Welcome to the Southwick Associates January 2014 newsletter focusing on the economics, business and statistics of fish, wildlife, and their associated outdoor recreations.

 

In This Issue:

• Southwick Associates Poised to Help States Measure Conservation Investments
• Economic Impact of Sportfishing in Texas
• Hunting and Fishing Deliver Huge Economic Benefits in Utah
• Sportfishing Adds $97 Million to Panama Economy
• AFWA Offers Glimpse at Return on Conservation Investments

 

Southwick Associates Poised to Help States Measure Conservation Investments

A recent Greenwire story highlighting research conducted by Southwick Associates revealed how vital public and private investments in natural resource conservation provides nearly three times the return in the form of tax revenue and wages. Produced for the National Fish and Wildlife Foundation, Southwick Associates found that overall, $38 billion in public and private money is invested in conservation each year. These investments yield an amazing $98 billion in federal, state and local taxes, as well as wages and salaries for jobs supported through hunting, shooting, fishing and conservation.

These findings underscore what was revealed the previous year in an Outdoor Industry Association report, which found that outdoor recreation alone generates $646 billion in direct spending and supports more than 6 million jobs in the United States. Even during the recent recession, the outdoor recreation economy grew as much as 5 percent each year between 2005 and 2011.

Unfortunately, these findings come as federal budgets for a number of chief land management agencies are being cut and amidst an ongoing debate over the best use for public lands: Does mineral and natural resource extraction yield more benefits than conservation?

To help governmental agencies better quantify the benefits conservation investments can yield, Southwick Associates is available to quantify how much conservation yields in economic benefits for an area, including jobs and tax revenues created. This will assist policy makers and elected officials in making decisions not only vital for the betterment of conservation programs, but also for betterment of everyone living in that state. For more information, visit Southwick Associates’ website or call them at 904-277-9765.

Economic Impact of Sportfishing in Texas

One key example of how Southwick Associates is helping states better understand the true economic benefits of hunting, fishing and recreational shooting within their borders can be found in a recent study the company conducted for the Texas Parks and Wildlife Department. In 2011, more than 1.6 million adults fished in the Lone Star state spending $2.1 billion in retail sales, generating $1.1 billion in salaries and wages and supporting more than 29,000 jobs.

The total economic multiplier effect—i.e., sportsmen frequent a bait shop that provides jobs for people who spend money elsewhere on food, gasoline, clothing, etc.—is estimated to be as high as $3.67 billion.  The report looked at the demographics of 2011’s Texas anglers: how many freshwater fished and how many fished saltwater, age, income, marital status, race and other key factors. Of the total economic effect of $3.67 billion, $1.67 billion was generated by freshwater angling, while saltwater angling accounted for $1.97 billion.

The project was designed to provide resource managers with the necessary economic information needed to make the best decisions on behalf of the state’s fisheries and natural resources.

Hunting and Fishing Deliver Economic Benefits in Utah

Utah is a state with an abundance of public land and with it numerous outdoor opportunities to hunt, fish and wildlife watch. Many of its citizens recognize the wealth of outdoor experiences lying right outside their door, and indeed, it is safe to say many choose to live in the state for this very abundance. Recently, Southwick Associates conducted a study on behalf of the Utah Division of Wildlife Resources to help agency resource managers better conserve and manage the state’s resources.

Key findings in the Utah report found that 717,000 adults participated in wildlife watching, 464,000 in fishing and 212,000 called themselves hunters. These participants spent $1.72 billion in retail sales, which created more than $932 million in salaries and wages and supported more than 28,900 jobs. The total economic multiplier effect of this wildlife-base recreation was estimated at $2.9 billion.

Sportfishing Adds $97 Million to Panamanian Economy

While fishing in the United States continues to draw millions of enthusiasts each year, it is this keen interest in the sport that sends sportsmen abroad, boosting the local economies of smaller nations as well. With excellent saltwater sportfishing, Panama is one of these countries that benefits economically from the tourism generated by traveling anglers—to the tune of $97 million a year.

The study, “Sportfishing in Panama: A Natural Economic Gold Mine,” was conducted by Southwick Associates on behalf of The Billfish Foundation (TBF) and funded by the Panamanian government’s National Secretariat of Science, Technology and Innovation (SENACYT). Results of the study revealed in 2011 (the most recent available data), as many as 86,250 visitors fished in Panama, spending $97 million on charter boats, fuel, lodging, meals and other expenses related to their visit.

Historical data revealed the number of anglers visiting the country since 2001 had doubled and suggested that Panama has the potential of attracting even more anglers through proper marketing and sustainable management practices. In fact, the report surmised for every angler who has actually fished Panama, there are eight more U.S. anglers interested in visiting, yielding a potential economic windfall of an additional $776 million for the Panamanian economy. To realize the potential yield, however, anglers’ feedback show it is incumbent that Panama protect the quality of sportfishing off the country’s shores and maintain the level of opportunity in both number and quality of fish anglers currently catch.

“This boom in tourism in Panama is really no surprise. Panama’s wonderful climate, natural beauty and amazing beaches alone are major attractions, but one in four tourists that fished visited Panama JUST to fish,” said Ellen Peel, president of TBF. “It is paramount, though, that governmental agencies continue to focus on implementing responsible management and conservation measures for marine fisheries and continue to restrain foreign purse seine and local longline vessels for the benefit of billfish and all species. If managed correctly, Panama’s sportfishing sector will become an even bigger cash-cow for Panama’s tourism economy.“

View the full report.

AFWA Offers Glimpse at Return on Conservation Investments

What if your business could witness a return on investment greater than a 1,000 percent? Sounds unlikely, but that’s exactly the type of returns companies that serve hunters, shooters and anglers enjoy through the funding raised by excise taxes as part of the Wildlife and Sport Fish Restoration programs. In a summary released by the Association of Fish and Wildlife Agencies, hunting and recreational shooting manufacturers have realized a 1,100 percent annual return on the excise taxes paid to improve hunting opportunities, while sportfishing businesses have witnessed a whopping 2,157 percent return.

For more than 75 years, excise taxes have been invested back into the conservation of wildlife and fish to the tune of 100 percent of the taxes raised. In total, more than $15 billion have been generated and spent to support conservation in this country—all efforts that benefit hunters, shooters and anglers so that they may continue enjoying outdoor opportunities and spending money on the equipment needed for these activities.

 

 

A few highlights of the results of these investments are:

• In 1907, only 41,000 elk remained in the United States. Today, there are more than 1 million.
• By the early 1900s, there were fewer than half a million deer in the United States. Today, there are estimated to be more than 30 million and the hunting of white-tailed deer is by far the most popular type of hunting in America.
• At the beginning of the 20^th century, wild turkeys were nearly extinct. Today, populations are believed to exceed 7 million birds.

This study was produced for the AFWA by Southwick Associates in partnership with Andrew Loftus Consulting, and funded by Sportfish and Wildlife Restoration funds.

View the full report.

In Upcoming Issues:

• Top brands for hunting, shooting and fishing equipment
• Which types of license do hunters and anglers really want?
• How to boost conservation funding.
• And more.

Southwick Associates, Inc. specializes in natural resource & environmental economic, business and statistical research.  Our staff is comprised of economic, business and statistics professionals throughout the U.S. who have in-depth experience measuring the values, benefits and revenues possible from fish, wildlife, and water-related natural resources plus their associated industries.  We can help clients better address many business, legal, legislative and public communication issues through the practical application of reliable and accurate economic information and statistics. For information and other reports, visit our Web site at www.southwickassociates.com.

Interested agencies and organizations should contact Southwick Associates at 904-277-9765 or email Rob Southwick at rob@southwickassociates.com. You can also visit the “Specialties” section of our website for a complete view at the services we provide.

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Newsletter Editor: Source Stream Media, LLC, Virginia Beach, VA

Photos: Bill Winke, Doug Howlett, Henry Zeman/NWTF, USFWS and Daisy Elaine.