In early XXth century, the Gulf of Gabes (SE Tunisia) used to host the most extended Posidonia oceanica seagrass beds in the Mediterranean Sea, and a highly productive hotspot of benthic/demersal biodiversity. Sponge harvesting and seabed trawling provoked a first step of seagrass degradation. Subsequently, phosphogypsum releases from Gabes Industrial Complex, since mid-1970s, accelerated the decline of the remaining patches. A sharp reduction of coastal fisheries landings took place with the establishment of the last industrial plant units in 1985. The decrease in coastal commercial species landings was found to be directly correlated with P. oceanica decline. The trophic web system switched from a ‘benthic-dominated’ to a ‘pelagic-dominated’ system. The economic loss related to coastal fisheries was estimated at ~60 million € in 2014 and the 1990–2014 cumulated loss exceeded 750 million €. This first economic valuation of the only direct-use consumptive value of the coastal fishing service provided by P. oceanica in Gabes Gulf is a first step towards the assessment of the environmental cost of the negative externalities caused by the local phosphate industry. It may be used as a preliminary decision-making aid to consider alternative industrial solutions.