April 27 , 2010

FOR IMMEDIATE RELEASE

Contact: Tina Haisman, ASBPA Media Relations, 239-292-2882 or media@asbpa.org

What do we have to lose if we don’t have beaches?

As Americans, we all love beaches. But when it comes to spending money to protect them, some people say we should instead retreat from the coast. Certainly that is an option, but it comes at a hefty price. Economists in California estimated the impact of retreat in their state. The figures and how they came up with them may surprise you.

FORT MYERS, FL – Coastal communities frequently use beach spending numbers to help show the value of America’s beaches to local and national economies. But, have you ever wondered how they come up with those numbers?

Surprisingly, it’s not that difficult. They hire economists to go out to the beaches and conduct surveys. They ask questions, including (but not limited to) the following:

• How many people are in your group?
• How many days are you staying at the beach?
• How much do you spend per day on food while there?
• How much do you spend per day on lodging while there?
• How much do you spend per day on gas while there?
• How much do you spend per day at restaurants while there?
• What is your household income?

Once the surveys are completed, these economists use the answers to make estimates about how much money is actually spent by people drawn to stay at that beach, and how much of that money will go to boost the local, state and federal tax coffers.

During July, August and September of 2002, economist Philip King, Ph.D., former chair of the economics department at San Francisco State University, randomly surveyed 2,370 household groups at nine Southern California beach locations. He took the numbers and made estimates as to how much money would be lost if beaches were not an available tourist destination in California.

At all beaches surveyed, three-quarters of respondents said that they would travel outside California more than they do now if California beaches were unavailable for them to visit.

King's analysis indicated that, without beaches, California would lose $5.5 billion in Gross State Product (GSP) annually, while the U.S. economy would lose $2.4 billion in Gross National Product (GNP) annually.

“These are not just economic impact estimates, but also reflect the decisions of beachgoers to spend their money in other states and countries,” King said. “These estimates represent a net loss to the U.S. and state economy.”

Without beaches, King estimated the total annual economic loss, including direct, indirect and induced effects to the California economy would be $8.3 billion, and the loss to the U.S. economy would be $6 billion.

If there was no beach tourism in California, the state would lose $509 million in direct tax losses annually. The federal government would lose $299 million in direct tax losses annually.

The California Department of Boating and Waterways estimates the annual federal cost of shore protection for California beaches will be between $12 million and $18 million per year, approximately 4-6 percent of the direct federal tax loss.

“It’s numbers like these that show spending money to preserve beaches make sense in certain situations,” King said. “Although these examples represent what is happening in California, the results are similar in other coastal states. It simply makes sense to take care of our beaches.”

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ABOUT ASBPA: Founded in 1926, the ASBPA promotes the integration of science, policies and actions that maintain, protect and enhance the coasts of America. For more information on ASBPA, go to www.asbpa.org, facebook or www.twitter.com/asbpa.