The Changing Importance of Rhode Island'sCoastalEconomyAcross Time and Relative to Other States

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The Changing Importance of Rhode
Island's Coastal Economy--Across Time and
Relative to Other States

• Presentation to the
• Rhode Island House Bay Trust Commission
• Gary Ciminero
• RI House Policy Office
• January 14, 2004

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Todays agenda

• Updated Rhode Island OutlookNew England Economic
  Project
  
• Rhode Islands Comparative PerformanceWaterborne/
  Marine-Based Perspectives
  
• The Coastal Economy of Rhode Island
• References

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I. Updated Rhode Island Outlook1Current
ConditionsMonthly Rhode Island Job Trends
January, 1985December, 2003
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I. Current Conditions Monthly Massachusetts Job
Growth January, 1985November, 2003
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I. Current Conditions Housing Price Comparisons
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I. NEEPs Updated Rhode Island Outlook for Jobs
Growth1
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II. Rhode Islands Comparative PerformanceWaterbo
rne/Marine-Based Perspectives2,5,6
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II. Total Economic Perspective5Real Gross State
Product Growth 1990-00RI Ranks 37th, CT 43rd
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II. RI Sectoral Economic Perspective5Real GSP
Growth 1990-00
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II. Nonfarm Agricultural Perspectives5CT 26th
RIs Declining Fisheries Activity Ranks It 49th
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II. Waterborne Transportation Sector Real GSP
Originating in 20005CT Ranks11th RI Just
33rdBased on Relative ImportanceCT Ranks 8th
RI 19th
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II. Waterborne Transportation SectorState Port
Activity vs. CT6RI Ranks 38th , CT 33rd
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II. Waterborne Transportation SectorGauging RIs
Expansion Potential Port Activity vs. CT2
If RI Had Port-Related Activity Simply Equaling
that of CT Our Economy would be Improved by (at
1999 levels of activity and prices)

• 391.8 million higher state Gross Regional
  Product, a 1.4 increase
  
• 6,100 more RI jobs
• Average state prices reduced by about 1/2
• A 286 million increase in Personal Income, a
  1.1 gain.
  
• Approximately 20-25 million more per year in
  state tax revenues.

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III. The Coastal Economy of Rhode
Island3--Definition of Sectors

• Rhode Islands Ocean Economy
• Activities and resources that are directly or
  indirectly tied to the ocean, coastal, and
  watershed environment.
  

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III. The Coastal Economy of Rhode
Island3--Definition of Sectors

• Marine Waterways
• Waterborne Transportation Movement of freight
  and passengers.
  
• Boat-Building
• Living Marine Resources
• Commercial Fish Harvesting Processing
• Economic Activity and Recreational Enjoyment
• Coastal-Related Tourism Recreation whether
  conducted on land or water
  
• Construction
• Marine Coastal Infrastructure
• Piers, wharves, dredging, restoration of beaches,
  etc.
  
• Government
• Research, Ocean Management, etc.
• Military Defense-Related
• US Navy Activities

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III. The Coastal Economy of Rhode
Island--Alternative Definition of SectorsThe
Marine Cluster4
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III. The Coastal Economy of Rhode Island3--Total
Scope and Value Base Study Year 1997

• Conservative Values Based on observed market and
  economic data, excluding Non-Market Values for
  recreation, amenities, etc.
  
• Gross State Product
• Direct Effects Only425.5 million or 1.9 of
  total
  
• Including Direct/Indirect/Induced Effects515.1
  million, 2.3 of total
  
• Compare CA at 2.0 and ME at 5.4
• ME did not suffer big decline in naval
  shipbuilding as RI did
  
• Wages
• Direct Effects Only227.0 million or 2 of
  total
  
• Including Direct/Indirect/Induced Effects2.4 of
  total
  
• Employment
• Direct Effects Only8,317, 1.8 of state total.
• Including Direct/Indirect/Induced Effects17,254,
  3.6 of total

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III. The Coastal Economy of Rhode Island3--Value
by Major Sector Base Study Year 1997

• Conservative values based on observed economic
  data
  
• Gross Product Originating and Employment
• Totals 425.5m, 8317 jobs
• Tourism Recreation--140.1m, 3688 jobs
• Government118.6m, 2342 jobs
• Marine Waterways/Transportation 57.6m, 1483
  jobs
  
• Living Marine Resources103.2m, 687 jobs
• Construction Rehabilitation5.9m, 117 jobs

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III. RI Coastal Economy Perspectives31997Gross
State Product, Wages Employment
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III. RI Coastal Economy Perspectives31997Average
Annual Wage by Ocean Sector
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III. RI Coastal Economy Perspectives3--1990s
Employment Wages Decline then Turn Up
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III. The Coastal Economy of Rhode IslandImpetus
for the Marine Cluster study4
Bay Summit Concluded (4/2000)

• The economic role of Narragansett Bay is
  declining, although the reasons for this trend
  are not fully understood. Summit participants
  concluded that opportunities exist to make better
  economic use of the Bay while improving the
  quality and productivity of its ecosystem...

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III. The Coastal Economy of Rhode
Island3--Including Non-Market Values for Tourism
Recreation

• Ocean-Related Tourism Recreation--5.6 billion
• Conservative EstimatesValues based on observed
  economic data
  
• GPO 140.1m
• Employment 3688 direct jobs 5300 direct
  induced jobs
  
• Recreational Valueswalking/hiking, salt water
  swimming, diving sightseeing, bicycling,
  picknicking, jogging/running, nature photography,
  sailing/windsurfing, etc
• Additional economic value of 5.659 BILLION or
  about 10-times the market value of GPO for the
  entire coastal economy!
  
• Calculated from 185 million estimated
  user-days
  
• Based on Colt, Tyrell, Lee study7

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IV. REFERENCES