Boating Impact on Canadian Economy
Recreational Boater Contribution is $26.8 billion and 373,606 Jobs
Recreational boating makes a significant contribution to the national economy of Canada with a total economic impact of $26.8 billion and 373,600 jobs
Discover Boating Canada has released the results of an economic study titled The Economic Impact of Recreational Boating in Canada: 2006 Summary Report that finds recreational boating makes a significant contribution to the Canadian national economy. Boaters spend some $15.6 billion in 2006 that when spread throughout the economy generates $26.8 billion in economic impact and creates 373,606 boating related jobs. In a press release, Canadian Marine Manufacturers Association Chairman Rick Layzell says, "We're very pleased with this comprehensive snapshot that proves the importance of our industry in Canada. Boating's impact on the Canadian tourism industry is particularly relevant today with C$6 billion in tourist boater activity representing nearly 10 per cent of Canada's total tourism dollars."
Economic Impact Multipliers - Economists recognize spending spreads through an economy and its impact is magnified each time it is spend. These impacts are labeled direct, indirect, and induced. Each multiplier includes real gross domestic product, labor income, operating surpluses, and taxes.
- Direct Impacts - These are first round expenditures made by boaters for things like fuel, food, taxes and licenses. Total direct impacts were $6.8 billion and 111,747 jobs
- Indirect Impacts - These are expenditures made by businesses from other businesses to support the demands of recreational boating. Indirect impacts totaled 4.1 billion and 42,728 jobs in 2006
- Induced Impacts - These are mostly expenditures made by employees of the businesses that support boating to make local purchases. These add up to $16.0 billion and 219,131 jobs
- Total Economic Impact - The overall effect of recreational boating on the Canadian economy totals $26.8 billion and accounts for 373,606 jobs
What Did Boaters Buy? - Direct Canadian boating purchases are delineated in the study. It notes that half of boater spending is related to tourism and that American boaters contribute to Canadian tourism as well. Totals shown are in billions:
- $0.22 - Boat Insurance
- $0.23 - Private Construction
- $0.34 - Other Expenditures
- $0.64 - Purchases of Imported Boats and Accessories
- $1.21 - Purchases of Canadian Built Boats and Motors
- $2.10 - Travel and Fuel
- $2.26 - Expenditures at Retail Outlets
- $3.03 - Tourism Related to Fishing
- $3.78 - Purchases From Marinas and Boat Dealer That Aren't New Boats
- $1.80 - Sales Taxes
- $15.6 - Total Direct Expenditures by Boaters
Interesting Statistics - The study makes some interesting projections on the 2006 user data. It is estimated Canadians purchased some 65,938 new recreational boats. Surveys of those that don't own boats show eight percent of respondents planned to purchase a new boat in the next three years. A final note points out that $1 million spend on recreational boating generates $1.46 million in real gross domestic product and 22 jobs that have an average salary of $44,806 a year. The last study of this type was conducted in 2001. The recreational boating industry has grown 2.6% a year since it was published. In the five years since 2001, employment grew by 70,745 jobs and related salaries grew by 17%.
