Measuring the Value(s) of Marinas

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Measuring the Value(s) of Marinas
Ed Mahoney, Michigan State University College
of Agriculture and Natural Resources
http//www.prr.msu.edu/mahoney/2004Saugatuck.ppt

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Challenge Acquiring and maintaining public access

• To acquire and maintain publicly owned and
  privately provided recreational boating access

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The Overlapping Impacts of Different Factors on
Access
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Challenge Encouraging Investment in Boating
Facilities and Services

• To create an environment needed
• to encourage public and private investment and
  re-investment in recreational boating access,
  facilities and services

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Challenge Taking it forGranted!

• Most human beings have an almost infinite
  capacity for taking things for granted."
•   --  Aldous Huxley

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Challenge Preventing the Killing of the Golden
Goose

• To discourage federal, state and local
  governments from taxing and/or regulating marine
  businesses out of business!

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Challenge Losing Marinas
Increasingly marinas are being converted to
other land-uses including residential or retail
developments, or being converted to condominium
ownership. The number of new marinas is
relatively small
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• Impacts of the Loss of Marinas/Acess
• Reduced quality of boating experiences.
• Increased congestion (conflicts) at accessible
  locations.
• Greater cost and inconvenience of boating -
  boating will be perceived as more a hassle
  than fun.
• 4. More inactivity and boating dropouts.
• Reduced recruitment of new boaters.
• Loss of economic development, tourism,
  employment, income

Implications of Reductions in Boating Access
and Accessibility
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Boating Values
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Registered Watercraft by Segment and State of
Registration.
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Average Craft Spending by Segments ( Per boat
per day).
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Total Trip Spending for Registered Boats Kept at
Great Lakes Marinas ( Millions).
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Economic Impacts of Trip Spending for Registered
Boats Kept at Great Lakes Marinas ( Millions).
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Total Craft Spending for Registered Boats Kept at
Great Lakes Marinas ( Millions).
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Economic Impacts of Craft Spending for Registered
Boats Kept at Great Lakes Marinas ( Millions).
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• Economic Impacts of Tower Marine of the Local
  Community

Ed Mahoney and Dan Stynes Recreation Marine
Research Center Michigan State University
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Number of Boats and Boat Days at Tower Marina
Note Tower Marina, located in Saugatuck,
Michigan, had 395 occupied slips during the
summer of 2004.

• 395 boats in slips
• Boat days from a 04 survey of 6,000
  boaters
• 15,000 boating days

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Average Annual Craft Expenses for Boats Kept at
Tower Marina
Note These are the average slip rates for
different size boats charged by Tower Marin in
04

• Average craft spending profiles from a 04
  survey of 6,000 boaters

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Total Trip Spending for Boats Kept at Tower
Marina ( Thousands)

• Average trip spending profiles from a 04 survey
  of 7,000 boat trips.
• Boaters at Tower Marine spent 2.854 million on
  trips.

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Total Craft Expenses for Boats Kept at Tower
Marina ( Thousands)

• Boaters at Tower Marine spend 2.85 million on
  craft spending in 04

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Summary of Boating Activity and Spending for
Boats Kept at Tower Marina

• Boaters at Tower Marine spend a total of
  5.709 million on trips and craft spending in
  04.

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Local Economic Impacts of Trip Spending for Boats
Kept at Tower Marina
Note Economic Impacts are on the Allegan County,
MI economy.
The direct and secondary (multiplier) effects of
trip spending by boaters at Tower Marine on the
County are 46 jobs, 829,000 in personal income
and 954,000 in profits and rents (value added).
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Local Economic Impacts of Craft Expenses for
Boats Kept at Tower Marina
Note Economic Impacts are on the Allegan County,
MI economy.
The direct and secondary (multiplier) effects
of craft related spending by boaters at Tower
Marine on the County are 56 jobs, 1.1 million in
personal income and 1.958 million in profits and
rents (value added).
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Total Local Economic Impacts of Craft Expenses
for Boats Kept at Tower Marina
The direct and secondary (multiplier) effects of
all spending by boaters at Tower Marine on the
County are 102 jobs, 1.941 million in personal
income and 2.912 million in profits and rents
(value added).
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• On-line Marina Economic Impact Assessment

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Develop regional spending profiles for different
size boats kept at marinas including annual craft
spending (e.g., storage, insurance, service) and
trip spending (e.g., gasoline, food,
supplies). The profiles will be developed based
on of developing regional spending profiles from
data gathered by the National Boater Panel.
These regional spending profiles could then be
used with information on the number of occupied
slips profiles in a given area to develop direct
boater spending estimates for marinas of
different sizes with various occupancy rates.
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Develop special ratios for marinas needed to
estimate the employment and income effects of
marina revenues. Working with MOAA RMRC will
develop an on-line survey instrument to collect
the required information from MOAA marinas.
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We will utilize this information including
jobs to sales, income to sales and value added
to sales ratios to develop a distinct marina
sector in the IMPLAN (input-output) model.
Currently we are required to use a broader
catergory that may not accurately reflect
marinas. Development of this marina sector will
be a major accomplishment and contribution to
future economic impact analyses of marinas.
Currently this information does not exist.
Working with MOAA we will develop estimates
occupancy rates, slip prices and storage rates
for different size slips marinas in different
regions of the country. This information will be
collected using the same on-line survey. The
on-line survey will be available for future use
by MOAA to estimate marina trends including
occupancies, slip prices, storage rates and
amenities. An web-based (spreadsheet) system for
estimating marinas economic impacts That will
permit marina owners and boating organizations to
input information on numbers of slips and
occupancy rates to develop estimates of indirect
and induced income and the employment impacts of
boater spending at marinas. RMRC has been
experimenting with the developing a system that
would permit marinas, communities or
organizations to estimate (on-line) the economic
impacts of existing marinas, expansion of
marinas, or events or actions (e.g., curtailment
of dredging) that negatively affect marinas. The
system will acquire the annual and trip spending
profiles for these size boats kept at marinas
from a data base. An estimate of total direct
spending would be produced including annual craft
spending and annual trip spending. The direct
spending information would then be automatically
transferred to another element/model comprising
the system to estimate the indirect and induced
employment and income impacts of boats kept in
that marina. The system would generate tables
of the different analyses showing the direct,
indirect and induced economic impacts of marinas
having different numbers of occupied slips.
Scientifically conducted and chronicled case
studies that identify, describe and verify
non-quantitative values of marinas. These case
studies would be collected nationwide and would
focus on a variety of specific values produced by
marinas, including preserving or providing
access, visual improvement of waterfronts, and
urban revitalization. The case studies will be
formatted for the web. RMRC will develop a
web-based form so that members of MOAA and others
can nominate/identify marinas around the country
as case studies of different marina values. This
web-based form will be available for future use
to include additional case studies to the system.
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Working with MOAA we will develop estimates
occupancy rates, slip prices and storage rates
for different size slips marinas in different
regions of the country. This information will
be collected using the same on-line survey. The
on-line survey will be available for future use
by MOAA to estimate marina trends including
occupancies, slip prices, storage rates and
amenities.
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An web-based (spreadsheet) system for estimating
marinas economic impacts That will permit
marina owners and boating organizations to input
information on numbers of slips and occupancy
rates to develop estimates of indirect and
induced income and the employment impacts of
boater spending at marinas. The system would
generate tables of the different analyses showing
the direct, indirect and induced economic impacts
of marinas having different numbers of occupied
slips.
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Scientifically conducted and chronicled case
studies that identify, describe and verify
non-quantitative values of marinas. These case
studies would be collected nationwide and would
focus on a variety of specific values produced by
marinas, including preserving or providing
access, visual improvement of waterfronts, and
urban revitalization. The case studies will be
formatted for the web.
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How the on-line model will work!