The Environmental Economic Cost of Untreated Sewage Discharge
in the Hotel, Hospitality, and Tourism Sector

There is a significant price we all pay when hotels and tourism resorts discharge their untreated waste water and sewage into local ecosystems. That price can be economically modelled across a number of domains, including health impacts, biodiversity loss, impacts on fisheries, reduction in tourism, and potential clean-up or restoration costs.

Summary of Harm Costs per m³

Freshwater Harm Cost

Costs for freshwater contamination range from $0.30–£2.00/m³ in biodiverse freshwater systems like the UK, rising to $10/m³ in hypersensitive tropical regions.

Marine Harm Cost

Marine sewage discharge costs range from $0.13–$2.00/m³ in direct harm, rising to $10+/m³ when including tourism, fisheries, and habitat restoration.

Freshwater Harm Analysis

1. Proxy Valuations from UK Case Studies

The Fideres Analysis (2024) estimates £1.53/m³ in societal harm from untreated sewage spills, combining:

  • Healthcare costs: Waterborne illnesses (e.g., £3,000–£20,000 per hepatitis A case).
  • Tourism losses: E.g., £82 million annually in Lake Windermere due to algal blooms [7].
  • Fishery impacts: Hypoxic "dead zones" reduce catches (e.g., $2–$10/m³ lost revenue in Florida) [2][7].
  • Chronic sewage pollution costs: £75–£114 million/year in England and Wales (≈£0.30–£0.45/m³) [7].

2. Hydroeconomic Models Incorporating Harm

The PMC hydroeconomic framework [3] provides a template for calculating harm by modeling societal, private, and social costs:

  • Societal Costs: Includes ecosystem restoration (£1.5 million/km²/year for eutrophic waters), biodiversity loss (£50–£500/m³ for heavy metal remediation), and climate damages ($0.25/m³ from methane's social cost).
  • Private vs. Social Costs: Untreated sewage introduces £0.50–£1.00/m³ in uninternalized externalities (e.g., fines for Thames Water spills) [1][8].

3. Nature-Based Solutions (NBS) Cost-Benefit Analysis

The WWF/WBCSD report [6] models harm reduction via wastewater treatment versus business-as-usual:

  • Freshwater biodiversity: Degradation costs €6-33 million per restored km².
  • Hypoxia mitigation: Prevents $1M–$10M/km² in fishery losses [4][7].

4. Key Challenges in Per m³ Modeling

  • Data gaps: Most studies aggregate harm at catchment scales (e.g., £1.1 billion over 720 million m³ in the UK [1]).
  • Regional variability: Harm costs differ significantly by region. For example, UK tourism losses and health fines range from £0.30–£1.53/m³, while in tropical regions, fisheries collapse and mangrove die-offs can cost $2–$10/m³.

Conclusion: Freshwater Impact

While no single universal figure exists, existing models suggest a cost of £0.30–£2.00/m³ in biodiverse freshwater systems, rising to $10/m³ in hypersensitive tropical regions. Urgent priorities include standardizing harm metrics and expanding hydroeconomic frameworks to include biodiversity valuation.

Marine Impact Review

The environmental impact cost of discharging untreated sewage into marine environments encompasses both direct ecological harm and broader socioeconomic consequences, with significant regional variability.

Key Environmental Impacts

  • Eutrophication and Dead Zones: Untreated sewage introduces nitrogen and phosphorus, fueling algal blooms that deplete oxygen. The Gulf of Mexico's dead zone (~6,300 sq mi) costs $82 million annually in lost fisheries and tourism [23][24].
  • Toxic Chemicals and Microplastics: PFAS ("forever chemicals") and microplastics persist in marine ecosystems. UK studies estimate 12,000+ hours/year of sewage spills near Marine Protected Areas (MPAs) [25].
  • Pathogens and Public Health: Raw sewage contains bacteria (E. coli), viruses (hepatitis A), and parasites. Global economic losses from waterborne pathogens are estimated at $16.4 billion/year [23].

Economic Cost Estimates

Source Cost Estimate (USD/m³) Notes
Fideres Analysis (UK) £1.53 (~$1.94) Societal harm from undelivered sewage treatment (health, tourism) [26].
Qingdao, China (Frontiers) $0.13 Residents' accepted water-price hike to fund treatment upgrades [27].
GHG Emissions (Global) $0.25 Methane's social cost at $190/ton CO₂e [26].

Factors Influencing Cost Variability

  • Regulatory Enforcement: MARPOL Annex IV bans sewage discharge within 12 nautical miles, but gaps persist [30]. UK water companies face £250 million+ in penalties since 2018 for illegal spills [26].
  • Nutrient Sensitivity: Sensitive ecosystems like kelp forests and mangroves incur higher restoration costs. PFAS contamination in UK estuaries requires £50-£500/m³ for remediation [25].
  • Tourism and Fisheries: Sewage-linked beach closures cost £30M/year in UK shellfish revenue loss [25]. Algal blooms in Florida caused an $82M tourism loss in 2018 [23].

Conclusion: Marine Impact

Marine sewage discharge costs range from $0.13–$2.00/m³ in direct harm, rising to $10+/m³ when including tourism, fisheries, and habitat restoration. Regional disparities and regulatory rigor heavily influence these figures, underscoring the need for standardized LCA frameworks.

Sources

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