The Gili Islands consist of 3 small island off the northwest peak of Lombok, Indonesia. The Islands are called Gili Air, Gili Meno and Gili Trawangan. The Marine Protected Area (MPA) is the marine environment surrounding the island. For the local residents, the major source of income in the previous 20 years or so is tourism, whereas income from fishing is of a much smaller fraction of the total income.

Gili Islands, Indonesia

The coral reefs were under threat from destructive fishing practices and the locals and dive schools, whose income is dependent on reefs, saw that these practices were permanently degrading the reef systems. They thus created their own private MPA to protect the reefs, through rules that are established to govern reef usage. This institution of rules, called awig-awig (meaning “local rule”) defines the set of informal laws, rights and responsibilities of reef users to ensure sustainable management.

Gili Ecotrust

Gili Ecotrust

The dive schools also set up a organization known as the Gili Ecotrust that is to provide funding for patrolling and enforcement operations as guided by the awig-awig institution. The funds are also used to pay to fishermen to stop them from fishing in protected coral reef areas. The money for the funds is raised through voluntary payment, known as the Eco-tax, by dive tourists each season via the dive schools. This Eco-tax can be considered a measure of the divers’ willingness to pay (WTP) and reveal how they value coral reef ecosystem.