Measuring Marina Economic Impacts
Boating Industry Develops Tool to Measure Benefits of Harbors
Jul 25, 2007
Adequate Marina Infrastructure is an important component in the economic health and viability of our coastal communities. Development of ports and small boat harbors contributes greatly to the host community in addition to the greater regional and state economies. Economic benefits have been understood notionally for years and detailing specific hard dollar impacts has been elusive. An boating industry group is working on the issue and recently released a web-based tool for estimating the economic benefits of marinas to the greater economy.
Economic impact is composed of three factors; they are financial impact, fiscal impact and economic impact. These values represent three different revenue streams that contribute to an economy. Financial impact is the total of harbor revenue, payroll and local purchases. Fiscal impact is the total spending by non-local and local harbor users, as well as the taxes generated by harbor users and related businesses. Economic impact is the combination of total spending modified by a multiplier, new income and export-oriented commercial spending modified by the same multiplier, and additional employment caused by a marina’s presence in the community. It is an accepted economic principle that new and outside income brought into a community is repeatedly spent a number of times.
The Recreational Marine Research Center (RMRC) founded by the National Marine Manufacturers Association (NMMA) and Michigan State University (MSU) has developed the Online Boating Economic Impact Tool. The tool is available for estimating economic benefits of both existing and planned marinas across the United States. Along with the RMRC, other boating industry sponsors of the project include the Association of Marina Industries (AMI), Great Lakes Commission (GLC), and United States Coast Guard (USCG).
Dr. Ed Mahoney, Director of RMRC says of this effort, "For the very first time, this innovative tool allows marinas across the country to produce information that verifies their direct and indirect economic impact. In addition to the organizations and agencies involved, more than 800 marina operators and 10,000 recreational boaters contributed their time to provide the data required to develop the tool’s economic models.” Information provided by the new product includes scientifically sound estimates of boater spending, jobs generated, community and regional economic impact, and values associated with owning and operating a recreational vessel. This information is vital to the decision making process in developing or expanding marina facilities.
Those of us living on the waterfront know the value of marinas in the lives of community residents. Marina managers, community leaders and boating advocates can view and use the modeling tool online at the Marina Economics website. The new Online Boating Economic Impact Tool will help boating advocates do a better job of justifying the funds needed to maintain and expand marine infrastructure. “Assessing and showcasing the economic impact of individual marinas is crucial to the continued growth of the recreational boating industry and the boating public’s ability to enjoy time on the water,” says Alex Laidlaw - CMM, Chairman of AMI.
