maximum possible natural condition and make them available for recreation and tourism. However, a lot of decision-making competences are in the hands of local municipalities and often very hot discussions are held for real estate and infrastructure development. Supporters of development say that it brings more inhabitants, more money to the region and “just watching coastal beauty by tourists and locals does not bring any benefits”. Supporters of protection say that it improves the living standard of locals and makes the region more attractive for tourists. Thus Estonia is facing similar problems as many other regions in the world where there are needs to analyse values of coastline from different perspectives and aspects [1, 2, 3, 4]. Recent Researches in Tourism and Economic Development ISBN: 978-1-61804-043-5 240