Increased interest in water quality in coastal and marine areas stemming from the Water Framework Directive and the Marine Strategy Framework Directive has led to important questions in relation to policies that address nutrient loadings. This paper presents the results from a choice experiment study to assess the recreational damage associated with algal blooms caused by nutrients flows into Varna Bay, Bulgaria. Varna Bay is an important beach destination on the Black Sea coast of Bulgaria. Algal bloom events have been experienced frequently in the area. A choice experiment questionnaire was developed and applied in the Varna Bay area to assess the extent to which the quantity of algal blooms and the duration of the bloom affect recreational activities. The amount of bloom was found to be important, as respondents were on average willing to pay a one off tax of 18.97 Leva (€9.73) for a program that provides beaches free from algal blooms.