The Economic Impact of Algae Blooms

Harmful algal blooms (HABs) are becoming increasingly common due to climate change, urbanisation, and fertiliser runoff. These blooms not only harm ecosystems but also carry significant economic consequences. Understanding their impact on industries and communities can highlight the importance of sustainable management practices.

Industries Most Affected

1. Water Treatment Costs

Algae blooms can significantly increase the expense of treating contaminated water. For instance, a bloom in Uruguay’s Sauce Lake, a critical water source, led to severe degradation in water quality, forcing the local supplier to waive payments, resulting in millions of dollars in losses. Innovative, chemical-free solutions like ultrasonic technology effectively address such challenges.

2. Tourism Decline

Tourist destinations impacted by algae blooms often see lake closures, reduced visitors, and loss of income for local businesses. Algal blooms can be common in lakes, especially in the summer. In the first week of December 2024, the Waikato region experienced lake closures in Lake Ngaroto, Rotoroa (Hamilton Lake), Hakanoa, Waikare, Rotokauri, Whangape and Kainui. 

This is becoming a common yearly event at the beginning of summer. The negative perception can linger long after restoring the water, further compounding economic losses. Protecting water bodies from algae blooms is crucial for safeguarding tourism-dependent economies.

3. Fishing Industry Losses

Toxic algae blooms devastate fisheries, killing fish stocks and damaging consumer confidence.

Ensuring water quality through sustainable algae control methods can help protect both aquatic ecosystems and the livelihoods of those who depend on them.

4. Property Value Declines

Waterfront properties often lose value when nearby lakes or ponds are affected by algae blooms. Odours and toxins from blooms can reduce property prices by as much as 40%, with billions in losses reported annually in the real estate sector. Maintaining clean, algae-free water bodies can help preserve property value and community appeal.

5. Broader Economic Impacts

Beyond specific industries, algae blooms affect communities through absenteeism, decreased productivity, and increased healthcare costs. These ripple effects can strain local economies over time.

A Proactive Approach to Algae Management

The cumulative economic costs of algae blooms emphasise the need for effective prevention and management. Sustainable methods, such as ultrasonic solutions, offer an environmentally friendly way to mitigate these blooms without relying on harmful chemicals. These innovations align with global trends toward eco-friendly water management practices.

Algae blooms are more than just an environmental concern; their economic impact is widespread, affecting industries, property values, and public health. Addressing this issue requires a shift toward sustainable management practices that protect water resources while minimising costs.

By prioritising innovative and eco-conscious approaches, we can safeguard ecosystems and communities from the ongoing challenges posed by harmful algal blooms.

Don't let harmful algal blooms impact your industry or community. Take a proactive approach to sustainable water management.

For expert advice and innovative solutions, contact Hydro Synergy. Email us at support@hydrosynergy.co.nz or call 0800 - NOALGAE (6625423).