,:•■/ 
 
 ECONOMIC ACTIVITY ASSOCIATED 
 WITH MARINE RECREATIONAL FISHING 
 
 FINAL REPORT 
 
 Prepared for 
 
 National Marine Fisheries Service 
 
 National Oceanic and Atmospheric Administration 
 
 U.S. Department of Commerce 
 
 By 
 
 Centaur Management Consultants, Inc. 
 
 Washington, D.C. 
 
 Under Contract No. 6-35195 
 
 Washington, D.C. 
 June 1977 
 
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 8, 
 
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 FOREWORD 
 
 This report for the National Marine Fisheries Service (NMFS) is organized - 
 into three chapters and twelve appendices. Chapter 1 describes the study 
 objectives, provides background information on the need and purpose of the 
 study, and summarizes the research approach used to perform the study. 
 Chapter 2 presents the detailed results of the study; that is, the national 
 economic activity or impacts associated with marine recreational fishing. 
 Chapter 3 provides estimates of economic impacts associated with marine recrea- 
 tional fishing taking place in the seven NMFS Regions and presents 
 a methodology for disaggregating impacts by "manageable fishery unit." The 
 twelve appendices present the detailed data analyses, and provides a listing 
 of data, procedures and sources, used in compiling the results of this study. 
 
 Completion of this report required the assistance and cooperation of numerous 
 individuals. The assistance of Mort Miller, Contracting Officer's Technical 
 Representative in the NMFS is especially appreciated. He provided guidance 
 and assistance to the contractor throughout the study. At Centaur Management 
 Consultants, those responsible for the study include Sandy Fain, Brad Ingram and 
 Paul Kolp. 
 
 Washington, D.C. 
 June, 1977 
 
EXECUTIVE SUMMARY 
 
 OVERVIEW 
 
 The major purpose of this study was to estimate the economic contribution that 
 marine recreational fishing makes to the national economy. Economic impact 
 estimates associated with marine recreational fishing were developed from 
 the associated sales value of goods and services. Impacts measures included 
 value added, wages and salaries, employment, annual capital investment and 
 numbers of firms involved in these sales. These were developed for the 
 business sectors directly impacted by marine recreational fishing, consisting 
 of fishing tackle, boats, outboard motors, boat trailers, commercial sport- 
 fishing vessels, marinas/boat yards, bait, food, lodging, travel, boat fuel, 
 boat insurance, and a category consisting of other goods and services. The 
 "other" category consisted of such items as special fishing clothing, magazines, 
 and boat launching fees. Where appropriate, these impacts were estimated at 
 the manufacturing, wholesale distribution, and retail levels. The economic 
 impact estimates were provided for the years 1972 and 1975. In addition 
 comparisions were drawn between the economic activity associated with marine 
 recreational fishing and the total activity in those business sectors supplying 
 these goods and services. 
 
 It should be noted that the figures presented in this study do not purport to 
 represent the total "value" of recreational fishing in the sense of the 
 aesthetic or recreational importance of the fishing experience. These are 
 considerations beyond the actual economic contributions presented in this 
 report. 
 
 Approximations were also provided of the indirect and induced impacts across 
 the economy which are associated with marine recreational fishing. Indirect 
 impacts are those economic effects (value added, wages and salaries, and 
 employment) in other sectors of the economy caused by spending for materials 
 and services by the directly impacted business areas. Induced impacts are 
 additional economic effects across the economy caused by consumer spending 
 created through the wages and salaries and other income provided by virtue 
 of the directly and indirectly created economic activity. 
 
 The study also disaggregated the national economic impacts into seven regions. 
 This disaggregation estimated the economic impacts (occurring both within the 
 region and for some impacts in other parts of the country) associated with 
 marine recreational fishing activity occurring in a particular region. That 
 is, national economic impacts are disaggregated based on the region of fishing 
 (or use and consumption) as opposed to point of production or purchase (though 
 frequently these are all in the same location, such as bait, charter boat fees 
 and other on-site expenditures) . A methodology was also developed for dis- 
 aggregating national economic impacts by "fishery management unit" for which 
 Regional Councils anticipate preparing management plans. 
 
 11 
 
Data were also compiled on the amount of government expenditures, wages and 
 salaries, and employment at the state level related to marine recreational 
 fishing. While the main thrust of this study was to provide economic impact 
 estimates of recreational fishing taking place in saltwater, an estimate 
 was also developed of a likely bound of the additional economic impact 
 associated with fishing for anadromous species of fish in freshwater. In 
 addition, an extensive bibliography relating to the economic impact of 
 marine recreational fishing has been compiled. 
 
 APPROACH 
 
 The general approach to estimating the direct impacts consisted of a four 
 step procedure. First, total annual sales for the particular good or service 
 at each level of economic activity was estimated. Second, an estimate was 
 made of the portion of total annual sales that are attributable to marine 
 recreational fishing for each good or service. Third, economic impact ratios 
 of value added to sales, sales to employment, wages and salaries to sales, and 
 annual capital investment to sales that characterize each overall good or 
 service were derived. Fourth, the respective economic impact ratios were 
 applied to the total value of sales and to the portion of total sales 
 attributable to marine recreational fishing for each good or service to 
 determine the remaining economic impacts. 
 
 The total value of sales for each good or service was estimated by examining 
 as many sources of data as could be located. These sources included original 
 surveys, various industrial and business censuses, trade associations, market 
 research firms and government and university research in both published and 
 unpublished form. The estimates from the various sources were compared and 
 analyzed to assess the reasons for any inconsistencies observed. From this, 
 point estimates for total sales were chosen. 
 
 The portion of total annual sales in a business sector attributable to marine 
 recreational fishing were then estimated. For boats, motors, trailers, marinas/ 
 boat yards, boat fuel, and boat insurance the allocations were made based on 
 an estimate of the amount of time boats (motors) are used for fishing in saltwater. 
 For fishing tackle the allocation was made based on a ratio of expenditures 
 for tackle purchased for use in saltwater fishing to expenditures for all 
 fishing tackle. The ratio was determined from historical data on tackle 
 expenditures by fishermen as well as data from a survey of fishing tackle 
 manufacturers. For the remaining goods and services, which include bait, 
 food lodging, travel, commercial sportfishing vessels, and "other" goods 
 and services, estimates of sales attributable to marine recreational fishing 
 were based on historical trend analyses of consumer expenditures for each of 
 these items. 
 
 For each good or service economic impact ratios were calculated using available 
 data that most accurately appear to characterize the particular sector. 
 The U.S. Bureau of Census was the primary data source. For example, the 
 economic impact ratios for fishing tackle manufacturing were determined from 
 Census data on establishments that specialize in the production of fishing 
 
 111 
 
tackle. However, such production specific data were not available at all 
 levels of economic activity. So, for instance, retail trade impact ratios 
 for fishing tackle were based on data for all sporting goods stores. This 
 is a more highly aggregated grouping, but one which reasonably typifies the 
 activity. 
 
 For some sectors the above approach was not adequate and alternative methods 
 were employed. For instance, several survey instruments were developed to 
 assist in the determination of sales estimates and impact ratios where other 
 data were thought to be lacking. A survey of fishing tackle manufacturers 
 was conducted to assist in the determination of the portion of total tackle 
 sales attributable to marine recreational fishing. Instruments were also 
 developed for bait outlets and charter and head boats. These were used in 
 both field and telephone interviews. 
 
 The basic approach used in estimating the indirect and induced impacts makes 
 use of input/output economic analysis. Data were taken from the 1967 85- 
 industry category input-output tables for the U.S. economy. This is the 
 latest input/output table for the U.S. economy currently available. The 
 multipliers were calculated using standard mathematical procedures, including 
 a series of approximations of the inverse of the Leontief matrix. These 
 multipliers were estimated in a prior study performed by Centaur for the NMFS. 
 The approach provides an approximation to the expected multiplier effects 
 associated with the direct impacts. 
 
 While direct surveys of marine recreational fishing impacts in regional areas 
 were beyond the scope of this study, estimates of impacts associated with 
 fishing activity in regional areas were made using an analytical allocation 
 model. This model prorated expenditures to regions based on number of 
 saltwater anglers per region participating in various types of fishing, as 
 well as data on relative per capita saltwater fishermen expenditures on the 
 Atlantic, Gulf, and Pacific Coasts. 
 
 The methodology developed to allocate national impacts to manageable fishery 
 units (i.e., specific species within a region for which Regional Councils 
 anticipate preparing management plans) is a further extension of the allocation 
 model used for the regional allocation. It uses, in addition, data on effort 
 expended on specific species within a region. This methodology was reviewed 
 for one management unit for which more specific data from local studies were 
 available. 
 
 RESULTS 
 
 The total sales at the retail level of goods and services associated with 
 marine recreational fishing were estimated to be $1,333 million in 1972. 
 These sales generated an estimated $510 million of value added and $285 
 million in wages and salaries in business sectors where direct spending asso- 
 ciated with marine recreational fishing took place. These impacts include those 
 at the manufacturing and trade levels for manufactured goods . Further impacts 
 include an estimated 46,550 person-years of employment generated, as well as 
 an estimated $45.1 million worth of capital expenditures in 1972. 
 
 IV 
 
In 1975 consigners purchased am estimated $1,840 million worth of goods and 
 services at the retail level which are associated with marine recreational 
 fishing. These sales generated approximately $699 million of value added, 
 $343 million of wages and salaries, 50,580 person-years of employment, and 
 $52.8 million of capital expenditures in these directly-impacted business 
 sectors . 
 
 Retail sales in 1975 associated with marine recreational fishing by category 
 were estimated as follows i-*- 
 
 o 
 
 Fishing tackle 
 
 
 $138 million 
 
 o 
 
 Boats 
 
 
 208 million 
 
 o 
 
 Motors 
 
 
 45 million 
 
 o 
 
 Trailers 
 
 
 18 million 
 
 o 
 
 Marinas 
 
 
 240 million 
 
 o 
 
 Commercial 
 
 
 122 million 
 
 
 Sportfishing 
 
 Vessels 
 
 
 o 
 
 Boat fuel 
 
 
 86 million 
 
 o 
 
 Food 
 
 
 247 million 
 
 o 
 
 Lodging 
 
 
 63 million 
 
 o 
 
 Travel 
 
 
 233 million 
 
 o 
 
 Boat insurcince 
 
 
 56 million 
 
 o 
 
 Bait 
 
 
 216 million 
 
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 Other 
 Total 
 
 
 170 million 
 
 
 $] 
 
 L,840 million 
 
 Exhibit I shows a detailed breakdown of the economic impact estimates for 
 1975. 
 
 In 1975 spending for private boats and boat-related goods and services con- 
 stituted the largest expenditures and corresponding economic impacts. 
 Fishermen's expenditures in the private boating areas (including boat, 
 motor, and trailer purchases, expenses for fuel, and marina, boat yard, and 
 boat insurance services) accounted for $653 million or approximately 35 
 
 These totals do not include the iit5>acts of purchases of accessory equip- 
 ment for recreational boats. Because of the diverse manufacture and dis- 
 tribution of such equipment, reliable economic impact estimates were not 
 availcible. However, based on an analysis of composite dealer sales data, 
 sales of such equipment would add five percent (or about $92 million or 
 less) to the impact estimates presented here. 
 
 L 
 
Exhibit I 
 
 Direct Economic Impacts Associated With 
 Marine Recreational Fishing 
 1975 
 
 Sales Value-Added Wa<jrs and Salaries Annual Capital 
 
 (millions of (millions of (millions of Employment Expenditures 
 
 dollars) dollars) dollars) (person-years) (millions of dollars ) 
 
 Fishing Tackle 
 Manufacturing 
 Wholesale Trade 
 Retail Trade 
 
 57 
 
 64 
 
 136 
 
 36 
 
 6 
 
 52 
 
 15.7 
 
 4.7 
 
 15.8 
 
 2,480 
 
 490 
 
 2,290 
 
 2.5 
 0.4 
 3.9 
 
 Boats 
 
 Manufacturing 
 Retail Trade 
 
 139 
 208 
 
 61 
 33 
 
 29.5 
 15.6 
 
 4.120 
 2,030 
 
 1.7 
 1.2 
 
 Motors 
 
 Manufacturing 
 Retail Trade 
 
 33 
 45 
 
 15 
 
 7 
 
 5.6 
 3.4 
 
 390 
 440 
 
 1.0 
 0.3 
 
 Trailers 
 
 Maufacturing 
 Retail Trade 
 
 15 
 18 
 
 2.5 
 1.4 
 
 280 
 180 
 
 0.5 
 0.1 
 
 Boat Insurance 
 
 96 
 
 Conmercial Sportfishing 
 Vessels 
 
 122 
 
 8.5 
 
 Boat Fuel 
 
 Manufacturing 
 Wholesale Trade 
 Retail Trade 
 
 49 
 73 
 86 
 
 8 
 
 7 
 14 
 
 0.9 
 
 1.5 
 4.9 
 
 50 
 
 160 
 
 1,060 
 
 2.2 
 1.1 
 
 0.7 
 
 56.8 
 
 12,000 
 
 lodging 
 
 3,470 
 
 Travel 
 
 Manufacturing 
 Wholesale Trade 
 Retail Trade 
 
 133 
 198 
 233 
 
 23 
 19 
 27 
 
 3.1 
 
 200 
 
 4.8 
 
 500 
 
 7.0 
 
 2,970 
 
 5.9 
 3.0 
 1.9 
 
 Bait 
 
 2,670 
 
 20.4 
 
 3,000 
 
 1,840 
 
 50,580 
 
 VI 
 
percent of the total. Expenditures for travel and lodging for fishing 
 excursions accoimted for $296 million or 16 percent of the total. Expenditures 
 for food in conjunction with fishing outings was estimated at $247 million or 
 approximately 13 percent of the total. Expenditures for bait at $216 million 
 accounted for about 12 percent of the total. Fishing tackle with a retail 
 value of sales of $136 million was about 7 percent of the total. Expenditures 
 for outings on head (or party) and charter boats at an estimated $122 million 
 accounted for approximately another 7 percent of the total. 
 
 The national direct impacts were disaggregated into the following regions: 
 
 Region I - North Atlantic : Atlantic Coast from Maine to and 
 including New York. 
 
 Region II - Middle Atlantic: Atlantic Coast from New Jersey to 
 Cape Hatteras, North Carolina. 
 
 Region III - South Atlantic: Atlantic Coast from Cape Hatteras, 
 North Carolina, to southern Florida including the 
 Florida Keys. 
 
 Region IV - East Gulf of Mexico: Gulf Coast from the Florida Keys 
 to and including the Mississippi River delta. 
 
 Region V - West Gulf of Mexico: Gulf Coast from the Mississippi 
 River delta to the Mexican border. 
 
 Region VI - South Pacific: Pacific Coast from the Mexican border 
 to Point Conception, California. 
 
 Region VII - North Pacific: Pacific Coast from Point Conception, 
 California, north to Washington and including Alaska. 
 
 While direct surveys of marine recreational fishing impacts in regional areas 
 were beyond the scope of this study, estimates of impacts associated with 
 fishing in regional areas were made using an analytical allocation model. 
 This model prorated expenditures to regions based on data on the number of 
 saltwater anglers per region participating in various types of fishing as 
 well as data on relative per capita expenditures for marina recreational 
 fishing for the Atlantic, Gulf, and Pacific coasts. The model first allocated 
 various fisherinen expenditure categories to the regions based on the relative 
 number of fishermen participating in a particular type of fishing activity. 
 For example, the expenditure categories of fishing tackle, food, lodging, 
 travel, bait, and "other" were allocated on the basis of the relative number 
 of total fishermen. The boat-related expenditure categories including boats, 
 motors, trailers, marinas, boat fuel, and boat insurance were allocated on 
 the basis of the relative n\miber of fishermen who participated in fishing on 
 private or rented boats. Expenditures for commercial sportfishing vessels 
 (charter and head boats) were allocated on the basis of the relative number 
 of fishermen participating in party or charter boat fishing. Data on the 
 relative number of fishermen participating were taken from the 1970 Saltwater 
 Angling Sirrvey . 
 
 vii 
 
The model then adjusted the above determined regional expenditures for 
 variations in relative per capita expenditures of fishermen for the At- 
 lantic, Gulf, and Pacific coasts. These data were taken from the 1970 
 National Survey of Fishing and Hunting . Unfortunately, at the time of the 
 study, results were not yet available from the 1975 National Survey of 
 Fishing and Hunting . Thus, if the data showed Atlantic coast fishermen 
 spending relatively more or less per capita for a particular expenditure 
 item, total allocated expenditures for that item were adjusted accordingly 
 for the regions corresponding to the Atlantic Coast. Exhibit II summarizes 
 the Regional economic impacts of marine recreational fishing. 
 
 These disaggregations represent the economic impacts (which may occur 
 either in the region itself or in other parts of the nation) associated with 
 marine recreational fishing carried on in that particular regions (i.e., by 
 place of activity or consumption) . Impacts associated with business areas 
 such as retail trade, marinas, commercial sportfishing vessels, food, and bait 
 would for the most part occur within the particular region where fishing occurs. 
 Economic impacts such as value added, employment, and wages and salaries in 
 these business areas typically represent roughly 60 percent of total economic 
 impacts. Impacts associated with manufacturing frequently would occur in 
 other parts of the country, however, these are disaggregated by region of 
 product use. _^ 
 
 Of the total national 1975 direct impacts associated with marine recreational 
 fishing, dt was estimated from the disaggregation model that approximately 
 15 percent were due to fishing in Region I (North Atlantic) , 18 percent in 
 Region II (Middle Atlantic) , 16 percent in Region III (South Atlantic) , 23 
 percent in Region IV (East Gulf of Mexico) , 12 percent in Region V (West 
 Gulf of Mexico) , 6 percent in Region VI (South Pacific) , and 9 percent in 
 Region VII (North Pacific) . 
 
 In addition to the above national direct economic impacts there are economic 
 multiplier effects associated with marine recreational fishing. These are 
 approximated as follows. In 1975 in addition to the $699 million of value 
 added in the directly impacted businesses, marine recreational fishing had 
 an associated $1,773 million of direct and indirect value added, and $3,957 
 million of direct, indirect, and induced value added. Total direct plus 
 indirect employee compensation and property-type income was an approximated 
 $1,578 million, and total direct plus indirect plus induced employee compensa- 
 tion and property-type income in the economy as a whole was an estimated 
 $3,526 million. Beyond the estimated total 1975 direct employment of 50,600, 
 the total direct plus indirect employment was estimated at 123,300, and 
 total direct plus indirect plus induced employment was estimated at 241,600. 
 
 The preceding results do not include impacts due to capital spending. In 
 1975, capital investment associated with marine recreational fishing in 
 the directly impacted sectors generated an additional $46 million of direct 
 plus indirect and $102 million of direct plus indirect plus induced employee 
 compensation and property-type income. These investment purchases also 
 generated an additional $49 million of direct plus indirect and $110 million 
 of direct plus indirect plus induced value added. Additional direct plus 
 
 Vlll 
 
Exhibit II 
 
 Economic Impacts of Marine Recreational 
 Fishing by Region 
 1975 
 
 
 
 
 
 
 
 Annual 
 
 
 
 
 Value- 
 
 Wages and 
 
 
 Capital 
 
 
 
 Sales 
 
 Added 
 
 Salaries 
 
 Employment 
 
 Expenditures 
 
 
 
 (thousands 
 
 (thousands 
 
 (thousands 
 
 (person- 
 
 (thousands 
 
 Region 
 
 I 
 
 of dollars) 
 305,080 
 
 of dollars) 
 114,360 
 
 of dollars) 
 55,970 
 
 years) 
 
 of dollars) 
 
 Region 
 
 8,300 
 
 8,050 
 
 Region 
 
 II 
 
 328,670 
 
 124,580 
 
 60,990 
 
 9,050 
 
 9,580 
 
 Region 
 
 III 
 
 288,910 
 
 107,690 
 
 52,400 
 
 8,090 
 
 8,820 
 
 Region 
 
 IV 
 
 424,270 
 
 164,250 
 
 81,290 
 
 11,560 
 
 11,550 
 
 Region 
 
 V 
 
 219,420 
 
 83,230 
 
 41,000 
 
 5,970 
 
 5,840 
 
 Region 
 
 VI 
 
 108,030 
 
 41,890 
 
 19,190 
 
 3,020 
 
 4,430 
 
 Region 
 
 VII 
 
 164,110 
 
 62,530 
 
 30,690 
 
 4,550 
 
 5,010 
 
 IX 
 
indirect employee generated by this capital investment amounted to an estimated 
 2,400 person-years. Additional direct plus indirect plus induced employment 
 related to this spending amounted to an estimated 5,800 person-years. 
 
 The above impacts relate to fishing in saltwater below tidal limits. An 
 "upper bound" analysis indicated that recreational fishing for anadromous 
 fish in freshwater accounted for no more than $132 million of spending at 
 the retail level in 1975. This is about seven percent of total retail 
 spending associated with marine recreational fishing. 
 
 Results of the suirvey of state activity associated with marine recreational 
 fishing indicated that total expenditures associated with marine recreational 
 fishing were just over $8 million in 1975. This excludes several states not 
 responding or unable to disaggregate such data. About 70 percent of state 
 level activity reported was in administration and research. Direct services 
 accounted for about 20 percent of state level activity and construction account 
 for about another 10 percent. 
 
TABLE OF CONTENTS 
 
 Page 
 
 FORWARD i 
 
 EXECUTIVE SUMMARY ii 
 
 CHAPTER 1 - INTRODUCTION 1 
 
 1 . 1 Study Ob j ec tives 1 
 
 1 . 2 Background 1 
 
 CHAPTER 2 - NATIONAL ECONOMIC IMPACTS 11 
 
 2 . 1 Impacted Economic Sectors 12 
 
 2 . 2 Direct Economic Impact Results 13 
 
 2 . 3 Multiplier Effects 20 
 
 2.4 Expenditures, Wages and Salaries, and Employment of 
 State Agencies Related to Marine Recreational Fishing 
 
 in 1975 28 
 
 2. 5 Impact Related to Anadromous Species 30 
 
 CHAPTER 3 - DISAGGREGATION OF NATIONAL IMPACTS 34 
 
 3 . 1 Impacts of Fishing in Regional Areas 34 
 
 3.2 Methodology for Relating Impacts to Manageable Fishery 
 Units 44 
 
 BIBLIOGRAPHY 50 
 
 APPENDIX A - ECONOMIC IMPACTS RELATED TO FISHING TACKLE 54 
 
 APPENDIX B - ECONOMIC IMPACTS RELATED TO BOATS 82 
 
 APPENDIX C - ECONOMIC IMPACTS RELATED TO OUTBOARD MOTORS 99 
 
 APPENDIX D - ECONOMIC IflPACTS RELATED TO BOAT TRAILERS Ill 
 
 APPENDIX E - ECONOMIC IMPACTS RELATED TO MARINA/BOAT YARD 121 
 
 APPENDIX F - ECONOMIC IMPACTS RELATED TO COMMERCIAL SPORTFISHING 
 
 VESSELS 136 
 
 APPENDIX G - ECONOMIC IMPACTS RELATED TO BAIT 153 
 
 APPENDIX H - ECONOMIC IMPACTS RELATED TO BOAT FUEL 164 
 
TABLE OF CONTENTS (Cont.) 
 
 APPENDICES (Contd.) 
 
 Page 
 
 APPENDIX I - ECONOMIC IMPACTS RELATED TO FOOD, LODGING, AND 
 
 TRAVEL 174 
 
 APPENDIX J - ECONOMIC IMPACTS RELATED TO BOAT INSURANCE 185 
 
 APPENDIX K - ECONOMIC IMPACTS RELATED TO "OTHER EXPENDITURES" . . . 196 
 
 APPENDIX L ~ ESTIMATED SALES AND IMPACT RATIOS FOR 1975 202 
 
 XIX 
 
CHAPTER 1 
 
 INTRODUCTION 
 
1.0 INTRODUCTION 
 
 1. 1 Study Objectives 
 
 The general purpose of this study was to estimate the economic contribution 
 that marine recreational fishing makes to the national economy. Determina- 
 tions were to be made of the economic impacts associated with the value of 
 goods and services purchased by marine recreational fishermen. In particular 
 the research objectives were to provide point estimates of: 
 
 o The value of goods and services sold in association with 
 marine recreational fishing in total and by type for 
 the years 1972 and 1975. 
 
 o The annual value added, annual employment, annual wages and 
 salaries, and annual capital investment for 1972 and 1975 
 in total and by industrial sector associated with purchases 
 made by marine recreational fishermen. 
 
 o The economic activity associated with purchases of goods and 
 services that are consumed for marine recreational fishing 
 in comparison with the total activity in industrial sectors 
 supplying these goods and services. 
 
 o The regional distribution of the national economic impacts 
 associated with marine recreational fishing. 
 
 Of secondary importance was the amount of government expenditures at the 
 state level related to marine recreational fishing. 
 
 It should be noted that the figures presented here do not purport to represent 
 the total "value" of recreational fishing in the sense of the aesthetic or 
 recreational importance of the fishing experience. There may be considera- 
 tions beyond the actual economic contributions of marine recreational fishing 
 which are presented in this report. 
 
 1. 2 Methodology 
 
 In fulfilling the research objectives this report provides estimates of the 
 direct national economic contribution related to purchases of goods and 
 services by marine recreational fishermen for the years 1972 and 1975. 
 General approximations are also made of potential multiplier (i.e., indirect 
 and induced) effects associated with these direct impacts for 1975. To 
 provide an indication of the size and scope of marine recreational fishing 
 these estimates are compared with the total economic activity in industrial 
 sectors supplying these goods and services. To provide a regional perspective, 
 the regional distribution of the national impacts are estimated. In addition, 
 a methodology is provided for estimating the economic impacts associated with a 
 "fishery management unit" and the method is applied to one unit. Finally, 
 data on public expenditures and employment of state agencies related to marine 
 recreational fishing are presented. 
 
This section describes the research approach utilized in estimating the desired 
 economic impacts. The discussion includes definitions of the terms used in 
 this research along with a description of each research task. The appendices 
 of the report provide a complete description of the procedures used to arrive 
 at particular impact estimates. 
 
 1.2.1 Defining Marine Recreational Fishing and the Marine Recreational 
 Fishing Industry 
 
 The initial task of the research effort defined marine recreational fishing 
 and economic or industrial activity associated with spending by marine 
 recreational fishermen. Marine recreational fishing may encompass a variety 
 of fishing experiences. It is frequently thought of as the use of a hook and 
 line from a boat or from some point on shore to catch fish in saltwater or 
 brackish water. It may also include hook and line methods used in freshwater for 
 catching anadromous fish; that is, those species that return from marine waters to 
 spawn in freshwater. Digging for clams along the beach, using a speargun 
 underwater to catch fish, or trawling for shrimp (for personal as opposed to 
 commercial purposes) , may also be considered forms of recreational fishing. 
 Thus it is difficult to define marine recreational fishing based on the 
 particular method of fishing used or the type of water in which the fish are 
 caught. 
 
 The definition used in this study was shaped largely by the secondary data avail- 
 able for analysis. There is virtually no data base on shorebased recreational 
 shellfishing activity or on fishing for anadromous fish in freshwater rivers 
 and streams. Therefore, for the purpose of this analysis marine recreational 
 fishing is defined to be: 
 
 The act of catching, or attempting to catch, fish in the ocean, 
 coastal bays and estuaries, and coastal streams below tidal 
 limits using a hook and line, rod and reel, or spearfishing 
 equipment. 
 
 Excluded from this definition are efforts to catch anadromous fish in 
 freshwater"^ and shellfishing along coastal beaches and in estuaries. 
 
 It is almost equally as difficult to define the marine recreational fishing 
 industry. It is not an "industry" in the conventional sense. The commercial 
 fishing industry, for example, harvests, processes, and distributes fish for 
 personal consumption and industrial uses. There is no similar group of enter- 
 prises which provides a "recreational fishing experience." In one sense it 
 is quite reasonable to believe that the fisherman is both the producer and 
 consumer of the industry's final output. However, there is a rather specialized 
 complex of manufacturing and service establishments that provide the goods 
 and services fishermen need to "create" their recreational fishing experiences. 
 It is these establishments upon which this research focuses. For the purposes 
 of this study the marine recreational fishing industry is defined as: 
 
 However, in the presentation an effort is made to estimate an upper bound 
 of economic activity associated with fishing for anadromous species in 
 freshwater. 
 
\X 
 
 Those establishments which produce, distribute, and sell goods 
 and/or services to consumers for use as a part of marine recrea- 
 tional fishing activity. 
 
 Exhibit 1-1 outlines the goods and services consumed directly by recreational 
 fishermen that are included as part of this study. It also illustrates the 
 levels of economic activity (i.e., manufacturing, wholesale trade, and 
 retail trade) for which direct economic impact assessments were made. 
 Exhibit 1-2 provides definitions for these goods and services. 
 
 The industries associated with purchases of accessory equipment for recrea- 
 tional boats were not analyzed in detail. The manufacture and distribution of 
 accessory equipment for boats is quite diverse and reliable economic impact esti- 
 ndtes associated with this equipment were not available. However, an attempt was 
 made to estimate the probable bounds of such impacts. Operating expenditures 
 for use of recreational vehicles associated with marine recreational fishing 
 are included in the analysis. However, purchases of recreational vehicles 
 were excluded from the analysis. This is because such purchases are, in 
 general, incidental to marine recreational fishing,, and no reliable means 
 were available to prorate such purchases to marine recreational fishing 
 vis-a-v is all other recreational activity. 
 
 The geographical area which this research covers includes the fifty states. 
 
 For several items (including fishing tackle, boats, outboard motors and trailers) 
 
 the Virgin Islands, Puerto Rico, and Guam are also included. 
 
 1.2.2 Assessing the Direct Impacts of Marine Recreational Fishing 
 
 The primary objective of the study was to assess the direct contributions 
 (i.e., associated with the final consumption of goods and services by fisher- 
 men) of marine recreational fishing to the national economy. The economic 
 impacts are measured here in terms of five economic variables: 
 
 o Annual sales are the value of shipments (excluding excise 
 taxes) for manufactures, the value of purchases (including 
 excise taxes) by retailers at the wholesale level, and 
 consumer expenditures (including excise taxes) for goods and 
 services at the retail (or business services) level in a 
 particular year; 
 
 o Annual employment is an estimate of person-years of employment 
 in a particular year; 
 
 o Annual wages and salaries is an estimate of the personal income 
 
 associated with annual employment and includes employee compensa- 
 tion prior to deductions for social security, withholding taxes, 
 group insurance, union dues, and savings bonds. 
 
Exhibit 1-1 
 
 ECONOMIC CONTRIBUTION MATRIX 
 Direct Activity 
 
 Type of Goods 
 or Service 
 
 Manufacturing 
 
 Whol 
 and D 
 
 esale Trade 
 istribution 
 
 Retail Trade or 
 Business Services 
 
 Fishing Tackle 
 
 1 
 
 
 
 1 
 
 
 
 1 
 
 Boats 
 
 1 
 
 
 
 
 
 
 
 1 
 
 Outboard Motors 
 
 1 
 
 
 
 
 
 
 
 1 
 
 Boat Trailers 
 
 1 
 
 
 
 
 
 
 
 1 
 
 Commercial Sport- 
 fishing Vessels 
 
 
 
 
 
 
 
 
 
 1 
 
 Marinas/Boatyards 
 
 
 
 
 
 
 
 
 
 1 
 
 Bait 
 
 * 
 
 
 
 * 
 
 
 
 1 
 
 Food 
 
 
 
 
 
 
 
 
 
 1 
 
 Lodging 
 
 
 
 
 
 
 
 
 
 1 
 
 Travel 
 
 1 
 
 
 
 1 
 
 
 
 1 
 
 Boat Fuel 
 
 1 
 
 
 
 1 
 
 
 
 1 
 
 Boat Insurance 
 
 
 
 
 
 
 
 
 
 1 
 
 Other 
 
 * 
 
 
 
 * 
 
 
 
 1 
 
 Note: A "1" indicates that an activity exists and that the impacts were 
 assesed. A "O" indicates that an activity does not exist. 
 
 Economic impacts associated with these levels of activity are included 
 in the analysis of multiplier effects. 
 
Exhibit 1-2 
 
 Definition of Goods and Services Comprising 
 the Marine Recreational Fishing Industry 
 
 1. Fishing Tackl e includes fishing rods and reels; fishhooks; casting 
 plugs, spinners and spoons, flies, lures, and similar artificial 
 baits; and other fishing tackle including tackle boxes, creels, 
 fish and bait buckets, nets, lines, sinkers, snap swivels; and 
 fishing tackle of unspecified kind. Economic impacts related to 
 marine recreational fishing are compared with those associated 
 with all fishing tackle purchases. 
 
 2. Boats include outboard, inboard and inboard/outdrive watercraft. 
 Economic impacts related to marine recreational fishing are com- 
 pared to those of all outboard, inboard, and inboard/outdrive 
 boats purchased for use in all kinds of boating activity. 
 
 3. Outboard Motors include those motors which are produced for ex- 
 ternal attachment to recreational boats. Economic impacts related 
 to marine recreational fishing are compared with those related to 
 all boating activity. 
 
 4. Boat Trailers include those trailers which are used to transport 
 private recreational watercraft to and from launching sites. 
 Economic impacts related to marine recreational fishing are com- 
 pared with those of all boating activity. 
 
 5. Marinas/Boat Yards includes all establishments located in salt- 
 water coastal areas that provide berthing, storage or repairs to hulls 
 and/or motors among the mix of services offered. Economic impacts 
 related to marine recreational fishing are compared with those of 
 
 all coastal marinas/boat yards. 
 
 6. Commercial Sporttishing Vessels include those boats which are com- 
 monly referred to as charter boats and head boats. This analysis 
 includes only those operating in marine waters and thus economic 
 impacts are not compared to another activity. 
 
 7. Boat Fuel includes gasoline and diesel fuel used during marine 
 recreational fishing. Economic impacts related to marine recreational 
 fishing are compared with those associated with boat fuel used for 
 all recreational boating activity. 
 
 8. Food includes all food purchases at commercial eating places during 
 marine recreational fishing trips and outings less the value of food 
 that would have been consumed at home had the trip not occurred. 
 Food consumed during marine recreational fishing is compared to that 
 consximed for all outdoor recreational trips of two hundred miles 
 (round trip) or more. 
 
9. Travel includes outlays for auto, bus, train, air, boat, or 
 ship to get to or from the trip destination. Travel outlays 
 for marine recreational fishing are compared with those for 
 all outdoor recreational trips of two hundred miles (roundtrip) 
 or more. 
 
 10. Lodging includes outlays for nights spent in a commercial accom- 
 modation (hotels, motels, trailer parks or campgrounds). Outlays 
 related to marine recreational fishing are compared to those for 
 all outdoor recreational trips of two hundred miles (roundtrip) 
 
 or more. 
 
 11. Boat Insurance includes premiums paid for coverage of all inboard, 
 outboard, and inboard/outdrive boats. Premiums related to marine 
 recreational fishing are compared with those associated with use 
 of these boats for all boating activity. 
 
 12. Bait includes all natural bait both live and frozen. Bait used for 
 marine recreational fishing is compared with bait used for all re- 
 creational fishing. 
 
 13. "Other" includes special fishing clothing, tents, magazines, boat 
 launching fees, guide fees, spearfishing equipment and other mis- 
 cellaneous items not separately identified. Impacts related to these 
 items are not compared with any grouping. 
 
 While other types of boats such as sailboats, canoes, etc. are occasionally 
 used for marine recreational fishing, they were excluded from this analysis 
 because their use in marine recreational fishing is not a predominant 
 reason for their purchase. 
 
o Annual value added , for manufacturing, is the value of shipments 
 (excluding excise taxes) in a particular year less the cost of 
 materials, supplies, fuel, electric energy, cost of resales 
 and miscellaneous receipts. For wholesale and retail trade, 
 value added is the gross margin (including excise taxes) less 
 the cost of containers, fuel, electric energy, water purchased 
 from other firms and the cost of contract work on materials 
 of the wholesaler in a particular year.^ This provides a measure 
 of income (i.e., wages, interest, rent, and profit) generated 
 by cin industry; that is the returns to all factors of production 
 (labor, capital, land). 
 
 o Annual capital expenditures are an estimate of the purchases 
 of plant and equipment chargeable to fixed asset accounts for 
 a particular year. 
 
 The general approach to estimating the direct impacts consisted of a four step 
 procedure. 6 First, total annual sales for the particular good or service at 
 each level of economic activity was estimated. Second, an estimate was made of 
 the portion of total annual sales that are attributable to marine recreational 
 fishing for each good or service. Third, "economic impact ratios," ratios of 
 value added to sales, sales to eir^sloyment , wages and salaries to sales, and 
 annual capital investment to sales that characterize each overall good or 
 service were derived. Fourth, the respective economic impact ratios were 
 applied to the total value of sales emd to the portion of total sales 
 attributable to marine recreational fishing for each good or service to 
 determine the remaining economic impacts. This procedure was utilized to 
 estimate both the 1972 and 1975 impacts. 
 
 The total value of sales for each good or service was estimated by examining 
 as meiny sources of data as could be located. These sources included 
 original surveys and various industrial and business censuses, trade 
 associations, market research firms and government and university research 
 in both published and unpublished form. The estimates from the various sources 
 were compared and analyzed to assess the reasons for any inconsistencies 
 observed. From this point estimates for total sales were chosen. 
 
 The portions of total annual sales attributable to sportfishj-ng were then 
 estimated. For boats, motors, trailers, marinas/boat yards, boat fuel, 
 cind boat insurance the allocations were made based on an estimate of the 
 cimount of time boats are used for fishing in saltwater. For fishing tackle 
 the allocation was made based on a ratio of expenditures for tackle purchased 
 
 These definitions coincide with those used by the Bureau of the Census. 
 The definition for manufacturing differs with that used by the Bureau of 
 Economic Analysis in that it excludes excise taxes. 
 
 For a detailed analysis of direct impacts for each of the goods and 
 services, see the appropriate appendix. 
 
for use in saltwater fishing to expenditures for all fishing tackle. The 
 ratio was determined from historical data on tackle expenditures by fishermen 
 as well as data from a survey of fishing tackle manufacturers. For the 
 remaining goods and services, which include bait, food lodging, travel, 
 commercial sportfishing vessels, and "other" goods and services, estimates 
 of sales attributable to marine recreational fishing were based on historical 
 trend analyses of consumer expenditures for each of these items. In a few 
 cases the 1970 Survey of Fi shing an d Huntin g, published by the Bureau of 
 Sportfisheries and Wildlife was used for certain supporting data using 
 appropriate cross-checking procedures. Unfortunately data from the 1975 
 Survey of Fishing and Hunting was not yet available at the time of this study 
 effort. 
 
 "Economic impact ratios" are measures of the magnitude of impact per dollar 
 of sales. (In the case of employment the ratio represents the inverse, the 
 dollar volume of sales required to generate one person-year of employment.) 
 For each good or service the ratios have been calculated using available 
 data that most accurately appear to characterize the particular item. For 
 exairple, the economic impact ratios for fishing tackle manufacturing were 
 determined from data on establishments that specialize in the production of 
 fishing tackle. However, such production specific data were not available at 
 all levels of economic activity. So, for instance, retail trade impact 
 ratios for fishing tackle were based on data for all sporting goods stores. 
 This is a more highly aggregated grouping, but one which is very similar to 
 the recreational fishing item. ' ■ 
 
 The economic impact ratios were first calculated for 1972. The U.S. Bureau 
 of Census was the primary data source. The ratios for 1975 \;ere estimated 
 by adjusting the 1972 ratios based on national trends at each level of economic 
 activity. For example, the 1972 ratio of sales to employment for retail 
 trade in fishing was adjusted by a factor expressing the relative change in 
 employment and in sales for all retail trade between 1972 and 1975. Between 
 1972 and 1975 total retail sales for the nation increased by 31 percent. 
 Much of that was the result of inflation. However, employment in retail , ; - 
 trade increased by only 4.8 percent. ^ The 1975 impact ratios reflect thei 
 fact that the value of sales increased faster than employment. The estimated 
 1972 impact ratio of sales to employment for fishing tackle is $47,600 per 
 person-year. The adjusted impact ratio for 1975 is $59,500 per person-year. 
 This procedure implicitly adjusts for inflation and for changes in productivity. 
 
 Impact ratios were developed for each of the goods and services listed above 
 except commercial sportfishing vessels and marinas/boat yards. For these 
 two items alternative methods were used. The procedures are fully explained 
 in the appropriate appendices. 
 
 Several survey instruments were developed to assist in the determination of 
 sales estimates and impact ratios where other data were thought to be lacking. 
 A survey of fishing tackle manufacturers was conducted to assist in the 
 determination of the portion of total tackle sales attributable to marine 
 recreational fishing. Instruments were also developed for bait outle-cs and 
 charter and head boats. These were used in both field or telephone inte]r>/iews 
 in all NMFS regions. 
 
 The percentages were determined using Bureau of Economic Analysis data 
 published in the S urvey of Current Business . 
 
To determine the magnitude of the economic impacts for each good or service 
 the economic impact ratios were then applied to the respective estimated 
 value of sales: both total sales and those associated with marine recrea- 
 tional fishing. The ratios of value added to sales, wages and salaries to 
 sales, and annual capital expenditiires to sales were then applied to their 
 respective sales estimates to obtain impact estimates. 
 
 1.2.3 Assessing the Indirect and Induced Economic Impacts of Marine 
 Recreational Fishing 
 
 In addition to the direct economic impacts in the aforementioned industries, 
 there are additional impacts generated in other sectors due to the spending 
 in these directly impacted industries. These additional impacts are 
 referred to as : 
 
 o Indirect impacts, and 
 
 o Induced impacts. 
 
 Indirect impacts (for employment, wages and salaries, or value added) are 
 defined as those generated in industries which supply goods and services 
 to the industries where direct impacts occur. For example, boat manufacturers 
 purchase materials from other inr'ustries. This generates additional employ- 
 ment, value added, etc. in these industries. 
 
 Induced impacts are additional impacts generated throughout the economy 
 due to additional spending by employees and owners resulting from wages and 
 salaries and profits generated in the industries where the direct and indirect 
 impacts occur. 
 
 The basic approach used in estimating the indirect and induced impacts makes 
 use of input/output economic analysis. Using the 1967 85-industry input/output 
 tables, multipliers have been developed showing the indirect (Type I multiplier) 
 and indirect plus induced (Type II multiplier) effects for direct employment, 
 employee compensation, and value added generated in any one of the 85-industry 
 categories. Multipliers for the appropriate industry category were chosen 
 and applied to the direct impacts developed in this study to provide general 
 estimates of the additional indirect and induced economic impacts. 
 
 1.2.4 Assessing the Economic Impacts Associated with Marine Recreational 
 Fishing in Regional Areas 
 
 a) Regional Impacts 
 
 While direct surveys of marine recreational fishing impacts in regional areas 
 were beyond the scope of this study, estimates of impacts associated with 
 fishing in regional areas were made using an analytical allocation model. 
 This model prorated expenditures to regions based on data on the number of 
 saltwater anglers per region participating in various types of fishing as 
 well as data on relative per capita expenditures for marina recreational 
 fishing for the Atlantic, Gulf, and Pacific coasts. The model first allocated 
 
various fishermen expenditure categories to the regions based on the relative 
 number of fishermen participating in a particular type of fishing activity. 
 For example the expenditure categories of fishing tackle, food, lodging, 
 travel, bait, and "other" were allocated on the basis of the relative niimber 
 of total fishermen. The boat related expenditure categories including boats, 
 motors, trailers, marinas, boat fuel, and boat insurance were allocated on 
 the basis of the relative number of fishermen who participated in fishing on 
 private or rented boats. Expenditures for commercial sportfishing vessels 
 (charter and head boats) were allocated on the basis of the relative number of 
 fishermen participating in party or charter boat fishing. Data on the rela- 
 tive number of fishermen participating were taken from the 1970 Saltwater 
 Angling Survey , (published by NMFS, 1973). 
 
 The model then adjusted the above determined regional expenditures for 
 variations in relative per capita expenditures of fishermen for the Atlantic, 
 Gulf, and Pacific coasts.^ That is, if the data showed Atlantic coast fisher- 
 men spending relatively more or less per capita for a particular expenditure 
 item, total allocated expenditures for that item were adjusted accordingly 
 for the regions corresponding to the Atlantic coast. 
 
 b) Impacts Related to Manageable Fisheries Units 
 
 In addition a methodology was developed to further allocate national impacts 
 to fishery management units (i.e., specific species within a region for which 
 Regional Councils anticipate preparing management plans) . This methodology 
 is a further extension of the allocation model used for the regional alloca- 
 tion. It uses, in addition, data on effort expended on specific species 
 within a region. This methodology was tested for one management unit for 
 which more specific data from local studies were available. 
 
 1.2.5 Expenditures by State Governments Related to Marine Recreational 
 Fishing 
 
 With the assistance of the National Marine Fisheries Service all of the coastal 
 states and the U.S. territories were contacted and asked to provide data on 
 the budgets and staffing levels related to marine recreational fishing. The 
 responses were then compiled for presentation. 
 
 These data were taken from the 1970 National Survey from Fishing and 
 Hunting , published by the Bureau of Sportf isheries and Wildlife. Un- 
 fortunately, at the time of the study, results were not yet available 
 from the 1975 National Survey of Fishing and Hunting . 
 
 10 
 
CHAPTER 2 
 
 NATIONAL ECONOMIC IMPACTS 
 
2.0 NATIONAL ECONOMIC IMPACTS 
 
 2. 1 Impacted Economic Sectors 
 
 As discussed in Section 1.1 the purpose of this study was to analyze the 
 contribution that marine recreational fishing makes to the U.S. economy. 
 In addition to the social value of the recreational experience of fishing, 
 fishermen as consumers make purchases which support several industry seg- 
 ments to varying degrees. These purchases have a value to the economy in 
 terms of employment, wages and salaries, and other economic measures. These 
 economic values are but one component of the overall value to society of 
 recreational fishing. There is no one "marine recreational fishing" industry 
 as such. Rather purchases made in conjunction with fishermen's participation 
 in marine recreational fishing contribute to economic activity in a variety 
 of sectors. In this analysis the following commercial/industrial sectors 
 have been determined to be those where marine recreational fishermen spending 
 generates direct economic activity: 
 
 o Fishing tackle, 
 
 o Boats , 
 
 o Motors, 
 
 o Trailers , 
 
 o Marinas/boat yards, 
 
 o Commercial sportfishing vessels, 
 
 o Boat fuel, 
 
 o Food , 
 
 o Lodging, 
 
 o Travel, 
 
 o Boat insurance, and 
 
 o Bait. 
 
 In addition spending in conjunction with this fishing generates economic 
 activity for a variety of miscellaneous products and services such as special 
 fishing clothing, magazines, boat launching fees, spearfishing equipment, and 
 so on. 
 
 The above industries of course vary in their dependence upon or direct asso- 
 ciation with marine recreational fishing. At one extreme commercial sportfishing 
 
 11 
 
vessels or bait shops (in saltwater regions) are totally associated with 
 marine recreational fishing. At the other extreme marine recreational fishing 
 is a small proportion of the total business activity in, for instance, 
 the travel and lodging industry (although in certain localities the travel 
 and lodging industry may be highly dependent upon fishing activity) . Never- 
 theless , even in this sector a sizeable amount of spending is made in conjunction 
 with marine recreational fishing. The fishing tackle industry serves, of course, 
 both the saltwater and freshwater fishermen. A majority of firms serve both, 
 and sales of equipment for use in saltwater constitute about one-fifth of 
 total industry sales. The several commercial/industrial segments surrounding 
 boating activity (i.e., boats, motors, boat trailers, marinas/boat yards, 
 boat fuel, and boat insurance) have an important association with marine 
 recreational fishing. While not all boaters buy boats expressly for fishing, 
 data show that a large proportion of total boating time is devoted to fishing. 
 The opportunity to partake in marine recreation fishing must certainly influence 
 the purchase of a boat used in saltwater and the related goods and services. 
 
 Where appropriate the direct economic activity in the above sectors have been 
 analyzed at the retail, wholesale, and manufacturing levels. Certain sectors 
 (e.g. , commercial sportfishing vessels or lodging) do not have a direct, 
 distinct economic tier at other than the "retail" level. Similarly certain 
 goods such as boats, in general, do not have a significant wholesale activity. 
 
 In addition to the direct economic impacts in the areas described above, 
 there are multiplier or "ripple" effects throughout many other sectors of the 
 economy due to spending associated with marine recreational fishing. These 
 include what are termed the indirect effects and the induced effects. Indirect 
 effects include that economic activity generated in those industries which 
 supply goods and services needed in the course of business of the above outlined 
 "directly" impacted business sectors. For instance, fishing tackle manu- 
 facturers purchase certain raw materials to produce their items of tackle. 
 These suppliers purchase additional materials and services and so on. Induced 
 effects consist of additional economic activity generated in the economy 
 through spending caused by the income (e.g., employee wages and salaries, 
 profits, dividends, cost) generated in the direct and indirect industrial sectors. 
 
 Section 2.2 presents the results of the analysis of the economic activity of 
 the directly-impacted business sectors. Included is a svimmary of the value 
 of the economic measures associated with marine recreational fishing to the 
 affected industries. Section 2.3 presents the results of an analysis of the 
 multiplier effects (indirect and induced) throughout the total U.S. economy 
 which can be associated with marine recreational fishing. Section 2.4 presents 
 a compilation of certain expenditures and other economic impact measures 
 occurring in the public sector which are associated with marine recreational 
 fishing. Section 2.5 provides an analysis of likely bounds of additional 
 economic impacts due to spending for fishing for anadromous fish above tidal 
 limits. Appendices A through K provide detailed discussion of the analysis of 
 the economic impacts in the directly affected business sectors. 
 
 12 
 
The interpretation of the economic impacts presented in this study will 
 vary somewhat according to the particular affected industry. Consumable 
 fishing supplies and services (such as offered by bait dealers and commerical 
 sportfishing vessels) would be very directly affected by short-term changes in 
 marine recreational fishing opportunities. Sectors with a high dependence 
 on marine recreational fishing (such as boats, motors, trailers, marinas, etc.) 
 would be impacted significantly by medium and long-term changes in marine 
 recreational fishing policies. While if fishermen were to spend less on 
 marine recreational fishing, spending in other sectors of the economy would 
 increase, these industries would face dislocations. Over the long-term the 
 indirect and induced economic impacts associated with marine recreational 
 fishing would be compensated for by spending in other sectors if spending for 
 marine recreational fishing were to change. However, the indirect and induced 
 economic impacts are indicative of the measure of possible dislocation due to 
 short-term perturbations in spending for marine recreational fishing. The 
 conclusion to be drawn is that this analysis is indicative of the relationship 
 between marine recreational fishing expenditures and national economic activity 
 (as measured by direct, indirect and induced impacts). Nevertheless it should 
 be remembered that most of the resources utilized in fishing (or any other 
 economic activity) could in the long-run after a period of adjustment be 
 channeled into other industries, through national or public policies and pro- 
 grams or personal tastes, giving rise to other economic impacts. 
 
 2.2 Direct Economic Impact Results 
 
 The total sales at the retail level of goods and services associated with 
 marine recreational fishing were estimated to be $1,333 million in 1972. These 
 sales generated an estimated $510 million of value-added and $285 million in 
 wages and salaries in business sectors where direct spending associated with 
 marine recreational fishing took place. These impacts include those at the 
 manufacturing and trade levels for manufactured goods. Further impacts 
 include an estimated 46,550 person-years of employment generated, as well as 
 an estimated $45.1 million worth of capital expenditures in 1972. Exhibit 
 2-1 shows these impacts broken down by sector. In the sales column (Column 1) 
 sales at each marketing tier (where appropriate) are shown although the total 
 includes only the totals at the final (retail) level. 
 
 Similar data are shown in Exhibit 2-2 for 1975. In 1975 consumers purchased 
 $1,840 million worth of goods and services at the retail level which are 
 associated with marine recreational fishing. 1 These sales generated 
 approximately $699 million of value-added, $343 million of wages and salaries, 
 50,580 person-years of employment, and $52.8 million of capital expenditures 
 in these directly-impacted business sectors. In 1975 spending for private 
 boats and boat-related goods and services constituted the largest expenditures 
 and corresponding economic impacts. Fishermen's expenditures in the private 
 
 These totals do not include the impacts of purchases of accessory equipment 
 for recreational boats. Because of the diverse manufacture and distribu- 
 tion of such equipment, reliable economic impact estimates were not available. 
 However, based on an analysis of composite dealer sales data sales of such 
 equipment would add in all likelihood less than five percent to the impact 
 estimates presented here. 
 
 13 
 
Exhiisit 2-1 
 
 Direct Economic Impacts Associated 
 With Marine Recreational Fishing 
 1972 
 
 Sales Value-Added Wages & Salaries Annual Capital 
 
 (millions of (millions of (millions of Employment Expenditures 
 dollars) dollars) dollars (person-years) (millions of dollars) 
 
 Fishing Tackle 
 Manufacturing 
 Wholesale Trade 
 Retail Trade 
 
 37 
 42 
 88 
 
 22 
 
 4 
 
 33 
 
 10.1 
 
 2.9 
 
 10.7 
 
 1,870 
 
 330 
 
 1,800 
 
 1.4 
 0.3 
 1.8 
 
 Boats 
 
 Manufacturing 
 Retail Trade 
 
 117 
 176 
 
 53 
 28 
 
 29.0 
 17.2 
 
 4,190 
 2,200 
 
 2.3 
 1.4 
 
 Motors 
 
 Manufacturing 
 Retail Trade 
 
 35 
 48 
 
 16 
 8 
 
 6.4 
 4.7 
 
 560 
 610 
 
 0.5 
 0.5 
 
 Trailers 
 
 Maunfacturing 
 Retail Trade 
 
 12 
 15 
 
 2.2 
 1.5 
 
 300 
 190 
 
 0.2 
 0.1 
 
 Marinas 
 
 203 
 
 81 
 
 59.0 
 
 6,400 
 
 6.0 
 
 Commercial Sportfishing 
 Vessels 
 
 94 
 
 56 
 
 30.0 
 
 4,80C 
 
 7.0 
 
 Boat Fuel 
 
 Manufacturing 
 Wholesale Trade 
 Retail Trade 
 
 15 
 34 
 42 
 
 0.7 
 1.2 
 3.9 
 
 50 
 
 150 
 1,000 
 
 0.6 
 0.6 
 0.5 
 
 Food 
 
 Lodging 
 
 165 
 
 45 
 
 60 
 
 24 
 
 41.3 
 
 13.1 
 
 10,600 
 2,730 
 
 6.1 
 
 5.8 
 
 Travel 
 
 
 Manufacturing 
 
 48 
 
 Wholesale Trade 
 
 99 
 
 Retail Trade 
 
 135 
 
 8 
 
 9 
 
 22 
 
 2.2 
 
 3.6 
 
 12.7 
 
 180 
 
 450 
 
 2,700 
 
 1.9 
 1.9 
 1.6 
 
 Boat Insurance 
 
 37 
 
 3.5 
 
 340 
 
 Bait 
 
 Other 
 
 165 
 
 120 
 
 33 
 
 24 
 
 15.0 
 
 14.4 
 
 2,450 
 2,650 
 
 1.3 
 
 3.1 
 
 TOTAL 
 
 1,333 
 
 510 
 
 285.3 
 
 46,550 
 
 45.1 
 
 14 
 
Exhibit 2-2 
 
 Direct Economic Impacts Associated With 
 Marine Recreational Fishing 
 1975 
 
 Fishing Tackle 
 Manufacturing 
 Wholesale Trade 
 Retail Trade 
 
 Sales Value-Added Wages and Salaries Annual Capital 
 
 (millions of (millions of (millions of Employment Expenditures 
 dollars) ^oj^lars) dollars) (person-years) (millions of dollars) 
 
 57 
 
 36 
 
 15.7 
 
 2,480 
 
 2.5 
 
 64 
 
 6 
 
 4.7 
 
 490 
 
 0.4 
 
 136 
 
 52 
 
 15.8 
 
 2,290 
 
 3.9 
 
 Boats 
 
 Manufacturing 
 Retail Trade 
 
 139 
 
 208 
 
 61 
 33 
 
 29.5 
 15.6 
 
 4.120 
 2,030 
 
 1.7 
 1.2 
 
 Motors 
 
 Manufacturing 
 Retail Trade 
 
 33 
 45 
 
 15 
 7 
 
 5.6 
 3.4 
 
 390 
 440 
 
 1.0 
 0.3 
 
 Trailers 
 
 Maufacturing 
 Retail Trade 
 
 15 
 18 
 
 2.5 
 1.4 
 
 280 
 180 
 
 0.5 
 0.1 
 
 Marinas 
 
 240 
 
 96 
 
 64.8 
 
 6,500 
 
 4.8 
 
 Coninercial Sportfishing 
 Vessels 
 
 122 
 
 73 
 
 35.4 
 
 4,900 
 
 8.5 
 
 Boat Fuel 
 
 Manufacturing 
 Wholesale Trade 
 Retail Trade 
 
 49 
 73 
 86 
 
 8 
 
 7 
 
 14 
 
 0.9 
 1.5 
 4.9 
 
 SO 
 
 160 
 
 1,060 
 
 2.2 
 
 1.1 
 0.7 
 
 Food 
 
 Lodging 
 
 247 
 
 63 
 
 89 
 
 33 
 
 56.8 
 
 16.7 
 
 12,000 
 3,470 
 
 6.7 
 
 1.7 
 
 Travel 
 
 Manufacturing 
 Wholesale Trade 
 Retail Trade 
 
 133 
 198 
 233 
 
 23 
 19 
 27 
 
 3.1 
 
 200 
 
 4.8 
 
 500 
 
 17.0 
 
 2,970 
 
 5.9 
 
 3.0 
 1.9 
 
 Boat Insurance 
 
 56 
 
 13 
 
 4.9 
 
 400 
 
 Bait 
 
 Other 
 
 216 
 
 170 
 
 43 
 
 34 
 
 17.7 
 
 20.4 
 
 2.670 
 3,000 
 
 1.3 
 
 3.4 
 
 TOTAL 
 
 1,840 
 
 699 
 
 343.1 
 
 50,580 
 
 52.8 
 
 15 
 
boating areas (including boat, motor, and trailer purchases, expenses for 
 fuel, and marina, boat yard, and boat insurance services) accounted for 
 $653 million or approximately 35 percent of the total. Expenditures for 
 travel and lodging for fishing excursions accounted for $296 million or 
 16 percent of the total . 2 Expenditures for food in conjunction with 
 fishing outings was estimated at $247 million or approximately 13 percent of 
 the total. 3 Expenditures for bait at $216 million accounted for about 
 12 percent of the total. Fishing tackle with a retail value of sales of $136 
 million was about seven percent of the total. Expenditures for outings on 
 head (or party) and charter boats at an estimated $122 million accounted for 
 approximately another seven percent of the total. 
 
 Much basic data necessary to develop the preceding economic impact estimates 
 were obtained from secondary sources (particularly Census of Manufacturers , 
 Census of Wholesale Trade , and Census of Retail Trade ) which were most recently 
 available for 1972. Thus, 1972 was chosen as a base year. Detailed develop- 
 ment of the sales and economic impact estimates by industrial sector are pro- 
 vided in Appendices as follows : 
 
 Fishing Tackle 
 
 Appendix A 
 
 Boats 
 
 Motors 
 
 Trailers 
 
 Marinas 
 
 Commercial Sportfishing 
 Vessels 
 
 Appendix B 
 Appendix C 
 Appendix D 
 Appendix E 
 Appendix F 
 
 Bait 
 
 Boat Fuel 
 
 Food, Lodging and Travel 
 
 Appendix G 
 Appendix H 
 Appendix I 
 
 Boat Insurance 
 
 Appendix J 
 
 Other 
 
 Appendix K 
 
 Travel expenditures include travel by both public transportation and private 
 vehicle. The bulk of the expenditures were for travel by private vehicle. 
 These were evaluated by assigning a cost approximating the typical variable 
 cost of operating a private vehicle to estimates of the number of miles 
 driven. The majority of this is fuel. Economic figures for the manufacturing 
 and wholesale tiers for travel are for gasoline production and distribution. 
 
 It should be noted that food expenditures as shown here represent outlays for 
 food, snacks, and refreshments while engaged in a fishing outing less an 
 amount to account for the average cost of meals eaten at home. The cost of 
 groceries brought from home was not included. 
 
 16 
 
Sales estimates were developed for 1975 using a combination of primary and 
 secondary sources. Economic impact measures were in some cases adjusted 
 from 1972 to 1975 using appropriate extrapolation techniques. The develop- 
 ment of data for 1975 is described in Appendix L. In most cases where it 
 was necessary to rely on secondary data sources cross checks were made 
 among independent sources to determine validity. 
 
 Estimates were made of the number of estciblishments relating to the business 
 sectors impacted by marine recreational fishing. These estimates are provided 
 in Exhibit 2-3 along with a description of the category to which the estimates 
 pertain. Descriptions of the determinations of the estimates are provided in 
 the appropriate appendices. Estimates of the number of establishments for 
 the marine fuel; food, travel and lodging; marine insurance; and other categories 
 could not be provided because of the extreme fragmentation of these business 
 sectors. 
 
 Comparisons were made in the study on a sector-by-sector basis of total 
 economic activity which is associated with marine recreational fishing to that 
 of the total sector. In some cases, of course, the definition of the scope 
 of the total sector to which comparisons are made can be somewhat arbitrary. 
 However, certain insight is provided on the relative importance of marine 
 recreational fishing to various business sectors. Exhibit 2-4 compares sales 
 associated with marine recreational fishing to total sales of the sectors to 
 which they relate. The sectors in the "Total" column were defined as follows: 
 
 Fishing tackle 
 
 All fishing tackle sold for use in both fresh 
 and saltwater. 
 
 Boats 
 
 All recreational inboard, outboard, and 
 inboard/outdrive boats (excluding houseboats, 
 sailboats, canoes, dingies, etc.) sold for use in 
 both fresh and saltwater. 
 
 Motors 
 
 All outboard motors sold for use in both fresh 
 and saltwater. 
 
 Trailers 
 
 All boat trailers sold for use in conjunction 
 with boats used in both fresh and saltwater. 
 
 Marinas 
 
 All marinas both in fresh and saltwater areas. 
 
 Commercial 
 Sportf ishing 
 Vessels 
 
 All saltwater commercial sportfishing vessels 
 (the number of such vessels used in freshwater 
 is negligible by comparison) . 
 
 Boat Fuel 
 
 Fuel used in all recreational boating activity 
 both in salt and freshwater. 
 
 Food, Travel, 
 and Lodging 
 
 Food, travel, and lodging consumed in conjunction 
 with all outdoor recreation in the country. 
 
 Insurance 
 
 All recreational boat insurance for boats used 
 in both salt and freshwater. 
 
 Bait 
 
 All natural bait for fishing in both fresh and 
 saltwater. 
 
 17 
 
Exhibit 2-3 
 
 Number of Establishments in Business 
 Categories Related to Marine Recreational Fishing 
 
 Product or Service 
 
 Fishing Tackle 
 Manufacturing 
 
 Number of 
 
 Establishments 
 
 239 
 
 Category Description 
 
 Manufacturers of freshwater and 
 and saltwater tackle in U.S. 
 
 Wholesale Trade 
 
 868 
 
 Establishments which distribute 
 freshwater and saltwater tackle 
 in U.S. 
 
 Retail Trade 
 
 10,781 + 
 
 Retailers selling tackle through- 
 out U.S. not including department 
 stores 
 
 Boats 
 
 Manufacturing 
 
 228 
 
 Manufacturers primarily engaged in 
 producing outboard, inboard and 
 inboard /outdrive boats 
 
 Retail Trade 
 
 6,650 
 
 Retail boat dealers throughout U.S. 
 
 Motors 
 
 Manufacturing 
 
 Manufacturers of outboard motors 
 in U.S. 
 
 Retail Trade 
 
 6,650 
 
 Retail boat dealers throughout U.S. 
 
 Boat Trailers 
 Manufacturing 
 
 Retail Trade 
 
 100 + 
 6,650 
 
 Retail boat dealers throughout U.S. 
 
 Marinas 
 
 2,800 
 
 Coastal marinas and boat yards 
 
 Commerical Sport- 
 fishing Vessels 
 
 3,870 
 
 Saltwater head (party) and charter 
 boats 
 
 Boat Insurance 
 
 .130 
 
 Number of insurance carriers selling 
 insurance for recreational boats 
 
 Bait 
 
 5,000 
 
 Establishments that sell bait for use 
 in saltwater as a primary activity 
 
 Includes 2,251 charter boats (those that cctrry six or fewer passengers) and 1,619 
 head boats (those that carry seven or more passengers). 
 
 18 
 
Exhibit 2-4 
 
 Comparison of Sales Associated With Marine 
 Recreational Fishing With Total Sector Sales 
 
 Sales Associated with Percentage of Sector 
 
 Sales in Marine Recrea- Sales Associated With 
 
 Total Sector tional Fishing Marine Recrea- 
 
 (millions of dollars) (millions of dollars) ^tional Fishing 
 
 Fishing Tackle 
 
 620 
 
 136 
 
 22 
 
 Boats 
 
 989 
 
 208 
 
 21 
 
 Motors 
 
 411 
 
 45 
 
 11 
 
 Trailers 
 
 21 
 
 Marinas 
 
 540 
 
 240 
 
 44 
 
 Commercial Sport- 
 fishing Vessels 
 
 122 
 
 122 
 
 100 
 
 Boat Fuel 
 
 410 
 
 86 
 
 21 
 
 Food 
 
 2,435 
 
 247 
 
 10 
 
 Lodging 
 
 1,234 
 
 63 
 
 Travel 
 
 2,238 
 
 233 
 
 10 
 
 Boat Insurance 
 
 266 
 
 56 
 
 21 
 
 Bait 
 
 810 
 
 216 
 
 27 
 
 Sales figures are at the retail level (i.e., final sales to fishermen) 
 
 19 
 
Exhibits 2-5 and 2-6 show the econcHaic iaypacts for 1972 and 1975, respectively, 
 associated with the sales for the "total" sectors as defined above. As such, 
 they correspond with Exhibits 2-1 and 2-2. 
 
 2.3 Multiplier Effects 
 
 In addition to the direct economic impacts presented in the preceding section, 
 additional impacts for value added, personal inccane, and employment occur in 
 other sectors of the econcany due to spending created in the sectors directly 
 impacted by marine recreational fishing. Both indirect (effects due to purchases 
 of goods and services in the direct sectors) and induced (effects due to spending 
 of employee income created in the direct and indirect sectors) multiplier 
 effects approximations for value added, enqployee compensation and property- 
 type income, and en\ployment were computed for marine recreational fishing for 
 1975. 
 
 The basic approach and the actual multipliers used to generate the above 
 estimates were taken directly from a previous study performed for the NMFS . ^ 
 A brief description of the approach follows. 
 
 Data were taken from the 1967 85-industry category input/output tables for 
 the U.S. economy.^ This is the latest input/output table for the U.S. econcany 
 currently available. For a detailed discussion of the input/output approach 
 see The Elements of Input/CXitput Analysis by William H. Miernyk, Random House, 
 New York, 1965. Table 3 of the above input/output tables show the total 
 direct and indirect requirements in each of the 85-industry categories per 
 dollar of demand in any given category. Value added ouid employee compensation 
 and property-type income ratios (per dollar of demand) were then applied to 
 these direct and indirect requirements to obtain the direct and indirect 
 multiplier effects for each sector. This was performed using standard mathematical 
 procedures, including a series of approximations of the inverse of the Leontief 
 matrix. Employment was computed similarly, except that adjustments were made 
 for changes in the employment to output ratios due to inflation in each appro- 
 priate sector over the period 1967 to 1975. Calculation of the induced effects 
 were performed similarly, except that the analysis included the linkages in 
 the input/output tables by sector between output and a change in payments to 
 households.^ This approach provides an approximation to the expected multiplier 
 effects associated with the direct inpacts. 
 
 Centaur Management Consultants, Economic Impacts of the U.S. Commercial 
 Fishing Industry , prepared for the National Marine Fisheries Service, 
 Washington, D.C., January, 1975. See Chapter I and Appendix A. The 
 multipliers are found on pages 267-269. 
 
 See Survey of Current Business , Volume 54, Niimber 2, U.S. Department of 
 Commerce, February, 1974. 
 
 For additional discussions and descriptions of multiplier effects and their 
 calculation see Harry W. Richardson, Input-Output and Regional Economics , 
 Redwood Press, Ltd., Great Britain, 1972; Hollis B. Chenery and Paul G. 
 Clark, Interindustry Economics , John Wiley & Sons, 1959; Richard Stone, 
 Input-Output and National Accounts , Organization for European Economic 
 Cooperation, 1961; and Richard H. Puckett, Introduction to Mathematical 
 Economics, D.C. Health and Company, 1971, pp. 63-72. 
 
 20 
 
Exhibit 2-5 
 
 Total Economic Inpacts in Sectors 
 
 Associated Nith Marine Recreational Pishing 
 
 1972 
 
 Pishing Tackle 
 Manufacturing 
 Wholesale Trade 
 Retail Trade 
 
 Sales Value-Added Wages and Salaries Annual Capital 
 
 (millions of (nillions of (Billions of Qaploynent Expenditures 
 dollars) dollars) dollars) (person-years) (millions of dollars) 
 
 168 
 
 100 
 
 45.5 
 
 1,870 
 
 6.4 
 
 189 
 
 20 
 
 13.0 
 
 1,470 
 
 1.5 
 
 400 
 
 152 
 
 48.8 
 
 8,400 
 
 8.4 
 
 Boats 
 
 Manu f actur ing 
 Retail Trade 
 
 S59 
 
 836 
 
 254 
 133 
 
 138.0 
 81.9 
 
 20,000 
 10,600 
 
 11.2 
 6.7 
 
 Motors 
 
 Manufacturing 
 Retial Trade 
 
 320 
 432 
 
 146 
 69 
 
 59.0 
 42.1 
 
 5,120 
 5,550 
 
 4.8 
 3.4 
 
 Trailers 
 
 Manufacturing 
 Retail Trade 
 
 58 
 
 72 
 
 21 
 
 5 
 
 10.6 
 7.1 
 
 1.400 
 920 
 
 1.2 
 
 0.2 
 
 Itarinas 
 
 450 
 
 180 
 
 130.0 
 
 14,300 
 
 14.0 
 
 Coaraercial Sport fishing 
 Vessels 
 
 94 
 
 56 
 
 30.0 
 
 4,800 
 
 7.0 
 
 Boat Fuel 
 
 Manu f actur ing 
 Wholesale Trade 
 Retail Trade 
 
 72 
 163 
 200 
 
 12 
 15 
 32 
 
 3.3 
 
 5.9 
 19.0 
 
 260 
 740 
 
 3,990 
 
 2.9 
 3.1 
 2.4 
 
 Food 
 
 Lodging 
 
 1,086 
 
 910 
 
 391 
 
 482 
 
 271.0 
 
 264.3 
 
 69,600 
 55,150 
 
 40.0 
 
 117.0 
 
 Travel 
 
 
 
 Manufacturing 
 
 366 
 
 62 
 
 Wholesale Trade 
 
 749 
 
 71 
 
 Retail Trade 
 
 1,025 
 
 164 
 
 17.3 
 27.1 
 96.1 
 
 1,300 
 
 3,400 
 
 20,460 
 
 15.0 
 14.0 
 12.0 
 
 Boat Insurance 
 
 Bait 
 
 174 
 
 650 
 
 41 
 
 130 
 
 16.7 
 
 60.0 
 
 1,600 
 9,660 
 
 4.9 
 
 21 
 
Exhibit 2-6 
 
 Total Economic Impacts in Sectors 
 Associated With Marine Recreational Fishing 
 1975 
 
 Sales Value-Added Wages and Salaries 
 (millions of (millions of (millions of 
 dollars) dollars) dollars) 
 
 Annual Capital 
 Employemnt Expenditures 
 (person-years) (millions of dollars) 
 
 Fishing Tackle 
 Manufacturing 
 Wholesale Trade 
 Retail Trade 
 
 260 
 
 164 
 
 292 
 
 29 
 
 620 
 
 236 
 
 71.5 
 21.3 
 71.9 
 
 11,260 
 
 2,100 
 
 10,420 
 
 11,2 
 
 1.8 
 
 18.0 
 
 Boats 
 
 Manuf ac tur ing 
 Retail Trade 
 
 661 
 989 
 
 291 
 158 
 
 140.1 
 74.2 
 
 19,610 
 9,680 
 
 8.0 
 5.9 
 
 Motors 
 
 Manufacturing 
 Retail Trade 
 
 304 
 411 
 
 140 
 66 
 
 52.0 
 30.8 
 
 3,520 
 4,020 
 
 9.4 
 2.5 
 
 Trailers 
 
 Manufacturing 
 Retail Trade 
 
 77 
 88 
 
 32 
 14 
 
 11.7 
 6.6 
 
 1,300 
 860 
 
 2.2 
 0.5 
 
 540 
 
 216 
 
 145.8 
 
 14,600 
 
 10.8 
 
 Commercial Sportfishing 
 Vessels 
 
 122 
 
 73 
 
 35.4 
 
 4,900 
 
 8.5 
 
 Boat Fuel 
 
 Manufacturing 
 Wholesale Trade 
 Retail Trade 
 
 233 
 348 
 
 410 
 
 40 
 33 
 66 
 
 4.4 
 
 7.6 
 
 23.9 
 
 280 
 
 780 
 
 4,230 
 
 10.3 
 5.2 
 3.3 
 
 Food 
 
 Lodging 
 
 2,435 
 1,234 
 
 876 
 
 654 
 
 560.1 
 
 327.0 
 
 18,800 
 67,800 
 
 65.8 
 
 116.0 
 
 Travel 
 
 Manufacturing 
 Wholesale Trade 
 Retail Trade 
 
 1,274 
 
 217 
 
 1,903 
 
 181 
 
 2,238 
 
 358 
 
 23.6 
 
 36.2 
 
 125.8 
 
 1,430 
 
 3,740 
 60,610 
 
 56.1 
 28.5 
 17.9 
 
 Boat Insurance 
 
 Bait 
 
 266 
 
 810 
 
 64 
 
 162 
 
 23.4 
 
 66.4 
 
 1,900 
 10,000 
 
 4.9 
 
 22 
 
Multiplier effects associated with capital expenditures in the directly 
 impacted business sectors were calculated separately as the above input/ 
 output tables do not account for capital expenditure transactions. This 
 was done as follows. Data was obtained separately on capital expenditure 
 transactions between the input/output sectors for 1967. ' From these 
 data the sectors and their relative contribution supplying capital goods to 
 the business sectors directly impacted by marine recreation fishing could 
 be estimated. Direct, indirect and induced impacts were then calculated 
 for those sectors supplying capital goods weighted by the annual capital 
 expenditure estimates presented in Section 2.2. 
 
 The approximated multiplier effects for value added are presented in Exhibit 
 2-7. The first column for direct impacts is the same as those presented 
 in Exhibit 2-1. The second column includes both the value added in the directly 
 impacted sectors and the indirect value added in sectors supplying materials 
 and services to the corresponding direct sector. The third column includes 
 all of the direct, indirect, and induced value added throughout the economy 
 created in conjunction with the economic activity associated with marine 
 recreational fishing in the corresponding direct sector. The induced value 
 added occurs across all sectors of the economy due to consumer spending out 
 of earnings (v;ages and salaries, other labor income and proprietors' income) 
 created in the direct and indirect sectors. Thus in 1975 in addition to the 
 $699 million of value added in the directly impacted businesses, marine 
 recreational fishing has an associated $1,773 million of direct and indirect 
 value added, and $3,957 million of direct, indirect, and induced value added. 
 
 Exhibit 2-8 presents similar approximated multiplier effects for employee 
 compensation and property-type income for 1975. Because of data limitations 
 the first column of direct impacts includes only employee compensation 
 (i.e., wages and salaries and other labor income). These were determined from 
 the results of Section 2.2 (see Exhibit 2-1). Thus, in 1975 direct wages and 
 salaries associated with marine recreational fishing were $343 million. Total 
 direct plus indirect employee compensation and property- type income was an 
 approximated $1,578 million, and total direct plus indirect plus induced 
 employee compensation and property-type income in the economy as a whole 
 was an estimated $3,526 million. 
 
 Exhibit 2-9 presents the multiplier impacts for employment in person-years 
 associated with marine recreational fishing. In 1975 total direct employment 
 (as in Exhibit 2-^1) was 50, 580, the total direct plus indirect employment was 
 estimated at 123,300, and total direct plus indirect plus induced employment 
 was estimated at 241,600. 
 
 The preceding results do not include impacts due to capital spending. These 
 effects were estimated for 1975 and are presented in Exhibit 2-10. The first 
 column shows the annual capital investment for each of the direct sectors. 
 These are taken from Exhibit 2-1. The remaining columns show the multiplier 
 effects associated with the capital spending in each of the directly impacted 
 sectors. Thus in 1975, capital investment associated with marine recreational 
 fishing in the directly impacted sectors generated an additional $46 million 
 
 From Interindustry Transactions in New Structures and Equipment, 1963 and 
 1967, Department of Commerce. 
 
 23 
 
Exhibit 2-7 
 
 Value-Added Multiplier Itt^acts 
 
 Direct 
 
 Direct Plus Indirect 
 
 Direct Plus Indirect 
 Plus Induced 
 
 (millions of dollars) (millions of dollars) (millions of dollars) 
 
 Fishing Tackle 
 Manufacturing 
 Wholesale Trade 
 Retail Trade 
 
 Boats 
 
 Manufacturing 
 Retail Trade 
 
 Motors 
 
 Manufacturing 
 Retail Trade 
 
 Trailers 
 
 Manufacturing 
 Retail Trade 
 
 Marinas 
 
 Commercial Sport- 
 fishing Vessels 
 
 Boat Fuel 
 
 36 
 
 6 
 
 52 
 
 61 
 33 
 
 15 
 
 7 
 
 7 
 3 
 
 96 
 
 73 
 
 Manufacturing 
 
 8 
 
 Wholesale Trade 
 
 7 
 
 Retail Trade 
 
 14 
 
 Food 
 
 89 
 
 Lodging 
 
 33 
 
 Travel 
 
 
 Manufacturing 
 
 23 
 
 Wholesale Trade 
 
 19 
 
 Retail Trade 
 
 27 
 
 Insurance 
 
 13 
 
 Bait 
 
 43 
 
 Other 
 
 34 
 
 TOTAL 
 
 699 
 
 50.6 
 
 6.9 
 
 71.4 
 
 130.5 
 68.4 
 
 30.6 
 11.9 
 
 14.1 
 11.9 
 
 225.8 
 
 121.0 
 
 44.6 
 23.8 
 12.9 
 
 245.0 
 
 62.2 
 
 121.0 
 64.5 
 34.7 
 
 55.4 
 
 210.3 
 
 155.7 
 
 1,773.2 
 
 112.9 
 
 15.5 
 
 159.1 
 
 291.9 
 152.5 
 
 68.3 
 26.5 
 
 31.5 
 26.5 
 
 504.0 
 
 269.6 
 
 99.5 
 53.0 
 28.7 
 
 545.9 
 
 138.6 
 
 270.0 
 
 143.7 
 
 77.4 
 
 123.8 
 
 471.1 
 
 347.3 
 
 3,957.3 
 
 24 
 
Exhibit 2-8 
 
 Employee Compensation and Property-Type 
 Income Multiplier Impacts 
 
 Direct ■ 
 
 Direct Plus Indirect 
 Direct Plus Indirect Plus Induced 
 
 
 (millions of dollars) 
 
 Fishing Tackle 
 
 
 Manufacturing 
 
 15.7 
 
 Wholesale Trade 
 
 4.7 
 
 Retail Trade 
 
 15.8 
 
 Boats 
 
 
 Manufacturing 
 
 29.5 
 
 Retail Trade 
 
 15.6 
 
 Motors 
 
 
 Manufacturing 
 
 5.6 
 
 Retail Trade 
 
 3.4 
 
 Trailers 
 
 
 Manufacturing 
 
 2.5 
 
 Retail Trade 
 
 1.4 
 
 Marinas 
 
 64.8 
 
 Commercial Sport- 
 
 
 fishing Vessels 
 
 35.4 
 
 Boat Fuel 
 
 
 Manufacturing 
 
 0.9 
 
 Wholesale Trade 
 
 1.5 
 
 Retail Trade 
 
 4.9 
 
 Food 
 
 56.8 
 
 Lodging 
 
 16.7 
 
 Travel 
 
 
 Manufacturing 
 
 3.1 
 
 Wholesale Trade 
 
 4.8 
 
 Retail Trade 
 
 17.0 
 
 Insurance 
 
 4.9 
 
 Bait 
 
 17.7 
 
 Other 
 
 20.4 
 
 Total 
 
 343.1 
 
 (millions of dollars) (millions of dollars) 
 
 48.2 107.2 
 5.8 13.0 
 
 59.3 133.2 
 
 124.5 276.6 
 
 56.9 127.7 
 
 29.2 64.7 
 
 9.9 22.2 
 
 13.4 29.9 
 
 2.5 5.6 
 
 209.8 468.0 
 
 116.8 261.1 
 
 43.7 97.0 
 
 19.8 44.4 
 
 10.7 24.1 
 
 203.5 457.0 
 
 57.0 127.3 
 
 96.8 215.5 
 53.6 120.3 
 28.8 64.8 
 
 51.2 114.2 
 
 193.5 434.1 
 
 142.8 318.2 
 
 1,577.7 3,526.1 
 
 Includes only employee compensation (i.e., wages and salaries) and 
 excludes property type income. 
 
 25 
 
Exhibit 2-9 
 Employment Multiplier Impacts 
 
 Direct 
 
 Fishing Tackle 
 
 
 
 Manufacturing 
 
 2 
 
 ,480 
 
 Wholesale Trade 
 
 
 490 
 
 Retail Trade 
 
 2 
 
 ,290 
 
 Boats 
 
 
 
 Manufacturing 
 
 4 
 
 ,120 
 
 Retail Trade 
 
 2 
 
 ,030 
 
 Motors 
 
 
 
 Manufacturing 
 
 
 390 
 
 Retail Trade 
 
 
 400 
 
 Trailers 
 
 
 
 Manufacturing 
 
 
 280 
 
 Retail Trade 
 
 
 180 
 
 Marinas 
 
 6 
 
 ,500 
 
 Contnerical Sport- 
 fishing Vessels 
 
 Boat Fuel 
 
 Manufacturing 
 Wholesale Trade 
 Retail Trade 
 
 Food 
 
 Lodging 
 
 Travel 
 
 Manufacturing 
 Wholesale Trade 
 Retail Trade 
 
 Insurance 
 
 Bait 
 
 Other 
 
 TOTAL 
 
 4,900 
 
 50 
 
 160 
 1,060 
 
 12,000 
 
 3,470 
 
 200 
 
 500 
 
 2,970 
 
 400 
 
 2,670 
 
 3,000 
 
 50,580 
 
 Direct Plus Indirect 
 
 3,226 
 
 501 
 
 5,155 
 
 7,423 
 4,940 
 
 1,544 
 859 
 
 801 
 215 
 
 20,736 
 
 10,516 
 
 1,245 
 
 1,718 
 
 931 
 
 17,685 
 
 6,722 
 
 3,378 
 4,654 
 2,506 
 
 3,399 
 
 14,870 
 
 10,321 
 
 123,345 
 
 Direct Plus Indirect 
 Plus Induced 
 
 7,119 
 
 972 
 
 10,001 
 
 17,458 
 9,584 
 
 3,901 
 1,667 
 
 1,884 
 417 
 
 29,088 
 
 20,057 
 
 4,121 
 2,334 
 1,806 
 
 34,308 
 
 11,529 
 
 11,185 
 9,029 
 4,862 
 
 7,560 
 
 30,849 
 
 21,866 
 
 241,597 
 
 26 
 
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of direct plus indirect and $102 million of direct plus indirect plus induced 
 employee compensation cind property-type income. These investment purchases 
 also generated an additional $49 million of direct plus indirect and $110 
 million of direct plus indirect plus induced value added. Additional direct 
 plus indirect employment generated by this capital investment eimounted to cin 
 estimated 2,400 person-years. Additional direct plus indirect plus induced 
 employment related to this spending amounted to an estimated 5,800 person- 
 years. 
 
 2.4 Expenditures, Wages and Salaries and Employment of State Agencies 
 Related to Marine Recreational Fishing in 1975 
 
 The National Marine Fisheries Service (NMFS) also requested that activity 
 associated with expenditures by state agenices for marine recreational fishing 
 be examined. With the assistance of the NMFS, all appropriate agencies in 
 coastal states, Hawaii and the territories of Guam, Puerto Rico, and the Virgin 
 Islands were contacted. The agencies were asked to provide information on 
 their total expenditures, wages and salaries, and employment for three categories 
 of activity associated with marine recreational fishing in 1975. These cate- 
 gories were administration and research, direct services, and construction of 
 facilities. Administration and research includes licensing, law enforcement, 
 special sportfishing programs, data collection and analysis, and so on. 
 Direct services include maintenance on existing facilities related to marine 
 recreational fishing (e.g., fish hatcheries, marinas, piers, and artificial 
 reefs) . Construction of facilities includes the development of new projects 
 such as hatcheries, piers, marinas, and artificial reefs. 
 
 A large portion of fisheries related state government activity does not 
 discriminate between commercial and recreational fishing. For example, the 
 benefits of fish hatcheries are shared between both types of fishermen. 
 For items such as these, agency officials were asked to provide their best 
 estimates of the portion of the effort (in terms of expenditures, wages 
 and salaries, and employment) that was attributable to marine recreational 
 fishing. Officials of several states responded that they were unsJale to 
 estimate their marine fisheries management activity. These states include 
 Connecticut, Florida, and Texas. New Jersey officials could provide only a 
 very rough estimate of expenditures and wages and salaries in total. California 
 officials were able to provide only an estimate of total expenditures. 
 
 Exhibit 2-11 presents the information provided by those states that responded 
 to the request. No responses were received from Massachusetts, Maryland, 
 Pennsylvania, Georgia, and the territories. Also excluded are Connecticut, 
 Florida and Texas since they were unable to provide activity estimates. 
 
 Several states provided employment estimates based on the number of personnel 
 who devote at least part of their time on work related to maiine recreational 
 fishing. In these instances the estimates were converted from the nxomber of 
 employees to person-years based on the salaries and wages data provided emd 
 assuming an average value of $12,000 per person-year of employment. 
 
 28 
 
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similarly, several states reported that construction of new facilities took 
 place through contracts to private firms. Employment and wages and salaries 
 which were generated from these expenditures were estimated based on data 
 for civil works (dredging) construction projects obtained from the Bureau 
 of Labor Statistics.^ 
 
 In 1975 total expenditures related to marine recreational fishing were 
 estimated at $8.2 million for those states that responded. Of that total, 
 wages and salaries amounted to an estimated $5.1 million and employment 
 totalled approximately 385 person-years. Excluding the responses of 
 California and New Jersey which did not disaggregate the totals by 
 expenditure category, about 70 percent of state level activity reported 
 was in administration and research. Direct services accounted for about 
 20 percent of state level activity and construction accounted for about 10 
 percent. 
 
 2. 5 Impact Related to Anadromous Species 
 
 As explained in Chapter 1 the definition of marine recreational fishing used 
 in this analysis includes only that activity which takes place below tidal 
 limits. This definition was chosen largely because of the limitations in the 
 data base on fishing activity for anadromous species in freshwater. While 
 an accurate estimate of expenditures and associated economic impacts cannot 
 be made for this activity, it is possible to provide an estimate of the upper 
 bound of expenditures for recreational fishing activity for anadromous 
 species occurring above tidal limits. 
 
 It is estimated that recreational fishermen spent no more than $132 million 
 in 1975 fishing in freshwater for anadromous species. These expenditures 
 amount to about seven percent of the estimated expenditures for marine recre- 
 ational fishing occurring below tidal limits in that year. The remaining di- 
 rect economic impacts (i.e., wages and salaries, employment, value added, and 
 annual capital expenditures) can also be expected to increase by about seven 
 percent at most. 
 
 This estimate was obtained using the following procedure. With the help of 
 NMFS biologists, species of anadromous fish caught by recreational fishermen 
 in freshwater were identified and estimates were made of the percent of 
 associated recreational fishing activity occurring above tidal limits. The 
 number of anglers fishing in freshwater for anadromous fish were then estimated. 
 Average expenditures per angler for fishing above tidal limits were estimated 
 based on data for steelhead fishing in the Pacific Northwest. Finally, average 
 expenditures per angler were multiplied by the estimated total number of anglers 
 fishing for anadromous species in freshwater to obtain an estimate of expendi- 
 tures for this activity. 
 
 g 
 
 Estimates of on-site and off-site employment generated by construction 
 are based on 0.023 person-years of employment per $1,000 of construction, 
 Salaries and wages are based on $15,000 per person-year of employment. 
 
 30 
 
Exhibit 2-12 lists the anadromous species and the estimated nximber of 
 anglers fishing above tidal limits. 9 Using data for 1970 from the 1970 
 Saltwater Angling Survey the number of anglers by species group was estimated 
 for 1975.10 However, the 1970 Saltwater Angling Survey includes only those 
 anglers that fish below tidal limits. Using the estimates of the percent 
 of fishing activity occurring above tidal limits, estimates of the total 
 number of anglers in both freshwater and saltwater were determined. H From 
 the estimated number of total freshwater and saltwater anglers the number 
 of freshwater anglers was then determined based upon the assumed percent 
 of anglers fishing above tidal limits. In total these anglers number an 
 estimated 818,600. 
 
 An estimate of the average expenditures per freshwater angler was determined 
 from data on the n\jmber of steelhead anglers and their expenditures in the 
 State of Washington. According to officials there, steelhead fishing in 
 Washington occurs almost entirely in freshwater. In 1973 the average 
 expenditures per steelhead angler were $134.12 Expressed in 1975 dollars 
 the average expenditures were $162 per angler. 13 Thus expenditures for fishing 
 for anadromous species above tidal limits is estimated at $132 million. 
 
 This estimate should be viewed as an upper bound for two reasons. First, the 
 estimate of the number anglers is high because of double counting in the 
 1970 Saltwater Angling Survey . The survey estimates the number of anglers by 
 species caught. So, for example, an angler who caught a coho and a chinook 
 salmon is entered as an angler for each of these species. In the expenditure 
 estimate presented here this angler (and his expenditures) is counted twice, 
 once for each species of salmon caught. But it is highly unlikely that in 
 reality his annual expenditures would be double that of the average angler. 
 Second, the dollar amount of average expenditures per freshwater fishermen, 
 $162, is high. For example, freshwater fishing has been shown to be the 
 
 10 
 
 11 
 
 12 
 
 13 
 
 River herring and sturgeon are anadromous fish, but according to NMFS 
 officials there is very little recreational fishing that occurs for these 
 fish above tidal limits. They are excluded from this estimate. 
 
 This estimate was made assuming that the percent increase in anglers for 
 all anadromous species was the same as that for salmon anglers between 1970 
 and 1975. According to the Washington State Sport Catch Report (Washington 
 Department of Fisheries) the number of salmon anglers increased by eleven 
 percent between those years. 
 
 For example it is estimated that in 1975 the number of chinook salmon anglers 
 fishing in marine waters was 242,000 and that this figure represents 90 
 percent of all anglers (i.e., freshwater anglers are 10 percent of the total 
 number of anglers). Thus, the total number of anglers is 242, 000/. 90 = 268,000, 
 
 Data obtained from NMFS Pacific Northwest Region, Marine Recreational Fisheries 
 Program Development Plan . , January, 1976, p. 3. 
 
 This estimate was obtained using price indices for all consumer items taken 
 from The Economic Report of the President, January, 1977, 
 
 31 
 
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14 
 least expensive mode of fishing for salmon in Washington. Also, as additional 
 
 evidence, the average annual expenditure per fisherman for all saltwater fishing 
 
 in 1970 was only $157 (in 1975 dollars). 15 These per fishermen expenditures 
 
 include the costs of boat related purchases. However, most freshwater angling 
 
 does not require the use of a boat. As was explained in the preceding sections 
 
 boat related expenses account for about 35 percent of all recreational fishing 
 
 expenditures. Thus the expenditures per angler for freshwater fishing should 
 
 be less than those for all saltwater recreational fishing, and the expenditures 
 
 estimate used to determine this upper bound is purposely overestimated. Thus 
 
 it is highly unlikely that the direct impact estimates presented earlier in this 
 
 chapter are substantially affected by the exclusion of fishing for anadromous 
 
 species above tidal limits. 
 
 It should also be noted that salmon and steelhead fishing in the Pacific 
 Northwest account for about fifty percent of the estimated activity for all 
 anadromous species. In this region fishing for anadromous species in fresh- 
 water is quite significant relative to recreational fishing in marine waters. 
 However, looking just at fishing for other anadromous species in freshwater 
 throughout the rest of the country, the direct impact estimates for the nation 
 as a whole presented in the previous sections would increase by no more than 
 three to four percent. 
 
 14 
 
 15 
 
 Stephen B. Mathews and Gardner S. Brown, Economic Evaluation of the 1967 
 Sport Salmon Fisheries of Washington , Technical Report 2 , Washington 
 Department of Fisheries. The average cost per angler for salmon fishing 
 in freshwater was $5.97; for Puget Sound, $7.60; for straits, $16.17; 
 and for the ocean $23.42. 
 
 This estimate was obtained by inflating to 1975 dollars the average annual 
 expenditures of saltwater fishermen in 1970 of $129,46 obtained from the 
 1970 National Survey of Fishing and Hunting , p. 46. The consumer price 
 index for all consumer commodities and services were used to convert 
 expenditures to 1975 dollars and were obtained from the Economic Report 
 of the President , January 1977. This estimate does not account for any changes 
 in average fishing effort or expenditure patterns of fishermen between 1970 
 and 1975. 
 
 33 
 
CHAPTER 3 
 
 DISAGGREGATION OF NATIONAL IMPACTS 
 
3.0 DISAGGREGATION OF NATICWAL IMPACTS 
 
 3.1 Impacts of Fishing in Regional Areas 
 
 This section provides a disaggregation of the national economic in5)acts for 
 1975 of marine recreational fishing into seven Regions. These Regions are 
 defined as follows and correspond to those in the 1970 Saltwater Angling 
 
 Survey ; 
 
 Region I - North Atlantic: Atlantic Coast from Maine to and 
 including New York. 
 
 Region II - Middle Atlantic: Atlantic Coast from New Jersey to 
 Cape Hatter as. North Carolina. 
 
 Region III- South Atlantic: Atlantic Coast from Cape Hatteras, 
 North Carolina, to southern Florida including the 
 Florida Keys. 
 
 Region IV - East Gulf of Mexico: Gulf Coast from the Florida Keys 
 to cuid including the Mississippi River delta. 
 
 Region V - West Gulf of Mexico: Gulf Coast from the Mississippi 
 River delta to the Mexican border. 
 
 Region VI - South Pacific: Pacific Coast from the Mexican border 
 to Point Conception, California. 
 
 Region VII- North Pacific: Pacific Coast from Point Conception, 
 ; California, north to Washington and including Alaska. 
 
 An allocation model was developed to prorate the national economic impacts 
 to the Regions based on where the fishing activity occurred. The basic 
 approach for the allocation was to use the relative number of fisheirmen 
 in various types of fishing (i.e., those using private or rented boats, 
 those fishing from head or charter boats , and total fishermen) in each 
 Region,! as well as data on relative per capita expenditures of marine 
 recreational fishermen for various items on the Atlantic Coast, Gulf Coast, 
 and Pacific Coast. ^ From the latter study it is apparent that per capita 
 expenditures are highest on the Gulf Coast and lowest on the Pacific Coast. 
 This had to do with length of season, variations in the type of fishing, 
 as well as relative propensities to spend for various classes of expenditure 
 items. 
 
 These were taken from the 1970 Saltwater Angling Survey , National Marine 
 Fishery Service, April, 1973. 
 
 These were taken from the 1970 National Survey of Fishing and Hunting , 
 Bureau of Sport Fisheries and Wildlife. These three areas or regions 
 are the finest level of disaggregation shown for expenditure data. 
 
 34 
 
Calculations of the regional impacts were performed using the following 
 equation: 
 
 '"■\m 
 
 "tj 
 
 where, 
 
 E. . = economic impact measure in Region i for expenditure 
 -^ category j , 
 
 n = number of fishermen who fished in Region i by type of 
 fishing k , 
 
 n = sum of the number of fishermen fishing in each Region 
 by type of fishing k, 
 
 p. . = per capita expenditure in Region i for expenditure 
 ^^ category j, 
 
 p = average per capita expenditure in all Regions, 
 
 E . = economic impact measure for total nation for expenditure 
 category j. 
 
 Values of the variable n were taken frcm the 1970 Saltwater Angling Survey . 
 This provides data on the total nvimber of fishermen in each Region as well as 
 total number of fishermen who fished by private or rented boat and who fished 
 by party or charter boat. Exhibit 3-1 shows how the number of fishermen by 
 type of fishing were assigned to various economic expenditure categories. 
 
 Values of the vciriable p. . and p were taken from those expenditure categories 
 in the 1970 National Survey of Fishing and Hunting which most closely 
 resembled the economic expenditure categories estimated in this study (see 
 Exhibit 3-1) . Per capita values for the Atlantic Coast were assigned to 
 Itegions I. II, and III; for the Gulf Coast to Regions IV and V; and for 
 the Pacific Coast to Regions VI and VII. 
 
 Values of the variable E are the national economic measures for sales, value 
 added, wages and salaries, employment, and annual capital expenditures. These 
 are the figures presented in Exhibit 3-1. 
 
 Exhibits 3-2 through 3-8 present the results of the regional disaggregation of 
 the national economic impact measures. These represent the impacts (which 
 may occur either in the Region itself or in other parts of the nation) 
 associated with marine recreational fishing carried on in that particular 
 region. Impacts associated with business areas such as retail trade, marinas, 
 commercial sportfishing vessels, food, and bait would for the most part occur 
 
 35 
 
Exhibit 3-1 
 
 Basis for Allocating Type of Fishing to 
 Economic Impact Categories 
 
 Economic Expenditure 
 Category 
 
 Fishing Tackle 
 
 Boats 
 
 Motors 
 
 Trailers 
 
 Marinas 
 
 Commercial Sportfishing Vessels 
 
 Boat Fuel 
 
 Food 
 
 Lodging 
 
 Travel 
 
 Boat Insurance 
 
 Bait 
 
 Other 
 
 Type of Fishing Used to Determine 
 Relative Number of Fishermen 
 
 All fishermen 
 
 Private or rented boat 
 
 Private or rented boat 
 
 Private or rented boat 
 
 Private or rented boat 
 
 Party or charter boat 
 
 Private or rented boat 
 
 All fishermen 
 
 All fisherrnen 
 
 All fishermen 
 
 Private or rented boat 
 
 All fishermen 
 
 All fishermen 
 
 36 
 
Exhibit 3-2 
 
 Economic Impacts of Marine Recreational Fishing 
 in the North Atlantic Region (Region I) 
 1975 
 
 
 Sales 
 
 Value-Added 
 
 
 (thousands 
 
 (thousands 
 
 
 of dollars) 
 
 of 
 
 dollars) 
 
 Fishing Tackle 
 
 
 
 
 Manufacturing 
 
 9,110 
 
 
 5,760 
 
 Wholesale Trade 
 
 10,230 
 
 
 960 
 
 Retail Trade 
 
 21,750 
 
 
 8,310 
 
 Boats 
 
 
 
 
 Manufacturing 
 
 21,310 
 
 
 9,350 
 
 Retail Trade 
 
 31,890 
 
 
 5,060 
 
 Motors 
 
 
 
 
 Manufacturing 
 
 7,610 
 
 
 3,460 
 
 Retail Trade 
 
 10,380 
 
 
 1,610 
 
 Trailers 
 
 
 
 
 Manufacturing 
 
 2,300 
 
 
 1,070 
 
 Retail Trade 
 
 2,760 
 
 
 460 
 
 Marinas 
 
 36,790 
 
 
 14,720 
 
 Wages & Salaries 
 (thousands 
 of dollars) 
 
 2,510 
 
 750 
 
 2,530 
 
 Commercial Sport- 
 fishing Vessels 
 
 18,000 
 
 10,780 
 
 4,520 
 2,390 
 
 1,290 
 780 
 
 380 
 
 210 
 
 9,930 
 
 5,230 
 
 Employment 
 (person-years) 
 
 400 
 
 80 
 
 370 
 
 630 
 310 
 
 90 
 100 
 
 40 
 
 30 
 
 1,000 
 
 720 
 
 Annual Capital 
 
 Expenditures 
 
 (thousands of dollars) 
 
 400 
 10 
 60 
 
 260 
 180 
 
 230 
 70 
 
 80 
 20 
 
 740 
 
 1,250 
 
 Boat Fuel 
 
 
 
 
 Manufacturing 
 
 7 
 
 510 
 
 Wholesa 
 
 le Trade 
 
 11 
 
 190 
 
 Retail 
 
 Trade 
 
 13 
 
 180 
 
 Food 
 
 
 43 
 
 100 
 
 lodging 
 
 
 10 
 
 090 
 
 Travel 
 
 
 
 
 Manufacturing 
 
 23 
 
 160 
 
 Wholesa 
 
 le Trade 
 
 34 
 
 470 
 
 Retail 
 
 Trade 
 
 40 
 
 570 
 
 Boat Insurance 
 
 8 
 
 580 
 
 Bait 
 
 
 39 
 
 400 
 
 Other 
 
 
 28 
 
 ,590 
 
 TOTAL 
 
 
 305 
 
 ,080 
 
 1,230 
 1,070 
 2,150 
 
 15,530 
 
 5,280 
 
 4,000 
 3,310 
 4,700 
 
 1,990 
 
 7,840 
 
 5,720 
 
 114,360 
 
 140 
 230 
 750 
 
 9,910 
 
 2,670 
 
 540 
 
 840 
 
 2,960 
 
 750 
 
 3,230 
 
 3,430 
 
 55,970 
 
 10 
 
 20 
 
 160 
 
 2,090 
 
 560 
 
 30 
 
 90 
 
 520 
 
 60 
 
 490 
 
 500 
 
 8,300 
 
 340 
 170 
 110 
 
 1,170 
 
 270 
 
 1,030 
 520 
 330 
 
 240 
 570 
 
 8,050 
 
 37 
 
Exhibit 3-3 
 
 Economic In^acts of Marine Recreational Fishing 
 in the Middle Atlantic Region (Region II) 
 1975 
 
 Sales 
 (thousands 
 of dollars) 
 
 Value-Added 
 (thousands 
 of dollars) 
 
 Wages & Salaries 
 (thousands 
 of dollars) 
 
 Employment 
 (person-years) 
 
 Annual Capital 
 
 Expenditures 
 
 (thousands of dollars) 
 
 Fishing Tackle 
 
 Manufacturing 9,670 
 
 Wholesale Trade 10,850 
 
 Retail Trade 2 3,070 
 
 Boats 
 
 Manufacturing 
 Retail Trade 
 
 Motors 
 
 Manufacturing 
 Retail Trade 
 
 Trailers 
 
 Manufacturing 
 Retail Trade 
 
 Marinas 
 
 Coiranercial Sport- 
 fishing Vessels 
 
 Boat Fuel 
 
 Manufacturing 
 Wholesale Trade 
 Retail Trade 
 
 Food 
 
 Lodging 
 
 22,520 
 33,700 
 
 8,040 
 10,970 
 
 2,430 
 2,920 
 
 38,880 
 
 25,100 
 
 7,940 
 11,830 
 13,930 
 
 45,720 
 
 10,700 
 
 Travel 
 
 Manufacturing 24,250 
 
 Wholesale Trade 36,100 
 
 Retail Trade 42,480 
 
 Boat Insurance 
 
 Bait 
 
 Other 
 
 TOTAL 
 
 9,070 
 
 41,800 
 
 30,330 
 
 328,670 
 
 6,110 
 1,020 
 8,820 
 
 9,880 
 5,350 
 
 3,660 
 1,710 
 
 1,130 
 490 
 
 15,550 
 
 15,020 
 
 1,300 
 1,130 
 2,270 
 
 16,470 
 
 5,600 
 
 4,190 
 3,460 
 4,920 
 
 2,110 
 
 8,320 
 
 6,070 
 
 124,580 
 
 2,660 
 
 800 
 
 2,680 
 
 4,780 
 2,530 
 
 1,360 
 830 
 
 410 
 230 
 
 10,500 
 
 7,280 
 
 150 
 240 
 790 
 
 10,510 
 
 2,840 
 
 570 
 
 880 
 
 3,100 
 
 790 
 
 3,420 
 
 3,640 
 
 60,990 
 
 420 
 
 80 
 
 390 
 
 670 
 330 
 
 100 
 110 
 
 50 
 30 
 
 1,050 
 
 1,010 
 
 10 
 
 30 
 
 170 
 
 2,220 
 
 590 
 
 40 
 
 90 
 
 540 
 
 60 
 
 520 
 
 540 
 
 9,050 
 
 420 
 
 70 
 
 660 
 
 280 
 190 
 
 240 
 70 
 
 80 
 20 
 
 780 
 
 1,750 
 
 360 
 180 
 110 
 
 1,240 
 
 290 
 
 1,080 
 550 
 350 
 
 250 
 
 610 
 
 9,580 
 
 38 
 
Exhibit 3-4 
 
 Economic Impacts of Marine Recreational Fishing 
 in the South Atlantic Region (Region III) 
 1975 
 
 
 Sales 
 
 Value-Added 
 
 Wages & Salaries 
 
 
 Annua 
 
 1 Capital 
 
 
 (thousands 
 
 (thousands 
 
 (thousands 
 
 Employment 
 
 Expenditures 
 
 
 of dollars) 
 
 of dollars) 
 
 of dollars) 
 
 (person-years) 
 
 (thousand 
 
 s of dollars) 
 
 Fishing Tackle 
 
 
 
 Manufacturing 
 
 9,890 
 
 6,260 
 
 2,720 
 
 430 
 
 
 430 
 
 Wholesale Trade 
 
 11,100 
 
 1,040 
 
 820 
 
 90 
 
 
 70 
 
 Retail Trade 
 
 23,600 
 
 9,020 
 
 2,740 
 
 400 
 
 
 680 
 
 Boats 
 
 
 
 
 
 
 
 Manufacturing 
 
 14,150 
 
 6,210 
 
 3,000 
 
 420 
 
 
 170 
 
 Retail Trade 
 
 21,170 
 
 3,360 
 
 1,590 
 
 210 
 
 
 120 
 
 Motors 
 
 
 
 
 
 
 
 Manufacturing 
 
 5,060 
 
 2,300 
 
 860 
 
 60 
 
 
 150 
 
 Retail Trade 
 
 6,890 
 
 1,070 
 
 520 
 
 70 
 
 
 50 
 
 Trailers 
 
 
 
 
 
 
 
 Manufacturing 
 
 1,530 
 
 710 
 
 260 
 
 30 
 
 
 50 
 
 Retail Trade 
 
 1,830 
 
 310 
 
 140 
 
 20 
 
 
 10 
 
 Marinas 
 
 24,430 
 
 9,770 
 
 6,600 
 
 660 
 
 
 490 
 
 Commercial Sport- 
 
 
 
 
 
 
 
 fishing Vessels 
 
 22,260 
 
 13,320 
 
 6,460 
 
 890 
 
 1 
 
 ,550 
 
 Boat Fuel 
 
 
 
 
 
 
 
 Manufacturing 
 
 4,990 
 
 810 
 
 90 
 
 10 
 
 
 220 
 
 Wholesale Trade 
 
 7,430 
 
 710 
 
 150 
 
 20 
 
 
 110 
 
 Retail Trade 
 
 8,750 
 
 1,430 
 
 500 
 
 110 
 
 
 70 
 
 Food 
 
 46,780 
 
 16,860 
 
 10,760 
 
 2,270 
 
 1 
 
 ,270 
 
 Lodging 
 
 10,950 
 
 5,740 
 
 2,900 
 
 600 
 
 
 300 
 
 Travel 
 
 
 
 
 
 
 
 Manufacturing 
 
 24,800 
 
 4,290 
 
 580 
 
 40 
 
 1 
 
 ,100 
 
 Wholesale Trade 
 
 36,930 
 
 3,540 
 
 900 
 
 90 
 
 
 560 
 
 Retail Trade 
 
 43,450 
 
 5,040 
 
 3,170 
 
 560 
 
 
 350 
 
 Boat Insurance 
 
 5,700 
 
 1,320 
 
 500 
 
 40 
 
 
 - 
 
 Bait 
 
 42,770 
 
 8,510 
 
 3,500 
 
 530 
 
 
 260 
 
 Other 
 
 30,330 
 
 6,070 
 
 3,640 
 
 540 
 
 
 610 
 
 TOTAL 
 
 288,910 
 
 107,690 
 
 52,400 
 
 8,090 
 
 8 
 
 ,820 
 
 39 
 
Exhibit 3-5 
 
 Economic Impacts of Marine Recreational Fishing 
 in the East Gulf of Mexico Region (Region IV) 
 1975 
 
 Fishing Tackle 
 Manufacturing 
 Wholesale Trade 
 Retail Trade 
 
 Boats 
 
 Manufacturing 
 Retail Trade 
 
 Motors 
 
 Manufacturing 
 Retail Trade 
 
 Trailers 
 
 Manuf ac turing 
 Retail Trade 
 
 Marinas 
 
 Sales 
 
 Value-Added 
 
 Wages 
 
 & Salaries 
 
 
 Annual Capital 
 
 (thousands 
 
 (thousands 
 
 (thousands 
 
 Employment 
 
 Expenditures 
 
 of dollars) 
 
 of dollars) 
 7,230 
 
 of 
 
 dollars) 
 
 (person-years) 
 500 
 
 (thousands of dollars) 
 
 11,450 
 
 
 3,150 
 
 SCO 
 
 12,850 
 
 1,200 
 
 
 940 
 
 100 
 
 80 
 
 27,310 
 
 10,440 
 
 
 3,170 
 
 460 
 
 780 
 
 43,300 
 
 19,000 
 
 
 9,190 
 
 1,280 
 
 S30 
 
 64,790 
 
 10,280 
 
 
 4,860 
 
 630 
 
 370 
 
 7,090 
 
 3,220 
 
 
 1,200 
 
 80 
 
 210 
 
 9,670 
 
 1,500 
 
 
 730 
 
 100 
 
 60 
 
 4,670 
 
 2,180 
 
 
 780 
 
 90 
 
 160 
 
 5,610 
 
 930 
 
 
 440 
 
 60 
 
 30 
 
 74,760 
 
 29,900 
 
 20,190 
 
 2,030 
 
 1,500 
 
 Commercial Sport- 
 fishing Vessels 
 
 Boat Fuel 
 
 23,560 
 
 14,100 
 
 6,840 
 
 Manufacturing 
 
 15,260 
 
 2,490 
 
 280 
 
 Wholesale Trade 
 
 22,740 
 
 2,180 
 
 470 
 
 Retail 
 
 Trade 
 
 26,790 
 
 4,360 
 
 1,530 
 
 Food 
 
 
 47,420 
 
 17,090 
 
 10,910 
 
 liodging 
 
 
 14,420 
 
 7,550 
 
 3,820 
 
 Travel 
 
 
 
 
 
 Manufacturing 
 
 24,290 
 
 4,200 
 
 570 
 
 Wholesale Trade 
 
 36,150 
 
 3,470 
 
 880 
 
 Retail 
 
 Trade 
 
 42,550 
 
 4,930 
 
 3,100 
 
 Boat Insurance 
 
 17,440 
 
 4,050 
 
 1,530 
 
 Bait 
 
 
 44,300 
 
 8,820 
 
 3,630 
 
 Other 
 
 
 25,650 
 
 5,130 
 
 3,080 
 
 TOTAL 
 
 
 424,270 
 
 164,250 
 
 81,290 
 
 940 
 
 20 
 
 50 
 
 330 
 
 2,300 
 
 790 
 
 40 
 90 
 
 540 
 
 130 
 
 550 
 
 450 
 
 11,560 
 
 1,640 
 
 690 
 340 
 
 220 
 
 1,290 
 390 
 
 1,080 
 550 
 350 
 
 270 
 
 510 
 11,550 
 
 40 
 
Exhibit 3-6 
 
 Economic Impacts of Marino Recreational Fishing in the 
 West Gulf of Mexico Region (Region V) 
 1975 
 
 Sales 
 (thousands 
 of dollars) 
 
 Value-Added 
 (thousands 
 of dollars) 
 
 Wages & Salaries 
 (thousand 
 of dollars) 
 
 Employment 
 (person-years) 
 
 Annual Capital 
 
 Expenditures 
 
 (thousands of dollars) 
 
 Fishing Tackle 
 
 Manufacturing 
 
 6,750 
 
 4,260 
 
 1,860 
 
 Wholesale Trade 
 
 7,580 
 
 710 
 
 550 
 
 Retail Trade 
 
 16,100 
 
 6,160 
 
 1,870 
 
 Boats 
 
 
 
 
 Manufacturing 
 
 20,250 
 
 8,890 
 
 4,300 
 
 Retail Trade 
 
 30,310 
 
 4,810 
 
 2,270 
 
 Motors 
 
 
 
 
 Manufacturing 
 
 3,320 
 
 1,510 
 
 560 
 
 Retail Trade 
 
 4,520 
 
 700 
 
 340 
 
 Trailers 
 
 
 
 
 Manufacturing 
 
 2,190 
 
 1,020 
 
 360 
 
 Retail Trade 
 
 2,620 
 
 440 
 
 200 
 
 Marinas 
 
 34,970 
 
 13,990 
 
 9,440 
 
 Commercial Sport- 
 
 
 
 
 Fishing Vessels 
 
 7,370 
 
 4,410 
 
 2,140 
 
 Boat Fuel 
 
 
 
 
 Manufacturing 
 
 7,140 
 
 1,170 
 
 130 
 
 Wholesale Trade 
 
 10,640 
 
 1,020 
 
 220 
 
 Retail Trade 
 
 12,530 
 
 2,040 
 
 710 
 
 Food 
 
 27,990 
 
 10,080 
 
 6,440 
 
 Lodging 
 
 8,510 
 
 4,460 
 
 2,250 
 
 Travel 
 
 
 
 
 Manufacturing 
 
 14,320 
 
 2,480 
 
 330 
 
 Wholesale Trade 
 
 21,320 
 
 2,050 
 
 520 
 
 Retail Trade 
 
 25,100 
 
 2,910 
 
 1,830 
 
 Boat Insurance 
 
 8,130 
 
 1,890 
 
 710 
 
 Bait 
 
 26,140 
 
 5,200 
 
 2,140 
 
 Other 
 
 15,130 
 
 3,030 
 
 1,820 
 
 TOTAL 
 
 219,420 
 
 83,230 
 
 41,000 
 
 290 
 
 60 
 
 270 
 
 600 
 300 
 
 40 
 40 
 
 40 
 
 30 
 
 950 
 300 
 
 10 
 
 20 
 150 
 
 1,360 
 
 470 
 
 20 
 
 50 
 
 320 
 
 60 
 
 320 
 
 270 
 
 5,970 
 
 300 
 
 50 
 
 460 
 
 250 
 170 
 
 100 
 30 
 
 70 
 10 
 
 700 
 
 510 
 
 320 
 160 
 100 
 
 760 
 
 230 
 
 640 
 320 
 200 
 
 160 
 300 
 
 5,840 
 
 41 
 
E^ibit 3-7 
 
 EconoBic lapacts of Marine Recreational Fishing 
 
 in the South Pacific Region (Region VI) 
 
 1975 
 
 
 Sales 
 (thousands 
 of dollars) 
 
 4.090 
 4,590 
 9,750 
 
 Value-Added 
 (thousands 
 of dollars) 
 
 2,580 
 
 430 
 
 3,730 
 
 Wages K Salaries 
 (thousands 
 of dollars 
 
 BB^loyacnt 
 (person-years ) 
 
 180 
 
 40 
 
 160 
 
 Annual Capital 
 
 Expenditures 
 
 (thousands of dollars) 
 
 Fishing Tackle 
 Manufacturing 
 Wholesale Trade 
 Retail Trade 
 
 1,130 
 
 340 
 
 1,130 
 
 180 
 30 
 
 280 
 
 Boats 
 
 Manufacturing 
 Retail Trade 
 
 6.000 
 8,990 
 
 2,640 
 1,430 
 
 1,270 
 
 670 
 
 180 
 90 
 
 70 
 50 
 
 Motors 
 
 Manufacturing 
 Retail Trade 
 
 640 
 870 
 
 290 
 140 
 
 110 
 70 
 
 10 
 10 
 
 20 
 10 
 
 Trailers 
 
 Manufacturing 
 Retail Trade 
 
 650 
 780 
 
 300 
 130 
 
 110 
 60 
 
 10 
 10 
 
 20 
 10 
 
 Marinas 
 
 10.370 
 
 4,150 
 
 1,530 
 
 210 
 
 210 
 
 CoBsaercial Sport- 
 fishing Vessels 
 
 12,800 
 
 7,660 
 
 3,710 
 
 510 
 
 890 
 
 Boat Fuel 
 
 Manufacturing 
 Wholesale Trade 
 Retail Trade 
 
 2.120 
 3.150 
 3,720 
 
 350 
 300 
 600 
 
 40 
 
 60 
 
 210 
 
 neg. 
 10 
 50 
 
 1,000 
 50 
 30 
 
 Pood 
 
 14,520 
 
 5,230 
 
 3,340 
 
 710 
 
 390 
 
 lodging 
 
 3,360 
 
 1,760 
 
 890 
 
 190 
 
 90 
 
 Travel 
 
 tenufacturing 
 Wholesale Trade 
 Retail Trade 
 
 9,080 
 13,520 
 15,910 
 
 1,570 
 1,300 
 1,840 
 
 210 
 
 330 
 
 1,160 
 
 10 
 
 30 
 
 200 
 
 400 
 200 
 130 
 
 Boat Insurance 
 
 2,420 
 
 560 
 
 210 
 
 20 
 
 - 
 
 Bait 
 
 8,680 
 
 1,730 
 
 710 
 
 110 
 
 SO 
 
 Other 
 
 15,860 
 
 3,170 
 
 1,900 
 
 280 
 
 320 
 
 TOTAL 
 
 108,030 
 
 41,890 
 
 19,190 
 
 3,020 
 
 4,430 
 
 42 
 
Exhibit 3-8 
 
 EconoBic iB^iacts o£ Marine Recreational Fishing in 
 the North Pacific Region (Region VII) 
 1975 
 
 
 Sales 
 
 Value-Added 
 
 Wages £ Salaries 
 
 
 Annual 
 
 Capital 
 
 
 (thousands 
 
 (thousands 
 
 ( thousands 
 
 En{>loynient 
 
 Expenditures 
 
 
 of dollars) 
 
 of dollars) 
 
 of dollars) 
 
 (person-years) 
 
 ( thousands 
 
 of dollars) 
 
 Fishing Tackle 
 
 
 
 Manufacturing 
 
 6,000 
 
 3,790 
 
 1,650 
 
 260 
 
 
 260 
 
 Wholesale 
 
 6,730 
 
 630 
 
 490 
 
 50 
 
 
 40 
 
 Retail Trade 
 
 14,310 
 
 5,470 
 
 1,660 
 
 240 
 
 
 410 
 
 Boats 
 
 
 
 
 
 
 
 Manufacturing 
 
 11,370 
 
 4,990 
 
 2,410 
 
 340 
 
 
 140 
 
 Retail Trade 
 
 17,010 
 
 S,700 
 
 1,280 
 
 170 
 
 
 100 
 
 Motors 
 
 
 
 
 
 
 
 Manufacturing 
 
 1,210 
 
 550 
 
 210 
 
 10 
 
 
 40 
 
 Retail Trade 
 
 1,660 
 
 260 
 
 130 
 
 20 
 
 
 10 
 
 Trailers 
 
 
 
 
 
 
 
 Manufacturing 
 
 1,230 
 
 570 
 
 200 
 
 20 
 
 
 40 
 
 Retail Trade 
 
 1,470 
 
 250 
 
 110 
 
 10 
 
 
 10 
 
 Marinas 
 
 19,630 
 
 7.850 
 
 5,300 
 
 530 
 
 
 390 
 
 Commercial Sport- 
 
 
 
 
 
 
 
 fishing Vessels 
 
 12,850 
 
 7,690 
 
 3,730 
 
 520 
 
 
 900 
 
 Boat Fuel 
 
 
 
 
 
 
 
 Manufacturing 
 
 4,010 
 
 650 
 
 70 
 
 10 
 
 
 180 
 
 Wholesale Trade 
 
 5,970 
 
 570 
 
 120 
 
 10 
 
 
 90 
 
 Retail Trade 
 
 7,030 
 
 1,150 
 
 400 
 
 90 
 
 
 60 
 
 Food 
 
 21,290 
 
 7,670 
 
 4,900 
 
 1,030 
 
 
 580 
 
 Lodging 
 
 4,930 
 
 2,580 
 
 1,310 
 
 270 
 
 
 130 
 
 Travel 
 
 
 
 
 
 
 
 Manufacturing 
 
 13,330 
 
 2,300 
 
 310 
 
 20 
 
 
 590 
 
 Wholesale Trade 
 
 19,840 
 
 1,900 
 
 480 
 
 50 
 
 
 300 
 
 Retail Trade 
 
 23,350 
 
 2,710 
 
 1,700 
 
 300 
 
 
 190 
 
 Boat Insurance 
 
 4,580 
 
 1,060 
 
 400 
 
 30 
 
 
 - 
 
 Bait 
 
 12,740 
 
 2,540 
 
 1,040 
 
 160 
 
 
 80 
 
 Other 
 
 23,260 
 
 4,650 
 
 2,790 
 
 410 
 
 
 470 
 
 l-oa'AL 
 
 164,110 
 
 62,530 
 
 30,690 
 
 4,550 
 
 5 
 
 ,010 
 
 43 
 
within the particular region where fishing occurs. Economic impacts such as 
 value added, employment, and wages and salaries in these business areas typically 
 represent roughly 60 percent of total economic impacts. However, impacts 
 associated with manufacturing frequently would occur in other parts of the 
 country. 
 
 Of the total national impacts associated with marine recreational fishing, 
 it is estimated that approximately 16 percent are due to fishing in Region I 
 (North Atlantic) , 18 percent in Region II (Middle Atlantic) , 16 percent in 
 Region III (South Atlantic) , 23 percent in Region IV (East Gulf of Mexico) , 
 12 percent in Region V (West Gulf of Mexico) , 6 percent in Region VI 
 (South Pacific) , and 9 percent in Region VII (North Pacific) . 
 
 3.2 
 
 Methodology for Relating Impacts to Fishery Management Units 
 
 The recently created Regional FJ shery Management Councils as of this writing 
 have selected 57 fisheries for which they anticipate preparing fishery manage- 
 ment plans. The fisheries constitute a species or group of related species 
 which inhabit a common geographic area. The Regional Councils established 
 in the Fishery Conservation and Management Act have jurisdiction over the 
 fishery resources in waters extending from 3 to 200 nautical miles offshore. 
 The boundaries of the seven Councils can be roughly defined as the offshore 
 areas off the following states or territories: 
 
 New England Council 
 
 Maine, New Hampshire, Massachusetts, 
 Rhode Island, Connecticut 
 
 Mid-Atlantic Council; 
 
 New York, New Jersey, Delaware, Pennsylvania, 
 Maryland, Virginia 
 
 South Atlantic Council: 
 
 North Carolina, South Carolina, Georgia, 
 Florida 
 
 Carribbean Council 
 Gulf Council: 
 
 Virgin Islands, Puerto Rico 
 
 Texas, Louisiana, Mississippi, Alabama, 
 Florida 
 
 Pacific Council: 
 North Pacific Council 
 
 California, Oregon, Washington, Idaho 
 
 Alaska (with authority over the fisheries 
 in the Arctic Ocean, Bering Sea, and 
 Pacific Ocean seaward of Alaska) 
 
 Western Pacific Council 
 
 Hawaii, American Samoa, Guam 
 
 Washington and Oregon are in two councils because of migritory habits of certain 
 anadromous species (i.e., salmon) and because their fishermen participate in 
 the fisheries off the Coast of Alaska. 
 
 44 
 
Exhibit 3-9 lists the 57 fisheries selected by the Councils for the pre- 
 paration of fishery management plans as of Mid-April, 1977. From informa- 
 tion supplied by the NMFS certain of these fisheries have been designated 
 as having a significant amount of recreational fishing activity. Similarly, 
 for certain fisheries it has been indicated that most United States fishing 
 (not considering foreign catch) takes place within three miles of shore. 
 For this latter category the Regional Councils would not be able to preempt 
 management authority from states. However, presumably regulation of foreign 
 catch, if any, between the 3 and 200 mile limits would be within the purvue 
 of the NMFS. 
 
 Thus it may be appropriate for Regional Councils to consider the economic 
 impact of recreational fishing for those fisheries where U.S. fishing occurs 
 mostly within three miles, for species for which there is a substantial 
 amount of migration across the three mile limit. This is because management 
 of the fishery may be necessary to help preserve appropriate allocations to 
 U.S. recreational fishermen. 
 
 There are several methodological considerations involved in allocating economic 
 impacts to specific "fishery management units." These include: 
 
 o The fact that most fishermen fish for several types of 
 fish and certain common expenditures such as tackle, 
 boats, and other non-trip related expenses may be common 
 for several types of fishing. 
 
 o Per capita expenditures will vary greatly by species being 
 fished for depending on type of gear needed, frequency of 
 fishing, etc. 
 
 o The various Councils aggregate species to different degrees 
 in defining a "fishery management unit." Some may include 
 only one species. Others may include a wide range of 
 species in a "fishery management unit." 
 
 o There is presently a general lack of data showing actual 
 level of effort expended on a particular species, as well 
 as typical expenditures used in pursuing particular species. 
 
 In spite of the above limitations a methodology was developed for making at 
 least a first attempt to allocate economic impacts to "fishery management 
 units." Because of the diversity of the "fishery management units," a 
 rather eclectic approach must of necessity be used. Because of data voids 
 rather gross assumptions must be applied in some cases. 3 
 
 The approach shown here was devised solely on the basis of the availability 
 of existing national data. A more comprehensive approach requiring sub- 
 stantial data collection would be to attempt (e.g., through surveys) to 
 estimate expenditures by species (e.g., by activity level), with the 
 development of a related procedure for allocating expenditures across 
 species when several are sought simultaneously. 
 
 45 
 
Exhibit 3-9 
 
 Fishery Management Units for Which 
 Councils Anticipate Preparing Plans 
 
 Council 
 
 Fishery Management Unit 
 
 Recreational 
 
 Fish 
 
 Fished Mostly 
 Within 3 Miles 
 From Shore 
 
 New England 
 
 Mid-Atlantic 
 
 Haddock 
 
 Yellowtail flounder 
 
 Sea herring 
 
 Cod 
 
 Pollock 
 
 Northern shrimp 
 
 Redfish 
 
 Hake 
 
 Sea scallops 
 
 Mackerel 
 Other flounder 
 Squid 
 Scup 
 
 Butterfish 
 River herring 
 Sea bass 
 Pelagic sharks 
 American shad 
 Surf clam 
 Ocean quahog 
 
 South- Atlantic 
 
 Billfish 
 
 Snapper/grouper complex 
 
 King and Spanish mackerel 
 
 Corals 
 
 Spiny lobster 
 
 Caribbean 
 
 Billfish 
 
 Spiny lobster 
 
 Reef fish 
 
 Migratory coastal pelagic 
 
 Sharks 
 
 Corals 
 
 Ornamental aquarium fishes 
 
 Marine turtle 
 
 Gulf of Mexico 
 
 Bill fish/pelagic shark 
 
 Shallow water shrimp 
 
 Groundf ish 
 
 Reef fishes 
 
 Migratory coastal pelagics 
 
 Pacific 
 
 Salmon 
 Anchovy 
 Ground fish 
 Jack mackerel 
 Dungeness crab 
 Pink salmon 
 
 North Pacific 
 
 King crab 
 
 Tanner crab 
 
 Shrimp 
 
 Dungeness crab 
 
 Scallop 
 
 Groundfish (Boring Soa and 
 
 Aleutions) 
 Groundfish (Gulf of Alaska) 
 Ocean salmon 
 
 Western Pacific 
 
 Spiny lobster 
 
 Precious corals 
 
 Groundfisl) 
 
 Pelagic fishery resources 
 
 Snapper/grouper complex 
 
 46 
 
The basic suggested methodology given the present state of data is suggested 
 as follows. It is suggested that economic impacts be allocated on the basis 
 of the relative number of anglers fishing for a particular species of fish 
 in the Regions presented in Section 3.1. While those Regions do not correspond 
 exactly to the areas of the Regional Councils, the approximations may still 
 be useful as a first estimate. Regions I, II, and III (as given in Section 3.1) 
 correspond fairly closely to the New England, Mid-Atlantic, and South Atlantic 
 Covmcils respectively. Regions IV and V together correspond to the Gulf 
 Council. Regions VI and VII correspond fairly closely to the Pacific Council 
 except that Region VII includes Alaska which is not in the Pacific Council. 
 The North Pacific Council corresponds to the waters off Alaska. A previously 
 published study has estimated certain of the economic impacts associated with 
 fishing in Alaska."* 
 
 Using this rather gross approximating method, allocations of economic impacts 
 can be assigned to specific species based on the number of fishermen who 
 fished for a particular species based on data in the 1970 Saltwater Angling 
 Survey , Table 4. To allocate impacts to a specific species in a region 
 (corresponding to a "fishery management unit"), the ratio of the number of 
 fisheririen fishing for a particular species (in a given Region) to the sum 
 of the numbers of fishermen who fished for all species in that region would 
 be calculated. Note that the above sum is not equal to the total number of 
 fishermen in that region because fishermen fish for more than one species. 
 This procedure however does tend to allocate on the relative importance of 
 the species for which fishermen fished. The above ratio would then be used 
 to allocate the economic impacts to a species using the regional economic 
 impacts for the appropriate Region presented in Exhibits 3-2 through 3-8. 
 if a "fishery management unit" were to include more than one species, it 
 would be appropriate to aggregate the results for the various species involved. 
 
 As an example of this technique, estimates were made of the economic impacts 
 associated with recreational fishing for the "fishery management unit" 
 ocean salmon for the Pacific Council. From Table 4, pages 14 through 16 
 of the 1970 Saltwater Angling Survey , it was determined that 593,000 anglers 
 fished for various salmon in Region VII (218,000 for chinook, 321,000 for 
 coho, and 54,000 for pink). Region VI, also a part of the Pacific Council 
 had negligible salmon fishing. The sum of the column showing anglers equals 
 2,269,000. Thus the allocation ratio is 0.261 (593/2,269). When this ratio 
 is applied to the economic impact measures presented in Exhibit 3-8, the 
 resultant values for the year 1975 are: 
 
 Sales $42,800,000 
 
 Value Added $16,320,000 
 
 Wages and Salaries $ 8,010,000 
 
 Employment 1,190 person-years 
 
 Annual Capital Expenditures $ 1,310,000 
 
 4 
 
 Alaska Department of Fish and Gaime, Alaska Sportfishing Survey , Juneau, 
 
 Alaska, 1973. Data have not currently been uncovered to disaggregate 
 
 impacts for the Caribbean and Western Pacific Regional Councils. 
 
 47 
 
In this particular case the above figures would also include salmon fishing 
 in Alaska which is the North Pacific Council. This would in general not be 
 encountered in the Councils located on the Atlantic and Gulf coasts. 
 
 As one means of checking the relative validity of this procedure, data from 
 independent studies estimating the value of expenditures associated with 
 saltwater salmon fishing were reviewed. 
 
 A rough estimate of saltwater salmon fishing in Alaska in 1973 was made from 
 a study of Alaska fishing. 5 Total expenditures associated with all fishing 
 (both freshwater and saltwater) was estimated to be $52 million. Of an 
 estimated 3,743 thousand fish landed 614 thousand were salmon. Using these 
 figures a rough measure of 
 
 $52 o 614 = $8.5 million 
 3,743 
 in expenditures was estimated to be associated with recreational angling 
 for salmon. (Note that because a certain amount of salmon are caught in 
 freshwater, this figure overestimates somewhat expenditures associated 
 with salmon caught only in saltwater.) 
 
 6 
 From a study of marine recreational fishing in the Pacific Northwest, $42.2 
 
 million was estimated as spent in Washington in 1973 on total recreational 
 
 salmon fishing. In the same study data showed that 86.5 percent of salmon 
 
 angling trips were made for fishing in the ocean. On this basis 
 
 $42.2 o 0.865 = $36.5 million 
 
 in expenditures were allocated to saltwater salmon fishing. 
 
 The same study estimated the number of ocean salmon angling trips for Oregon 
 in 1973 at 256,000. Using the same expenditure per angler trip as in 
 Washington which was $24.20, total Oregon expenditures associated with salt- 
 water salmon fishing was estimated at 
 
 $24.20 o 256,000 = $6.2 million 
 
 in 1973. 
 
 Using these data total expenditures for marine recreational fishing for salmon 
 in the Pacific and North Pacific Council Area in 1973 was estimated to be: 
 
 Alaska $ 8.5 
 
 Washington $36.5 
 
 Oregon $ 6.2 
 
 $51.2 
 
 Alaska Department of Fish and Game, Alaska Sport fishing Survey , Juneau, 
 Alaska, 1973. 
 
 NMFS Pacific Northwest Region, Marine Recreational Fisheries Program 
 Development Plan , January, 1975. 
 
 48 
 
Adjusting this figure for inflation from 1973 to 1975 (where the consumer 
 price index rose by a factor of 1.21) this figure becomes $62.0. This figure 
 can thus be compared with the total sales figure of $42.8 million calculated 
 using the previously described methodology for disaggregating the national 
 impacts by "fishery management unit." Consequently the reviewed approach 
 appears to provide only a rough estimate of national impacts that may be 
 associated with a "fishery management unit." 
 
 49 
 
BIBLIOGRAPHY 
 
Bibliography 
 
 Adams, Robert L. ; Lewis, Robert C. ; and Drake, Bruce H., Outdoor 
 Recreation, A Legacy for America . A Report for the U.S Depart- 
 ment of Interior, Bureau of Outdoor Recreation, 197 3. 
 
 The report gives a overview of outdoor recreational activity 
 demand and supply characteristics for 1972 to 1978. 
 
 Alabama Department of Conservation and Natural Resources. 
 Alabama Fishing and Boating Areas . Montgomery, Alabama. 
 
 A complete listing of fishing areas and facilities in the state. 
 
 Alaska Department of Fish and Game. Alaska Sport Fishing Survey . 
 Juneau, Alaska, 1973. 
 
 The report presents the results of a mail survey of anglers 
 conducted by Boeing Computer Services. Estimates are made 
 of the number of fish caught, the man-days fished and fishing 
 related expenditures made in Alaska in 1973. 
 
 Alexandria Drafting Co. Saltwater Sportfishing and Boating in 
 Maryland . Alexandria, Virginia. 
 
 A complete atlas of Maryland fishing grounds including a 
 list of the names and telephone numbers of charter boats and 
 names and addresses of boating facilities. 
 
 American Fishing Tackle Manufacturers Association. Directory 
 1975 - 1976 . Chicago, Illinois, 1976. 
 
 The directory lists the names, addresses, and telephone numbers 
 of all members of the association. 
 
 Bearden, Charles M. , and McKenzie, Michael D. , A Guide to Salt- 
 water Sport Fishing_ in South Carolina . Charleston, South Carolina: 
 South Carolina Wildlife and Marine Resources Department, no publi- 
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 This publication describes the various types of fishing to be 
 found near the South Carolina shores, the fishing facilities at 
 various ports and navigational information for boaters. 
 
 Berssen, William, ed. Sea Boating Almanac . Ventura, California: Sea 
 Boating Almanac, 1976. 
 
 An annual publication describing boating facilities along the 
 West Coast from Baja, California through Southern Alaska. 
 
 50 
 
Bibliography (cont.) 
 
 8. The Boating Group. The Boating Industry ^4arine Buyers Guide . 
 
 New York, New York: Cahners Publishing Co., annual. 
 
 A complete directory of marine companies and their products. 
 
 9. Briggs , Phillip T. "The Sport Fisheries of Great South Bay and 
 
 Vicinity", New York Fish and Game Journal . Vol. 9, No. 1. 
 January, 1962. pp. 1-36. 
 
 An historical analysis of catch and effort by species and type 
 of fishing. 
 
 10. Bromberg, Kenneth M. Determination of the Number of Commercial 
 
 and Recreational Boats in the U.S. , Their Use, and Selected 
 Characteristics , a Report to U.S. Department of Commerce, 
 National Marine Fisheries Service, December 28, 1973. 
 
 The report presents the results of a national telephone survey 
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 boats are presented by boat length for the nation, by region 
 and by state. Similar data are presented describing boat 
 usage for saltwater sportfishing including the number of 
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 1976. 
 
 The authors provide a detailed discussion of the quantitative 
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 The report outlines methods for estimating demand functions 
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 13. Bureau of Outdoor Recreation, Pacific Northwest Region and Seattle 
 
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 This report provides information on the n\amber and types of 
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 51 
 
Bibliography (cont.) 
 
 14. California Department of Fish and Game. Report of the California 
 
 Partyboat Fleet . Sacramento, Calif orina: California Department 
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 Provides a summary of partyboat fishing statistics for Cali- 
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 species, a summary of the number of fish caught, total number 
 of anglers and the total number of boats that were used for 
 fishing. Data are also presented by geographic region and 
 by port. 
 
 15. California Department of Navigation and Ocean Development. 
 
 Benicia Marina Feasibility Report . Sacramento, California. 
 July, 1976. 
 
 The report describes the engineering, economic, and financial 
 conditions of constructing a marina within the City of Benicia. 
 
 16. California Department of Navigation and Ocean Development. 
 
 Ventura Marina Parcel No. 7 - Marina Expansion Feasibility 
 Report . Sacramento, California. May, 1976. 
 
 The report describes the engineering, economic and financial 
 considerations of expanding the marina within the city of 
 Ventura. 
 
 17. California Resources Agency, Department of Navigation and Ocean 
 
 Development. Boating Facilities Guide . Sacramento, California. 
 1974. 
 
 A listing of boating facilities for the entire California Coast. 
 Maps are included to show the location of the facility. Guides 
 are available for southern, central, and northern areas. 
 
 18. Coastal Zone Resources Corporation, The Economic Impact of Commercial 
 
 Sports Fishing Activities in Morehead City, North Carolina . A 
 report for the Department of Administration, State of North Carolina. 
 April 1, 1972. 
 
 A complete study of the local impacts of charter and party boat 
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 19. Connecticut Department of Commerce. Connecticut Salt Water Fishing . 
 
 Hartford, Connecticut, 1976. 
 
 A brochure listing the names, addresses, and telephone numbers 
 of party and charter boats along the Connecticut Coast. 
 
 52 
 
Bibliography (cont. 
 
 20. Crompton , John J. and Ditton, Robert B. A Feasibi l ity Management 
 
 and Economic Study of Marinas on the Texas Gulf Coast . College 
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 Station - 
 
 The authors discuss the economic and financial characteristics 
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 21. Crutchfield, et.al. Survey of Washington Recreational Fishing 
 
 Charter Boat Industry . Institute for Marine Studies, University 
 of Washington, To be published. 
 
 The study will describe the activity and economics of the 
 commercial sportfishing vessels in Washington State. 
 
 22. Deuel, David G. 1970 Salt-Water Angling Survey . Washington, D.C.: 
 
 U.S. Government Printing Office, 1973. 
 
 Using follow-up interviews with salt-water sportf ishermen 
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 Survey of Fishing and Hunting , data was collected on the number 
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 anglers and their total catch were made from the data. 
 
 23. Ditton, Robert and Stephens, Mark. Coastal Recreation: A Handbook 
 
 for Planners and Managers for the Office of Coastal Zone Manage- 
 ment, U.S. Department of Commerce. January, 1976. 
 
 A Guide to coastal planning of recreational facilities which 
 discussed the responsibilities of federal agencies, the problem 
 of misallocation of recreational resources, methods in coastal 
 recreation planning and analysis, and strategies for coastal 
 recreation management. 
 
 24. Ditton, Robert and Strang, William, "The Economics of the Lake 
 
 Michigan Charter Fishing Industry", Marine Technology Society 
 Journal , 10-2, February, 1976, pp. 32-36. 
 
 Through interviews with charter boat operators and people who 
 fish from charter boats the authors analyze the costs and 
 revenues of operating charter boats and the average per trip 
 expenditures of fishermen and estimate the direct and indirect 
 economic impacts of the Wisconsin charter boat industry. 
 
 25. Ditton, Robert B. et.al. Texas Charter Fishing Survey: Summary 
 
 Highlights . Department of Recreation and Parks, Texas ASM 
 University, 1976. 
 
 Dr. Ditton briefly presents the preliminary results of interviews 
 with forty charter boat operators in the Texas coastal area. 
 Included are a description of the vessels, characteristics of 
 the operators and a description of the business operation. 
 
 53 
 
Bibliography (cont. 
 
 26. Dittrich, Michael Thomas. Understanding the Charter Boat Fishing 
 
 Market on Wisconsin's Lake Michigan (unpublished masters degree 
 thesis. University of Wisconsin, 1974.) 
 
 An in-depth analysis of the Wisconsin charter fishing industry 
 which grew out of another study by Ditton and Strang cited 
 above. 
 
 27. Doran, Edwin Jr. and Brown, Bernard P., Jr. A Recreational Guide 
 
 to the Central Texas Coast . College Station, Texas: Texas A & M 
 University, Center for Marine Resources, 1975. 
 
 The guide describes the coastal area between (but excluding) 
 Galveston and Rockport. It provides a list of the names and 
 addresses of all facilities at the location and the services 
 offered by each establishment. 
 
 28. Ecker, W.J., Commander, U.S. Coast Guard. Letter to James Murdock, 
 
 National Marine Fisheries Service concerning size of the commercial 
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 The U.S. Coast estimated the number of commercial sportfishing 
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 29. Farrish, Raymond O. and Pyne, Donald C. Boating in Connecticut : 
 
 The Connecticut Shore-Based Marina Industry . 
 
 The authors present the results of a survey of Connecticut 
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 seasonality, and revenues by type of service. 
 
 30. Florida Department of Natural Resources, Bureau of Education and 
 
 Information. Your Florida Head and Party Boats, Charter Boats 
 and Piers , (no date) . 
 
 A listing of over seven hundred commercial sportfishing vessels 
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 21. Fraidenburg, Mike. 1974 Recreational Fisheries at Fo\ir Jetty 
 and Breakwater Sites in the Grays Harbor and Columbia River 
 Mouth Areas . Washington Department of Fisheries, Technical 
 Report No. 18. January, 1976. 
 
 A study of selected jetty and breakwater fisheries was conducted 
 to estimate the total catch and effort levels and evaluate the 
 potential of a voluntary "self" creel census. 
 
 54 
 
Bibliography (cont.) 
 
 32. Freeman, Bruce; Turner, Stephen C. and Christensen, Daryl J. 
 
 A Preliminary Report on the Fishery for Bluefin Tuna (Thunnus 
 thynnus) off New J^ersey in Relation to the Catches Made by 
 Charter and Party Boat Anglers During 1975 , (unpiiblished) . 
 
 A complete canvassing of coastal and bay charter and party boats 
 to identify the entire fleet. From on-site interviews of a 
 sample of boats, data were collected on the number and weight 
 of the catch and the location of the fishing ground visited. 
 The results are presented by type of boat and in two-week time 
 intervals . 
 
 33. Georgia State University. Environmental Research Group. South- 
 
 eastern Survey of Wildlife Recreation ; Executive Summary and 
 Detailed Analysis . Atlanta, Georgia: Georgia State University, 
 March, 1974. 
 
 This study presents the results 12,000 randomly selected home 
 interviews conducted to gather data for a monetary evaluation of 
 recreational fishing, hunting and wildlife enjoyment (e.g., 
 hiking, observation). Data are also presented on the socio- 
 economic characteristics of the participants. 
 
 34. Geis, Peter, ed. Boating Almanac Saverna Park, Maryland: Boating 
 
 Almanac Co., Inc., 1976. 
 
 An annual publication which describes in detail the location of 
 boating facilities and services offered for the East Coast from 
 North Carolina to Maine. 
 
 35. Giles, Donald; Ball, John; and York, Perry. Preliminary Draft 
 
 Report, The Ocean Charter Industry in Oregon, 1975 . Corvalis, 
 Oregon: Sea Grant Marine Advisory Program. 
 
 From a survey of charter boat operators, the authors describe 
 the general characteristics of the charter industry in Oregon 
 including the number of boats and operators, the length of 
 season, estimated revenues and fishing effort, and a basic 
 economic profile of the impact of the industry. 
 
 36. Gordon D. ; Chapman D.; and Bjornn, T. C. "Economic Evaluation of 
 
 Sport Fisheries - What Do They Mean", Transactions of the American 
 Fisheries Society , No. 2, 1973, pp. 293-311. 
 
 The authors use the results of their Idaho anglers survey to 
 review and evaluate techniques for assigning values to sport 
 fisheries. They compare their results with other surveys, 
 argue for consistency in deriving economic values, and lastly 
 they discuss the significance of various values to resource 
 decision makers. 
 
 55 
 
Bibliography (cont.) 
 
 37. Gruen» Gruen and Associates. A Socio-Economic Analysis of Califoniia's 
 
 Sport and Coimnercial Fishing Industries . A Report ot the State of 
 California Resources Agency. San Frcmcisoo, California, Jiine, 1972. 
 
 This study is the only one located during the course of this 
 research which attempts to assess and directly compare the 
 economic contribution of sport and conmercial fisheries. How- 
 ever, marine commercial fishing is ccanpared to sportfishing 
 in freshwater and saltwater. 
 
 38. Huntsman, Gene R. "Offshore Head Boat Fishing in North Carolina 
 
 and South CaroldLna", Marine Fisheries Review . Volume 38, No. 3 
 March, 1976, pp. 13-23. 
 
 Mr. Huntsman presents an cinalysis of catch emd effort from head 
 boats operating off the Carolina shores during 1972 and 1973. 
 Attention is given to angling quality and the future of the 
 head boat industry. 
 
 39. International Game Fish Association; The National Coalition for 
 
 Marine Conservation, eind the Sport Fishing Institute. Marine 
 Recreational Fisheries , a report of the proceeding of the First 
 Annual Marine Recreational Fisheries Syn^rosium. Washington, D.C.: 
 The Sport Fishing Institute, 1976. 
 
 Included in the publications are papers discussing the economic 
 and social values, management criteria and institutional functions 
 cind responsibilities for marine recreational fisheries. 
 
 40. International Marine Expositions. The Marine Market . Chicago, 
 
 Illinois. Annual. 
 
 The annual report sumamarizes market data for boats and motors . 
 The data help to describe the age and occupation of purchasers 
 of marine equipment, boating activity in the use of outboard 
 boats and motors, and the size and geographic distribution of 
 
 the market. 
 
 41. Kelly, Robert and Rorholm, Niels. An Analysis of^ the Rhode Island 
 
 Marina Industry . University of Rhode Island Technical 
 29. Kingston, Rhode Island, 1974. 
 
 From a survey of 69 marinas the authors describe the organization 
 and ownership, services and facilities, berthing and storage 
 capacities, income and employment chziracteristics of the industry. 
 
 56 
 
Bibliograhpy ( cont . ) 
 
 42. King, Dennis M. , and Storey, David A. Use of Economic -Environmental 
 
 Input-Output Analysis for Coastal Planning with Illustration for 
 the Cape Cod Region . Amherst, Massachusetts: University of 
 Massachusetts, Water Resources Research Center, 1974. 
 
 The authors demonstrate the use of input-output analysis in 
 displaying within a single framework the the economic and 
 environmentcil impacts of a change in the mix of activities and 
 of displaying tradeoffs between economic and environmental 
 objectives. In determining their input-output model, charter 
 boat sportfishing is used as one of twelve waterfront sectors. 
 
 43. King, Richard F. Maine's Pleasure Boat Industry Pcirt 1: Marinas 
 
 in Maine . Orono, Maine: University of Maine; Life Science and 
 Agricultural Ejsperiment Station. July, 1976. 
 
 From a survey of marinas conducted in 1972 the author describes 
 the physical characteristics of the facilities cind services 
 offered, business organization and management is discussed, 
 and economic data sure presented. 
 
 44. McKechnie, Robert J. and Miller, Lee W. "The Striped Bass Party 
 
 Boat Fishery: 1960-1968", California Fish and Game , 57(1) : 
 1971, pp. 4-16. 
 
 The article discusses trends in this full day party boat 
 fishery and angler success is einalyzed. 
 
 45. Marex Marketing Committee. State Boat Registrations 1967-1974 . 
 
 Chicago, Illinois, 1975. 
 
 Presents statistics on boat registrations by state, hull type, 
 length cind boat type (i.e., inboard or outboard) . 
 
 46. Mathews, Stephen B. and Brown, Gcirdner S. Economic Evaluation of 
 
 the 1967 Sport Salmon Fisheries . Washington Department of Fisheries , 
 Technical Report No. 2. April, 1970. 
 
 From the results of a mail survey to salmon anglers the authors 
 separately estimated the gross ajinual fishing expenditvires by 
 Washington and out-of-state salmon anglers and the new benefits 
 generated from sport salmon fishing. 
 
 47. National Association of Engine and Boat Manufacturers, tfarina 
 
 Costs/Revenues - 1974 . New York, New York: NAEBM, 1974. 
 
 The brief study presents the results of a survey of seventy- 
 five marina/boat yard establishments including a breakdown of 
 sources of revenue, indirect operating costs, and a cost-to- 
 revenue analysis. 
 
 57 
 
Bibliography (cont. 
 
 48. National Sporting Goods Association. Costs of Doing Business . 
 
 Chicago, Illinois. Annual. 
 
 An annual study of operating expenses of sporting good stores. 
 Data are presented by sales volume and by geographic region. 
 
 49. National Sporting Goods Association. The Sporting Goods Market. 
 
 Chicago, Illinois. Annual. 
 
 An item by item description of sales volume for twenty-three 
 categories of sporting goods including fishing tackle. 
 
 50. National Wildlife Federation. Conservation Directory . Washington, 
 
 D.C., annual publication. 
 
 The directory lists the names, addresses, and telephone numbers 
 of personnel in all federal and state agencies and citizen 
 groups involved with environmental and ecological concerns. 
 
 51. Noden, Dick and Brown, Tommy. The New York Commercial Marina and 
 
 Boatyard Industry, 1972 . Ithica, New York: Cornell University, 
 Department of Natural Resources. September, 1975. 
 
 From a survey of marina facilities the researchers present data 
 on the physical characteristics, business operations, services 
 provided, expansion of capacity, employment and revenues of 
 establishments by geographic region and in total. 
 
 52. Nye, Gene D. ; Ward, W. Dale; and Hoines, Lee J. Washington State 
 
 Salmon Sport Catch . A Report for Washington Department of 
 Fisheries, 1975. 
 
 A catch and effort study of Washington's salmon fishery. 
 
 53. Oregon State Marine Board. Boating in Coastal Waters . Salem, 
 
 Oregon, 1976. 
 
 This publication describes the physical characteristics of 
 coastal boating areas in Oregon. 
 
 54. Oregon Wildlife Commission. 1973 Annual Report Fishery Division . 
 
 Edited by C.J. Cambell and M.K. Daily, Portland, Oregon, 1974. 
 
 A compilation of fishery statistics for the state presented 
 for each region in Oregon. 
 
 58 
 
Bibliography (cont. 
 
 55. Oregon Wildlife Commission. 1974 Annual Report: Steelhead . 
 
 Edited by C.J. Cambell and M.K. Daily. Portland, Oregon, 1975. 
 
 The report describes steelhead fishing activity by region for 
 the state of Oregon. 
 
 55. Pacific Northv/est Regional Commission. Investigative Reports of 
 the Colimbia River Fisheries Project . Vancouver, Washington. 
 July, 1976. 
 
 The report includes a series of studies describing various 
 factors important to managing fish resources of the Columbia 
 River. Included are reports of habitat changes, fish runs, 
 production of wildfish, artificial propogation, sport angling 
 regulation and management, commercial fishing regulation and 
 management, the Indian Fishery and economic evaluations of 
 sport and commercial fisheries. 
 
 57. Panshin, Dan. Memorandum on the n\amber of Charter and Party boats 
 
 in the U.S. Oregon State University Extension Service, Corvalis. 
 November 1, 1976. 
 
 Mr. Panshin prepared a preliminary estimate of the size of the 
 commercial sport fishing fleet for preparation of a sampling 
 plan for a research design. He identified 4,172 vessels in 
 195 ports. The estimates are made on a state-by --state basis. 
 
 58. Pfister, Robert E., Donheffner, Paul E. ; and Hartsook, Thomas E. 
 
 Pleasure Boating in Oregon - 1975 . A Report to the Oregon 
 State Marine Board. Corvales, Oregon: Oregon State University, 
 Department of Geography. April, 1975. 
 
 This study was conducted for the purposes of describing the 
 characteristics of the boat population and boating participants 
 as well as to estimate total boating activity. 
 
 59. Proceedings of the Recreational Boating Seminar . Sponsored by the 
 
 Industrial Economics Research Division, College of Engineering, 
 and the Sea Grant Program of Texas ASM University. College 
 Station, Texas: Texas Engineering Experiment Station, January, 
 1972. 
 
 A seminar held for the benefit of recreational boating interests 
 included discussions of the Sea Grant Program, Marine insurance, 
 marketing trends and dry storage, maintenance, repairs and wet 
 storage, and boating safety. 
 
 59 
 
Bibliography (cont.) 
 
 60. Prochaska, Fred J. and Cato, James C. , Northwest Florida Gulf 
 
 Coast Red-Snapper Grouper Party Boat Operations: An Economic 
 Analysis - 1974 . Marine Advisory Bulletin, Florida Sea Grant 
 Program, December, 1975. 
 
 A detailed study of the costs and revenues of seven party boats 
 which range from 55 to 85 feet in length. The bulletin presents 
 estimates of the average number of anglers per boat on a yearly 
 basis, expenditures by fishermen, and the costs of operating 
 party boats. 
 
 61. Rhode Island Department of Economic Development. "Boating in 
 
 Rhode Island". Providence, Rhode Island. Annual publication. 
 
 This pamphlet includes a listing of the location and services 
 offered by boating facilities in Rhode Island. A list of 
 pleasure, charter and party boats including the names and 
 length of craft, passenger capacity, captain's name and 
 telephone number. 
 
 62. Sayre, R. C. 1972 Oregon Angler; Summary . A Report by the Oregon 
 
 State Game Commission, Fishery Planning Division. August, 1973. 
 
 The survey results display catch and effort data by region 
 and by type of fish. 
 
 63. Shaw, George W. and Henry, William F. New Hampshire Marina Industry 
 
 Study . Sea Grant Technical Report UNH-SG-144. Durham, New 
 Hampshire: Resources Development Center, U.N.H., June, 1974. 
 
 The study describes the organization and managment, existing 
 facilities and basic economic data of marinas in New Hampshire. 
 
 64. Schmisseur W.E. and Youmans R.C. Economic Impact of Public Invest- 
 
 ments in Small-Boat Facilities and County and State Parks in the 
 Lower Umpqua River Area of Douglas County, Oregon . A Report for 
 the Pacific Northwest River Basins Commission with the Oregon 
 State Board's Economic Task Force, 1973. 
 
 Business and visitor survey data are used to estimate the 
 economic impact of tourist expenditures on Douglas County as 
 they relate to public investments in port and harbor facilities 
 by the U.S. Army Corps of engineers and by county and state 
 agencies. 
 
 65. Smith, Ronal W. Sport Fishing in Western Delaware Bay: Assessment 
 
 of Critical Areas . Newark, Delaware: University of Delaware, 
 College of Marine Studies, 1975. 
 
 Using the results of an aerial survey the author examined the 
 distribution of sport fishing boats in western Delaware Bay. 
 A portion of the study is devoted to examining where head 
 boats fished and the kind of fish that were sought. The dis- 
 tribution of ground fish was also examined. 
 
 60 
 
Bibliography (cont.) 
 
 66. Storey, David A. The Massachusetts Marina Boatyard Industry 1972- 
 1973 . Amherst, Massachusetts Agricultural Experiment Station. 
 June, 1974. 
 
 In this study of waterfront boating facilities the researcher 
 presents data on general characteristics of establishments, 
 summer and winter berthing capacities, operating problems, 
 expansion trends and expectations and gross incomes and 
 employment. 
 
 57. Texas ASM Industrial Economics and Research Division and the Sea 
 
 Grant Program. Proceedings of the Marina Management and Operation 
 Seminar . Arlington, Texas, 1972. 
 
 The proceedings include discussions of marina insurance, facilities, 
 sanitation, safety and environmental regulations as they relate 
 to the operation of marinas. 
 
 68. University of Idaho. Idaho Cooperative Fishery Unit. Final Report 
 
 to the National Marine Fisheries Service on Workshops on Fisheries 
 Economics at Moscow, Idaho and Madison, Wisconsin. Moscow, Idaho, 
 1973. 
 
 The report includes a chapter on sport fishery evaluations and 
 a brief discussion of the interface between commercial and 
 sportf ishing. 
 
 69. University of New Hampshire and New Hampshire Department of Resources 
 
 and Economic Development. Regional Planning: New Hampshire - 
 Maine, Part 3, Saltwater Fishery and Wildlife Resources . May, 1969. 
 
 This portion of a multi-volume regional study includes an 
 economic evaluation of the small commercial sportf ishing fleet. 
 
 70. U.S. Coast Guard. Recreational Boating in the Continental United 
 
 States in 1973 ; The Nationwide Survey. Springfield, Virginia: 
 National Technical Information Service, 1974. 
 
 This study includes the results of a national telephone survey 
 
 of private recreational boat owners. Data presented describe 
 
 the physical characteristics of the boat population, characteristics 
 
 of boat usage, and characteristics of boat operators. 
 
 71. U.S. Department of Commerce. A Marine Fisheries Program for the 
 
 Nation . Washington D.C.: U.S. Government Printing Office, 1976. 
 
 The publication outlines the goals and courses of action to be 
 taken in comprehensively managing the U.S. fisheries. It 
 resulted directly from the NMFS Fisheries Management Plan. 
 
 61 
 
Bibliography (cont.) 
 
 72. U.S. Department of Commerce, National Oceanic and Atmospheric 
 
 Administration, National Marine Fisheries Service. Angler ' s 
 Guide to the United States Atlantic Coast . Washington, D.C.: 
 U.S. Government Printing Office, 1974. 
 
 73. U. S. Department of Commerce, National Oceanic and Atmospheric 
 
 Administration, National Marine Fisheries Service. Participation 
 in Marine Recreational Fishing Northeastern United States 1973 - 
 1974 . Washington, D.C. : NMFS Statistics and Market News Division, 
 1975. 
 
 This brief publication presents the results of a NMFS telephone 
 survey of 22,000 households conducted to determine the number of 
 participants in marine recreational activities. Data are 
 presented by state for states from Maine to Virginia. 
 
 74. U. S. Department of Commerce, National Oceanic and Atmospheric 
 
 Administration, National Marine Fisheries Service. Report of the 
 National Marine Fisheries Service for the Calendar Year 1975 . 
 Washington, D.C: U.S. Government Printing Office, 1976. 
 
 The report reviews the agency's activities including the Marine 
 Fisheries Advisory Committee, vessel activites, resource 
 research, resource utilization, resource management, and inter- 
 national fisheries. 
 
 75. U.S. Department of the Interior. Bureau of Sport Fisheries and 
 
 Wildlife. 1970 National Survey of Fishing and Hunting . Washington, 
 D.C: U.S. Government Printing Office, 1972. 
 
 This study, conducted every five years, describes the number of 
 hunters and fishermen, the type of fish and game sought, the 
 expenditures of participants, and the socio-economic charac- 
 teristics of the participants. Data are presented by recrea- 
 tional activity for the nation and for geographic regions . 
 
 76. U.S. Department of Transportation, Coast Guard. Boating Statistics 
 
 (annual report) . 
 
 In its annual report of boating activities the Coast Guard 
 summarizes statistics on boating accidents by type of accident, 
 type of vessel and by state. 
 
 77. Virginia State Travel Service. Saltwater Sport Fishing in Virginia . 
 
 Richmond, Virginia: Virginia State Travel Service. 
 
 A brochure describing the saltwater sportfishing grounds off 
 of Virginia's coast, boating facilities along coastal waters 
 and characteristics of species of fish caught in the Virginia 
 area. 
 
 62 
 
Bibliography (cont.) 
 
 78. Young, Park H. The California Partyboat Fishery 1947-1967, Fish 
 
 Bulletin 145, California Department of Fish and Game, Sacramento, 
 California: Office of Procurements, 1969. 
 
 A 90 page pxoblication providing an historical overview of the 
 party boat industry in California. The study emphasizes catch 
 and effort data by species, but discussions of regulatory 
 agencies affecting party boat activity, areas of operations, and 
 the economics of the fleet are also included. 
 
 79. Washington Department of Commerce and Economic Development, Tourist 
 
 Promotion Division. Washington Boating Directory. 
 
 Provides a port by port listing of boating facilities including 
 lauching ramps, hoists, moorage, gas and oil boat rentals and 
 charters. 
 
 63 
 
APPENDIX A 
 
 ECX»JOMIC IMPACTS RELATED 
 TO FISHING TACKLE 
 
A.O ECONOMIC IMPACTS RELATED TO FISHING TACKLE 
 
 A.l Sijinmary of Impacts 
 
 It is estimated that in 1972, total expenditures by recreational fishermen 
 at the retail level for all types of fishing tackle amounted to approximately 
 $400 million. Of that total, an estimated $88 million was spent on fishing 
 tackle for use in saltwater angling. Exhibit A-1 summarizes the economic 
 impacts associated with these consumer expenditures. 
 
 In 1972 total sales in wholesale trade of all fishing tackle amounted to an 
 estimated $188.7 million. In manufacturing the value of all tackle shipments 
 amounted to $167.7 million. In comparison, sales of fishing tackle for use 
 in saltwater amounted to an estimated $41.5 million in wholesale trade and 
 $36.9 million in manufacturing in that year. 
 
 The value added to the economy in the production, distribution, and sale 
 of all fishing tackle is estimated to have been $99.8 million, $20.1 
 million and $152.1 million respectively. In comparison value added 
 attributable to fishing tackle used in saltwater fishing is estimated to 
 have been $22.1 million, $4.4 million and $33.4 million respectively. In 
 total, value added amoiinted to an estimated $272 million for all fishing 
 tackle compared with $59 million for tackle used in saltwater fishing. 
 
 Employment generated by consumer demand for fishing tackle amounted to an- 
 estimated 18,340 person-years for all fishing tackle and some 4,000 person- 
 years for fishing tackle purchased for use in saltwater. Estimates of the 
 distribution of employment among manufacturing, wholesale trade, and 
 retail trade are 8,740; 1,470; and 8,400 person-years respectively for all 
 fishing tackle. Purchases of fishing tackle for use in saltwater generated 
 1,870 person-years of employment in manufacturing; 330 person-years in 
 wholesale trade; and 1,800 person-years in retail trade. 
 
 The salaries and wages impact associated with the production, distribution, 
 and sale of all fishing tackle is estimated to have been just over $107 
 million in 1972 as compared to some $23.5 million for fishing tackle pur- 
 chased for use in saltwater. In manufacturing, $45.5 million was paid in 
 salaries and wages for all fishing tackle, and $10.1 million of that amount 
 was attributable to fishing tackle used in saltwater. In wholesale trade, 
 salaries and wages totaled some $13 million, and $2.9 million of that amount 
 was associated with fishing tackle used in saltwater. In retail trade, 
 salaries and wages related to all fishing tackle sales and sales of fishing 
 tackle used in saltwater were $48.8 million and $10.7 million respectively 
 in 1972. 
 
 Finally, annual capital expenditures in 1972 by all producers, distributors, 
 and retailers of fishing tackle are estimated to have been $6.4 million in 
 manufacturing, $1.5 million in wholesale trade, and $8.4 million in retail 
 trade, or a total of $16.3 million. The portion estimated to have been 
 associated with fishing tackle used in saltwater v/as $1.4 million in 
 manufacturing, $0.3 million in wholesale trade and $1.8 million in retail 
 trade or $3.5 million in total. 
 
 * 
 
 Does not include the Dingell-Johnson excise tax on certain fishing gear amounting 
 to $13 million which is paid at the manufacturing level. 
 
 64 
 
Number of 
 
 ** 
 
 Establishments 
 
 Sales (millions of 
 dollars) 
 
 Total* 
 
 Marine Recreational 
 Fishing 
 
 Value Added (millions 
 of dollars) 
 
 Total 
 
 Marine Recreational 
 Fishing 
 
 Employment (person- 
 years) 
 
 Total 
 
 Marine Recreational 
 
 Fishing 
 
 Wages and Salaries 
 
 (Millions of dollars) 
 
 Total 
 
 Marine Recreational 
 Fishing 
 
 Capital Expenditures 
 (millions of dollars) 
 
 Total 
 
 Marine Recreational 
 Fishing 
 
 Exhibit A-1 
 
 Summary of Impacts Related to 
 Fishing Tackle Purchases in 1972 
 
 i 
 
 Manufacturing Wholesale Trade Retail Trade Sum of Impact 
 
 239 
 
 167.7 
 36.9 
 
 99.8 
 22.1 
 
 8,470 
 1,870 
 
 45.5 
 10.1 
 
 6.4 
 1.4 
 
 868 
 
 188.7 
 41.5 
 
 20.1 
 4.4 
 
 1,470 
 330 
 
 13.0 
 2.9 
 
 1.5 
 0.3 
 
 10,781 + 
 
 400.0 
 88.0 
 
 152.0 
 33.4 
 
 8,400 
 1,800 
 
 48.8 
 10.7 
 
 8.4 
 1.8 
 
 271.9 
 59.2 
 
 18,340 
 4,000 
 
 107.3 
 23.5 
 
 16.3 
 
 3.5 
 
 Consists of sum of impacts in manufacturing and wholesale and retail trade. 
 
 Includes establishments dealing in freshwater and saltwater tackle. 
 
 Includes both freshwater and saltwater tackel sales, manufacturers estimate 
 does not include ten percent excise tax on some tackel items. 
 
 65 
 
A. 2 GENERAL APPROACH 
 
 Four steps were used in the general approach for determining the economic 
 impact estimates for fishing tackle and equipment siommarized above. 
 
 o Estimates of total fishing tackle sales were made for each 
 level of economic activity (i.e., manufacturing, whole- 
 sale trade and retail trade) . 
 
 o Economic impact ratios were estimated for value added, 
 employment, salaries and wages, and annual capital 
 expenditures, each as a function of fishing tacKle sales 
 and by level of economic activity. 
 
 o Estimates were made of the amount of sales of fishing 
 tackle purchased for use in saltwater angling. 
 
 o Economic impact ratios were applied to the values of 
 
 total fishing tackle sales and sales of fishing tackle 
 used in saltwater to determine the profile of economic 
 impacts. 
 
 These impact estimates are based on a definition of fishing tackle which 
 includes the following items: fishing rods and reels; fishhooks; casting 
 plugs, spinners and spoons; flies, lures and similar artificial baits, and 
 other fishing tackle including tackle boxes, creels, fish and bait buckets, 
 nets, lines, sinkers, snap swivels; and fishing tackle of unspecified 
 kind. 
 
 It should be noted that there is a distinct difference between "saltwater 
 fishing tackle" and "fishing tackle used in saltwater". Several items 
 are manufactured specifically for use in saltwater (e.g., rods and reels). 
 However, a number of tackle items are produced for use in both freshwater 
 and saltwater fishing (e.g., tackle boxes, bait buckets, sinkers), in 
 addition, there is evidence that a significant number of fishermen purchase 
 freshwater equipment, particularly rods and reels, for use in saltwater 
 angling. According to the 1970 National Survey of Fishing and Hunting, 
 over 6 percent of all tackle expenditures by saltwater fishermen were 
 purchases of freshwater fishing rods and reels. 1 An estimating procedure 
 which includes only tackle produced especially for saltwater use will 
 underestimate the economic impacts associated with saltwater fishing. The 
 approach used here takes into account all expenditures by fishermen on 
 tackle and related equipment for use in saltwater fishing. 
 
 66 
 
A. 3 Estimating the Total Value of Sales of Fishing Tackle 
 
 Estimates for the value of total sales were determined through an analysis 
 of multiple sources of secondary data. The secondary data varies from 
 source to source both in its statistical reliability and in the definitions 
 of fishing tackle employed. As will be shown below, there was considerable 
 agreement among the various sales estimates when definitional differences 
 are taken into account. Whenever possible Census data was used as the 
 "best" source because of the uniformity in which it is gathered and analyzed 
 and because of its reliability. 
 
 The detailed discussion below describes the ranges of sales value estimates, 
 the sources of data and the reasons for the selection of particular point 
 estimates . 
 
 (a) Manufacturing 
 
 Three sources of data provided three independent estimates of the value of 
 shipments of tackle manufacturers. According to the 1972 Census of 
 Manufacturers , the value of all fishing tackle shipments amounted to $167.7 
 million in that year.^ That includes the value of shipments reported 
 as secondary products as well as those reporting fishing tackle as their 
 primary product. Of that total, fishing rods accounted for $36.3 million; 
 fishing reels accounted for $43.4 million; and fishhooks, lures, and other 
 artificial bait accounted for $43.5 million. The value of other fishing 
 tackle such as tackle boxes, creels, fish and bait buckets, nets, line, 
 and sinkers amounted to $40.7 million. The remaining $3.9 million was 
 reported as fishing tackle of unspecified kind. 
 
 A second source of data used to make an estimate was excise tax revenues. 
 The Dingell-Johnson Act places 10 percent excise tax on the manufacture 
 of rods, reels, creels, lures, flies, and other artificial bait. In 1972, 
 the revenues from the Dingell-Johnson Tax amounted to $13,023,000.3 Thus, 
 the total value of sales of the items included in the tax was $130 million. 
 According to the 1972 Census of Manufacturers, the value of the items not 
 included in the tax was approximately $40 million. The total estimate 
 then, is $170 million for all fishing tackle. 
 
 The third source of data was the American Fishing Tackle Manufactures 
 Association (AFTMA) . Data on sales are collected from its membership 
 on a voluntary basis. In 1972, 167 members reported a sales volume of 
 $152,343,376.^ That amount included rods, reels, lines, artificial bait, 
 and sundries. Sundries comprised 13.7 percent of total value of sales. 
 
 From the three sources of data, the range of estimates varies from $152 
 million to $170 million. The value of shipments taken from the 1972 
 Census of Manufacturers is shown in Exhibit A-1. It is considered most 
 reliable for three reasons. An all inclusive definition of fishing 
 tackle was used. All producers of fishing tackle were included. And 
 last, the method for collecting data was uniform for all establishments 
 
 67 
 
that reported. The estimate from the AFTMA does not include all manu- 
 facturers. It is important to note, however, that this estimate is in the 
 proper range (i.e., somewhat less than) of the value reported in the 1972 
 Census of Manufacturers . The estimate from the Dingell-Johnson tax revenues 
 alone does not include all fishing tackle items. But when the appropriate 
 corrections are made, the Dingell-Johnson estimate strongly agrees with the 
 Census statistics. 
 
 (b) Wholesale Trade 
 
 Two estimates of the wholesale value of fishing tackle were compiled. The 
 first estimate is taken from the 1972 Census of Wholesale Trade and shows the 
 value of sales for merchant wholesalers of fishing tackle to be $188.7.^ 
 
 A second means of obtaining an estimate of the value of fishing tackle is 
 by marking up the value of sales at the manufacturing level according to 
 generally accepted price differentials of the industry. A number of sources 
 were contacted to determine if such a "rule of thumb" markup was accepted 
 in the industry. Those contacted included representatives of the American 
 Fishing Tackle Manufacturers Association, the National Sporting Goods 
 Association as well as three members of the National Association of Sporting 
 Goods Wholesalers. They agreed that while markups for specific items 
 varied by item and through time, a "10 and 50" rule for markups could generally 
 be applied to the fishing tackle industry. That is, a wholesaler's price 
 is generally 50 percent of the suggested retail price and a manufacturer's 
 price is 10 percent less than that of a wholesaler. For example, an item 
 which has a retail value of $10 will be sold by a wholesaler for $5.00 and 
 by a manufacturer for $4.50. 
 
 When this rule of thumb is applied to the value of shipments of manufacturers 
 (which does not include excise taxes) the resulting estimate is $185 million. 
 Adding on the excise tax v/hich is passed on to wholesalers the estimate increases 
 to $199 million. This estimate is quite similar to the statistics published in 
 the 1972 Census of Wholesale Trade . The estimate from the 1972 Census of 
 Wholesale Trade appears in Exhibit A-1. 
 
 (c) Retail Trade 
 
 Two estimates of retail sales were determined. The National Sporting Goods 
 Association conducts an annual consumer survey to determine the value of 
 sales of many kinds of sporting goods including fishing tackle. In 1972 
 an estimated $360.0 million was spent by recreational fishermen on rods, 
 reels, lures, and lines. ^ The NSGA study was conducted using a sample 
 of 40,000 households. The response rate was approximately 80 percent. 
 The estimate of total sales was made from data on the number of units 
 per household purchased and the average purchase price per unit. Not 
 included in the NSGA estimate are items such creels, tackle boxes, floats, 
 sinkers, nets, etc. The sales value for these items was disaggregated 
 (using the statistics of the 1972 Census of Manufacturers) and was increased 
 using the generally accepted markup values to reflect the value of retail 
 sales. That value amounted to $60 million. The result was added to the 
 $350 million estimate of NSGA for rods, reels, lures and lines to yield a 
 
 68 
 
total estimate of $420 million in the retail sales value for all tackle. 
 A second estimate was arrived at by applying the "rule of thumb" markup 
 to the sales value of wholesale trade. In general, as explained above, 
 the retail price is twice the wholesale price. The estimate using this 
 method is $380 million in retail sales. 
 
 There are no strong objective reasons for selecting either of the estimates. 
 Based on existing information, the strongest statement that can be made 
 is that the value of retail sales of fishing tackle lies somewhere in the 
 range of $380-$420 million. The midpoint of the range, $400 million, is a 
 reasonable point estimate and appears in Exhibit A-1. 
 
 69 
 
A. 4 Estimating Economic Impact Ratios 
 
 Economic impact ratios were derived to determine value added, employment, 
 salaries and wages, and annual capital expenditures associated with the 
 estimated saltwater fishing sales. They are expressions of the size of 
 impact per dollar of sales for fishing tackle and are defined for tackle 
 manufacturing, wholesale trade, and retail trade as follows: 
 
 1) Value added impact ratio = Value added 
 
 Total sales 
 
 2) Employment impact ratio = Total sales 
 
 No. of employees 
 
 3) Salaries and wages ratio = Total salaries and wages 
 
 Total sales 
 
 4) Annual capital Annual capital expenditures 
 expenditures impact = Total sales 
 
 ratio 
 
 Exhibit A- 2 presents the economic impact ratios for fishing tackle. The 
 discussion below describes the sources of data and methods used to compute 
 each of the ratios. 
 
 The impact ratios for manufacturing were determined using Census data from 
 128 establishments that are at least 75 percent specialized in the pro- 
 duction of fishing tackle. 8 For exarr^le, these 128 firms had a total 
 value of shipment of $150.3 million and paid $40.7 million in salaries and 
 wages. Thus the salaries and wages impact ratio is 0.271 
 
 \150.3/ 
 
 The 1972 Census of Manufacturers provides similar data for the other impact 
 categories . 
 
 Estimating impacts ratios for wholesale and retail trade was complicated 
 because specific data related to fishing tackle were not availa±)le. Data 
 from the sector most closely related to fishing tackle (i.e., sporting 
 goods) were substituted for more disaggregated statistics. This sub- 
 stitution is appropriate because the inputs (e.g., labor, capital) are 
 very similar for all sporting goods at the wholesale and retail level. 
 
 70 
 
Exhibit A-2 
 
 Fishing Tackle 
 Economic Impact Ratios for 1972 
 
 Value Added ($/$ Sales) 
 
 Employment ($ Sales/ 
 Person-years ) 
 
 Salaries & Wages 
 ($/$ of sales) 
 
 Annual Capital Investment 
 ($/$ sales) 
 
 Manu f ac tur ing 
 0.595 
 $19,800 
 
 0.271 
 
 0.038 
 
 Distribution 
 
 0.107 
 $128,000 
 
 0.069 
 
 0.0078 
 
 Retail Trade 
 0.380 
 $47,600 
 
 0.122 
 
 0.021 
 
 71 
 
The 1972 Census of Wholesale Trade for sporting goods provides the data 
 necessary to compute impact ratios of employment to sales and salaries 
 and wages to sales for wholesale trade. ^ Similarly, the data for retail 
 trade impact ratios of employment to sales and salaries and wages to 
 sales are available from 1972 Census of Retail Trade . 10 
 
 The procedure for determining the ratio of value added to sales in whole- 
 sale and retail trade was more indirect because detailed data on value 
 added were not readily available. However, data do exist for the gross 
 margin and value added aggregated at the level of "sporting goods and 
 amusements" in wholesale trade and "sporting goods" for retail trade. 
 
 To obtain estimates for value added for wholesale trade the gross margin 
 for fishing tackle was calculated by taking the difference in the 
 estimates of total sales of wholesale trade (distribution) and manufacturing. 
 That is, 
 
 1) Gross margin = Whole trade sales - Manufacturers sales 
 
 = $188.7 million - $167.7 
 = $ 21.0 million 
 
 The Gross Margin was then reduced to reflect valued added using the 
 following equation: 
 
 2) Value added = Gross margin x r 
 
 Where r = the ratio of value added to gross margin for all 
 sporting goods and amusements . 
 
 The Census of wholesale trade publishes the data necessary for the determina- 
 tion of r.ll 
 
 Thus: 
 
 Value added = $21.0 million X 23.3 
 
 24.3 
 
 $20.1 million 
 
 The value added to sales ratio for wholesale trade (0.107) was then determined 
 by calculating the quotient of the value added to the total sales estimate. 
 
 A similar procedure was used for the retail trade estimates. The National 
 Sporting Goods Association was the source of data.^^ The gross margin and 
 value added as a percent of sales for all sporting goods were determined 
 from data on operating ratios. The gross margin was determined to be 34.4 
 percent of total sales and value added was 24.8 percent of total sales. 
 Using equation 2) , the total valued added in retail trade of fishing tackle 
 is estimated to have been $152 million in 1972 and the resulting impact ratio 
 of value added to sales is 0.380. 
 
 72 
 
The 1972 Census of Wholesale Trade is the only source of capital expenditures 
 data for wholesale trade located during the course of this research, and it 
 is available only in a highly aggregated form. The annual capital investment 
 to sales impact ratio for wholesale trade was determined using data from 
 "Wholesalers not elsewhere classified" (SIC 5099) which include sporting 
 goods . 13 
 
 As in the case of wholesale trade, data on annual capital expenditures 
 in retail trade are also available only in a highly aggregated form.-'-'^ The 
 levels of aggregation are: the food group; eating and drinking places; 
 general merchandise group (with line item for department stores); furniture 
 and appliances; building materials, hardware, farm equipment; automotive 
 group; and gasoline service station. Fishing tackle is included in the 
 general merchandising group. For two reasons it was decided to calculate 
 the ratio of capital expenditures to sales using data on department stores. 
 First, according to research conducted for the National Sporting Goods 
 Association, an estimated fifty percent of all fishing tackle is purchased 
 through department stores. -'■^ Second, an analysis of the impact ratios 
 for department stores showed a very high consistency with those being used 
 for fishing tackle determined from data on sporting goods. 
 
 All sales to employment ratios have been adjusted to reflect person-years 
 of employment based on Bureau of Labor Statistics data on the average number 
 of hours worked per week by employees in manufacturing wholesale trade and 
 retail trade. 
 
 73 
 
A. 5 Estimating the Value of Sales of Fishing Tackle Used in Saltwater 
 Angling 
 
 Two methods were used to estimate the proportion of sales of fishing tackle 
 used in saltwater to total fishing tackle sales. A mail survey of fishing 
 tackle manufacturers was conducted. Manufacturers were asked to provide 
 data on their total sales volume, the percent of sales associated with 
 tackle produced specifically for saltwater use, the estimated precent of 
 sales of all tackle that is used in saltwater fishing. From the results 
 a ratio of sales of tackle used in saltwater sales to total tackle sales 
 was completed. The second means of estimating sales of tackle used in salt- 
 water angling involved the use of consumer expenditure data from the National 
 Survey of Fishing and Hunting which have been compiled every five years since 
 1955. Each survey presents separate estimates of consxamer expenditures for 
 tackle used in saltwater and freshwater fishing. Using data from surveys 
 taken in 1955, 1960, 1965, and 1970, an expression of consumer expenditures 
 for tackle use in saltwater fishing was calculated as a percent of total 
 fishing tackle expenditures for each survey year. The mean value of these 
 estimates was then computed. The results of these two independent methods 
 are surprisingly similar and are shown in Exhibits A-3 and A-4. 
 
 As Exhibit A-3 shows, the ratio computed from the various years of the 
 National Su rvey of Fishing and Hunting is historically reasonably stable. 
 On an average sales of fishing tackle used in saltwater angling amount to 
 about 22 percent of total fishing tackle sales. 
 
 From the results of the mail survey it is estimated that manufacturers' ship- 
 ments of tackle that are used in saltwater were about 21 percent in 1975. 
 Questionnaires were sent to 252 tackle manufacturers listed in the 1976 Directory 
 of the American Fishing Tackle Manufacturers Association. Three weeks later a 
 second wave of questionnaires was mailed to all nonrespondents. The estimate 
 of 21 percent is based on complete responses. Although a total of 146 responses 
 v/ere received, 19 manufacturers had gone out of business and 64 responses did not 
 include data en total sales. These responses could not be used in the compu- 
 tation of the ratio. The total sales of the firms that did complete the question- 
 naire amounted to $124.9 million, or an estimated 45% of total sales for 1975. 
 Although respondents in the second wave tended to have a smaller sales volume 
 than those in the first wave, there was no significant difference between the 
 resulting ratios of the first and second waves. A slight positive bias was 
 introduced by a difference between the percent of incomplete responses from 
 manufacturers that produce at least some tackle used in saltwater and manufacturers 
 that produce no saltwater tackle. Of the total nximber of respondents that 
 produced no tackle used in saltwater, 62 percent declined to provide sales 
 data. Of the total number of respondents that produced some tackle used in salt- 
 water, 41 percent declined to provide sales data. No attempt was made to esti- 
 mate the size of the bias. The bias should result in only a slight overesti- 
 mation of the ratio because the difference in the rate of refusals to provide 
 sales data is relatively small for these two groups of manufacturers. 
 
 74 
 
Exhibit A- 3 
 
 Ratio of Expenditures for Fishing Tackle 
 
 Used in Saltwater to Total Expenditures 
 
 for Fishing Tackle* 
 
 
 Expenditures for 
 Tackle Used in Saltwater 
 Fishing 
 
 Total Expenditures 
 for Fishing Tackle 
 
 $243,626,000 
 
 Ratio 
 
 Expend 
 
 Tackle 
 
 Df Saltwater 
 itures to Total 
 Expenditures 
 
 1955 
 
 $54,458,000 
 
 
 0.22 
 
 1960 
 
 73,945,000 
 
 
 
 308,326,000 
 
 
 0.24 
 
 1965 
 
 73,098,000 
 
 
 
 323,543,000 
 
 
 0.23 
 
 1970 
 
 93,309,000 
 
 
 
 469,149,000 
 
 
 0.20 
 
 mean value = 0.22 
 
 "^From U.S. Department of Interior, Bureau of Sport Fisheries and Wildlife, 
 National Surveys of Fishing and Hunting for years 1955, 1960, 1965, and 
 1970. 
 
 75 
 
Exhibit A-4 
 
 Results of Mail Survey of 
 Fishing Tackle Manufacturers 
 
 Sanple Size 
 
 252 
 
 Dispositon of Responses 
 
 Out of Business 
 Incomplete 
 Complete 
 TOTAL 
 
 First 
 
 Wave 
 
 Second 
 
 Wave 
 
 Total 
 
 19 
 
 
 
 
 
 19 
 
 24 
 
 
 40 
 
 
 64 
 
 48 
 
 
 15 
 
 
 63 
 
 91 
 
 
 55 
 
 
 146 
 
 Results 
 
 First Wave 
 Second Wave 
 
 Total 1975 
 Tackle Sales 
 
 1975 Sales of 
 
 Tackle Used in 
 
 Saltwater 
 
 Saltwater Sales 
 Total Sales 
 
 $ 119,561,000 
 5,330,000 
 
 $ 25,326,500 
 1,304,500 
 
 .21 
 .24 
 
 TOTAL 
 
 $ 124,891,000 
 
 $ 26 ,631,000 
 
 .21 
 
 76 
 
To determine the economic impact of consumption of tackle for marine fishing, 
 the mean value of the ratio determined from historical data (0.22) was applied 
 to the estimates of the total value of sales (described in Section 3.1) at the 
 manufacturing, wholesale trade, and retail trade levels, to obtain estimates 
 of sales of tackle for saltwater use. The resulting estimates are $36.9 million 
 in manufacturing, $41.5 million in wholesale trade, and $88.0 in retail trade 
 sales. 
 
 77 
 
A. 6 Application of the Impact Ratio 
 
 The final step in the estimating procedure was the application of the 
 impact ratios to the estimates of total sales of fishing tackle and sales 
 of fishing tackle used in saltwater. It is appropriate to apply the same 
 ratios to both freshwater and saltwater equipment. While the material 
 inputs required for the two tackle types vary somewhat, there are no 
 significant differences in the labor requirements or in the technology 
 required for production of freshwater and saltwater tackle . In wholesale 
 and retail trade there is little difference for saltwater and freshwater 
 tackle in the personnel required per unit sales of tackle or in the floor 
 space requirements. Impact ratios for value added for sales, salaries 
 and wages to sales, and capital expenditures to sales for manufacturing, 
 wholesale trade, and retail trade were multiplied with the corresponding 
 sales estimates. For example, the estimate of retail sales of fishing tackle 
 used in saltwater is $88 million and the corresponding value added to sales 
 im.pact ratio equals 0.380. Thus the estimate of value added by retail 
 sales of fishing tackle used in saltwater is 0.380 X $88 million or $33.4 
 million. 
 
 The sales to employment impact ratio is expressed in terms of dollars of 
 sales per person-years of employment. Thus in order to obtain an estimate 
 of employment the ratio is divided into the sales estimate. For example, 
 it is estimated that approximately $47,600 in retail sales supports one- 
 person-year of employment. Therefore, the $86 million in retail sales 
 of fishing tackle used in saltwater provides 1,800 person-years of employ- 
 ment. 
 
 78 
 
A. 7 Estimating the Number. of Establishments 
 
 There are two sources of information on the number of establishments 
 involved in the manufacturing of fishing tackle. The 1972 Census of 
 Manufacturers lists only those establishments that claim fishing tackle 
 as their primary product. There were 139 such firms in 1972.17 However, 
 the American Fishing Tackle Manufacturers Association (AFTMA) has 239 
 members which produced tackle in that year.^^ AFTMA does not represent 
 all manufacturers so that this estimate represents a lower botind of the 
 size of population. 
 
 At the level of distribution, the 1972 Census of Wholesale Trade lists 
 868 establishments that distribute fishing tackle. 19 These are merchant 
 wholesalers. They do not include distribution through manufacturers' 
 representatives. According to the AFTMA some manufacturers distribute 
 directly to retail outlets . There is a National Association of Sporting 
 Goods Wholesalers , but it has less than one hundred members and could 
 provide no estimate of the total number of wholesalers of fishing tackle. 
 
 The Census of Retail Trade details data only on those stores which 
 specialize in the selling fishing of tackle. In total they number 519.20 
 The National Direct Mail Advertising Service, however, has compiled a 
 current list of 10,781 retail stores which sell tackle. 21 These do not 
 include department stores which, as explained above, account for a large 
 portion of tackle sales. As in the case of manufacturing this estimate 
 must be seen as a lower bound on the total number of retail outlets for 
 fishing tackle. 
 
 79 
 
REFERENCES 
 
 1. U.S. Department of Interior, Bureau of Sport Fisheries and 
 Wildlife, National Survey of Fishing and Hunting 1970 , 
 
 (Washington, D.C.: Government Printing Office, 1972), p. 46. 
 
 2. U.S. Department of Commerce, Bureau of the Census, 1972 Census 
 of Manufacturers , Musical Instruments and Parts; Toys an d 
 Sporting Goods , p. 39B-15. 
 
 3. Obtained from U.S. Department of the Treasury, Internal Revenue Service. 
 
 4. Personal correspondence with the American Fishing Tackle 
 Manufacturers Association. 
 
 5. U.S. Department of Commerce, U.S. Bureau of the Census, 
 
 1972 Census of Wholesale Trade , Commodity Line Sales , Table la 
 and 3a. 
 
 6. National Sporting Goods Association, The Sporting Goods Market , 
 (1975) , p. 20. 
 
 7. U.S., Department of Interior, Bureau of Sport Fisheries and 
 Wildlife, National Survey of Fishing and Hunting 1970 , p. 46. 
 
 8. U.S. Department of Commerce, Bureau of the Census, 1972 Census 
 
 of Manufacturers , Musical Instruments and Parts, Toys and Sporting 
 Goods , p. 39V-11. 
 
 9. U.S. Department of Commerce, Bureau of Census, 1972 Census 
 of Wholesale Trade , Area Statistics for the U.S. , p. 8. 
 
 10. U.S. Department of Commerce, Bureau of Census, 1972 Census of 
 Retail Trade , Area Statistics for the U.S., p. 8. 
 
 11. U.S. Department of Commerce, Bureau of Census, 1972 Census of 
 Retail Trade, Value Produced, Capital Expenditures, Fixed Assets , 
 Rental Payments and Supplemental Labor Costs of Merchant Whole- 
 salers , p. 3/10. 
 
 12. National Sporting Goods Association, Twenty-Third Annual Costs of 
 Doing Business Survey (Chicago, 1973) , p. 15. 
 
 13. U.S. Department of Commerce, Bureau of the Census, 1972 Census of 
 Wholesale Trade, Value Produced, Capital Expenditures, Fixed 
 Assets , Rental Payments and Supplemental Labor Costs of Merchant 
 Wholesalers , pp. 3/15-17. 
 
 14. U.S. Department of Commerce, Bureau of the Census, 1972 Census 
 of Retail Trade , Capital Expenditures, Fixed Assets and Rental 
 Payments , p. 2/8. 
 
 80 
 
15. National Sporting Goods Association, The Sporting Goods Market , 
 (Chicago, 1975) , p. 20. 
 
 16. U.S. Department of the Interior, Bureau of Sport Fisheries and 
 Wildlife, Nati onal Survey of Fishing and Hunting for the years 
 1955, 1960, 1965, 1970. 
 
 17. U.S., Department of Commerce, 1972 Census of Manufacturers , p. 39B-11 
 
 18. American Fishing Tackle Manufactures Association, "Regular 
 Membership List - October 1972", (Chicago, Illinois). 
 
 19. U.S., Department of Commerce, Bureau of the Census, 1972 Census 
 of Wholesale Trade Commodity Lines, Tables la and 3a. 
 
 20. U.S., Department of Commerce, U.S. Bureau of the Census, 1972 
 Census of Retail Trade, Merchandize Line Sales: United States 
 Summary, p. 18. 
 
 21. Personal correspondence from National Direct Mail Advertising 
 Service, Lexington, Kentucky. 
 
 81 
 
APPENDIX B 
 
 ECONOMIC IMPACTS RELATED TO RECREATIONAL BOATS 
 
B.O ECONOMIC IMPACTS RELATED TO RECREATIONAL BOATS 
 
 B. 1 Summary of Impacts 
 
 In 1972 total sales of outboard, inboard, and inboard/outdrive boats 
 are estimated to have been $558.9 million at the manufacturing level 
 and $835.6 million at the retail level. Of these totals it is esti- 
 mated that the portion of boats attributable to marine recreational 
 fishing was $117.4 million at the manufacturing level and $175.5 mil- 
 lion at the retail level. These types of boats are in general not 
 distributed through wholesalers. Rather, they pass directly from 
 manufacturer to retail dealer. Thus no impact estimates are made for 
 wholesale trade. Exhibit B-1 presents the economic impacts associated 
 with these sales. 
 
 Value added resulting from these sales amounted to an estimated $388.8 
 million in 1972. Value added by manufacturers is estimated to have 
 been $254.3 for all outboard, inboard and inboard/outdrive boats of 
 which an estimated $53.4 million is attributable to saltwater sport- 
 fishing. In retail trade, value added totalled an estimated $133.7 
 million of which $28.1 million is associated with marine recreational 
 fishing. 
 
 It is estimated that in 1972, 30,600 person-years of employment are 
 associated with the production and final sale of all inboard, outboard 
 and inboard/outdrive boats. The employment impact associated with salt- 
 water sportfishing was an estimated 6,400 person years. Some 20,000 
 person-years were required for the production of boats of which 4,200 
 are attributable to saltwater sportfishing. In retail trade an estimated 
 10,500 person years were required in selling boats of which 2,200 person 
 years were associated with boats used in saltwater sportfishing. 
 
 Payment of wages and salaries for this total activity is estimated to 
 have been $219.9 million in 1972. Wages and salaries that were attribu- 
 table to boats used in saltwater sportfishing amount to some $46.2 million. 
 In production a total of 138.0 million in wages and salaries were paid, 
 and $29.0 million of that amount were associated with boats used in 
 saltwater fishing. An estimated total of $81.9 million in wages and 
 salaries was paid in retail trade, of which $17.2 million were attribu- 
 table to boats and in saltwater angling. 
 
 Annual capital expenditures were estimated to total $17.9 million for 
 outboard, inboard, and inboard/outdrive boats. Approximately $3.7 million 
 of that total is attributable to boats used in saltwater spcrtf i-shing. 
 Manufacturing and retail trade accounted for $11.2 million and $6.7 million 
 respectively. Annual capital expenditures attributable to boats used 
 in saltwater sportfishing amounted to an estimated $2.3 million in manu- 
 facturing and $1.4 million in retail trade. 
 
 82 
 
Exhibit B-1 
 
 Summary of Impacts 
 
 Related to Recreational Boat Purchases 
 
 1972 
 
 
 Manufacturing 
 
 Retail 
 Trade 
 
 * 
 
 Sum of 
 
 Impact 
 
 Number of Establishments 
 
 ** 
 
 228 
 
 6,650 
 
 
 Sales (Millions of dollars) 
 Total* 
 
 Marine Recreational 
 Fishing 
 
 558.9 
 117.4 
 
 835.6 
 175.5 
 
 
 Value Added (Millions of 
 dollars) 
 Total* 
 
 Marine Recreational 
 Fishing 
 
 
 254.3 
 53.4 
 
 133.7 
 28.1 
 
 388.8 
 81.5 
 
 Employment 
 Total * 
 
 Marine Recreational 
 Fishing 
 
 
 20,000 
 4,200 
 
 10,600 
 2,200 
 
 30,600 
 6,400 
 
 Wages and Salaries (Millions 
 of dollars) 
 Total* 138.0 81.9 219.9 
 
 Marine Recreational 29.0 17.2 46.2 
 
 Fishing 
 
 Annual Capital 
 
 Expenditures (millions of 
 dollars) 
 
 Total* ' 11.2 6.7 17.9 
 
 Marine Recreational 2.3 1.4 3.7 
 
 Fishing 
 
 * 
 
 Consists of the sum of the economic impacts at the manufacturing and 
 
 retail levels. 
 ** 
 
 Consists of total number of manufacturers who produce inboard, inboard/ 
 outdrive, or outboard boats as their primary product. 
 
 # 
 
 Impacts associated with total sales of inboard, inboard/outdrive, and 
 
 outboard boats used both in salt and fresh water. 
 
 83 
 
B. 2 General Approach to the Determination of Impact Estimates 
 
 To obtain estimates of the economic impacts associated with the use of 
 recreational boats in saltwater sport fishing, a four step procedure was 
 employed. 
 
 o Estimates of the value of sales of recreational 
 
 boats were made for each level of economic activity. 
 
 o Economic impact ratios for value added, employment, 
 salaries and wages, and annual capital expenditures 
 were each estimated as functions of boat sales. 
 
 o An estimate was made of the portion of total boat 
 sales that were attributable to saltwater sport- 
 fishing. 
 
 o The economic impact ratios were applied to the values 
 of total boat sales and sales of boats attributable to 
 saltwater sportfishing to determine the profile of 
 economic impacts . 
 
 The type of recreational boats used in saltwater fishing consist pre- 
 dominatly of outboard, inboard, and, inboard/outdrive motorboats of all 
 lengths. Other types of boats such as sailboats, houseboats, canoes, 
 pontoon boats, etc. are not used for the predominant purpose of salt- 
 water fishing and are excluded from these estimates. 
 
 Through discussions with representatives of Boating Industry Magazine 
 and the Boating Industry Association it was learned that over 90% of 
 outboard, inboard, and inboard/outdrive boats are sold directly to retail 
 dealers from the manufacturer through factory salesmen. Thus impact 
 estimates are only presented for manufacturing and retail trade and not 
 for wholesale trade. 
 
 84 
 
B.3 Estimation of the Value of Total Sales of Outboard, Inboard 
 and Inboard/Outdrive Boats 
 
 Two sources of data were used to estimate the total value of manufacturer's 
 shipments of outboard, inboard, and inboard/outdrive boats. First, the 
 1972 Census of Manufacturers includes data on manufacturer's shipments 
 detailed by type of boat and by boat length. In 1972 there were $558.9 
 million in shipments of these three boat types. 1 The value of shipments 
 of outboard, inboard and inboard/outdrive boats amounted to $233.9 million, 
 $229.1 million, and $95.9 million respectively. 
 
 Data from the National Association of Engine and Boat Manufacturers (NAEBM) c 
 boat shipments in 1972 support this estimate. NAEBM representatives 
 estimate that the reports that they receive directly from manufacturers 
 represent about 80% of all shipments. Manufacturers reported $413.9 million 
 in shipments in 1972. ^ Inflated to reflect shipments of all manufacturers, 
 the total value of shipments is about $520 million. 
 
 Two sources of data were examined to estimate the value of retail sales in 
 1972. The 1972 Census of Retail Trade reports that total sales of boat 
 dealers in that year were $1,560 billion.^ However, this amount includes 
 sales of boats other than the outboard, inboard and inboard/outdrive 
 type as well as sales of marine hardware and accessories. 
 
 The estimate used for this analysis was made using data provided by the 
 Boating Industry Association (BIA) . BIA data show that retail sales of 
 outboard boats amounted to $267.8 million in 1972. Similarly, retail 
 sales of inboard boats were $260.0 million, and sales of inboard/outdrive 
 boats totaled $307.8 million. These estimates are based on a monthly 
 sample of 750 retail dealers throughout the United States stratified by 
 dollar volume of sales and by Census region. The total estimate of sales 
 of all three types of boats in 1972 is $835.6 million."^ 
 
 85 
 
B.4 Estimating Impact Ratios Related to Recreational Boats 
 
 The determination of the valued added, employment, wages and salaries, 
 and annual capital expenditures impact estimates was made using derived 
 impact ratios. The ratios are presented in Exhibit B-2. All ratios are 
 functions of total sales and are defined as follows: 
 
 Total value added 
 o Value added impact ratio = Total sales 
 
 Total sales 
 
 Employment impact ratio = No. of employees 
 
 Total wages and salaries 
 Wages and salaries impact ratio = Total sales 
 
 o Annual capital expenditures Total annual capital expenditures 
 ratios = Total Sales 
 
 In manufacturing the set of impact ratios was determined for the three 
 boat types included in this analysis from Census data on producers which 
 are at least 75 percent specialized in production of outboard, inboard, and 
 inboard/outdrive boats . -' 
 
 Ratios for retail trade were derived from several sources of data. The 
 employment and salaries and wages ratios v/ere determined from Census data 
 on boat dealers (SIC 555).^ 
 
 Sales to employment ratios were adjusted to reflect person-years of employ- 
 ment based upon Bureau of Labor Statistics data on average hours worked 
 per employee in 1972 for the appropriate level of activity (i.e., manufact- 
 uring or retail trade) . 
 
 The annual capital expenditures to sales ratio was determined from Census 
 data aggregated in two-digit SIC groupings. The Census pxiblishes data on 
 seven major groupings: Building Material; General Merchandise, Food, Eating 
 and Drinking Places, Automotive, Furniture, Gasoline Service Stations. Boat 
 dealers are included in the Automotive Group (SIC 55) , and are most like 
 automotive dealers than the other six groups in their capital requirements. 
 Both sell large, high priced items which in general require showroom floor 
 space, storage space and repair facilities. The annual capital expenditures 
 impact ratio (.008) for the Automotive Group is used here for lack of more specific 
 data on boat dealers alone. The value added to sales ratio was determined 
 from data on the marine dealership portion of combined marine dealer/marine 
 establishment.^ The equipment sales components of these establishments 
 
 86 
 
Exhibit B-2 
 Economic Impact Ratios for Boats in 1972 
 
 Manufacturing Retail Trade 
 
 Value added 0.455 .16 
 
 ($/$ sales) 
 
 Employment 
 
 {$ Sales/Employment) $27,900. $78,650. 
 
 Wages and Salaries 0.247 0.098 
 
 ($/$ Sales) 
 
 Annual Capital Expenditures 0.020 0.008 
 
 ($/$ Sales) 
 
 87 
 
operate in an economic environment not significantly different from 
 marine dealers in general, and thus should adequately reflect value 
 added for this product. 
 
 88 
 
B. 5 Estimation of the Value of Sales of Recreational Boats Used in 
 Saltwater Fishing 
 
 It is estimated here that in 1972, $175.5 million of the $835.6 million 
 in retail sales of boats was attributable to saltwater sportfishing 
 activities. Similarly $114.9 million of the $547.3 million in manufact- 
 urers' shipments could be associated with saltwater angling. 
 
 There are several theoretical ways to allocate the proportion of sales 
 of recreational boats used in saltwater to marine recreational fishing. 
 Some boats, of course, are specialized pieces of fishing equipment which 
 are purchased for the sole purpose of fishing. At the other extreme, some 
 boats are not used for fishing at all. Many boats, however, are used for 
 a combination of activities including fishing, cruising, water skiing. 
 Choosing to allocate to recreational fishing only those boats bought ex- 
 pressly for fishing and no other activity would, indeed, underestimate the 
 true economic impact associated with recreational fishing. The opportunity 
 to participate in marine recreational fishing certainly does enter into 
 the decision of a potential boat purchaser even if other uses are contemplated. 
 
 Manufacturers and retailers in general do not know how their boats are going 
 to be used after final purchase. Thus, the above estimates are made in- 
 directly. The value of sales of private watercraft used in sportfishing is 
 estimated by determining a factor, r, which expresses saltwater fishing 
 activity from boats as a function of total boating activity such that, 
 
 (1) s = S X r 
 
 where s = value of annual sales of boats (including outboard, 
 inboard, and inboard/outdrive types) used in salt- 
 water sportfishing. 
 
 S = total value of annual sales of outboard, inboard, 
 and inboard/outdrive boats. 
 
 r = the ratio of saltwater fishing activity from 
 boats to total boating activity. 
 
 The factor r has been estimated here using two basic approaches. The first 
 technique is based on the assumption that the portion of the value of a boat 
 that is attributable to saltwater sportfishing depends upon the amount of time 
 that the boat is used for fishing vis-a-vis time spent in other boating 
 activity. That is, an owner may purchase a boat and use it an average 50 
 days each year. But it might be used for saltwater fishing only 25 days each 
 year. Thus, by this method one half of the boat's value can be allocated to 
 saltwater fishing. The second method of estimating r assumes that the full 
 value of a boat is attributable to saltwater sportfishing if the boat was used 
 for that activity. Both methods are employed to determine a range for r. 
 
 89 
 
The first technique is, however, preferred because it is based more pre- 
 cisely on fishing effort. 
 
 All estimates of r are derived from secondary data sources, most of which 
 include the entire boat population rather than just new boats. It is there- 
 fore additionally assumed that the distribution of boating activity of new 
 boats is the same as that of the boats in the existing boat population. 
 
 The preferred estimate, r]^, of r was determined using the following equation: 
 
 ^1 
 (2) r^ = t X — 
 
 where t = total time all boats are used for fishing 
 
 e->= expenditures by saltwater fishermen for boats 
 e= expenditures by all fishermen for boats 
 
 The data necessary for this computation were obtained from two sources. 
 According to a study on recreational boat by the U.S. Coast Guard, 46.5% 
 of all boating time is spent fishing.^ Recent research in saltwater boating 
 activity indicates that the percent of time boats are used for fishing in 
 saltwater only does not vary greatly from this national average. Estimates 
 of expenditures by fishermen for boats were obtained from the 1970 National 
 Survey of Fishing and Hunting and are $211.66 million and $260.48 million for 
 freshwater and saltwater fishermen respectively. The results of the 1970 
 National Survey of Fishing and Hunting have been critized because of the small 
 sample size and urban bias in its sampling procedure. However, any constant 
 error (resulting in overestimation or underestimation) of the expenditures 
 of freshwater and saltwater fishermen is almost completely cancelled out by 
 computing the ratio of these expenditures estimates. 
 
 Thus, using equation (2) 
 
 211.66 
 
 ri = 0.465 X 211.66 + 260.48 
 = 0.21 
 
 A second method of estimating r involves detemining the proportion of boats 
 that fish in saltwater to the total boat population. That is, 
 
 (3) ^2 = ^1/ 
 
 '^ ■^/ X v 
 
 ^2 
 where b-, = number of recreational boats that fish in saltwater 
 
 90 
 
* 
 
 b2 = total number of recreational boats 
 
 V = weighting factor to compensate for the 
 difference in value between boats used 
 for saltwater fishing and the total boat 
 population. 
 
 Using equation (3), the portion of total boat sales attributable to salt- 
 water sportfishing is estimated to be 0.25. 
 
 This method assumes that the total value of the boat is attributable to 
 saltwater sportfishing if the boat is used for fishing in saltwater. Thus 
 one would expect the estimated value of ^2 to exceed that of r-, . 
 
 A study conducted for the National Marine Fisheries Survey provides esti- 
 mates of b]^ and b-,. The number of boats that fished in saltwater (b-|^) 
 during the 12 month period from September, 1972 to September, 1973 is 
 estimated to have been 1,009,671.12 rpj^g estimate of the total boat popu- 
 lation of inboard, outboard, and inboard/outdrive boats was made using data 
 on the distribution of boats by type from a study conducted by the U.S. Coast 
 Guard. 12 According to the Coast Guard estimates, these three boat types 
 account for 66% of all boats. Thus b equals 5,291,003 (8,007,717 x .66) boats. 
 
 One would expect that boats used in saltwater would be somewhat larger 
 and would have a different distribution by type than the boat population as a 
 whole because of the water conditions in which they are used. Consequently 
 one would also expect that an average boat used in saltwater (for fishing) 
 would be more expensive than a typical boat of the entire outboard, inboard, 
 and inboard/outdrive boat population. 
 
 To compensate for this difference in value, a weighting factor, v, was 
 estimated. A value for v of 1.3 (i.e., a boat used in saltwater fishing costs 
 an average 1.3 times as much as an average boat in the population of outboard, 
 inboard, and inboard/outdrive water craft) was obtained by computing a pro- 
 portion of the replacement costs (in 1972 dollars) of a boat used in salt- 
 water to a boat typical of the population as a whole. 
 
 Exhibit B-3 presents the computation of the value of v. Estimates tor the 
 replacement value of boars were obtained from the Boating Industry Association. 
 The estimate of the distribution of all boats by type was obtained directly 
 from U.S. Coast Guard data.-'-'^ The estimate of the distribution by type of 
 boats used for saltwater fishing was determined through the conversion of 
 NMFS data on the length of these boats. 1^ The conversion was made from 
 Coast Guard data on the distribution of all boats by both type and length. 
 As Exhibit B-4 shows the population of boats that fish in saltwater includes 
 fewer outboard boats (of less value) and more inboard and inboard/outdrive 
 boats (of greater value) than the boat population as a whole. Thus, an average 
 boat used for saltwater fishing cost approximately $4,974 as compared to 
 an average of $3,802 for all boats. The ratio of the two values yields v. 
 Using equation (3), the estimate is computed as follows: 
 
 Includes only outboard, inboard and inboard/outdrive boats. 
 
 91 
 
Exhibit B-3 
 
 Boats Used in Saltwater 
 
 All Boats 
 
 Boat % of Total Replacement % of Total Replacement 
 
 Type No. Cost (1972$ ) % x Cost No. Cost (1972$) % x Cost 
 
 Outboards 75.6% 
 
 $ 714 $ 540 
 
 80.4% 
 
 714 
 
 $ 574 
 
 Inbocirds 
 
 14.3 
 
 27,370 
 
 3,914 
 
 10.1 
 
 27,370 
 
 2,764 
 
 Inboard/ 
 Outdrive 
 
 10.1 
 
 4,885 
 
 493 
 
 9.5 
 
 4,885 
 
 464 
 
 TOTAL 
 
 100,0 
 
 $ 4,947 100.0 
 
 $ 3,802 
 
 V = 
 
 $4,947 
 $3,802 
 
 1.30 
 
 92 
 
1.009,671 ^ ^^3^ 
 
 r = 5,291,003 
 2 
 
 0.25 
 
 A third method for computing cm estimate of r is simply to calculate the 
 ratio of expenditures by saltwater fishermen for boats to total sales of 
 boats. This method also assumes that the entire value of the boat is 
 attributable to the primary activity for which it is used. The estimate 
 of 1970 total sales of outboard, inboard and inboard/outdrive boats was 
 made using data from the Boating Industry Association. The only available 
 estimate of boat ej^senditures by fishermen is in the 1970 National Survey 
 of Fishing and Hunting . However, the constant error introduced in the 
 expenditure estimates by choosing a small and primarily urban sample for 
 the survey results in an overestimation of the actual expenditures of 
 fishermen. A ratio, r^, computed using this data would thus overestimate 
 the proportion of total boat sales that may be attributable to saltwater 
 fishing. The calculation of r3 is made here to determine an estimate of 
 the upper bound of r. 
 
 (4) r3 = e;^ , 
 
 ^1 
 
 where e, = estimated expenditures by saltwater fishermen 
 for boats. 
 
 s-^ = estimated value of sales of all inboard, 
 outboard and inboard/outdrive boats. 
 
 r, = $211.7 million 
 675.0 million 
 
 .31 
 
 Thus the upper limit of the percent of total boat sales which are attri- 
 butable to saltwater sportfishing activity is 31%. 
 
 In summary, the estimated values of r are 0.21, 0.25 and 0.31. The preferred 
 
 value is 0.21 because it is based upon estimates of the actual amount of 
 
 time boats are used for fishing. Using this value for r and the estimated 
 
 value of total retail sales of boats, the retail sales value of boats used 
 
 in saltwater angling, S ^^+.^m was estimated using equation (1): 
 
 reuaxx 
 
 ^retail " $835.6 million x .21 
 
 = $175.5 million 
 
 Similarly, the value of manufacturers' boat shipments that may be attributcible 
 
 93 
 
to saltwater fishing, Sjj^3j^^f^^^^j.^j^ was also determined using equation 
 (1): 
 
 S J- ^ . = $547.3 million x .21 
 
 manufacturing 
 
 = $114.9 million 
 
 94 
 
B.6 Application of Economic Impacts Ratios to Obtain Impact Estimates 
 
 The application of the impact ratios (presented in Section 3.2) to the 
 estimates the value of total sales of boats and value of sales of boats 
 used in saltwater fishing is the final step in the impact estimation 
 procedure . 
 
 In manufacturing and retail trade, the iitpact ratios of value added to 
 sales, wages and salaries to sales, and annual capital expenditures to 
 sales were multiplied with the respective total sales estimates, and esti- 
 mates of sales attributable to boats used in saltwater sport fishing. To 
 estimate employment the impact ratio of sales to person-years of employees was 
 divided into the estimated boat sales for manufacturing and retail trades. 
 The resulting impact estimates are summarized in Exhibit B-1. 
 
 95 
 
B.7 Estimation of the Number of Establishments 
 
 According to the Census of Manufacturers there were 1,778 boat manufacturers 
 in 1972. This number however includes manufacturers of all types of boats. 
 The producers of outboard, inboard and inboard/outdrive boats number approxi- 
 mately 228. This estimate represents manufacturers that list these three 
 types of boats as a primary product and therefore underestimates the total 
 number of producers. 
 
 The number of retail boat dealers in 1972 is estimated to be 6,650 based on 
 returns of the Census of Retail Trade. Between 60% and 69% of all boat dealers 
 or 4,318 establishments, reported in the Census.-*-^ The above estimate was 
 obtained by inflating the actual returns to reflect the total number of 
 dealers. 
 
 96 
 
APPENDIX B 
 
 1. U.S. Department of Commerce, Bureau of the Census, 1972 Census 
 of Manufacturers , Ship and Boat Building, Railroad and Miscella- 
 neous Transportation Equipment , pp. 37c/20-21. 
 
 2. Data provided by National Association of Engine and Boat Manu- 
 facturers, New York, New York. 
 
 3. U.S. Department of Commerce, Bureau of the Census, 1972 Census 
 of Retail Trade, Establishment and Firm Size , p. 1/17. 
 
 4. Data provided by the Boating Industry Association, Chicago, 
 Illinois. 
 
 5. U.S. Department of Commerce, Bureau of the Census, 1972 Census 
 of Manufacturers , Ship and Boat Building, Railroad and Miscella- 
 neous Transportation Equipment , p. 37c/16. 
 
 6. U.S. Department of Commerce, Bureau of the Census, 1972 Census 
 of Retail Trade, Establishment and Firm Size , p. 1/17. 
 
 7. Annual Capital Expenditures Data are from 1972 Census of Retail 
 Trade , Capital Expenditures , Fixed Assets , and Rental Payments 
 p. 2/6. Total sales data used for determining the impact ratio 
 are from 1972 Census of Retail Trade , U.S. Summary , p. 7. 
 
 8. National Association of Engine and Boat Manufacturers, Marinas 
 Cost/Revenues , 1974. 
 
 9- U.S. Coast Guard, Recreational Boating in the Continental United 
 States in 1973 , (1974) p. 93. 
 
 10. In a special report prepared for Centaur by C. Bruce Austin and 
 Linda D. Seifert of the University of Miami, entitled " Recreational 
 Boating Activity in Dade County" it is estimated that 127,249 out 
 
 of a total of 259,992 saltwater boating trips, or 48.9%, were 
 made for the purposes of recreational fishing. 
 
 11. U.S. Department of the Interior, 1970 Survey of Fishing and Hunt- 
 ing , pp. 45-46. 
 
 12. Bromber, Kenneth, Determination of the Number of Commercial and 
 Non-Commercial Recreational Boats in the U.S., Th e ir Use and Selected 
 Characteristics . A report prepared for the National Marine Fisheries 
 Service, U.S. Department of Commerce. (1973), p. C-5. 
 
 13. U.S. Coast Guard, p. 35. 
 
 97 
 
14. U.S. Coast Guard, p. 35. 
 
 15. Bromberg, p. C-5. 
 
 16. U.S. Coast Guard, p. 35. 
 
 17. U.S. Department of Commerce, U.S. Bureau of the Census, 1972 
 Census of Manufacturers, Ship and Boat Building , p. 37c/16. 
 
 18. U.S. Department of Commerce, Bureau of the Census, 1972 Census 
 of Retail Trade, United States Stimmary, p. 9. 
 
 98 
 
APPENDIX C 
 
 ECONOMIC IMPACTS RELATED 
 TO BOAT MOTORS 
 
CO ECC^OMIC I^g>ACTS RELATED TO BOAT MOTORS 
 
 C.l Summary of Impacts 
 
 In 1972, retail sales of all outboard motors totalled an estimated $432 
 million. Manufacturers' shipments were valued at $320 million in that 
 year. Motor sales associated with marine recreational fishing are 
 estimated to have been $48 million and $35 million in retail trade and 
 manufacturing respectively. Exhibit C-1 summarizes the impacts 
 associated with these sales. 
 
 Value added of all motor sales totalled $215 milliop. , manufacturing and 
 retail trade contributing $146 million and $69 million respectively. 
 Value added attributable to saltwater sportfishing totalled $24 million 
 of which $16 million and $8 million were associated with manufacturing and 
 retail trade respectively. 
 
 Employment for the manufacturing and retail trade of all outboard motors 
 amounted to an estimated 5,120 and 5,500 person-years respectively, or 
 a total of 10,620 person-years. Employment on motor production and retail 
 sales attributable to saltwater sportfishing is estimated to have totalled 
 1,170 person-years. Of that total an estimated 560 person-years were 
 required in production and 610 person-years were required in retail trade. 
 
 Wages and salaries amounted to a total of $101 million in 1972 of which $59 
 million were in manufacturing and $42 million were in retail trade of outboard 
 motors. The portion of wages and salaries generated from purchases of outboard 
 motors attributable to saltwater fishing amounted to $11 million in total, or 
 $6 million in manufacturing and $5 million in retail trade. 
 
 In 1972 capital expenditures related to outboard motor production and 
 retail sale totalled an estimated $8 million as compared with about $1 million 
 in capital expenditures attributable to saltwater sportfishing. In manufacturing 
 annual capital expenditures amounted to $5 million. In retail trade these 
 expenditures are estimated to have totalled $3 million. In comparison capital 
 expenditures for motors used in saltwater sportfishing amounted to an estimated 
 $0.5 million in manufacturing and $0.5 million in retail trade. 
 
 99 
 
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C.2 General Approach 
 
 The procedure used to estimate economic impacts associated with outboard 
 motors is similar to that used for impact estimates related to fishing 
 tackle and recreational boats. A four-step sequence was used: 
 
 o The total value of sales was estimated for the production 
 and final purchase of outboard motors. 
 
 o Economic impact ratios for value added, employment, wages 
 
 and salaries, and annual capital expenditures were estimated 
 as functions of motor sales. 
 
 o An estimate was made of the portion of motor sales that was 
 attributable to saltwater sportf ishing. 
 
 o The economic impact ratios were applied to the value of 
 
 total motor sales and to the value of motor sales attributable 
 to saltwater sportfishing to determine the estimates of 
 economic impacts. 
 
 The definition of outboard motors used here includes those motors which are 
 produced for external attachment to recreational boats. Thus modified motors 
 that are produced for installation into inboard/outdrive boats are excluded 
 from this analysis. (Impacts associated with the production and sale of 
 these motors are included in the analysis of recreational boats.) 
 
 Like recreational boats, outboard motors are shipped directly from manu- 
 facturers to retail dealers. Thus no impact analysis is made for wholesale 
 trade . 
 
 101 
 
C. 3 Estimation of the Total Value of Outboard Motor Sales 
 
 The value of manufacturers' shipments of outboard motors was estimated based 
 on the generally accepted mark-up for boat motors. From contacts with 
 three (of seven) manufacturers of motors, it was learned that while mark-ups 
 may vary by motor size, in general the retail price is about 35 percent higher 
 than manufacturers' selling price. The estimated value of manufacturers' 
 shipments in 1972 is $320 million based on a retail sales estimate of $432 
 million. 
 
 Data on motor shipments from the National Association of Engine and Boat 
 Manufacturers (NAEBM) were also examined. The NAEBM data do not include 
 all manufacturers, (one major manufacturer is excluded) and therefore 
 represent a lower bound for the total value of shipments. NAEBM member 
 companies reported a total of $194.1 million in shipments of motors in 
 1972. 
 
 The 1972 Census of Manufacturers provided a third source of data on motor 
 shipments. However, to avoid disclosing information on individual companies, 
 outboard motor data are combined with those of tank and converted internal 
 combustion engines, and these overstate the value of outboard motor shipments. 
 The combined value of shipments for these two product classes was $425.9 
 million in 1972.-' 
 
 102 
 
C.4 Estimation of Economic Impact Ratios Related to Boat Motors 
 
 To estimate the value added, employment wages and salaries, and annual capital 
 expenditures impacts of boat motor sales, economic impact ratios were 
 derived. The ratios are all determined as functions of sales and are computed 
 separately for manufacturing and retail trade. They are defined as follows: 
 
 o Value added impact ratio = Total Value Added 
 
 Total Sales 
 
 o Employment impact ratio = Total Sales 
 
 Number of Employees 
 
 o Wages and salaries impact ratio = Total Wages and Salaries 
 
 Total Sales 
 
 o Annual capital expenditure impact ratio = Total Annual Capital 
 
 Expenditures 
 
 Total Sales 
 
 The estimated impact ratios for outboard motors are presented in Exhibit C-2. 
 The ratio estimates for manufacturing were all computed from data published 
 in the 1972 Census of Manufacturers on manufacturers that list outboard 
 motors as their primary product.'* 
 
 Impact ratios for retail trade were determined from several sources of data. 
 The ratios of employment to sales and wages and salaries to sales were 
 determined using data on boat dealers from the 1972 Census of Retail Trade . ^ 
 The employment to sales ratio was adjusted to reflect person-years based on 
 Bureau of Labor Statistics data on the average hours worked per employee 
 in 1972. These data are applicable because the vast majority of outboard 
 motors are sold through retail boat dealers. 
 
 The value added to sales ratio was computed from data on the boat and motor 
 dealership portion of combined marine dealer/marina operations. The data 
 were obtained from a study of the cost and revenues of marinas.^ The dealer- 
 ship portion of these establishments operates in virtually the same economic 
 environment as boat and motor dealers in general and thus these data should 
 reasonably reflect the value added characteristics of the population of boat 
 and motor dealers. 
 
 The annual capital expenditures ratio was determined from 1972 Census data 
 on automotive dealers. The data are aggregated in two-digit SIC groupings. 
 Boat dealers are the primary sellers of outboard motors and are included in 
 the automotive group. They are much like automotive dealers in their capital 
 requirements. Both types of dealers sell large high priced items which in 
 general require showroom floor space, storage space eind repair facilities. 
 For these reasons the ratio of annual capital expenditures to total sales for 
 the automotive group is 0.008 and is used here in estimating the impacts 
 related to boat motors at the retail level. 
 
 103 
 
Exhibit C-2 
 
 Impact Ratios 
 
 Boat Motors 
 
 1972 
 
 Value Added 
 Sales 
 
 Sales 
 Employment 
 
 Salaries S Wages 
 Sales 
 
 Manufacturing 
 0.455 
 
 $62,500 
 
 0.183 
 
 Retail Trade 
 
 0.160 
 
 $78,650 
 
 0.098 
 
 Capital Expenditures 
 Sales 
 
 0.015 
 
 0.008 
 
 104 
 
C. 5 Estimating the Value of Outboard Motor Sales Used in Saltwater 
 Sportf ishing 
 
 It is estimated that in 1972 $48 million of the $432 million in retail sales 
 of boat motors were attributable to marine recreational fishing activities. 
 Similarly $35 million of the $320 million in manufacturers' shipments were 
 estimated to be associated with saltwater angling. 
 
 Outboard motors are used for a variety of boating activities in freshwater 
 and saltwater. Below we estimate, s, that portion of motor sales that is 
 attributable to saltwater sportf ishing using the following equation: 
 
 (1) s . = S. X F 
 
 1 1 
 
 where s = Value of annual sales of outboard motors used in 
 saltwater sportf ishing. 
 
 S = Total value of annual sales of outboard motors 
 
 F = The ratio of saltwater sportfishing activities using 
 outboard motors to total boating activities using 
 outboard motors. 
 
 i = The level of economic activity, i.e., manufacturing 
 or retail trade. 
 
 The value of S is estimated in Section 3.1. To compute s, the factor f 
 must be determined. Several estimates, f, of the actual value of F are 
 derived below. The first estimate is based on the assiomption that the 
 portion of the value of an outboard motor that is attributable to saltwater 
 angling depends on the amount of time that the motor is used for fishing 
 vis- a- vis other boating activities (e.g., cruising or skiing) which require 
 boat motors. The first estimate of F was determined using the following 
 equation : 
 
 (2) f = m X t 
 
 where m = Expenditures for outboard motors by saltwater 
 fishermen. 
 
 m = Expenditures for outboard motors by all fishermen. 
 
 t = The percent of time outboard motors are used for 
 fishing. 
 
 The estimates of m and m are taken from the 1970 National Survey of Fish-i;'; -) 
 and Hunting ." The results of this survey have been criticized because of the 
 small sample used and urban bias in the sampling plan. However, any constant 
 
 105 
 
error in the estimates of expenditures resulting from these difficulties is 
 almost completely cancelled out by computing the ratios of expenditures for 
 motors by saltwater fishermen and expenditures by all fishermen. 
 
 For lack of more detailed data specifically on the use of boat motors it is 
 necessary to assume that outboard boats (and thus motors) are used for fishing 
 the same amount of time as the boat population in general. The U.S. 
 Coast Guard estimates that 46.5 percent of all boating time (and thus boat 
 motor time) is spent fishing. Because boating activity data include the 
 entire boat population it is necessary to additionally assume that new boat 
 motors are used in the same way as boat motors in the existing population. 
 
 Thus using equation (2), f = $51.9 million X 0.465 
 
 $224.2 million 
 
 = 0.11 
 
 Two additional estimating procedures were enrployed in an attempt to corroborate 
 this estimate. The procedures and the estimates are described below. 
 
 A simple proportion of the number of outboard boats (and thus motors) used 
 in saltwater fishing and the total niomber of outboard boats (and thus motors) 
 was computed as a second estimate of the actual value of F. That is, 
 
 (3) f = n^ 
 
 where n = Number of outboard boats used for fishing in 
 saltwater. 
 
 n„ = Total number of outboard boats. 
 2 
 
 One would expect this estimate to overestimate F because this procedure 
 implicitly assures that the total value of the motor is attributable to 
 saltwater sportfishing if it is used for that activity. 
 
 An estimate of the total number of outboard boats was obtained directly from 
 U.S. Coast Guard data. From Coast Guard data on the nimiber of boats by length 
 and type and NMFS data on the number of boats that fish in saltwater by 
 boat length, an estimate of the nvimber of outboard boats that fish in saltwater 
 was determined . H From this data the second estimate of F was computed 
 using equation (3) : 
 
 f = 764,000 
 4,246,000 
 
 = 0.18 
 
 As a third estimate of the actual value of F, a ratio of estimated expenditures 
 for boat motors by saltwater fishermen to total consumer expenditures for motors 
 was computed. Data on expenditures of saltwater fishermen were tciken directly 
 
 106 
 
from the 1970 National Survey of Fishing and Hunting . The estimate of total 
 motor sales in 1970 was obtained using data from the Boating Industry 
 Association. 
 
 As explained above the urban bias in the sample of the 1970 National Survey 
 of Fishing and Hunting introduced scxne constant error which resulted in an 
 overestimation of actual expenditures. Thus this estimate should also over- 
 estimate the portion of total boat motor sales that are attributable to salt- 
 water sportfishing. 
 
 The third estimate was computed as follows: 
 
 (4) f = e^ / e^ 
 
 where e = Expenditures for boat motors by saltwater sport- 
 fishermen. 
 
 e = Total expenditures for outboard motors. 
 
 thus f = $52 million 
 $310 million 
 
 = 0.17 
 
 To summarise, F has been estimated three different ways resulting in values of 
 0.11, 0.17, and 0.18. "ttie first estimate of F which equals 0.11 is the 
 most reasonable because it is based upon the amount of time outboard motors 
 are actually used for fishing. The second and third estimates (0.17 and 0.18 
 respectively) were computed to provide corroborative evidence for the first 
 estimate. As explained above one would expect these latter two estimates to 
 be larger than the actual value of F because they each implicitly allocate 
 the total value of the motor to sportfishing if the motor is used for that 
 activity. The results above support these expectations and point to the 
 value 0.11 as the most reasonable choice for an estimate of F given the data 
 available for these estimates. 
 
 Using 0.11 as the approximation for determining the portion of total motor 
 sales that is attributable to saltwater angling the value of sales for 
 retail trade and manufacturing was estimated from equation (1) : 
 
 S„ ^ ., = $432 million X 0.11 
 Retail 
 
 = $48 million 
 
 Manufacturing = $420 million X 0.11 
 = $35 million 
 
 107 
 
C. 6 Application of Economic Impact Ratios to Obtain Impact Estimates 
 
 To determine estimates of the value added, employment, wages and salaries 
 and capital expenditure impacts, the economic impact ratios (presented in 
 Section C.4) were applied to the estimates of total sales of boat motors 
 and sales of boat motors attributable to saltwater sportf ishing. 
 
 In manufacturing and retail trade the ratios of value added to sales, wages 
 and salaries to sales, and annual capital expenditures to sales are 
 multiplied with the respective total sales estimates and estimates of sales 
 associated with sportf ishing. The employment impact is determined by 
 dividing the ratio of sales to person-years of employment into the estimated 
 values of motors sales for manufacturing and retail trade. The resulting 
 impact estimates are summarized in Exhibit C-1. 
 
 108 
 
C.7 Number of Establishments 
 
 According to the 1972 Census of Manufactures there are seven manufacturers that 
 list boat motors as their primary product. 12 According to the National Associa- 
 tion of Engine and Boat Manufacturers these establishments produce over 90 
 percent of all outboard boats. 
 
 Nearly all boat motors are sold through boat dealers at the retail level. 
 The 1972 Census of Retail Trade reports 4,318 boat dealers in that year. 13 
 Only between 60 and 69 percent of all dealers reported. Assuming that 65 
 percent of all establishments reported to the Census Bureau, the total 
 number of establishments is estimated to be 6,650. This does not include 
 department stores that sell motors. According to several manufacturers, 
 however, motors sold through department stores generally have very low horse- 
 power and are not likely to be used in saltwater. 
 
 109 
 
APPENDIX C REFERENCES 
 
 1. The companies contacted were Chrysler Outboard Corporation, 
 Outboard Marine Corporation, and Mercury Motors. 
 
 2. National Association of Engine and Boat Manufacturers, New York, 
 New York. 
 
 3. U.S. Department of Commerce, Bureau of the Census, 1972 Census of 
 Manufacturers ; Engines and Turbines and Farm Machinery and Equipment , 
 p. 35A/16. 
 
 4. 1972 Census of Manufacturers , p. 35A/12. 
 
 5. U.S. Department of Commerce, Bureau of the Census, 1972 Census 
 of Retail Trade , Establishment and Firm Size, p. 1/-17. 
 
 6. National Association of Engine and Boat Manufacturers, Marinas r 
 Costs/Revenues - 1974 . 
 
 7. Annual Capital Expenditures data are from 1972 Census of Retail Trade , 
 Capital Expenditures Fixed Assets and Rental Payments , p. 2/6. 
 
 Total sales data used for determining the impact ratio are from the 
 1972 Census of Retail Trade , U.S. Summary , p. 7. 
 
 8. U.S. Department of the Interior, Bureau of Sport Fisheries and 
 Wildlife, 1970 National Survey of Fishing and Hunting , pp. 44 and 46. 
 
 9. U.S. Coast Guard, Recreational Boating in the Continental United 
 States in 1973 , October, 1974, p. 93. 
 
 10. U.S. Coast Guard, p. 35. 
 
 11. Kenneth Bromberg, Determination of the N\imber of Commercial and 
 Non-Commercial Recreational Boats in the U.S., Their Use, and 
 Selected Characteristics , a report for the National Marine Fisheries 
 Service, 1973, p. C-5; and U.S. Coast Guard, Recreational Boating 
 
 in the Continental United States , 1974, p. 35. 
 
 12. 1972 Census of Manufacturers , p. 35A/12. 
 
 13. 1972 Census of Retail Trade, U.S. Summary, p. 9. 
 
 110 
 
APPENDIX D 
 
 ECONOMIC IMPACTS RELATED TO 
 BOAT TRAILERS 
 
D.O ECONOMIC IMPACTS RELATED TO BOAT TRAILERS 
 
 D. 1 Summary of Impacts 
 
 The estimated value of retail sales of boat trailers was $72 million in 1972. 
 Manufacturers' shipments totalled an estimated $58.1 million. Sales attributable 
 to marine recreational fishing amounted to an estimated $15 million in retail 
 trade and $12 million in manufacturing. The impacts associated with these 
 sales are presented in Exhibit D-1. 
 
 In 1972 value added from boat trailer purchases totalled about $32.8 million, 
 $21.3 million in manufacturing arid $11.5 million retail trade. Value added 
 attributable to saltwater angling amounted to an estimated $4.5 million in 
 manufacturing and $2.4 million in retail trade, or a total of $6.9 million. 
 
 Employment amounted to an estimated 1,400 and 920 person-years for the pro- 
 duction and final sale of all boat trailers respectively, or a total of 2,320 
 person-years. Employment from boat trailers attributable to saltwater sport- 
 fishing is estimated at 490 person-years, 300 person-years in manufacturing 
 and 190 person-years in retail trade. 
 
 Wages and salaries for this total activity amounted to an estimated $17.7 
 million, or about $10.5 million in manufacturing and an estimated $7.1 million 
 in retail trade. Wages and salaries attributable to saltwater sportfishing 
 from boat trailers were an estimated $2.2 million in manufacturing or $1.5 
 million in retail trade for a total of $3.7 million. 
 
 Annual capital expenditure in 1972 were an estimated $1.8 million for the 
 production and retail sale of trailers. Capital expenditures were evenly 
 divided between manufacturing and retail trade. Approximately $0.3 million 
 of that total is attributable to saltwater emgling activity. 
 
 Ill 
 
Exhibit D-1 
 
 Summary of Impacts 
 Related to Boat Trailers 
 1972 
 
 Number of Establishment 
 
 Sales 
 
 (millions of dollars) 
 
 Total## 
 
 Marine Recreational 
 Fishing 
 
 Value Added 
 (millions of dollars) 
 
 Total ## 
 
 Marine Recreational 
 Fishing 
 
 Employment 
 (person-years) 
 
 Total ## 
 
 Marine Recreational 
 Fishing 
 
 Wages and Salaries 
 (millions of dollars) 
 
 Total** 
 
 Marine Recreational 
 
 Fishing 
 
 Annual Capital Expenditures 
 (millions of dollars) 
 
 Total** 
 
 Marine Recreational 
 Fishing 
 
 Manufacturing 
 100+** 
 
 $58.1 
 12.2 
 
 $21.3 
 4.5 
 
 1,400 
 300 
 
 $10.6 
 2.2 
 
 $1.2 
 
 0.2 
 
 Retail Trade 
 
 6,650# 
 
 Sum of Impact^ 
 
 $72.0 
 15.1 
 
 $11.5 
 2.4 
 
 920 
 190 
 
 $7.1 
 1.5 
 
 $0.6 
 0.1 
 
 $32.8 
 6.9 
 
 2,320 
 490 
 
 $17.7 
 3.7 
 
 $1.8 
 0.3 
 
 * Sum of direct economic impacts at the manufacturing and retail levels. 
 ** Total niomber of boat trailer manufacturers. 
 
 # Total number of retailers selling boat trailers. 
 ## Economic activity of total boat trailer industry. 
 
 112 
 
D.2 General Approach 
 
 The estimates siimmarized above were determined using the following procedure. 
 
 o The total value of manufacturers ' shipments and retail 
 sales of boat trailers were estimated. 
 
 o Economic impact ratios of value added to sales, sales to employ- 
 ment, salaries and wages to sales, and other capital 
 expenditures to sales were separately estimated for manu- 
 facturing and retail trade. 
 
 o An estimate was made of the portion of total trailer sales 
 that were attributaible to saltwater sportf ishing. 
 
 o The economic impact ratios were applied to the values of 
 total trailer sales and sales of trailers attributable to 
 saltwater sportfishing to determine the profile of economic 
 impacts . 
 
 The definition of boat trailers used in this analysis include those trailers 
 that are used by private boat owners to transport their watercraft to and 
 from launching sites. 
 
 According to industry sources boat trailers pass directly from manufacturers 
 to retail dealers primarily. Wholesale distributors are not used because the 
 bulkiness of the product makes packaging difficult and inhibits handling by 
 distributors. The analysis, therefore, includes only manufacturing and 
 retail trade activities. 
 
 113 
 
D.3 Estimation of the Value of Total Sales of Boat Trailers 
 
 T\s?o sources of data were used in determining the value of manufacturers' 
 shipments in 1972. The better estimate, $58.1 million, which appears in 
 Exhibit D-1 was taken from the 1972 Census of Manufactures .-^ The Census data 
 is the better estimate because the Census survey included all manufacturers 
 and all data are collected uniformly. 
 
 An estimate of $54 million in shipments was obtained using data from the 
 National Association of Engine and Boat Manufacturers (NAEBM) . While the 
 procedure for reporting data is uniform for all manufacturers participating, 
 the NAEBM data does not include all manufacturers. In calendar year 1972 
 the shipments of some 35 companies reporting to NAEBM amounted to $43,377,000. 
 NAEBM estimates that their reports include about 80 percent of all manu- 
 facturers' shipments. 2 Inflating this value to reflect all shipments results 
 in an estimate of about $54 million. This estimate generally corroborates 
 the value reported in the census. 
 
 The estimated 1972 value of boat trailers at the retail trade level was $72 
 million. This was obtained from the Boating Industry Association and was 
 determined from data on 750 retail dealers stratified by sales volume and 
 geographic region and then inflated to reflect the national sales volume. 3 
 This estimate is within the proper range of the generally accepted mark-up 
 for boat trailers manufacturers to retail dealers. According to industry 
 sources there is a 20 percent to 25 percent mark-up on trailers. The 
 estimate of $72 million in retail sales implies about a 24 percent margin. 
 
 114 
 
D. 4 Estimation of Economic Impact Ratios Related to Boat Trailers 
 
 The determination of value added, employment, wages and salaries, and annual 
 capital expenditure associated with these sales were made using derived 
 impact ratios. The ratios are presented in Exhibit D-2. All impact ratios 
 are functions of sales and are defined as follows: 
 
 o Value added impact ratio = Total Value Added 
 
 Total Sales 
 
 o Employment impact ratio = Total Sales 
 
 Number of Employees 
 
 o Wages and salaries impact ratio = Total Wages and Salaries 
 
 Total Sales 
 
 o Annual capital expenditures = Total Annual Capital Expenditures 
 impact ratio Total Sales 
 
 In manufacturing the set of impact ratios for boat trailers was determined from 
 Census data on SIC 37999.'* The SIC group includes boat trailers along with 
 other products such as automobile utility trailers, chassis for automobile 
 trailers and handcarts. The items included in this group are similar to boat 
 trailers in the manpower and equipment required for their production. Thus 
 data for this product group are a reasonable choice for computing boat trailer 
 impact ratios of production. 
 
 The economic impact ratios for sales to employment and wages and salaries to 
 sales in retail trade are determined from Census data on marine dealers. ^ 
 The sales to employment ratio was then adjusted to reflect person-years 
 based on Bureau of Labor Statistics data on the average hours worked per 
 employee in 1972. Since virtually all boat trailers are purchased through 
 marine dealers, these ratios should provide reasonable impact estimates. The 
 value added to sales ratio was determined from the data on the marine dealer- 
 ship portion of combined marine dealer/marina establishments. ° However, it is 
 not likely that the equipment sales components of these establishments operate 
 in an economic environment significantly different from marine dealers in 
 general and thus this ratio should adequately reflect value added for this 
 product. The ratio of annual capital expenditures to sales was determined 
 from census data aggregated in two-digit SIC groupings. Marina dealers are 
 included in the automotive group. They are similar to automotive dealers in 
 their capital requirements. Both dealerships sell large, high priced items 
 which in general require showroom floor space, storage space and repair 
 facilities. For this reason, data on the automotibe group were used to estimate 
 annual capital expenditures related to retail sales of boat trailers.^ 
 
 115 
 
Exhibit D-2 
 
 Boat Tailers 
 Economic Impact Ratios 
 
 Manufacturing Retail Trade 
 
 Value Added 
 Sales 
 
 0.367 
 
 ,16 
 
 Sales 
 
 Employment 
 
 $41,100 
 
 $78,650 
 
 Wages and Salaries 
 Sales 
 
 0.183 
 
 0.098 
 
 Annual Capital Expenditures 
 Sales 
 
 0.020 
 
 0.008 
 
 116 
 
D. 5 Estimation of the Value of Sales of Boat Trailers Associated With 
 Saltwater Sportfishing 
 
 It is estimated here that about 21 percent of all boat trailers sales is 
 attributable to saltwater sportfishing activity. That estimate is based 
 on the following argximent. 
 
 Trailer "activity" is directly associated with boat activity. That is, 
 if a boat is hauled to a launching site to be used for a fishing trip, then 
 the trailer is also being used for fishing. Boats (and thus trailers) are 
 used for a variety of water activities (e.g., cruising, skiing, or fishing). 
 Their value may be allocated to any activity according to the portion of 
 time that boats (trailers) are used for that activity. We have estimated 
 that about 21 percent of all boat sales are attributable to saltwater sport- 
 fishing (see Appendix B for a detailed explanation of this allocation 
 procedure) , and therefore assiome that about the same amount of trailer 
 sales may be allocated to marine recreational fishing.* 
 
 The method used for estimating the portion of boat sales attributable to 
 saltwater sportfishing is weighted for the larger size of boats (and thus 
 trailers) that are used in marine Waters. 
 
 117 
 
D. 5 Application of Economic Impact Ratios to Obtain Impact Estimates 
 
 To obtain estimates of the economic impacts associated with trailer sales 
 the impact ratios (presented in Section D-3.2) were applied to the value 
 of sales of all boat trailers and the value of sales of trailers attributable 
 to saltwater fishing. The ratios of value added to sales, wages and salaries 
 to sales, and annual capital expenditures to sales for manufacturing and 
 retail trade were each multiplied with the respective sales values to determine 
 the impact estimates. The ratios of sales to employment in manufacturing and 
 retail trade were divided into the respective sales values to determine 
 the employment impact. 
 
 118 
 
D. 7 Estimating the Number of Establishments 
 
 The National Association of Engine and Boat Manufacturers is the only source 
 of information on the number of manufacturers of boat trailers. NAEBM 
 estimates that there were over 100 trailer producers in 1972.8 as for 
 establishments in retail trade, there were about 6,650 boat dealers in 1972. 
 The returns of 4,318 establishments are included in the 1972 Census of 
 Retail Trade , but only between 60 percent and 69 percent of all dealers 
 reported. 9 The above estimate was obtained by assuming that 55 percent 
 (the midpoint of the range) of all establishments reported to the Bureau 
 of the Census. The total number of responses were then, inflated to reflect 
 the estimated total number of dealers. 
 
 119 
 
APPENDIX D REFERENCES 
 
 1. U.S. Department of Commerce, Bureau of the Census, 1972 Census of 
 Manufacturers Ship and Boat Building; Transportation Equipments , 
 p. 37c/24. 
 
 2. Special correspondence with National Association of Engine and 
 
 Boat Manufactuers. 
 
 3. Private correspondence with Boating Industry Association. 
 
 4. 1972 Census of Manufacturers , p. 37c/16. 
 
 5. U.S. Department of Commerce, Bureau of the Census, 1972 Census of 
 Retail Trade, Establishment and Firm Size , p. 1/17. 
 
 6. National Association of Engine and Boat Manufactures, Marinas ; 
 Costs/Revenues - 1974 . 
 
 7. Data on capital expenditures are from U.S. Department of Commerce, 
 Bureau of the Census, 1972 Census of Retail Trade, Capital Expenditures , 
 Fixed Assets, and Rental Payments , p. 2/6. Sales data required for 
 computing the ratio are from 1972 Census of Retail Trade, U.S. Summary, 
 p. 7. 
 
 8. National Association of Engine and Boat Manufacturers, Recreational 
 Boating and the Fuel Shortage; Position Paper . 
 
 9. 1972 Census of Retail Trade, U.S. Summary, pp. 9, 31. 
 
 120 
 
APPENDIX E 
 
 ECONOMIC IMPACTS RELATED TO MARINAS/BOAT YARDS 
 
E.O ECONOMIC IMPACTS RELATED TO MARINAS/BOAT YARDS 
 
 E.l Sxjmmary of Impacts 
 
 In 1972 gross revenues of coastal marinas/boat yards were an estimated $450 
 million. About $203 million are attributable to expenditures by marine 
 recreational fishermen. The economic impacts associated with these expendi- 
 txires are summarized in Exhibit E-1. Value added, employment, wages and 
 salaries and annual capital expenditures totalled an estimated $180 million, 
 14.3 thousand person-years, $130 million, and $14.4 million respectively. 
 Impacts attributable to saltwater angling were an estimated $81 million in 
 value added, 6.4 thousand person-years of employment, $59 million wages 
 and salaries, and $6 million in annual capital expenditures. 
 
 121 
 
Exhibit E-1 
 
 Summary of Impacts Related to Marinas/Boat Yards 
 
 1972 
 
 Number of Establishments 2800 
 
 Sales (millions of dollars) 
 Total 
 Marine Recreational Fishing 203 
 
 Total** S 450 
 
 Value Added (millions of dollars) 
 
 Total** $ 180 
 
 Marine Recreational Fishing 81 
 
 Employment (person-years) 
 
 Total** 14,300 
 
 Marine Recreational Fishing 5,400 
 
 Wages and Salaries 
 
 Total** $ 130 
 
 Marine Recreational Fishing 59 
 
 Annual Capital Expenditures 
 
 Total** $ 14.4 
 
 Marine Recreational Fishing 6 
 
 Represents total number of coastal marinas and boat yards. 
 ** 
 
 Represents total impacts associated with all coastal marinas. 
 
 122 
 
E.2 General Approach 
 
 To obtain estimates of the economic impacts from marinas/boat yards related 
 to saltwater sportfishing the following procedure was used: 
 
 o The total number of coastal marinas/boat yards was estimated. 
 
 o The gross revenues, value added, employment, and wages and 
 salaries characteristics of a "typical" marina/boat yard 
 were estimated. 
 
 o The gross revenues, value added, employment, and wages and 
 salaries related to all marinas/boat yards were estimated 
 from the foregoing. 
 
 o Annual capital expenditures of all marinas/boat yards were 
 estimated based on estimates of expansion of facilities and 
 typical construction costs. 
 
 o The economic impacts related to marinas/boat yards attributable 
 to saltwater sportfishing were estimated based on the amount 
 of time boats are used for fishing. 
 
 In general marinas are considered to be establishments that provide summer 
 berthing and related waterfront services. Boat yards on the other hand 
 typically provide repair, storage, la\mching and hauling services. Many 
 facilities, however, provide all or a combination of services of both boat 
 yards and marinas so that it is difficult to distinguish between them. 
 Additionally, many marinas and boat yards sell boats and engines and can 
 be considered retail dealers of these items. Thus, marinas/boat yards can- 
 not be easily defined using specific groupings of services. Instead, the 
 following criteria were applied in estimating the population of marinas/ 
 boat yards for use in this research: 
 
 o Establishments that are located on saltwater frontage. 
 
 o Establishments that provide berthing, storage or repairs to 
 hulls and/or motors among the mix of services offered at 
 the facility. 
 
 The specific procedures for determining estimates of gross revenues and 
 associated impacts were highly dependent on the sources of available data. 
 In all, eight studies on marinas/boat yards were located that provided 
 economiq data. 
 
 Only one study was national in scope. It was conducted by the National 
 Association of Engine and Boat Manufactures (NAEBM) . This study provides a 
 breakdown of revenues and costs for 75 establishments (31 marinas, 7 boat 
 yards , and 37 combined marinaA>oat yards) . The study was conducted in 
 1974.^ 
 
 123 
 
The remaining seven studies all focus on the marina/boat yard industries 
 of particular states and were conducted in 1972. They include studies of 
 marinas/boat yards in Maine, New Hampshire, Massachusetts, Connecticut, 
 Rhode Island, New York, and Texas. ^ Like the NAEBM study, several of the state 
 studies include businesses on freshwater and saltwater frontage (i.e., 
 studies of Maine, New Hampshire and Massachusetts) . An additional diffi- 
 culty with this body of research is the strong northeastern bias of the 
 data. 
 
 Other things being equal one would expect the volume of business of marinas/ 
 boat yards to be affected by the length of the boating season. New England's 
 shorter season relative to most other coastal areas of the nation would 
 most likely result in a lower average sales volume per establishment than 
 marina/boat yards in other areas. The specific use of the studies is des- 
 cribed in the detailed discussion of the impact estimates presented below. 
 The basic procedure for estimating the total economic impacts of marina/boat 
 yards consisted of multiplying the estimated impacts of a typical marina/ 
 boat yard times estimates of the total number of coastal marinas. 
 
 124 
 
E . 3 Estimating the Number Establishments 
 
 It has been estimated that there are a total of 4,600 marinas and boat 
 yards in all of the United States.-^ An estimate of 2,800 marinas/boat 
 yards on saltwater frontage was arrived at by compiling lists of establish- 
 ments either by state or by region and counting the facilities that fit 
 the definition of marina/boat yard described above. 
 
 Three sources were used in preparing the estimate. Privately published 
 boating guides were the primary source. The Boating Almanac provided a 
 comprehensive listing of facilities on salt water locations for the east 
 coast from Maine to North Carolina. It provides an illustration of the 
 locations as well as descriptions of the services offered by the establish- 
 ments listed- The Boating Almanac was used in the marina industry study of 
 Massachusetts conducted by the Massachusetts Agricultural Experiment Station. 
 There it was determined that only 13 out of 222 marinas identified in that 
 state (6 percent) were not listed in the publication. The Boating Almanac 
 was also recommended by staff members of the Virginia Institute of Marine 
 Science and the Army Corps of Engineers, who have used it successfully in 
 their own field research. 
 
 A similar publication, the Waterway Guide 1976 was used to estimate the 
 number of establishments in the Gulf region. It, too, provides descrip- 
 tions of location and services offered. Several individuals contacted who 
 have used it in field research believe it to be somewhat less complete than 
 the Boating Almanac . It is, however, the only publication for that region 
 which includes the necessary descriptive data. Similarily, The Sea Boating 
 Almanac was used to supplement other data sources for the Pacific Coast. 
 
 A second source of listings was those compiled by state agencies either for 
 their own research or for use in promoting tourism. With the exception of 
 California and Washington, the lists that were obtained did not include in- 
 
 Q 
 
 formation on services and facilities provided. ° Thus they were not as use- 
 ful as the boating guides in determining whether specific establishments 
 fit the definition of marinaAioat yard used here. Third, local Marine 
 Dealer Associations provided some information, but it, too, suffered from 
 a lack of detail on service offerings . 
 
 The available marina/boat yard listings were, however, all recent publica- 
 tions. They, therefore, included some establishments that did not exist in 
 1972 and excluded some establishments that have since gone out of business. 
 The total number of marinas is, however, expanding slowly, primarily be- 
 cause of the lack of suitable undeveloped sites. In addition the financial 
 environment has discouraged new development. The increase in the number 
 of environmental factors that must now be considered also hampers develop- 
 ment. Less than 3 percent of the marinas/boat yards sampled in a Massachusetts 
 study were newly opened between 1971 and 1973. Likewise in New York only 
 five out of 160 establishments sampled were newly opened from 1967 to 1972. -'■^ 
 
 125 
 
On the Texas Gulf Coast there have been no new marinas built since 1966. 
 Thus? error due to inclusion of facilities built after 1972, if the studies 
 cited above are a reasonable indication, is apt to be about one percent per 
 
 year or three percent in total. 
 
 On the other hand, the listings used may have excluded establishments that 
 have gone out of business since 1972 resulting in a change in land use on 
 those sites. For example, a study of marinas in New York State showed that 
 approximately one percent of the facilities included in the sample had gone 
 out of business within the year previous to the survey. ■'■^ Assuming an average 
 loss of one percent per yeeur of established marinas/boat yards, about three 
 percent of all establishments operating in 1972 were not open in 1975. Thus, 
 error in the total estimate of 2,800 establishments in 1972 arising from 
 inclusion of new businesses and exclusion of establishments that did operate 
 in 1972 is assumed to be relatively minor. 
 
 The largest source of error in this estimate of the coastal marina/boat yard 
 population is from incomplete listings. As stated above, the error in the 
 Boating Almanac which covers most of the Atlantic Coast has been estaimated 
 to be six percent. The listings used for the Gulf eUid Pacific Coast are 
 somewhat less accurate. Thus the initial count of about 2,600 establish- 
 ments was adjusted upward to account for an assumed eight percent error 
 introduced by incomplete listings. The resulting estimate used for this 
 analysis is therefore 2,800 marinas/boat yards. 
 
 126 
 
E.4 Estimating An Impact Profile For A Typical Marina/Boat Yard 
 
 Exhibit E-2 presents a profile of economic impacts of a typical marina/boat 
 yard. The discussion below describes how these estimates were made. 
 
 Exhibit E-2 
 Economic Impact Profile of a Typical Marina 
 
 Gross Revenues $ 159,000 
 
 Value Added 65,000 
 
 Employment 5.1 person years 
 
 Wages and Salaries 48,000 
 
 E.4.1 Estimating Average Gross Revenues Per Firm 
 
 The process of determining an estimate for the gross revenues of coastal 
 marinas/boat yards in the U.S. involved a series of steps to arrive at a 
 reasonable value for the average revenues per firm. 
 
 First, the total annual gross revenues presented in each marina/boat yard 
 study was converted into an average annual revenue per establishment for 
 1972. As Exhibit E-3 shows, the average revenues for firms as determined 
 through state wide research was $219,000, ranging from $155,300 in Rhode 
 Island to about $327,00 in Texas. In comparison the national sample in the 
 NEABM study shows an average of $360,770 per firm. 
 
 These estimates, however, represent revenues from all goods and services 
 provided by the establishments including sales of boats and boat motors, 
 (as explained above the impacts associated with these sales are assesed 
 separately and are presented in Appendices B and C) . An adjustment of 
 these estimates was made to subtract out all revenues received from the 
 sale of boats and boat motors. This adjustment is also shown in Exhibit 
 E-3. 
 
 Six of the studies presented enough detail on sources of revenue to permit 
 the calculation of the adjusted gross revenues. The resulting weighted 
 mean value of revenues per establishment in 1972 was $133,000 for studies 
 with statwide samples and $159,000 for the one national study. 
 
 127 
 
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 128 
 
The national estimate of $159,000 per establishment was determined from 
 several pieces of evidence. First, from the NAEBM data it was estimated 
 that establishments grossed $420,000 for all goods and services sold, and 
 $184,000 for goods and services sold excluding boat and motor sales in 1974. 
 Boat fuel consumption for the years 1972 to 1974 was examined as an indicator 
 or boating activity for those years. From U.S. Department of Transportation 
 estimates it was found that marine fuel consumption for recreational boats was 
 only 1.5 percent higher in 1974 than in 1972.13 Assuming that marina re- 
 venues are positively correlated with boating activity the fuel consumption 
 data imply no significant change in the revenues of marinas/boat yards. 
 The 1974 data were then deflated to 1972 dollars using price deflater indices 
 for services resulting in the estimate of $159,000 per establishment. 
 
 It is reasonable to assume that because of the shorter boating season revenues 
 of New England marinas/boat yards should be somewhat less than the revenues 
 of establishments in the rest of the county. While revenues may also depend 
 on the volume of business per unit of time, an indicator of intensity of 
 facility use could not be estimated because of insufficient data. The initial 
 assiimption points to the choice of $159,000 in gross revenues per establish- 
 ment as the better estimate of national activity. 
 
 E.4.2 Estimating Value Added Per Establishment 
 
 From the cost and revenue data of the NAEBM study it is estimated that 41 
 percent of the gross revenue (i.e., sales) of marinas/boat yards (excluding 
 boat and motor sales) or $65,000 per establishment represents value added. 
 That estimate was determined by summing data on the costs of labor, in- 
 direct taxes, payments to management, insurance, interest on loans, and 
 advertising and expressing the results as a percent of gross revenues. 
 
 E.4.3 Estimating Employment Per Establishment 
 
 Six of the published studies (including studies of Maine, Massachusetts, 
 New York, New Hampshire, Rhode Island and Texas) provided sufficient data 
 on full-time and part-time employment year-round at marinas/boat yards to 
 compute a weighted average for employment per establishment. The average 
 employment per establishment in the studies ranges from 4.1 to 7 person- 
 years. The weighted average is 6.1 person-years per establishment. 
 
 This average represents all full-time and part-ti:ne employment for all 
 activities in the marina/boat (e.g., yard, slip rental, equipment sales, 
 etc.). As explained above the estimates here exclude impacts resulting from 
 from the sales of boats and engines. Thus the estimate had to be reduced 
 
 A part-time employee unit was assumed to be one-half of a labor unit. 
 
 129 
 
by an amount attributable to those sales. The resulting figure for average 
 employment per establishment is 5.1 person-years. 
 
 E.4.4 Estimating Wages and Salaries 
 
 According to cost and revenue data included in the NAEBM study wages and 
 salaries related to employment other than that associated with the sale of 
 boats and boat motors amounts to about 30 percent of total revenues (also 
 excluding boat and motor revenues) . Thus labor costs per marina/boat yard 
 are estimated at 30 percent of $159,000, or $48,000. 
 
 Eliminating employment due to boat and motor sales was accomplished using 
 the following technique. It was assumed that. 
 
 a = 
 
 w. 
 
 Where 
 
 = employment other than that associates with boat and 
 motor sales 
 
 Then 
 
 = total employment 
 
 w = wages and salaries other than those associated with 
 ° the sales of boat and boat motors 
 
 w = total wages and salaries 
 
 = a(e^) 
 
 From the study conducted by NEABM it was determined that 
 = 4,297,838 = .84 
 
 a = 
 
 Thus 
 
 w 
 
 5,112,478 
 
 = .84(6.1) 
 = 5.1 
 
 4 
 
 130 
 
E.4.5 Estimating Annual Capital Expenditures 
 
 The estimate of total annual capital expenditures was determined by separ- 
 ately computing estimates of capital invested in new marinas/boat yards and 
 capital invested in expansion in berthing capacity of existing facilities. 
 No data were available on replacement of structures such as restaurants, 
 dry storage, floor space for boating supplies, or fuel pumps at existing 
 marina/boat yard sites. As a result this estimate may be somewhat low. 
 
 As explained above (see section E-3.1) the number of marinas is expanding 
 at about one percent annually. Thus in 1972 about 28 new marinas (one per- 
 cent of 2,800) were built on saltwater frontage. Assuming a berthing capa- 
 city of 100 boats capital costs of a new marina have been estimated at 
 175,300 in 1972 by the Bureau of Outdoor Recreation. 15 Therefore, capital 
 expenditures for new facilities amounted to an estimated $4.9 million in 1972. 
 
 The estimated capital expenditures for expansion of berthing capacity in 
 existing marinas/boat yards was $9.5 million in 1972. This estimate was 
 arrived at by multiplying the estimated total number of additional slips 
 by the cost per slip. An estimate of average increase in berthing capacity 
 per establishment was determined from data on marina/boat yards in Rhode 
 Island, New Hampshire and New York. Average number of berths added to 
 existing facilities in those states was 4.0, 3.5, and 2.6. Assuming an 
 average of 3.5 additional spaces per establishment for the nation, an 
 estimated 9,500 new berths were built in 1972. Costs per berth ranged 
 from $500 to $1,500 or on average about $1,000 in 1972, according to 
 several marine consultants contacted, depending on the type of berth and 
 the site. 
 
 In total, then, capital expenditures for marinas/boat yards were an estimated 
 $14.4 million in 1972. 
 
 * 
 
 These averages are all for Northeastern states and may exhibit a regional 
 
 bias. However, no data are available that will permit the determination 
 
 of the size or the direction of the bias. 
 
 131 
 
E. 5 Determining the Portion of Economic Activity From Marinas/Boat 
 Yards Attributable to Saltwater Activity 
 
 No secondary source of data for the nation describing the expenditures 
 patterns of boaters at marinas/boat yards which correlates expenditures 
 with type of boating activity was uncovered during the course of this 
 research. However, there are several pieces of evidence that suggest that 
 expenditures of fisherman at marinas/boat yards account for about 45 per- 
 cent of all expenditures at marinas/boat yards. 
 
 While no national data source was available, a special report on boaters in 
 Dade County, Florida was obtained from the School of Marine and Atmospheric 
 Science at the University of Miami. 16 The report includes results from a 
 1975-1976 survey of expenditures (e.g., costs of trip, supplies, fuel, and 
 maintenance) by boaters at marinas. Also the estimated number of boating 
 trips and expenditures per trip are presented for fishing and non-fishing 
 activities. According to the results of the survey (sample size 835), 
 4 3 percent of the expenditures were associated with saltwater fishing 
 activity. The report also includes results of a survey of 4,275 boaters 
 concerning their boating activity. The results show that 49 percent of 
 all boating trips in Dade County were made for the purposes of saltwater 
 fishing. 
 
 From the data it can be inferred that expenditures by fisherman as a per- 
 cent of expenditures by all boaters are highly correlated with fishing 
 activity of boaters as a percent of all boating activity. That is, while 
 the expense for a particular item may vary by type of boating activity 
 (e.g., water skiing may require more fuel than fishing, or unlike other 
 activities fishing requires outlays for bait) , in the aggregate the percent 
 of total expenditures by boaters associating with fishing activity may be 
 approximated by the percent of time boats are used for fishing vis-a-vis 
 other boating activities. 
 
 According to a study conducted by the U.S. Coast Guard, fishing activity^- 
 from boats accounts for 46.5 percent of all boating activity in the U.S. 
 However, this estimate includes freshwater and saltwater boating. The data 
 from Dade County when compared with Coast Guard estimates suggest that boat- 
 ing time spent fishing in saltwater does not vary significantly from boating 
 time spent fishing in all waters. Indeed, the ratios from both studies of 
 time spent fishing from boats to all boating time are conspicuously close 
 in magnitude. Additionally, the studies provide at least a preliminary 
 indication that the percent of total boating activity devoted to fishing is 
 relatively stable over short time intervals. (The Coast Guard study was 
 conducted in 1973 and the Dade County data were collected during 1975 and 
 1976.) 
 
 It is, therefore, assumed that the Coast Guard's estimate that 46.5 percent 
 of all boating time is spent fishing is a reasonable approximation of the 
 amount of time boaters spent saltwater angling in 1972. Since data from 
 
 132 
 
Dade County showed the percent of boating expenditures accounted for by 
 fishermen interviewed from marinas is somewhat less than the percent of 
 time all boaters at marinas spent fishing, it was assumed that 45 percent 
 of all expenditures at marinas/boat yards is attributable to saltwater 
 angling. 
 
 The economic impacts related to marinas/boat yards that are attributable to 
 marine recreational fishing have thus been estimated here by computing 
 45 percent of the estimated total value added, employment, wages and 
 salaries, and annual capital expenditures impacts. The results are shown 
 in Exhibit E-1. 
 
 133 
 
1 
 
 2 
 
 9 
 
 10 
 11 
 12 
 
 Appendix E References 
 
 National Association of Engine and Boat Manufacturers, "Marina Costs/Revenues 
 Study - 1974". 
 
 F. Richard King, Maine's Pleasure Boat Industry, Part 1; Marinas in Maine 
 University of Maine at Orono, 1976. George W. Shaw and William F. Henry, 
 New Hampshire Marina Industry Study , University of New Hampshire, 1974. 
 David A. Storey, The Massachusetts Marina Boat Yard Industry 1972-1973, 
 University of Massachusetts at Amherst, Agricultural Experiment Station, 
 1974. Raymond O.P. Farrish and Donald C. Pyne, Boating in Connecticut : 
 The Connecticut Shore - Based Marina Industry , University of Connecticut, 
 
 1973. Robert Kelly and Niels Rorholm, An Analysis of the Rhode Island 
 Marina Industry , University of Rhode Island Marine Technical Report 29, 
 
 1974. Dick Noden and Tommy Brown, The New York Commercial Marina and 
 Boat Yard Industry , 1972 Cornell University, New York Sea Grant Institute, 
 
 1975. John Crompton and Robert Ditton, A Feasibility, Management and 
 Economic Study of Marinas On the TexasGulf Coast , Texas ASM University, 
 Texas Agricultural Experiment Station, 1975. 
 
 The Statistical and Research Department of Boat and Motor Dealer (1975) 
 identified 5950 marinas boat yards and yacht clubs with waterfront stations. 
 The estimated breakdown is 4630 marinas and boat yards and 1320 yacht clubs. 
 
 Boating Almanac 1976, Vols. 1-4, Boating Almanac Co., Inc , Saverna Park 
 Maryland. 
 
 David A. Storey, p. 53. 
 
 The Waterway Guide 1975 , Southern Edition, Waterway Guide, Inc. Anapolis, 
 Maryland, 1975. 
 
 Sea Boating Almanac , Sea Boating Almanac, Inc., Ventura California 1975. 
 
 Boating Facilities Guides , Southern, Central and Northern Areas, Department 
 of Navigation and Ocean Development, State of California, 1974. Washington 
 Boating Directory , Department of Commerce and Economic Development, 
 Washington State (No. Date) . 
 
 David A. Storey, p. 17. 
 
 Dick Noden and Tommy Brown, p. 19. 
 
 John Crompton and Robert Ditton, p. 2. 
 
 Dick Noden and Rommy Brown, p. 7. 
 
 134 
 
Appendix E References 
 ( cont . ) 
 
 The Department of Transportation estimates marine fuel consumption annually 
 in its publication. Highway Statistics . 
 
 14 
 
 To deflate revenues for 1972 dollars, price deflation indices from The 
 
 Economic Report of the President , U.S. Government Printing Office, 1975, 
 
 p. 252 were used. 
 
 15 
 
 United States Department of the Interior Bureau of Outdoor Recreation, 
 
 "Appendix A, An Economic Analysis", Outdoor Recreation, A Legacy For 
 
 America , p. III-40. 
 
 16 ... 
 
 C. Bruce Austin and Linda D. Liefert, Recreational Boating m Dade County , 
 
 A Special Report to Centaur Management Consultants , School of Marine and 
 
 Atmospheric Science, Miami University, 1976. 
 
 17 
 
 Rolf M. Wolfsberg and Darryl A. Lang, Recreational Boating in the Conti- 
 nental United States in 1973 , U.S. Coast Guard Office of Boating Safety, 
 p. 93. 
 
 135 
 
APPENDIX F 
 
 ECONOMIC IMPACTS RELATED TO 
 COMMERCIAL SPORTFISHING VESSELS 
 
F.O ECONOMIC IMPACTS RELATED TO COMMERCIAL SPORTFISHING VESSELS 
 
 F. 1 Summary of Impacts 
 
 In 1972 there were an estimated 3,870 commercial sportfishing vessels 
 operating in saltwater from U.S. shores. The estimated gross revenues of 
 these vessels was $94 million. Valued added in this industry amounted to an 
 estimated $56 million. This industry accounted for an estimated $30 million 
 in direct wages and salares and 5,300 person-years of direct employment. 
 Annual capital expenditures were an estimated $7 million. Exhibit F-1 
 summarizes these impacts of this industry. Virtually all of the economic 
 activity of this industry is associated with marine recreational fishing. 
 
 136 
 
Exhibit F-1 
 
 Summary of Impacts Related to 
 Commercial Sportfishing Vessels 
 1972 
 
 Number of Boats 3,870 
 
 Total Sales (millions of dollars) 94 
 
 Value Added (millions of dollars) 56 
 
 Employment (person-years) 4,800 
 
 Wages and Salaries 30 
 (millions of dollars) 
 
 Capital Expenditures 7* 
 (millions of dollars) 
 
 * Includes only the costs of head boats. Charter boat capital 
 costs are accounted for in (Appendix B) the analysis of boats. 
 
 137 
 
F. 2 General Approach 
 
 The following procedure was used to estimate the economic impacts associated 
 with commercial sportfishing vessel activity. 
 
 o From secondary sources estimates were made of the number 
 
 of head boats and charter boats by region. 
 
 o From secondary sources the total revenues were estimated 
 using historical trends. 
 
 o Employment and wages and salaries were estimated based on 
 
 the typical characteristics of head boats and charter boats 
 and regional variations in the length of the fishing season. 
 
 o Value added was estimated based on secondary data of the 
 cost and revenues of commercial sportfishing vessels. 
 
 This analysis of commercial sportfishing vessels includes those vessels 
 that are commonly referred to as charter boats and head boats.* Charter 
 boats are generally considered to be those boats that carry six or less 
 passengers , and for which a fixed fee per trip is charged regardless of 
 the total number of passengers. Usually, all fishing tackle and bait are 
 provided, and the sailing schedule is somewhat flexible, governed by the type 
 of fish and fishing methods expected to be encountered. In comparison, head 
 boats are larger vessels charging a fixed price per passenger (thus the name 
 "head" boat) per trip. Bait is generally provided by the vessel. Fishing 
 tackle may be rented at an extra charge, but most passengers use their own 
 tackle. These definitions are not strictly adhered to, however. In California 
 for example there are a number of boats carrying more than 6 passengers which 
 charge a fixed fee for a fishing trip and in Oregon there are 6 person boats 
 which charge a per person fee. Because the employment and payroll characteristics 
 of boats carry six or less passengers and those carrying more than six passengers 
 are distinctly different, this analysis used a definition of a charter boat 
 as a six-passenger vessel and a head boat as a vessel carirying more than six 
 passengers. 
 
 Also referred to as party boats, open boats, or drift boats. 
 
 138 
 
F.3 Estimating the Number of Head Boats and Charter Boats Fishing 
 in Saltwater 
 
 A "best point estimate" of the niimber of charter and head boats operating in 
 saltwater in 1972 was determined to be 3,870. This estimate breaks down 
 into 2,251 charter boats and 1,619 head boats. These estimates are based 
 on aggregating data for individual states collected through state and Federal 
 agencies, universities, published research, and local charter/head boat 
 associations. Exhibit F-2 shows the estimated number of charter boats and 
 head boats by state. 
 
 Some of the data used for making these estimates were for different years 
 ranging from 1971 to 1976. Estimates were normalized for the year 1972 based 
 on regional trends. For example, in the Northeast and mid-Atlantic, the 
 number of boats has been declining in recent years. The number of head boats 
 in New Jersey dropped to 97 in 1975 from 220 in 1955, and the number of 
 charter boats declined to 218 in 1975 from 335 in 1955.-'- However boats 
 have gotten larger, and the carrying capacity has increased slightly. 
 The 1972 estimate of the number of boats for New Jersey was derived by 
 interpolation assuming a constant rate of change in the number of vessels. 
 The Northwest, in contrast, has seen an increase in the number of boats 
 according to researchers in universities there. ^ 
 
 The fleets of Washington and Oregon states were estimated to have been 425 
 and 258 vessels respectively in 1976. No data on the rate of growth in the 
 fleet is available. It is assumed that the size of the fleets in 1972 were 
 400 in Washington and 225 in Oregon. The number of boats operating in 
 California is well documented because of state registration requirements. There 
 were 467 boats in 1972 and 371 boats in 1975.3 
 
 The total estimate of 3,870 vessels in 1972 is supported by a 1976 estimte 
 of 4,172 vessels made by the Oregon State University Extension Services,* 
 It, too, was derived by contacting knowledgeable individuals in each of the 
 coastal states. 
 
 Two other national estimates were identified during the course of this research. 
 A study conducted for the NMFS estimated the total number of commercial sport- 
 fishing vessels at 2,496 in 1972. ^ This study made use of techniques as follows. 
 Through an examination of characteristics specified on Coast Guard inspection 
 certificates which are required for vessels carrying seven or more passengers 
 (i.e., head boats), 1,965 boats were identified as being likely to be com- 
 mercial sportfishing boats.** However, the number of boats carrying six 
 passengers or less (i.e., charter boats) was determined using an estimate 
 of the ratio of "charter boats" to "party boats." This ratio was estimated 
 based on a survey of a sample of 163 operators of commercial recreational 
 vessels identified from association membership lists, advertising brochures, 
 and telephone directories. 
 
 The extension service estimate is preliminary and was made for the purposes 
 of developing a sampling plan for a telephone survey. Also, this estimate 
 does not include Hawaii, Alaska, and Guam. 
 
 Note that this corresponds with the total of 1,619 head boats specified in 
 the estimate given in Exhibit F-2. 
 
 139 
 
Exhibit F-2 
 
 Estimated Number of Charter Boats and 
 Head Boat Fishing in Saltwater in 1972 
 
 Niimber of 
 State Charter Boats 
 
 
 (6 or less 
 
 Washington 
 
 * 
 
 Oregon 
 
 225 
 
 California 
 
 * 
 
 Alaska 
 
 
 Hawaii, Guam 
 
 
 Pacific 
 
 225 
 
 Texas 
 
 80 
 
 Louisiana 
 
 10 
 
 Mississippi 
 
 28 
 
 Alabama 
 
 30 
 
 Florida 
 
 550 
 
 Gulf 
 
 698 
 
 Georgia 
 
 10 
 
 South Carolina 
 
 37 
 
 North Carolina 
 
 210 
 
 South Atlantic 
 
 257 
 
 Virginia 
 
 120 
 
 Maryland 
 
 198 
 
 Delaware 
 
 59 
 
 New Jersey 
 
 235 
 
 New York 
 
 150 
 
 Mid- Atlantic 
 
 762 
 
 Connecticut 
 
 110 
 
 Rhode Island 
 
 34 
 
 Massachusetts 
 
 125 
 
 New Hampshire 
 
 14 
 
 Maine 
 
 26 
 
 New England 
 
 309 
 
 Number of 
 
 
 Head Boats 
 
 Total 
 
 rare passengers) 
 
 
 460 
 
 400 
 
 — 
 
 225 
 
 467 
 
 467 
 
 15 
 
 15 
 
 50 
 
 50 
 
 932 
 
 1,157 
 
 30 
 
 110 
 
 3 
 
 13 
 
 5 
 
 33 
 
 5 
 
 35 
 
 200 
 243 
 
 750 
 941 
 
 5 
 
 15 
 
 13 
 
 50 
 
 14 
 
 224 
 
 32 
 
 289 
 
 20 
 
 140 
 
 20 
 
 218 
 
 16 
 
 75 
 
 114 
 
 349 
 
 100 
 
 250 
 
 270 
 
 1,032 
 
 30 
 
 140 
 
 11 
 
 45 
 
 55 
 
 180 
 
 16 
 
 30 
 
 30 
 142 
 
 57 
 451 
 
 D.S., Total 2,251 1,619 3,870 
 
 The distinction between head boats and charter boats does not hold for 
 the Pacific Coast. For exanple, virtually all boats in California carry 
 more than six passengers, but some charge a per head fee cind others a 
 flat fee per boat trip. In Oregon, there are a number of six passenger 
 boats that charge a per person fee. 
 
 140 
 
From the survey it was estimated that 68 percent of all commercial sportfishing 
 vessels carry seven or more passengers. 
 
 There is strong reason to believe, however, that this sample was biased in 
 favor of larger boats. From contacts with charter boat associations it was 
 learned that a significant number of charter boat operators (6 passenger 
 boats) do not depend entirely on sportfishing revenues for their livelihood 
 and do not always aggressively advertise their boats . Larger boats , on the 
 other hand, are more likely to be used in full-time operations and are more 
 highly publicized. Thus it is likely that the sample ro.ay not adequately 
 reflect the population of boats carrying six passengers or less, and thus 
 underestimates the total population of boats. 
 
 In another case in 1976 the Coast Guard estimated that there were 4,530 
 commercial sportfishing vessels that carry seven or more passengers.^ This 
 figure was derived using a computer sort of all boats licensed to carry 
 passengers for hire. The number of commercial sportfishing boats was then 
 estimated through s\ibjectively evaluating vessel counts by ports to eliminate 
 boats known to be operating in services other than commercial sportfishing 
 (e.g., ferries, sightseeing boats, oil rig supply vessels). The Coast Guard's 
 estimate is apparently too large. For example, the estimated number of vessels 
 in the Eighth District (including the Coast of Texas, Louisiana and Alabama) 
 is 625. But a recent on-site survey of all head boats on the Texas Coast 
 conducted through Texas ASM University identified only 25 vessels. ° According 
 to state officials there are less than 75 vessels (including charter boats 
 and head boats) operating in coastal areas of Louisiana and Mississippi. 
 Similarly, the Coast Guard estimates that there are 927 sportfishing boats 
 in the Third District (including New York, New Jersey, and Delaware) carrying 
 seven or more passengers. But recent estimates of the fleet size for each 
 of these states from other sources totals indicates that the number must be 
 less than 400 boats. According to a port by port inspection of the New Jersey 
 coast there are only 114 head boats operating there (or 349 vessels including 
 charter boats) and the number of vessels has been declining.^ Through a port 
 inspection, the New York Department of Environmental Conservation determined 
 that there are less than 250 vessels (including head boats and charter boats) 
 operating in marine waters from New York shores. ^ The number of boats has 
 also declined in recent years. Recent research conducted at the University 
 of Delaware identified only 16 head boats in operation from Delaware ports. ^ 
 It appears, therefore, that the Coast Guard estimate of 4,530 overestimated 
 the number of these commercial sportfishing vessels. 
 
 141 
 
F. 4 Estimating Total Revenues of Commercial Sportfishing Vessels 
 
 To estimate the 1972 revenue of commercial sportfishing vessels operating 
 in coastal waters historical data from the National Survey of Fishing and 
 Hunting was used. This survey has been conducted every five years since 
 1955 by the Department of the Interior. It presents expenditures by 
 saltwater fishermen in detail. However, it was not until 1970 that expendi- 
 tures for charter and head boat fees were published as a separate category. 
 In the 1955 survey they were included in a highly aggregated category, 
 "other expenditures," which included everything except equipment and trip 
 expenditures and licensing fees. In the surveys taken in 1950, 1965, and 1970 
 expenditures for charter boat and head boat trips were included in a category 
 called "bait, guide fees and other trip expense." In estimating 1972 revenues, 
 expenditures for this category for the last three surveys were used. It was 
 assumed that historically the percent increase in charter boat and head boat 
 fees were the same as the percent increase in expenditures for "bait, guide 
 fees, and other trip expenses." 
 
 In 1960, 1965 and 1970 the estimated expenditures by saltwater fishermen for bait, 
 guide fees and other trip expense were $182,127,000; $236,958,000; and $374,396,000 
 respectively.-^'^ These points were converted to constant (1970) dollars 
 using a price index for recreation and reading services. -'•-'- A curve was then 
 estimated using an ordinary least squares approximation.* The approximation is 
 shown in Exhibit F-3. In 1970 charter and head boat fees accounted for 22 
 percent of bait, guide fees and other trip expense. Assuming that this ratio 
 remained constant, estimates of charter and head boat fees were made from 
 extrapolations of the historical trends in expenditures for bait, guide 
 fee, and other trip expense. Expressed in current dollars it is estimated 
 that head and charter boat fees in 1972 and 1975 were $94 million and $122 
 million respectively. 
 
 As a check on these numbers, data from the study Determination of the Nimber 
 of Comm.ercial and Non- Commercial Recreational Boats in the U.S., Their Use , 
 and Selected Characteristics were analyzed. ^^ This study estimated total 
 revenues of commercial saltwater sportfishing vessels in 1972 at $85.9 million. 
 However, this study is believed to have underestimated the number of charter 
 boats carrying six persons or less (see Section F.3). Exhibit F-4 shows the 
 breakdown of this estimate. The average annual gross revenue per vessel was 
 determined by a survey of a sample of 163 commercial saltwater sportfishing 
 vessels. If the difference between the total number of boats presented in 
 Exhibit F-2 of 3,870 and the 2,496 in Exhibit F-4 were distributed in proportion 
 between the less then 40 foot class and 40 to 65 foot class, the total revenue 
 estimate in Exhibit F-4 would be increased to $106.0 million. This would adjust 
 for the suspected underestimation of charter boats carrying six persons or less 
 assuming such boats were distributed in these two size classes. If the total 
 number of boats suspected to have been underestimated were in the less than 
 40 foot size class, the estimate in Exhibit F-4 would be increased to $95.0 
 million. The above analysis tends to corroboarate the total revenue estimate 
 for 1972 of $94 million described earlier. 
 
 The least squares approximation is , Y = 228.2 + 13.8 X. 
 
 142 
 
Exhibit F-3 
 
 Estimated Commercial Sportfishing Vessel Fees 
 Based on Expenditures for "Bait, Guide Fees, and Other Trip Expenses" 
 
 400 - 
 
 o 
 
 Q 
 14-1 
 
 o 
 
 in 
 C 
 
 o 
 
 s 
 
 300 
 
 200 - 
 
 100 - 
 
 Bait, Guide Fees, Other 
 Trip Expense 
 
 V 
 
 Commercial 
 Sportfishing Vessel Fees 
 
 ^ 
 
 1 
 
 1955 
 
 1 
 
 1960 
 
 — — 1 
 
 1965 
 
 Year 
 
 ~~I — 
 
 1970 
 
 1 
 
 1975 
 
 143 
 
Exhibit F-4 
 
 Vessel 
 Size/Class 
 
 Alternative Estimate of Vessel Revenues 
 
 Number of 
 Vessels 
 
 Average Annual 
 
 Gross Revenue 
 
 (dollars) 
 
 Total Annual 
 Gross Revenue 
 (thousand dollars) 
 
 Less than 40 feet 549 
 
 40 feet - 65 feet 1,747 
 
 Greater than 65 feet 200 
 
 Total 2,496 
 
 $ 6,610 
 
 17,211 
 
 260,891 
 
 $ 3,329 
 30,068 
 52,178 
 
 $85,875 
 
 144 
 
F. 5 Estimating Employment and Wages and Salaries Related to Charter 
 Boats and Head Boats 
 
 In 1972 the employment associated with the operation of commercial sport" 
 fishing vessels is estimated to have been 5300 person-years. The estimated 
 wages and salaries were $34 million. Estimates of regional impacts are 
 shown in Exhibit F-5. These estimates are based on the estimated average 
 number of days spent fishing in each region, the typical manpower require- 
 ments for operating charter and head boats, the typical salaries and wages 
 for the captain crew and office employees, and the estimated number of 
 boats in each region. 
 
 Exhibit F-5 shows the average nimiber of days fished by charter and head 
 boats in each region. These estimates are based on a secondary data sources 
 as well as contacts with knowledgeable people in each region. The estimates 
 of days fished in New England are based on an unpublished survey of commercial 
 sportfishing activity conducted by the Massachusetts Department of Fisheries 
 Wildlife and Recreational Vechicles in 1975. Personal contacts with boat 
 captains in Maine and Rhode island confirmed that these were reasonable 
 estimates for a typical season. 
 
 Estimates for the mid-Atlantic are based upon a detailed unpublished survey 
 
 of trips made by boats leaving from New Jersey ports. The NMFS Laboratory 
 
 at Sandy Hook conducted the research during 1975 and 1976. -'■^ The rather 
 
 high figure for the number of days fished by head boats in that region may 
 
 be explained by the makeup of the large New Jersey fleet. Many head boats 
 
 there are equipped to fish in cold weather. The dense population in the 
 
 New York - New Jersey area provides a demand for fishing trips that begins 
 
 in early spring and stretches to late December. On the average head boats 
 
 iin New Jersey fish over 175 d'ays each year, but boats in Delaware, Maryland and 
 
 Virginia for the most part fish from late May to October.-'-^ The regional 
 
 average was reduced to 125 to reflect this difference. 
 
 The average number of days fished by head boats in South Atlantic Region 
 was determined from NMFS trip data gathered from 30 boats in the region 
 during 1976. NMFS officials there believe that the number of days fished 
 in that region does not vary greatly from year to year, and in general 
 variation that does occur is associated with the weather. With no data 
 available on charter boat fishing, it was assumed that days fished by 
 charter boats followed the trends of other regions and were fewer in number 
 than head boats. Average operation of 65 days per year was used to compute 
 the employment, and wage and salary impacts of charter boats in the South 
 Atlantic Region. 
 
 Estimates of days fished in the Gulf region were based on trip data 
 
 provided by NMFS for boats on the Atlantic Coast,* and contacts with boat captains 
 
 in the Florida Keys and Western Gulf area. 
 
 * The entire state of Florida is included in the Gulf region for this analysis. 
 
 14 5 
 
Exhibit F-5 
 
 Charter Boats 
 
 
 Estimates 
 
 Estimates 
 
 Region 
 
 No. 
 
 of Boats 
 
 Days Fished 
 
 New England 
 
 
 309 
 
 70 
 
 Mid Atlantic 
 
 
 762 
 
 60 
 
 South Atlantic 
 
 
 257 
 
 65 
 
 Gulf 
 
 
 698 
 
 110 
 
 Pacific 
 
 
 225 
 
 75 
 
 Subtotal 
 
 2 
 
 ,251 
 
 
 Employment* 
 
 Salaries** 
 
 in Person Years 
 
 and Wages 
 
 185 
 
 1.3 
 
 380 
 
 2.7 
 
 130 
 
 1.0 
 
 630 
 
 4.6 
 
 135 
 
 1.0 
 
 1,460 
 
 10.6 
 
 Head Boats 
 
 
 New England 
 
 142 
 
 Mid Atlantic 
 
 270 
 
 South Atlantic 
 
 32 
 
 Gulf 
 
 243 
 
 Pacific 
 
 932 
 
 Subtotal 
 
 1,619 
 
 90 
 125 
 
 85 
 150 
 130 
 
 205 
 
 540 
 
 45 
 
 585 
 
 1,940 
 3,315 
 
 1 
 
 2 
 
 3 
 
 2 
 
 
 
 .3 
 
 3 
 
 .5 
 
 11 
 
 .5 
 
 19.7 
 
 TOTAL 
 
 3,870 
 
 4,775 
 
 30.2 
 
 For head boats assume 1 captain, 2 mates and 1 office employee per boat. 
 For charter boats assume 1 captain and 1 mate per boat. 
 
 For head boats assume wages are $95 per day per boat, and for charter boats 
 assume wages are $60 per day per boat. 
 
 146 
 
The Pacific Region estimates are based on discussions with officers of 
 charter and head boat associations in Washington and California and on 
 recent research conducted by the Oregon State University Extension Ser- 
 vice. Boats in Hawaii were assumed to operate like those in Southern 
 California, and Alaskan boats were assumed to fish as many days as boats 
 in Washington. 
 
 Employment estimates were determined for head boats and charter boats in 
 each region using the following equation: 
 
 Employment. .= , 1,,^. -xX c. . x b. . 
 
 Where d . . = number of days fished in region i by boat type j 
 (it is assumed that 2 50 days equal one year of 
 employment) 
 
 c . . = size of the crew for boat type j in region i 
 
 b . . = the number of boats of type j in region i 
 
 From discussions with boat captains in Maine, Massachusetts, Rhode Island, 
 and Florida and from research conducted in Texas and Oregon it was learned 
 that charter boats (i.e., boats carrying 5 or fewer passengers) almost al- 
 ways operate with a captain and one mate and that trip reservations are 
 usually made directly through the captain. Therefore, to estimate employ- 
 ment impacts of charter boat fishing it was assumed that two persons per 
 boat were employed for each fishing trip. In similar discussions with head 
 boat operators in Maine, Massachusetts, Rhode Island, Florida, California 
 and Washington it was learned that a head boat is generally manned by a 
 captain and a crew of one to five mates depending on the size of the boat 
 and the length of the fishing trip. Also, there is usually an office em- 
 ployee who sells tickets for the trip from an office at the dock. In this 
 analysis employment related to head boats is based upon the employment of 
 a captain, two mates and an office employee for each boat. Employment 
 estimates for each region are shown in Exhibit F-5. 
 
 Estimates of wages and salaries were made using the following equation: 
 
 Wages and Salaries = d. . x w. x b. . 
 
 I'D D i'3 
 
 Where d . . = the number of days fished by boat type j in 
 
 region i 
 
 w. = the wages paid per boat for the captain crew, 
 and office employees for boat type j in region 
 
 b = number of boats of type j in region i 
 i.D 
 
 147 
 
According to boat operators contacted charter boats the captain and mate 
 are generally paid a daily wage. For head boats the captain may be paid by 
 salary or daily wage, but the crew and other employees are paid by the day. 
 In 1972 a captain's daily wages ranged from about $30 to $55 per day and 
 wage rates for crew members ranged from about $12 to $35. This analysis 
 assumes that in 1972 the captain's wage is $40/day, a mate's wage is $20/ 
 day. Thus wages of charter boats and head boats were assumed to be $60/ 
 day and $95/day respectively in 1972. 
 
 Using these estimates total wages and salaries are estimated to have been 
 $30.2 million in 1972, on about 32 percent of the estimated gross revenues 
 for that year. (Regional estimates are shown in Exhibit F-4 . ) As a means 
 of cross- validating this estimate, wage and salary data were compared to 
 total revenues of seven head boats surveyed in the Northwestern Gulf coast. 
 They ranged in length from 65 to 85ft. For these boats wages and salaries 
 amounted 21 percent of gross revenues.-*-^ It can be expected that for large 
 boats such as these, wages and salaries should be a smaller percentage of 
 gross revenues than for boats of shorter length because of incredsed 
 passenger capacity. Thus it can reasonably be expected that on average 
 the wages and salaries as a percent of revenues would be somewhat more 
 than 21 percent. This comparison, therefore, supports the above estimate 
 of total wages and salaries paid to employees of charter and head boats 
 in the U.S. 
 
 148 
 
F.6 Estimating Value Added 
 
 To estimate value added associated with commercial sportfishing vessels 
 data on the revenues and costs of seven head boats surveyed in the North- 
 west Gulf region were used. According to the data presented in the study 
 the components of value added which include wages and salaries, rent, 
 interest, depreciation, profits and insurance account for 60 percent of 
 gross revenues. 19 similar costs are incurred by charter boats. Without 
 any data suggesting how these costs vary by region it is assumed that the 
 ratio of value added to sales is the same for both head boats and charter 
 boats in all regions. Using this ratio estimated value added in 1972 was 
 $59.8 million. 
 
 Estimating Capital Expenditures 
 
 In 1972 it is estimated that capital expenditures for head boats totalled 
 $7 million. Expenditures for charter boats are accounted for in Appendix B. 
 Expenditures for equipment such as fishing tackle or electronic gear (radar, 
 radios, etc.) have been excluded because no data could be located that pro- 
 vide em indication of annual expenditures for replacement or new purchase 
 of these items. 
 
 The above estimate was determined by first estimating the number of head 
 boats entering the fleet in 1972. The result was then multiplied by the 
 typical costs of a new boat. 
 
 The average number of boats entering the fleet was estimated by assuming 
 that the population of head boats (and charter boats) grows by the same 
 percent as the population of documented passenger vessels (which include 
 head boats) . 
 
 Using historical data on the number of documented passenger vessels, a 
 curve was fitted using an ordinary least squares approximatibn . (See 
 Exhibit F-6.) Accordingly it is estimated that the population of documented 
 passenger vessels grew about 2.7 percent in 1972. Assuming the same rate 
 of growth of head boats, then about 44 head boats entered the national 
 fleet in 1972. 
 
 Several head boat manufacturers were contacted by telephone with the assist- 
 cince of the Nationcil Party Boat Owners Alliance. Costs of building head 
 boats vary greatly depending on length, the type of hull material, and 
 the region in which the boats are constructed. For example, a fiberglass 
 hull boat 60 feet in length built in one Florida yard in 1976 cost about 
 $2,300 per foot. In a New England yaxd a aluminum and steel boat 75 feet 
 long cost about $5,3G0 per foot in 1976. According to ship builders con- 
 tacted costs have increased by 25 to 50 percent since 1972. 
 
 To estimate the value of boats entering in the fleet during 1972 it is 
 assumed that boats averaged 65 feet in length and cost $2,500 per foot to 
 construct. Thus total investment is estimated to have been about $7 million. 
 
 149 
 
Number of Vessels 
 
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 150 
 
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Appendix F References 
 
 Unpublished research provided by the NMFS Laboratory at Sandy Hook, 
 New Jersey. 
 
 2 
 
 This general trend has been observed by Professor J. Crutchfield at the 
 
 University of Washington and John Ball at the Oregon State University 
 Extension Service. 
 
 Resources Agency of Calif oimia, Department of Fish and Game, "The Report 
 of the California Party Boat Fleet," Long Beach, annual, (mimeographed) 
 
 4 
 
 Kenneth M. Bromberg, Determination of the Number of Commercial and Non - 
 
 Connnercial Recreational Boats in the U.S., Their Use, and Selected 
 
 Characteristics , Report for the National Maine Fisheries Service, 
 
 Washington, D.C., December 28, 1973. (U.S. Department of Commerce: 
 
 NOAA, 1973), p.C-51. 
 
 From a special report submitted by W. J. Ecker, Commander, U.S. Coast 
 Guard to James Murdock of NMFS in a memorandum dated May 7, 1976. 
 
 6 
 
 Boat count provided by Prof. Robert Ditton of Texas ASM University 
 
 from current research to be published. 
 
 7 
 
 Boat count provided by Bruce Freeman of NMFS Laboratory at Sandy Hook, 
 
 New Jersey from unpiiblished research. 
 
 8 
 
 From unpublished research by the Department of Environmental Conser- 
 vation at Stoneybrook. 
 
 9 
 
 Ronal W. Smith, Sport Fishing in Western Delaware Bay: Assessment of 
 
 Critical Areas (Newark, Delaware: University of Delaware, College of 
 
 Marine Studies, 1975), p. 16, 
 
 10 
 
 U.S. Department of the Interior, 1970 National Survey of Fishing and 
 
 Hunting , (Washington, D.C.: U.S. Government Printing Office, 1972). 
 
 p. 46. Expenditures for 1960 and 1965 are on page 44 of the publications 
 
 for each of those years. 
 
 From the U.S. Department of Commerce Bureau of Economic Analysis, 
 Survey of Current Business . 
 
 12 
 
 Bromberg, p. C-52. 
 
 Unpublished research by Russel H. Iwanowicz, Cat Cove Laboratory, Salem, 
 Massachusetts, 1976. 
 
 151 
 
Appendix F References 
 (cont. ) 
 
 14 
 
 Data provided by Bruce Freeman. 
 
 15 
 
 For example, see Ronal W. Smith, p. 17. 
 
 16 
 
 Unpublished data provided by Robert Dickson and Gene Huntsman of the 
 
 NMFS Laboratory at Beaufort, North Carolina. 
 
 17 
 
 Description of the general activity were provided by W. A. Nott of the 
 
 Sport Fishing Association of California, Long Beach, California and 
 
 Edward Manary of the Washington State Commercial Passenger Fishing 
 
 Vessel Association, Westport, Washington. 
 
 18 
 
 Fred J. Prochaska and James C. Cato, "Northwestern Florida Gulf Coast 
 
 Red Snapper - Grouper Party Boat Operations, An Economic Analysis, 1974", 
 
 A University of Florida Extension Service Bulletin, 1975, p. 4. 
 
 19 
 
 Prochaska and Cato, p. 4. 
 
 152 
 
APPENDIX G 
 
 ECONOMIC IMPACTS RELATED TO BAIT 
 
G.O ECONOMIC IMPACTS RELATED TO BAIT 
 
 G.l Summary of Impacts 
 
 The estimated total value of sales of natural bait in 1972 were $550 million. 
 Bait sales associated with saltwater sportfishing were an estimated $165 
 million. The impacts associated with these sales are summarized in Exhibit 
 G-1. Total value added is estimated to have been $130 million. Employment 
 and wages and salaries related to total bait sales were 9,660 person-years 
 and $60 million respectively. Total capital expenditures impacts were about 
 five million. In contrast estimated impacts associated with marine recrea- 
 tional fishing were $33 million in value added, 2,450 person-years of employ- 
 ment, $15 million in wages and salaries, and one million in annual capital 
 expenditures . 
 
 153 
 
Exhibit G-1 
 
 Estimated Economic In5)acts 
 
 Associated With Bait 
 
 1972 
 
 Number of Establishments 5,000 
 
 Sales (millions of dollars) 
 Total** 
 Marine Recreational Fishing 165 
 
 Total** 650 
 
 Value Added (millions of dollars) 
 
 Total 130 
 
 Marine Recreational Fishing 33 
 
 Employment (person-years) 
 
 Total 9,660 
 
 Marine Recreational Fishing 2,450 
 
 Wages and Salaries (millions of dollars) 
 
 Total 60 
 
 Marine Recreational Fishing 15 
 
 Capital Expenditures (millions of dollaxs) 
 
 Total 5 
 
 Marine Recreational Fishing 1 
 
 Estimate of totail number of establishments that sell bait for use in 
 saltwater as a primary activity. 
 
 Refers to total natural bait sales in U.S. 
 
 154 
 
G.2 Estimating Impacts Associated With Bait Sales 
 
 To estimate the impacts associated with bait sales the following procedure 
 was used: 
 
 o The value of sales of natural bait was estimated in total 
 and for saltwater fishing based on an historical trend 
 extrapolation of consumer expenditures for bait. 
 
 o Economic impact ratios of value added to sales, sales to 
 employment, wages and salaries to sales were derived from 
 data on retail establishments with similar operating 
 characteristics as bait shops. 
 
 o The economic impact ratios were applied to the estimated 
 
 value of sales to determine the value added, employment and 
 wages and salaries impacts. 
 
 o Capital expenditures were determined based on estimates of 
 the number of bait shops and the average capital outlays 
 per bait outlet. 
 
 In this analysis bait is defined as all natural bait including that which 
 is sold live or frozen. Artificial baits are included in the analysis of 
 fishing tackle (see Appendix A) . 
 
 155 
 
G.3 Estimating the Value of Sales of Na tura l Bait 
 
 The value of bait sales both in total and for saltwater sportfishing was 
 estimated using an historical trend analysis based on data from the National 
 Survey of Fishing and Hunting . This survey has been conducted every five 
 years since 1955 by the Department of the Interior. It includes separate 
 estimates of expenditures by freshwater and saltwater fishermen for the 
 goods and services consumed in recreational fishing. It was not until the 
 1970 survey that expenditures for bait were estimated separately. In the 
 1960 and 1965 surveys these expenditures were included in a category named 
 "Bait, Guide Fees, and Other Trip Expense". "Other Trip Expense", included 
 head and charter fees, boat fuel, ice, rental equipment, magazines, and 
 club dues. In the 1955 survey trip expenditure categories were much more 
 aggregated. 
 
 Data from the 1960, 1965 and 1970 surveys for the items included in the 
 category "Bait, Guide Fees, and Other Trip Expense" were used to plot the 
 historical growth in these consumer expenditures. These data were converted 
 to constant (1970) dollars using a consumer price index for recreation and 
 then a curve was estimated using an ordinary least squares approximation. 
 Separate curves were estimated for expenditures of all fishermen and expendi- 
 tures of saltwater fishermen. The results are presented graphically in Ex- 
 hibit G-2. As the exhibit shows the real rate of growth is relatively con- 
 stant. 
 
 Extrapolating to 1972, estimated expenditures (in current dollars) for bait 
 guide fees, and other trip expense by all fishermen were $1,086 million. 
 For saltwater fishermen these expenditures were $426 million. In 1970 the 
 ratio for all fishermen and for saltwater fishermen of bait expenditures to 
 expenditures for bait, guide fees and other trip expense was 0.60 and 0.39 
 respectively.-'- Assuming this ratio remains relatively constant over short 
 time intervals, bait expenditures by all fishermen amounted to $650 million 
 in 1972. Similarily, bait expenditures in 1972 by saltwater fishermen were 
 an estimated $155 million. 
 
 * 
 
 The least square approximation for bait guide fees and other trip expense 
 
 are : 
 
 ALL FISHERMEN: y = 771.2 + 19. 3x 
 
 SALTWATER FISHERMEN: y = 228.1 + 13. 8x 
 
 156 
 
1500 
 
 1400 
 
 1300 
 
 Exhibit G-2 
 
 Estimated Bait Sales 
 
 Constant $ 
 Current $ 
 
 s 
 
 1200 
 
 1100 - 
 
 1000 - 
 
 900 - 
 
 o 800 - 
 
 •H 
 S 
 
 700 - 
 
 600 - 
 
 500 - 
 
 400 - 
 
 300 - 
 200 
 
 100 
 
 
 
 Bait, guide fees, other trip 
 expense (all fishermen) 
 
 Bait, guide fees, other trip 
 expense (saltwater fishermen) 
 
 ^^ 
 
 / 
 
 Bait (all fishermen) 
 
 / 
 
 Bait (saltwater fishermen) 
 
 1955 
 
 1960 
 
 1965 
 Year 
 
 1970 
 
 1975 
 
 157 
 
G.4 Estimating Employment, Wages and Salaries, and Value Added Related 
 to Bait Sales 
 
 To estimate the employment, wages and salaries and value added, bait whole- 
 sale and retail dealers and knowledgeable individuals in state agencies and 
 universities were interviewed in each region to learn the general charcteristics 
 of retail bait operations. Then economic impact ratios were determined for 
 retail enterprises with similar characteristics. These ratios are all func- 
 tions of sales. To obtain impact estimates they were applied to the estimated 
 value of bait sales. 
 
 From the interviews it was learned, as was expected, that bait oulets are 
 generally, owner-operated enterprises. Natural bait is sold either live or 
 frozen from businesses such as marinas, grocery stores, and gasoline service 
 stations as well as bait and tackle shops and road side bait stands. The 
 greatest volume of bait is sold through bait stands and bait and tackle shops. 
 For example, the gross revenues for bait sales alone of ten bait stands and 
 bait and tackle shops interviewed in New England ranged from $12,000 to 
 $69,000 in 1975, with most enterprises taking in between $25,000 and $50,000. 
 (The fishing season generally runds from April to October.) In contrast five 
 marinas in that region reported that their sales were less than $5,000 and 
 that bait is sold merely as an extra service for the customers and not as 
 major source of income. Second, the interviews revealed that the basic 
 equipment required to operate a bait outlet does not vary by region even 
 though the type of bait sold may vary considerably. In general all that is 
 needed is a holding tank with an aeration system, a refrigerator, and a freezer. 
 This equipment is often purchased second hand, usually lasts for three to five 
 years, and generally costs the bait dealer no more than $1,000. Third, bait 
 stands and bait and tackle shops usually employ between one and three persons. 
 In many instances employees are members of the shop owner's family. 
 
 From these characteristics impact ratios for employment and wages and salaries 
 were determined from data on fish markets with three or less employees, a type 
 of operation similar to bait shops. These fish stores are often family run 
 businesses, operating from a small store front or a dockside stand. They sell 
 similar goods as bait stands, both fresh and frozen seafood. Their capital 
 requirements, at least in terms of the type of equipment are similar to bait 
 stands. And, of course, the employment patterns are similar. Using data for 
 these fish stores ratios of sales to employment and wages and salaries to 
 sales were calculated.2 The ratio of sales to employment is $67,300 per person- 
 year of employment. The ratio of wages and salaries to sales is 0.091. 
 Data on the components of value added were available only for a more aggre- 
 grated grouping. As a result the value added to sales ratio is determined 
 from data on all retail proprietorships. Its value is 0.20. 
 
 This estimate has been adjusted to reflect "person-years" based on 
 Burean of Labor Statistics data of the average weekly hours worked for 
 all food store employees . 
 
 158 
 
Using these ratios economic impact estimates were determined. To obtain 
 estimates of the wages and salaries and value added the ratios were multi- 
 plied with the estimates for the value of retail bait sales. The employ- 
 ment estimate was determined by dividing the sales to employment ratio 
 into the bait sales estimates. 
 
 159 
 
G. 5 Estimating the Number of Establishments 
 
 A gross estimate of the nijmber of retail bait dealers was determined by 
 dividing an estimate of the average gross revenues per bait dealer into the 
 estimated total bait sales. As stated in section G.4 in personal interviews 
 with ten bait dealers in New England it was revealed that gross revenues in 
 1975 ranged from $12,000 per year to $69,000 for the establishments visited, 
 with most enterprises having total bait receipts of $25,000 to $50,000. 
 This range may or may not be typical of the rest of the country. New England 
 has a shorter fishing season than most other regions in the country. This 
 suggests that average bait sales might be less than in other areas of the 
 countiry. If the average sales are $25,000, then given that bait sales 
 totalled $165 million in 1972, then there were an estimated 6,600 bait dealers 
 selling Saltwater bait. Using an figure of $50,000 per year, the nxomber of 
 bait dealers is estimated at 3,300. As a point estimate it is assimied that 
 the number of bait shops is 5,000, the midpoint of the range. Assuming the 
 same average revenue for all saltwater and freshwater bait dealers a total 
 estimate of 19,500 bait establishments is obtained using the same method. 
 
 Two other methods of obtaining an estimate for the number of dealers were 
 attempted in an effort to siibstantiate the above result. First, state 
 agencies were contacted to determine whether bait dealers are required to 
 register with the state. Only five states have such a requirement. In 1975 
 the nxomber of dealers in Texas was 420; in Massachusetts, 111; in Georgia, 89; 
 in Mississippi, 40; and in South Carolina, 110. According to state officials 
 there are likely to be many unregistered dealers, but no individual dealer 
 operating illegally is likely to sell bait in any large quantities. 
 
 A second attempt was made by contacting wholesale dealers in each region 
 and asking them to estimate the number of retail outlets in their area. This 
 method was apparently successful in New England, but it did not work for other 
 regions. The New England bait industry appears to be more centrally organized 
 than bait industries of other regions largely because of the way blood and 
 sand worms are gathered and distributed. Both worms are indigenous only to 
 northern New England and are distributed through a relatively small number of 
 wholesalers. (Maine officials report that there were 43 wholesale dealers 
 there in 1975.) Contacts with wholesalers in Maine, Massachusetts, and 
 Rhode Island were made and each was asked to estimate the total number of 
 retail dealers in the New England states. The four dealers contacted esti- 
 mated that there were about forty dealers in Rhode Island and in New Hampshire, 
 110-120 dealers in Massachusetts, and less than twenty retailers in Maine 
 (not counting the wholesalers there who also deal in retail trade) . Some 
 frozen baits as squid, clam necks and cut bait are also distributed through 
 wholesale dealers, but often they are purchased by the retail dealer directly 
 from the boats. 
 
 * 
 
 Dealers called "cellars" because many operate their businesses out of their 
 
 basements. 
 
 160 
 
In other regions no clear industry structure could be discerned. Retail 
 dealers tend to buy directly from the boats or to harvest the bait them- 
 selves. The geographic areas are much larger than in New England. Where 
 shrimp is the primary bait used, most dealers apparently harvest their own. 
 According to university researchers in Louisiana, there are very few live 
 bait dealers in that state because recreational fishermen can trawl for 
 their own shrimp. According to wholesalers in California the industry there 
 is very localized. There are hundreds of outlets (e.g., grocery and liquor 
 stores, marinas) selling small quantities of frozen bait. None of the 
 dealers would venture to guess the total number of retail outlets. In the 
 Northwest, frozen herring and shrimp are used. Much of the herring is 
 bought directly off of the boats and shrimp is purchased trom otner areas 
 of the country. 
 
 161 
 
G.5 Capital Expenditures 
 
 A gross estimate for capital expenditures was obtained by multiplying the 
 nvnnber of retail establishment by an estimate of the average value of capital 
 replaced each year. As stated above, through discussion with bait dealers 
 and knowledgeable state and university personnel in all coastal regions 
 it was learned that the capital requirements for operating a bait shop in- 
 clude primarily equipment purchases (stores are generally rented) of a 
 freezer, a refrigerator and a holding tank. The equipment is generally 
 bought second heind, usually does not cost more than $1,000 auid lasts from 
 three to five years. Assuming that the equijanent lasts four yecirs, then on 
 average every year one-fourth of the dealers would replace their equipment. 
 Also assuming that one- fourth of the cost of the equipment is $250 then 
 total capital expenditures are estimated at just over $1 million. Under 
 the same assumptions capital expenditures by all retail establishments are 
 are estimated at just under $5 million. These are, admittedly very gross 
 estimates, but they at least provide an indication of the order of magni- 
 tude of capital expenditures in this sector. 
 
 162 
 
Appendix G References 
 
 1. U.S. Department of Interior, Bureau of Sportfishing and Wildlife, 
 1970 National Survey of Fishing and Hunting (Washington, D.C.: 
 U.S. Government Printing Office, 1972), pp. 44 and 46. 
 
 2. U.S. Department of Commerce, U.S. Bureau of the Census, 
 1972 Census of Retail Trade , Establishment and Firm Size 
 (Washington, D.C. : U.S. Government Printing Office, 1975), 
 
 p. 41. 
 
 3. U.S. Depcortment of Treasury, Internal Revenue Service, Statistics 
 of Income, 1972 , Business Income Tax Returns (Washington, D.C: 
 U.S. Government Printing Office, 1976), p. 13. 
 
 163 
 
APPENDIX H 
 
 ECONOMIC IMPACTS RELATED TO BOAT FUEL 
 
H.O ECONOMIC IMPACTS RELATED TO BOAT FUEL 
 
 H.l Summary of Impacts 
 
 * 
 
 In 1972 retail sales of marine fuel for recreational boating totalled an 
 
 estimated $200 million. The wholesale trade and manufacturers' values of 
 
 this fuel are estimated at $163 million and $72 million respectively.** 
 
 The estimated value of sales related to marine recreational fishing are 
 
 $15 million in manufacturing, $34 million in wholesale trade and $42 million 
 
 in retail trade. The economic impacts associated with the sales are presented 
 
 in Exhibit H-1. 
 
 Value added totalled about $60 million. In manufacturing, wholesale trade, and 
 retail trade it amounted to an estimated $12.2 million, $15.4 million and $32 
 million respectively. In contrast value added attributed to marine recreational 
 fishing totalled $12.5 million, or an estimated $2.6 million in manufacturing, 
 $3.2 million wholesale trade each, $6.7 million in retail trade. 
 
 Total employment estimates are 260 person-years in manufacturing, 740 person- 
 years in wholesale trade, and 3990 person-years in retail trade, for a total 
 of 4990 person-years of employment. Employment attributable to marine recrea- 
 tional fishing totalled 1200 person-years. Distributed among manufacturing, 
 wholesale and retail trade, employment amounts to an estimated 50, 150, and 
 1000 person-years respectively. 
 
 The estimated salaries and wages impacts were $28.2 million related to all 
 boat fuel, and under $6 million related to marine recreational fishing acti- 
 vity. For all boat fuel purchases, wages and salaries amounted to $3.3 million 
 in manufacturing, $5.9 million in wholesale trade, and $19 million in retail 
 trade. Wages and salaries attributable to saltwater sportfishing were 
 approximately $1 million in manufacturing and in wholesale trade and an 
 estimated $4 million in retail trade. 
 
 Annual capital expenditures totalled about $8 million for all fuel purchases 
 or $3 million in each wholesale trade and manufacturing, and about $2 million 
 in retail trade. Capital expenditures in 1972 related to marine angling were 
 less than $2 million in total. 
 
 * 
 
 Consists of boat fuel purchase at places other than boat yards and marinas. 
 ** 
 
 The value of manufacturers' shipments does not include the excise tax. 
 
 164 
 
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 165 
 
H.2 General Approach 
 
 The economic impact estimates related to fuel consumption were determined 
 using the following approach: 
 
 o Estimates of marine fuel consumption (in gallons) obtained 
 from secondary sources were converted to their dollar value 
 of sales. 
 
 o Sales of fuel at marinas were netted out because these sales 
 are accounted for elsewhere (see Appendix E) . 
 
 o The portion of total fuel sales attributable to marine re- 
 creational fishing was estimated based on the percent of 
 boating time that boats are used for saltwater fishing. 
 
 o Economic impact ratios of value added to sales, employment 
 to sales, wages and salaries to sales, and annual capital 
 expenditures to sales were estimated. 
 
 o The economic impacts associated with total marine fuel sales 
 and the sales of fuel attributable to salt water angling were 
 estimated by applying the economic impact ratios to these 
 sales estimates . 
 
 Marine fuel is defined for the purposes of this analysis to include gasoline 
 and diesel fuel consumed by outboard, inboard and inboard/butdrive boats 
 at places other than marinas /boat yards. Fuel consumed at boat yards/marinas 
 has already been accounted for in the analysis of marinas/boat yards. Other 
 boats (e.g., motor powered sail boats, canoes or houseboats) have been ex- 
 cluded because they consume relatively little fuel, are used infrequently 
 for marine recreational fishing, and are, therefore, assumed to have negligible 
 impact . 
 
 Estimates are presented at the levels of manufacturing, wholesale trade and 
 retail trade. Manufacturing impacts are those associated with refining of 
 petroleum products. Wholesale trade impacts are those related to the storage 
 and distribution of fuel. Retail trade impacts represent those associated 
 with fuel sales directly to boat owners. 
 
 166 
 
H.3 Estimating the Value of Sales of Marine Fuel 
 
 To obtain an estimate of the total value of marine fuel sales in 1972, the 
 estimated volume of fuel consumed by outboard, inboard, and inboard/out- 
 drive boats was converted to its dollar value. According to a U.S. Coast 
 Guard study of recreational boating, fuel consumption by these three types 
 of boats accounts for just over 90 percent of all marine fuel consumed by 
 privately owned watercraft. Based on this study it is estimated that 
 diesel fuel accounts for about 30 percent of all fuel consumed by inboard 
 boats, or about 9 percent of total fuel consumption of all outboard, in- 
 board, and inboard/outdrive boats. 
 
 The Department of Transportation annually estimates the consumption of gaso- 
 line by state and by fuel use. In 1972, an estimated 685,763,000 gallons 
 of gasoline were consumed by all recreational watercraft. Since outboard, 
 inboard and inboard/outdrive boats account for 90 percent of all recreational 
 watercraft fuel consumption, it is estimated that 621,000,000 gallons of 
 gasoline were consumed by boats included in this analysis and diesel fuels 
 consumed in 1972 totalled an estimated 60,000,000 gallons. 
 
 In 1972 the average retail price of gasoline in the U.S. was 36 cent per 
 gallon and the average retail price for diesel fuel was 25 cent per gallon. 
 Thus the retail value of marine fuel purchased at launching ramps, marinas, 
 and road side filling stations is estimated at $240 million. However, 
 fuel purchased at marinasA'oat yards has already been accounted for else- 
 where. Fuel purchases at marinas/boat yards account for about 6 percent of 
 marina/boat yard revenues.^ As shown in Appendix E marina/boat yard gross 
 revenues average $159,000, and there were about 4,600 marinas/boat yards in 
 the nation in 1972. Thus fuel sold at marinas/boat yards is estimated at 
 $40 million. The estimated sales of marine fuels from sites other than 
 marinas/boat yards is, therefore, estimated to have been $200 million in 
 1972. The wholesale value of this fuel is estimated at $163 million. The 
 value of manufacturers' shipments {which excludes the excise tax) is 
 estimated at $72 million. The estimated State and Federal excise taxes paid 
 on" these fuel purchases amoionted to $64 million. 
 
 This estimate does not adjust for the fact the price of fuel at some 
 waterfront sites may be slightly higher than prices of fuel at other 
 locations. 
 
 4,600 establishments x $159,000 per establishment x 0.06 = $44 million. 
 
 167 
 
H.4 Estimating Sales of Marine Fuel Attributable to Saltwater Sportfishing 
 
 The portion of marine fuel sales attributable to saltwater sportfishing is 
 assiomed to be equivalent to the estimated percent of total boating time 
 that recreational watercraft are used for saltwater fishing, or 21 percent. 
 (For details on the determination of this estimate see Appendix B.) The 
 estimate is weighted for differences in the size of boats (and thus motors) 
 used in saltwater and freshwater. It is recognized that fuel consumption is 
 also affected by the intensity of motor use, and that different boating 
 activities (cruising, water skiing, or fishing) may require varying throttle 
 speeds. No data are available on fuel consumption by type of activity and 
 thus the above percentage estimate is not weighted for this factor. However, 
 in the aggregate the percent of time that boats are used for saltwater fish- 
 ing should reasonably reflect fuel consumption for this activity. Assuming 
 that 21 percent of all marine fuel consumption is associated with marine 
 recreational fishing, an estimated $42 million for marine fuel was spent in 
 1972 for saltwater sportfishing activity. Of this amount about $13 million 
 are State and Federal excise taxes. 
 
 168 
 
H.5 
 
 Estimation of Economic Impact Ratios Related to Marine Fuel 
 
 To estimate the value added, employment, wages and salaries, and annual 
 capital expenditures impacts of marine fuel sales, economic impact ratios 
 were derived. The ratios are all determined as functions of sales. They 
 are defined as follows : 
 
 value added impact ratio 
 
 Total Value Added 
 Total Sales 
 
 employment impact ratio 
 
 Total Sales 
 No. of Employees 
 
 wages and salaries impact 
 
 Total Wages and Salaries 
 Total Sales 
 
 annual capital expenditures 
 impact ratio 
 
 Total Annual Capital Expenditures 
 Total Sales 
 
 The impact ratios for marine fuel are presented in Exhibit H-2. The ratios 
 for manufacturing (i.e. , refining) are determined from Census data on petro- 
 leum refining.' The wholesale trade impact ratios for sales to employment, 
 wages and salaries to sales and annual capital expenditures to sales are 
 determined from Census data on petroleum bulk stations and terminals." The 
 value added to sales ratio is estimated by reducing the gross margin of 
 petroleum wholesalers by the amount that reflects value added. The gross 
 margin of wholesalers of fuel is 10.1 percent.^ According to the 1972 
 Census of Wholesale Trade , value added represents 94 percent of the gross 
 margin in wholesale trade. -'■'^ Thus value added to sales ratio is estimated 
 at 0.095. The ratio estimated for sales to employment, wages and salaries 
 to sales, and annual capital expenditures to sales are derived from Census 
 data on gasoline service stations.-'--'- The sales to employment ratio is ad- 
 justed to reflect person-years of employment based on Bureau of Labor Statistics 
 data on average hours worked weekly in retail trade. The value added to 
 sales ratio was determined from income statements of gasoline service 
 stations . •'-2 
 
 169 
 
Exhibit H-2 
 
 Economic Impact Ratios Related to 
 Boat Fuel Consumption in 1972 
 
 Manufacturing Wholesale Trade Retail Trade 
 
 Value Added 
 ($/$ Sale) 
 
 0.17 
 
 0.095 
 
 0.16 
 
 Employment 
 
 ($ Sales/Person-Year) 
 
 273,800 
 
 220,400 
 
 50,100 
 
 Wages and Salaries 
 ($/$ Sales) 
 
 0,046 
 
 0.036 
 
 0.094 
 
 Annual Capital Expenditures 
 ($/$ Sales) 
 
 0.04 
 
 0.019 
 
 0.012 
 
 170 
 
H.5 Applying the Economic Impact Ratios to Determine Impact Estimates 
 
 To determine estimates of the economic impacts related to total marine fuel 
 sales and sales of marine fuel associated with saltwater fishing, the 
 economic impact ratios were applied in the following manner. The ratios of 
 value added to sales, wages and salaries to sales, and annual capital in- 
 vestment to sales were each multiplied with the values of total marine fuel 
 sales and sales of marine fuel attributable to saltwater angling. The ratio 
 for employment was divided into these two values of sales estimates. The 
 resulting impact estimates are presented in Exhibit H-1. 
 
 171 
 
Appendix H References 
 
 1 
 
 2 
 
 3 
 
 4 
 
 6 
 
 7 
 
 9 
 
 10 
 
 11 
 
 Rolf M. Wulfsberg and Darryl L. Lang, Recreatio nal Boating in the United 
 States in 1973 , U.S. Coast Guard, Office of Boating Safety, 1974, p. 67-71. 
 
 This figure of 9 percent was obtained by computing the volume of diesel 
 fuel consumed by inboard boats and then dividing that number by all fuel 
 consumed by outboards , inboards, and inboard/outdrive boats. 
 
 U.S. Department of Transportation, Federal Highway Administration, 
 Highway Statistics 1972 , (1973), Table MF-24. 
 
 Piatt's Oilgram Price Service, New York, New York. 
 
 The National Association of Engine and Boat Manufacturers estimated in 
 their study Marinas Cost/Revenues - 1 974, that fuel sales accounted for 
 5.5 percent of gross revenues. The Boating Industry Magazine estimated 
 fuel sales to be 7.7 percent of marina gross revenues in their publication 
 The Boating Business 1974 . 
 
 Fuel prices used to compute these estimates were obtained from Piatt's 
 Oilgram Price Service, New York, New York. 
 
 U.S. Department of Commerce, Bureau of the Census, 1972 Census of 
 Manufacturers, Petroleum and Coal Products , p. 29A-14. 
 
 U. S. Department of Commerce, Bureau of the Census, 1972 Census of 
 Wholesale Trade , Petroleum Bulk Stations and Termina ls, p. 2/3. Capital 
 expenditures data are from p. 2/154. 
 
 Robert Morris Associates, Annual Statement Studies , (Philadephia, Pa. : 
 Robert Morris Associates); 1976, p. 135. 
 
 U.S. Department of Commerce, Bureau of the Census, 1972 Census of Whole- 
 sale Trade , Value Produced , Capital Expenditures , Fixed Assets , Rental 
 Payments , and Supplemental Costs of Merchant Wholesalers, p. 3/10 . 
 
 Data on employment and wages and salaries are from U.S. Department of 
 Commerce, Bureau of the Census, 1972 Census of Retail Trade, Miscellaneous 
 Subjects , p. 3/20. Capital expenditures data are from the 1972 Census of 
 Retail Trade, Capital Expenditures, Fixed Assets , and Rental Payments , 
 p. 2/6. 
 
 172 
 
Appendix H References 
 (cont. ) 
 
 12 
 
 U.S. Department of the Treasury, Internal Revenue Service, Statistics of 
 
 Income 1972 , Income Tax Returns (Washington, D.C. : U.S. Government Print- 
 ing Office) 1976, pp. 13, 91, and 175. 
 
 173 
 
APPENDIX I 
 
 ECONOMIC IMPACTS RELATED TO FOOD, LODGING, AND TRAVEL 
 
1.0 ECONOMIC IhdPACTS RELATED TO FOOD, LODGING AND TRAVEL 
 
 1.1 Summary of Impacts 
 
 In 1972 the estimated expenditures by saltwater fishermen for food, lodging 
 and transportation were $155.4 million, $44.8 million, and $135.1 million 
 respectively. In coir5>arison expenditures on trips a distance of 200 miles 
 or more (round trip) for all outdoor recreation activities were $1,085.5 
 million for food, $909.8 million for lodging, and $1,024.9 for transportation. 
 Exhibit I-l summarizes the economic impacts associated with these expenditures. 
 
 Expenditures by fishermen for food had an estimated employment impact of 
 10,600 person-years. The wages and salaries impact was an estimated $41.4 
 million, and the capital expenditures impact was about $6.1 million. Esti- 
 mated value added was $59.5. Impacts resulting from food expenditures for 
 all outdoor recreation trips 200 miles or greater in 1972 were 69,580 
 person-years of employment, $271.4 million in salarues and wages, and $40.2 
 in capital expenditures. 
 
 Estimated economic impacts associated with lodging expenditures of saltwater 
 fishermen were $23.7 million in value added, 2,730 person-years of errployment, 
 $13.1 million in wages and salaries, and $5.8 million in capital expenditures. 
 Inpacts related to food expenditures for all outdoor recreation trips were 
 $482.2 million in value added, 55,150 in years of eirployment, $263.8 million 
 in wages and salaries, and $117.3 million in capital expenditures. 
 
 Total impacts associated with travel expenses of saltwater fishermen were 
 $39.6 million in value added, 3,330 person-years of employment, $18.9 
 million in wages and salaries, and $5.4 million capital expenditures. Travel 
 expenditures for outdoor recreation trips resulted in estimated total impacts 
 of $297 million in value added, 25,200 person-years of employment, $140 million 
 in wages and salaries, and $41 million in annual capital expenditures. 
 
 174 
 
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 175 
 
I. 2 General Approach 
 
 To estimate economic impacts related to food, lodging, and travel 
 expenditures the following procedure was used. 
 
 o Expenditures by fishermen in 1972 for food, lodging 
 and travel using an historical trend analysis 
 based on data from the National Survey of Fishing and 
 Hunting . Similar expenditure estimates for all outdoor 
 recreation trips were taken from other published sources 
 for 1972. 
 
 o Economic impact ratios of value added to sales, sales 
 to employment, wages and salaries to sales, and annual 
 capital expenditures to sales were computed. 
 
 o Impacts were then estimated by applying the impact 
 ratios to the expenditure estimates. 
 
 The following definitions were used in this analysis: 
 
 o Food - Outlays for food by fishermen are the costs 
 of prepared meals, snacks and refreshments purchased 
 at commercial eating places. The average cost of 
 meals that would have been eaten at home have been 
 deducted from food expenditures. 
 
 o Lodging - Outlays for nights spent in a commercial 
 accommodations, including hotels, motels, trailer 
 parks or camping grounds. 
 
 o Travel - Outlays for auto, bus, train, air 
 
 boat, or ship to get to and from the trip destination. 
 
 For food and lodging the economic impacts are assessed only at the retail 
 level. There are no direct impacts to trace in manufacturing or wholesale 
 trade in the provision of lodging services. In the case of food production, 
 economic impacts related to food processing and distribution are excluded be- 
 cause they would have resulted from food purchased for consumption at home 
 had the fishing trips not occurred. 
 
 The bulk (89 percent) of the travel costs are associated with pri- 
 vate automobile travel. Expenditures for private automobile travel were 
 assessed using estimates of the incremental cost of operating a privately- 
 owned automobile. Most of these expenditures are associated with direct 
 operating costs such as fuel and maintenance. 
 
 Thus, for travel the retail trade impacts are those associated with 
 sales at gasoline service stations (including fuel, and maintenance and re- 
 pairs) . Wholesale trade economic impacts are predominantly those associated 
 with storage and distribution of gasoline. Production economic impacts 
 are those associated with petroleum refining. 
 
 176 
 
1.3 Estimating Expenditures for Food, Lodging, and Travel Related 
 to Saltwater Sportf ishing . 
 
 The 1972 epxenditure estimates for food, lodging, and travel are 
 historical extrapolations based on data from the National Survey of Fishing 
 and Hunting which have been conducted every five years beginning in 1955.* 
 Each survey provides separate estimates for food, lodging, and travel 
 To obtain an estimate for 1972, data for 1955, 1960, 1965, and 1975 were con- 
 verted to (1970) constant dollars. A curve was then fitted to each set of 
 data using an ordinary least square approximation. The historical trend 
 was then extended beyond 1970. The curves are plotted in Exhibits 1-2 and 1-3. 
 
 According to the N ational Survey of Fishing and Hunting in 1970, estimated 
 expenditures for food, lodging, and transportation were $135.1 million, 
 $35.7 million, and $122.5 million respectively. Food expenditures in- 
 clude the cost of food purchased in restaurants, snack bars, and other 
 commercial eating places less the average costs of meals that would have 
 been eaten at home. Groceries brought from home or purchased during the 
 trips are excluded. Lodging expenditures are the actual costs for lodging 
 services at hotels, motels, and campgounds as reported by fishermen. Travel 
 outlays on automobile transportation were computed at five cents 
 a mile and were divided among the sportf ishermen making a trip together. 
 Expenditures on all other types of transportation v.ere determined directly 
 from outlays reported by fishermen. From the Exhibits it can be seen that 
 historically growth has been relatively constant in all three expenditure 
 categories. Between 1970 and 1972 there were no major changes in the 
 national economy that would lead one to expect a radical shift in these 
 historical patterns. Extrapolating the trend to 1972, expenditures (expressed 
 in 1970 dollars) are estimated to have been $151.3 million for food, $40.9 
 million for lodging, and $131.9 million for transportation. Converting these 
 estimates to current dollars,-^ the resulting expenditure estimates are 
 $165.4 million, $44.8 million, and $135.1 million for food, lodging, and 
 travel respectively. These estimates were used in determining the associated 
 economic impacts. 
 
 The estimated expenditures for all outdoor recreation trips of 200 miles 
 or more (roundtrip) were taken from the 1972 National Travel Expenditure 
 Study. '^ 
 
 ** 
 
 * The 1975 survey was not available at the time this analysis was conducted. 
 
 ** The least squares approximations are: 
 Food: Yf = 47.6 + 6 . Ix 
 
 Lodging: Y^^ = 20.3 + 1.7x 
 
 Transportation: Y = 53.7 + 4.6x 
 
 177 
 
300 
 
 Exhibit 1-2 
 Estimated Food and Lodging Expenditures 
 
 Constant $ 
 Current $ 
 
 50 
 
 / 
 
 o 
 
 Q 
 
 14-1 
 O 
 
 ID 
 
 a 
 o 
 
 •H 
 
 
 200 
 
 50 
 
 100 
 
 50 
 
 Food Expenditures 
 
 Lodging Expenditures 
 
 — I 
 
 1955 
 
 1960 
 
 1965 
 
 1970 
 
 1975 
 
 Year 
 
 178 
 
300 
 
 50 
 
 Exhibit 1-3 
 Estimated Travel Expenditures 
 
 o 
 Q 
 
 o 
 
 m 
 
 c 
 o 
 
 ■H 
 
 
 200 
 
 50 
 
 100 
 
 50 
 
 Current $ 
 
 f 
 
 J 
 
 1955 
 
 1960 
 
 Year 
 
 179 
 
1.4 
 
 Determining Economic Impact Ratios 
 
 The estimated value added, employment, wages and salaries, and capital 
 investment impacts associated with these expenditures were determined using 
 derived impact ratios. The ratios are expressed as functions of sales of 
 the appropriate good/service and are defined as follows: 
 
 value added impact: 
 
 employment impact: 
 
 wages and salaries impact: 
 
 total value added 
 total sales 
 
 total sales 
 total employment 
 
 total wages and salaries 
 total sales 
 
 total annual capital expenditures 
 annual capital investment impact: total sales 
 
 The value of the ratios are presented in Exhibit 1-4. For food expenditures 
 the ratios for employment, wages and salaries, and annual capital expenditures 
 were determined from census data on Eating Places (SIC 58).^ The value added 
 to sales ratio was determined for the same SIC category from a detailed break 
 down of cost and revenue data from the Internal Revenue Service. 6 
 
 For lodging, employment, wages and salaries, and capital expenditures the ratios 
 were derived using data from the 1972 Census of Selected Services , on hotels. 
 
 motels, trailer parks and camp grounds (SIC 701,3) 
 
 The value added to sales 
 
 ratio was determined for the same SIC grouping from Internal Revenue Service 
 
 data. 8 
 
 The travel ratios for (i.e., refining) are determined from Census 
 data on petroleum refining. 9 Tue wholesale trade impact ratios for sales 
 to employment, wages and salaries to sales, and annual capital expenditures 
 to sales are determined from Census data on petroleum bulk stations and ter- 
 minals. 10 The value added to sales ratio is estimated by reducing the gross 
 margin of petroleum wholesales by the amount that reflects value added. The 
 gross margin of wholesalers of fuel is 10.1 percent. H According to the Census 
 of Wholesale Trade value added represents 94 percent of the gross margin 
 in whole trade. l^ Thus value added to sales ratio is estimated at 0.095. 
 
 The retail trade impact ratios for sales to employment, wages and salaries 
 to sales, and annual capital expenditures to sales are derived from Census 
 data on gasoline sexrvice stations. l^ The sales to employment ratio is ad- 
 justed for part-time help so that it reflects person-years of employment 
 based on Bureau of Labor Statistics data on average hours worked weekly in 
 retail trade. The value added to sales ratio was determined from income 
 statements of gasoline service stations 
 
 14 
 
 180 
 
Exhibit 1-4 
 
 Economic Impact Ratio for Food, Lodging, 
 and Transportation 
 
 Transportation 
 Food Lodging Wholesale Retail 
 
 Retail Trade Retail Manufacturing Trade Trade 
 
 Value Added/Sales 
 ($/$ Sales) 0.36 0.53 0.17 0.095 0.16 
 
 Sales/Emplo^onent 
 
 ($/person-year) ■ ■ $15,600 16,500 273,800 220,400 50,100 
 
 Wages and Salaries 
 ($/$ Sales) 0.25 0.29 0.046 0.036 0.094 
 
 Annual Capital Expenditures 
 
 ($/$ Sales) 0.037 0.129 0.04 0.019 0.012 
 
 181 
 
1.5 Applying the Economic Impact Ratios to Determine the Econondc 
 
 To determine estimates of economic impacts the inqpact ratios were applied 
 in the following manner. The ratio of value added to sales, wages and sal- 
 aries to sales, and annual capital expenditxires to sales were each multi- 
 plied with the respective estimated expenditures for food, lodging, and 
 travel- The impact ratio for enqoloyment is expressed in terms of dollars 
 of sales per unit of employment. To estimate the employment impact the 
 ratio is, therefore, divided into the expenditures estimate. 
 
 182 
 
i^pendix I References 
 
 1. The price indices includes used: "Food Purchased Away from Home" for 
 food; "Services" for lodging; and "Gasoline and Motor Oil" for 
 transportation. All indices were obtained from the Bureau of 
 
 Labor Statistics. 
 
 2. U.S. Department of the Interior, Bureau of Sport Fisheries and 
 Wildlife, 1970 National Survey of Fishing and Hunting (Washington, 
 D.C.: U.S. Government Printing Office), 1972, p. 46. 
 
 3. See footnote 1. 
 
 4. United States Travel Data Center, 1972 National Travel Expenditure 
 Survey , (Washington, D.C.: U.S. Travel Data Center), 1973, p. 13 . 
 
 5. Data for employment aind payroll were taken from U.S. Department of 
 Commerce, Bureau of the Census, 1972 Census of Retail Trade, Estab- 
 lishment curid Firm Size, p. 1/26. Capital expenditure data are from 
 the subject series Capital Expenditures, Fixed Assets and Retail 
 Payments , p. 2/6. 
 
 6. Department of the Treasury, Internal Revenue Service, Statistics 
 of Income 1972, Business Income Tax Returns (Washington , D . C . ; U.S. 
 Government Printing Office), 1976, pp. 13, 91, and 175. 
 
 7. Data for employment and payroll were taken from the U.S. Depart- 
 ment of Commerce, Bureau of the Census, 1972 Census of Selected 
 Services, Summary Statistics , p. 7. Data in capital expenditures 
 are from P. 8/81. 
 
 8. Department of the Treasury, pp. 13, 91, 175. 
 
 "9. U.b. Department of Commerce, Bureau of the Census, 1972 Census of 
 Manufacturers, Petroleum and Coal Products , p. 294-14. 
 
 10. U. S. Depeirtment of Commerce, Bureau of the Census, 1972 Census of 
 Wholesale Trade , pp. 2/3 and 2/154. 
 
 11. Robert Morris Associates, Annual Statement Studies , (Philadelphia 
 Pa. : Robert Morris Associates) , 1976, p. 235. 
 
 12. U.S. Department of Commerce, Bureau of the Census, 1972 Census of 
 Wholesale Trade, Value Produced, Capital Expenditiires, Fixed Assets 
 Rental Payments , and Supplemental Costs of Merchant Wholesalers , p. 
 3/10. 
 
 13. Data on employment and wages and salaries are from U.S. Department 
 of Commerce, Bureau of the Census, 1972 Census of Retail Trade, Mis- 
 cellaneous Subjects, p. 3/20. Capital expenditures data are from the 
 1972 Census of Retail Trad^ , Capital Expenditures, Fixed Assets and 
 Rental Payments , p. 2/6. 
 
 183 
 
Appendix I References 
 (cont. ) 
 
 14. U.S. Department of the Treasury, Internal Revenue Service, 
 Statistics of Income 1972, Income Tax Returns , (Washington, 
 D.C.: U.S. Government Printing Office) 1976, pp. 13, 91, and 
 
 175. 
 
 184 
 
APPENDIX J 
 
 ECONOMIC IMPACTS 
 RELATED TO MARINE INSURANCE FOR 
 RECREATIONAL BOATS 
 
J.O ECONOMIC IMPACTS RELATED TO MARINE INSURANCE FOR RECREATIONAL BOATS 
 J. 1 Summary of Impacts 
 
 In 1972, boat owners paid an estimated $173.7 million in insurance premiums 
 to cover their recreational watercraft. About $36.5 million of these 
 premiums are attributable to saltwater sportfishing activity.* The economic 
 impacts associated with the payment of these premiums are presented in 
 Exhibit J-1, Value added totalled an estimated $40.9 million of which 
 about $8.6 million is associated with marine recreational fishing. An 
 estimated 1,500 person-years of employment and $16.7 million in wages and 
 salaries were generated in the sale of recreational boat insurance. Of 
 these totals an estimated 340 person-years of employment and $3.5 million 
 in wages and salaries are attributable to saltwater sportfishing. Capital 
 expenditures related to insurance purchased were insignificant. 
 
 These premixoms are not to be confused with marine insurance premiums paid 
 for coverage of commercial vessels or the transport of cargo by water. 
 These payments totalled over $1 billion in 1972. 
 
 185 
 
Exhibit J-1 
 
 Estimated Economic Impacts Related to 
 
 Insurance for Recreational Boats 
 
 1972 
 
 Number of Establishments* 130 
 
 Value of Premiums (millions of dollars) 
 
 Total** $173.7 
 
 Marine Recreational Fishing 36.5 
 
 Value Added (millions of dollars) 
 
 Total** $40.9 
 
 Marine Recreational Fishing 8.6 
 
 Employment (person-years) 
 
 Total** 1,600 
 
 Marine Recreational Fishing 340 
 
 Wages and Salaries (millions of dollars) 
 
 Total** $16.7 
 
 Marine Recreational Fishing 3.5 
 
 * Total number of insurance carriers selling insurance to 
 recreational boaters. 
 ** Refers to insurance for all recreational boats. 
 
 186 
 
J. 2 General Approach 
 
 Impacts associated with the purchase of recreational boat insurance in 1972 
 were estimated in the following manner: 
 
 o The value of premiums purchased was estimated from data 
 on the number of boats insured and the typical cost of 
 insurance by boat type. 
 
 o The portion of premiums attributable to saltwater fishing 
 was determined based on the percent of total time boats 
 are used for marine sportfishing. 
 
 o Economic impact ratios for value added to sales, sales 
 
 to employment, and wages and salaries to sales were estimated 
 based on industry averages. 
 
 o The economic impacts associated with insurance premiums for 
 all recreational boats and those impacts attributable to 
 recreational boats used for saltwater sportfishing were 
 estimated by applying the economic impacts ratios to the 
 estimated value of premiums purchased. 
 
 This analysis includes those premiums paid for separate insurance coverage 
 for recreational watercraft and homeowner's insurance covering recreational 
 boats. According to representatives of four national insurance companies, 
 boats that are used in the open ocean are generally covered by separate 
 policies.! Small boats that are used in bays, rivers and estuaries may be 
 covered through a homeowner's policy for a small additional fee. The cost 
 of separate insurance policies depends on the type, size and age of the boat 
 as well as the body of water in which it is generally used and the experience 
 of the operator. 
 
 187 
 
r 
 
 J. 3 Estimating the Value of Insurance Premiums for Recreational Watercraft 
 
 The value of insurance premiums paid in 1972 for coverage of privately owned 
 recreational watercraft was estimated from data on the number of insured boats 
 and the typical costs of insurance for an outboard, inboard, and inboard/ 
 outdrive boat. 
 
 Exhibit 3-2 presents by boat type the estimated number of insured and non- 
 insured boats in 1972. These estimates were determined using similar 
 estimates for 1973 obtained from the U.S. Coast Guard. 2 The 1973 figures 
 were reduced by the increase in the boat population for that year.* The 
 proportion of insured boats to total boats was assumed to be constant in 
 1972 and 1973. 
 
 The value of premiioms sold was estimated from typical costs of insurance 
 for outboard, inboard and inboard/outdrive boats as determined from informa- 
 tion provided by four major insurers of recreational watercraft. 3 Accordingly, 
 boat owners generally obtain liability coverage for their boats for about 
 $12 per year. Typical insurance costs for inboard, outboard and inboard/ 
 outdrive boats are $395, $45, and $130 respectively. In total insurance 
 premiums amounted to an estimated $173.7 in 1972. Exhibit J-3 shows the 
 calculation of the estimated total value of premiums. 
 
 Estimates of the increase in the boat population were obtained from the 
 Boating Industry Association. 
 
 188 
 
Exhibit J-2 
 
 Estimated Total Number of Boats 
 Insured in 1972 
 
 Boat Type 
 
 Inboard 
 
 Outboard 
 
 Inboaurd/ 
 Outdrive 
 
 TOTAL 
 
 Homeowner ' s 
 190,600 
 
 1,628,500 
 177,000 
 
 1,996,100 
 
 Separate Policy 
 239,600 
 679,200 
 189,600 
 
 1,108,400 
 
 None 
 94,700 
 1,191,600 
 59,800 
 
 1,346,100 
 
 Total 
 524,900 
 3,499,300 
 426,400 
 
 4,450,600 
 
 189 
 

 
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 190 
 
J. 4 Determining the Portion of Premiums Attributable to Saltwater 
 Sportf ishing 
 
 The allocation of the portion of total premiums to marine recreational fishing 
 was based on the proportion of marine angling activity from boats to total 
 boating activity. It is estimated that about 21 percent of total boating time 
 (including activity in freshwater and saltwater) is spent sportfishing in 
 saltwater. (See Appendix B for details on the determination of this estimate.) 
 Accordingly, 21 percent of the total insurance premiums, or an estimated 
 $36.5 million, is associated with marina recreational fishing. 
 
 191 
 
J. 5 Estimating the Economic Impact Ratios 
 
 To estimate the economic impacts associated with the sale of insurance 
 for recreational boats, economic impact ratios were derived as functions of 
 sales using aggregated data on the insurance industry. These were then 
 applied to the estimated value of 1972 premiums. The impact ratios are 
 
 presented in Exhibit J-4. 
 
 To determine the ratios of sales to employment, the value of premiums 
 aggregated for marine, fire, and casualty insurance was divided by the total 
 number of employees of these insurance carriers. The ratio was then adjusted 
 to reflect person-years of employment using Bureau of Labor Statistics 
 data on the average weekly hours worked by service related employees. Similar 
 aggregated data were used to determine the ratio of wages and salaries to 
 sales. ^ 
 
 The estimate for value added was determined from data in the 1967 national 
 input-output tables for the insurance and finance industries. Value added 
 is composed of employee compensation, property- type income and indirect 
 business taxes . According to the input-output tables employee compensation 
 represents 40.8 percent of the total value added by the insurance and 
 finance industries. The salaries and wages estimates determined above 
 ($16.7 million in total and $3.5 million attributable to saltwater sport- 
 fishing) were then divided by 0.408 to determine the value added estimates 
 that appear in Exhibit J-1. 
 
 Data on capital expenditures in the insurance industry are unavailable. 
 However, it is reasonable to ass\ime that such expenditures related to boat 
 insurance premiums are insignificant. The major capital requirements are 
 office space and office equipment. Office space is generally rented, and 
 equipment needs are minimal. 
 
 192 
 
Exhibit J-4 
 Economic Impact Ratios for Boat Insurance 
 
 Value Added 
 Sales 
 
 Sales 
 
 Employment $107,700 
 
 Wages and Salaries 
 
 Sales 0.096 
 
 Capital Expenditures 
 Sales 
 
 * An alternate method was used to estimate the impact. See 
 preceding discussion. 
 
 193 
 
J. 5 The Number of Carriers of Insurance Covering Recreational Boats 
 
 The American Institute of Marine Underwriters estimates that there are 
 between 120 and 140 companies that will write separate policies covering 
 recreational watercraft.° 
 
 194 
 
APPENDIX J REFERENCES 
 
 1. These companies are Aetna Insurance, Insurance CompcinY of 
 North America, Nationwide Insurance, and Allstate Insurance. 
 
 2. U.S. Coast Guard, Recreational Boating in the Continental United 
 States in 1973 , p. 51. 
 
 3. See reference 1. 
 
 4. From U.S. Department of Commerce, Bureau of Economic Analysis, 
 Survey of Current Business , Vol\ime 54, February, 1974, p. 42. 
 
 5. The value of premiums from fire, marine and casualty insurance 
 was obtained from the Insurance Information Institute, 110 
 William Street, New York, New York. Data on employment and 
 wages and salaries were taken from U.S. Department of Commerce, 
 County Business Patterns 1972; United States Summary , p. 25. 
 
 6. See reference 5. 
 
 7. U.S. Department of Commerce, Bureau of Economic Analysis, 
 "The Input-Output Structure of the U.S. Economy," Survey of 
 Current Business , Washington, D.C. , U.S. Government Printing 
 Office (February, 1977), p. 42. 
 
 8. Obtained directly from the American Institute of Marine Underwriters, 
 99 John Street, New York, New York. 
 
 195 
 
APPENDIX K 
 
 ECONOMIC IMPACTS RELATED 
 "OTHER" EXPENDITURES 
 
K.O ECONOMIC IMPACTS RELATED TO "OTHER" EXPENDITURES 
 
 K. 1 Summary of Impacts 
 
 There are several items purchased by marine recreational fishermen that when 
 taken alone represent a very small portion of total expenditures. These are 
 not 3_nalyzed individually. They include special fishing clothing, tents, 
 magazines, boat launching fees, guide fees, spearfishing equipment and other 
 items not separately listed. However, in the aggregate these expenditures 
 are significant. In 1972 these items accounted for an estimated $120 million 
 in retail sales. The estimated impacts associated with these expenditures 
 were $24 million in value added, 2,650 person-years of employment, $14.4 million 
 in wages and salaries, and $3.1 million in annual capital expenditures all at 
 the retail level. 
 
 196 
 
Exhibit K-1 
 
 Siimmary of Impacts Related to "Other" 
 Expenditures for Marine Recreational Fishing 
 
 1972 
 
 Sales (millions of dollars) $ 120 
 
 Value Added (millions of dollars) 24 
 
 Employment (personOyears) 2,650 
 
 Wages and Salaries 14.4 
 (millions of dollars) 
 
 Annual Capital Expenditures 3.1 
 (millions of dollars) 
 
 197 
 
K. 2 Estimating Economic Impacts Related to "Other" Expenditures 
 
 To estimate impacts for goods and services not included elsewhere the 
 following procedure was used. 
 
 o Based on data from the 1970 National Survey of Fishing 
 
 and Hunting , a list of items and associated expenditures 
 was compiled. A ratio of "other" expenditures to total 
 expenditures was then computed. 
 
 o Economic impact ratios of value added to sales, sales to 
 
 employment, wages and salaries to sales and annual capital 
 investment to sales was estimated based on secondary data 
 on all retail sales. 
 
 o The impact ratios were applied to the estimated expenditure 
 values to determine the impacts. 
 
 198 
 
K. 3 Estimating the Value of "Other" Expenditures 
 
 From the 1970 Survey of Fishing and Hunting expenditures for special clothing, 
 tents, magazines, boat launching fees, guide fees, other equipment (e.g., 
 sleeping gear, cooking and eating utensils, cabin lanterns, etc.) and other 
 unspecified expenses were totalled. They amount to $112.8 million. This 
 value was then used to determine "other" expenditures as a proportion of 
 expenditures for all remaining items. From the survey those remaining 
 expenditures amount to $1,112.9 million. Thus other expenditures are ten 
 percent of the expenditures for all remaining items. 
 
 The estimated expenditures by recreational fishermen for all goods and 
 services described in the preceding appendices amount to $1,221 million. 
 Thus other expenditures are ten percent or about $120 million in 1972. 
 
 199 
 
K. 4 Estimating Economic Impact Ratios for "Other" Expenditures 
 
 The econcOTic impact ratios of value added to sales, sales to employment, 
 wages and salaries to sales, amd annual capital investment to sales are 
 estimated using data on all retail trade for 1972 from the Bureau of 
 Economic Analysis Survey of Current Business . The ratios are shown in 
 Exhibit K-2. The ratio of sales to employment has been adjusted to reflect 
 person-years of employment based on Bureau of Labor Statistics on the 
 average number of hours worked weekly by retail employees. 
 
 The impact estimates were then determined by applying the impact ratios 
 to the expenditure estimates. The ratio of sales to employment was divided 
 into the expenditure estimate to obtain the en5)loyment impact. All other 
 ratios were multiplied with the expenditure estimate to determine the 
 respective impact. 
 
 200 
 
Exhibit K-2 ■ -. 
 
 Economic Impact Ratios Related to 
 
 "Other" Expenditures for Saltwater 
 
 Sportfishing in 1972 
 
 Value Added/Sales •0.20 
 
 ($/$ sales) 
 
 Sales/Employment 45,350 
 
 ($ sales/person-year) 
 
 Wages and Salaries/Sales 0.12 
 
 ($/$ sales) 
 
 Annual Capital Investment/Sales 0.026 
 ($/$ sales) 
 
 201 
 
APPENDIX L 
 
 ESTIiyiATED SALES AND ECONOMIC IMPACT RATIOS FOR 197 5 
 
L.O ESTIMATED SALES AND ECONOMIC IMPACT RATIOS FOR 1975 
 
 The 1975 estimated impacts were determined using the same general method as 
 the 1972 estimates which are described in detail in the preceeding appendices. 
 To obtain economic impact estimates for 1975, impact ratios for value added 
 to sales, sales to employment, wages and salaries to sales, and annual capital 
 expenditures to sales were estimated and applied to expenditures estimates for 
 each of the goods and services included in the 1972 analysis. The estimated . 
 expenditures and impact ratios are presented below along with a brief des- 
 cription of the estimating procedure. For a detailed explanation of each pro- 
 cedure see the appropriate appendix for the 1972 estimates. 
 
 Exhibit L-1 presents the expenditure estimates for 197 5. Estimated expendi- 
 tures for boats, motors, and trailers are based on the Boating Industry 
 Association data for retail sales. (See Appendices B, C and D.) Manufacturers' 
 shipments are estimated using the gross margins determined from the estimates 
 made for 1972. Fishing tackle sales are based on revenues from the ten per- 
 cent excise tax on a large portion of manufacturer's shipments. The propor- 
 tion of tax revenues to total value of shipments in 1972 was calculated. Assum- 
 ing that proportion remains relatively constant, the value of 1975 tax 
 revenues was then used to estimate the 1975 value of shipments. The sales 
 estimates for wholesale and retail trade were made assuming the same gross 
 margins as existed in 1972. (See Appendix A.) 
 
 The value of marina/bcat yard revenues in 1975 was based on an estimate of 
 2,900 coastal marinas (an increase of about one percent per year in number) 
 and average revenues of $159,000 per marina. The result was then inflated 
 based on consumer price index for recreation taken from the Survey of Current 
 Business published by the Bureau of Economic Analysis. (See Appendix E.) 
 
 Estimated boat fuel sales are based on the volume of marine fuel sold in 1975, 
 obtained from the Department of Transportation and the average price of gaso- 
 line in 1975. For details on the estimating procedure see Appendix H. 
 
 The value of boat insurance premiimis was estimated by adding the value of 
 premi\ams for new watercraft entering the boat population between 1972 and 
 1975 to the 1972 estimate of premiums paid. The result was inflated by fif- 
 teen percent to account for an average increase in the cost of boat insurance 
 over the three year period. The total premiums for new boats entering the 
 population v/as based on the average value of an annual premium for each of 
 the three boat types (outboard, inboard and inboard/outdrive) . The number 
 of insured boats was estimated assuming that the percent of boats insured 
 to total boats in the population remained constant between 1972 and 1975. 
 (See Appendix J.) 
 
 Estimates of retail revenues from food, lodging, transportation, bait, and 
 commercial sportfishing vessels associated with marine recreational fishing 
 were made using an historical trend analysis based on data from the National 
 Survey of Fishing and Hunting conducted every five years beginning in 1955. 
 The least squares approximation and details of the estimating procedure for 
 each of these items is described in Appendix I. 
 
 202 
 
Exhibit L-1 
 
 Expenditures Estimates For 1975 
 
 Manufacturing 
 
 Wholesale Trade 
 
 Retail Trade 
 
 Fishing ' 
 
 rackle 
 
 
 
 Total 
 
 
 
 260 
 
 Marine 
 
 Recreational 
 
 Fishing 
 
 57.2 
 
 Boats 
 
 
 
 
 Total 
 
 
 
 661 
 
 Marine 
 
 Recreational 
 
 Fishing 
 
 139 
 
 Motors 
 
 
 
 
 Total 
 
 
 
 304 
 
 Marine 
 
 Recreational 
 
 Fishing 
 
 33 
 
 Trailers 
 
 
 
 
 Total 
 
 
 
 71 
 
 Marine 
 
 Recreational 
 
 Fishing 
 
 15 
 
 292 
 64.3 
 
 620 
 136 
 
 989 
 208 
 
 411 
 45 
 
 88 
 18 
 
 Marinas 
 Total 
 Marine Recreational Fishing 
 
 Commercial Sportfishing Vessels 
 
 Boat Fuel 
 Total 
 Marine Recreational Fishing 
 
 Food 
 Total 
 Marine Recreational Fishing 
 
 Lodging 
 Total 
 Marine Recreational Fishing 
 
 Transportation 
 Total 
 Marine Recreational Fishing 
 
 Boat Insurance 
 Total 
 Marine Recreational Fishing 
 
 Bait 
 
 233 
 49 
 
 1,274 
 133 
 
 348 
 73 
 
 1,903 
 198 
 
 540 
 
 240 
 
 122 
 
 410 
 86 
 
 2,435 
 247 
 
 1,234 
 63 
 
 2,238 
 233 
 
 266 
 56 
 
 810 
 
 216 
 
 Other 
 
 170 
 
 203 
 
"other" sales are assumed to be ten percent of the total value of retail 
 sales for saltwater sportfishing. This is the same amount in terms of per- 
 cent of total sales for 1972 and was determined using data from the 1970 
 National Survey of Fishing and Hunting . (See Appendix K.) 
 
 Economic impact ratios for 1975 are presented in Exhibit L-2. To determine 
 the economic impact ratios for 1975, the 1972 ratios (described in detail 
 in the preceding appendices) were adjusted based on national trends in 
 manufacturing, wholesale trade, and retail trade. For example, to estimate 
 the 1975 ratio of sales to employment for fishing tackle, the 1972 ratio 
 was multiplied by a factor equal to the percent change in retail sales be- 
 tween 1972 and 1975 divided by the percent change in employment. 
 
 That is, 
 
 ^1975, j,k " ^1972, j,k ^ ^j,k 
 
 Where ^^i • i,. ~ economic impact ratio in year i for impact j 
 
 (j = value added, employment, wages and salaries, 
 j annual capital expenditures) for good or service 
 k. 
 
 a • j^ = adjustment of impact j relative to sales from 
 1972 to 1975 for good or service k. 
 
 In the above example the 1972 ratio of sales to employment for fishing tackle, 
 $47,600/person-year, was adjusted by a factor of 1.25. The adjustment factor 
 was determined as follows: the value of total retail sales increased 31 per- 
 cent between 1972 and 1975, while the total increase in employment in retail 
 trade was 4,8 percent. The adjustment factor equals 1.31 divided by 1.048 
 or 1.25. The 1975 ratio is estimated at $59,500 per person-year. Implicitly 
 this adjusts for the inflationary effects on the value of sales while con- 
 trolling for the real increase (or decrease) in employment (or wages and 
 salaries, and capital expenditures) . Data for the adjustment factors were 
 obtained from the Bureau of Economic Analysis Survey of Current Business 
 for the years 1972 and 1975. These adjustments were made under the assump- 
 tion that the economic characteristics of each good or service conformed to 
 the national trend. If the value of retail sales for the nation increased 
 by 31 percent while employment increased only 4.8 percent nationally, then 
 the value of retail sales and employment for fishing, or boats, or motors, 
 etc. increased in the same proportion between 1972 and 1975. 
 
 Adjustment factors for employment wages and salaries and annual capital in- 
 vestment in manufacturing fishing tackle, boats, motors, auid trailers were 
 determined from national data for dura±ile goods. The factors for these items 
 as well as food, bait, and other expenditures at the level of retail trade 
 (and wholesale trade) were based on data for all retail (and wholesale) trade. 
 Adjustment factors for lodging, insurance, marinas and commercial sportfishing 
 vessels were based on data for all services. 
 
 204 
 
Exhibit L-2 
 
 Estimated Economic Impact Ratios For 1975 
 
 
 Sales 
 
 Wages and Salaries 
 
 Sales 
 
 Value Added 
 Sales 
 
 Capital Expend. 
 
 
 Employment 
 
 Sales 
 
 
 ( $/person-year) 
 
 ($/$ Sales) 
 
 ($/$ Sales) 
 
 ($/$ Sales) 
 
 Fishing Tackle 
 
 
 
 
 
 Manufacturing 
 
 $ 23,100 
 
 0.275 
 
 0.63 
 
 0.043 
 
 Wholesale Trade 
 
 138,900 
 
 0.073 
 
 0.10 
 
 0.006 
 
 Retail Trade 
 
 59,500 
 
 0.116 
 
 0.38 
 
 0.029 
 
 Boats 
 
 
 
 
 
 Manufacturing 
 
 33,700 
 
 0.212 
 
 0.44 
 
 0.012 
 
 Retail Trade 
 
 102,100 
 
 0.075 
 
 0.16 
 
 0.006 
 
 Motors 
 
 
 
 
 
 Manufacturing 
 
 86,250 
 
 0.171 
 
 0.46 
 
 0.031 
 
 Retail Trade 
 
 102,100 
 
 0.075 
 
 0.16 
 
 0.006 
 
 Trailers 
 
 
 
 
 
 Manufacturing 
 
 54,300 
 
 0.165 
 
 0.45 
 
 0.031 
 
 Retail Trade 
 
 102,100 
 
 0.075 
 
 0.16 
 
 0.006 
 
 Marinas 
 
 37,000 
 
 0.27 
 
 0.40 
 
 0.02 
 
 Commercial Sport- 
 
 
 
 
 
 fishing Vessels 
 
 25,000 
 
 0.29 
 
 0.60 
 
 0.07 
 
 Food 
 
 20,500 
 
 0.230 
 
 0.36 
 
 0.027 
 
 Lodging 
 
 18,200 
 
 0.265 
 
 0.53 
 
 0.094 
 
 Insurance 
 
 137,600 
 
 0.088 
 
 0.24 
 
 0.0 
 
 Bait 
 
 81,000 
 
 0.082 
 
 0.20 
 
 * 
 
 Other 
 
 56,300 
 
 0.12 
 
 0.20 
 
 0.02 
 
 Estimate determined using an alternate procedure. 
 
 205 
 
Impacts related to boat fuel and travel were estimated separately to take 
 into account the large increase in petroleum prices between 1972 and 1975. 
 Impact estimates for boat fuel were based on the increase in fuel consumption 
 between 1972 and 1975. During that period boat fuel consumption increased 
 by six percent.* Employment is assumed to have increased by that amount. 
 The remaining impacts are estimated based on that net increase plus an 
 inflationary adjustment. Impacts related to travel were adjusted in a similar 
 fashion. Based on the least squares approximation in Appendix I, the real 
 increase in travel expenditures between 1972 and 1975 was ten percent. 
 Employment was increased by that amount, and the remaining impacts were 
 adjusted based on the real growth plus inflation in wages and salaries and 
 capital costs. 
 
 The value added to sales ratios in manufacturing were made using data from 
 the Annual Survey of Manufacturers published by the Bureau of the Census. 
 Similar type data for wholesale and retail trade were not available. It 
 was assumed that at these levels of activity the ratios of value added to 
 sales remained constant between 1972 and 1975. That is, employee compensa- 
 tion, rent, property- type income, and indirect business taxes increased in 
 a constant proportion with sales.** 
 
 The estimated economic impacts were then determined by applying the impact 
 ratios to the sales estimates. The value added, wages and salaries, and 
 annual capital investment impacts were determined by multiplying the sales 
 estimate by the appropriate impact ratio. To obtain the employment impact 
 the sales estimate is divided by the sales to employment ratio. 
 
 * Boat fuel consumption estimates obtained from the U.S. Department of Trans- 
 portation, Federal Highway Administration. In 1972 and 1975 gallons of 
 boat fuel consumed were 686,763,000 and 729,718,000 respectively. 
 
 ** Indirect business taxes are excluded from value added in manufactures. 
 
 206 OU.S. GOVERNMENT PRINTING OFFICE:1977 240-848/307 1-3 
 
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PENN STATE UNIVERSITY LIBRARIES 
 
 NOAA— S/T 77-2967