Sea Grant study finds New York's boaters spent $2.4 billion in 2003

Natural resources researchers, from left, Nancy Connelly, research support specialist, David Kay, extension associate, and Tommy Brown, research associate, take in the view at the Treman Marina in Ithaca last month. The researchers completed a survey showing that recreational boaters in New York spent more than $2.4 billion statewide last year. Frank DiMeo/University Photography

The national economy may go through highs and lows, but in a recent New York Sea Grant-funded (NYSG) study, Cornell researchers found that the state's recreational boaters spent a whopping $2.4 billion last year despite the poor summer weather. The effort is the first of its kind to directly measure expenditures related to recreational boating and their impact on the state's economy.

After accounting for the extent to which the boaters and the boating industry purchased goods and services made outside of New York state, the researchers estimate that boater spending had a total statewide economic impact of $1.8 billion, accounted for approximately 18,700 jobs and contributed $728 million to labor income.

For boating trip-related expenditures, such as launching fees, lodging, food and gas, New York boaters spent over $431 million statewide, report the researchers, Nancy Connelly, research support specialist, and Tommy Brown, research associate, both in the Department of Natural Resources; and David Kay, extension associate in the Department of Applied Economics and Management. Both departments are in the College of Agriculture and Life Sciences at Cornell. The survey, which was based on questionnaires sent to a sample of New York's half-million registered boaters, also tabulated how much boaters spent on boat purchases, equipment, boat repair, insurance and annual fees associated with the use of marinas and yacht clubs. Overall in 2003, almost $2 billion was spent statewide on these non-trip-related expenses. Of this figure, $1.2 billion was for boat purchases.

"With these research findings, it is clear that recreational boating is big business and an important economic generator for the people of New York state," said Jack Mattice, New York Sea Grant director. "The intent of the study was not only to quantify the impact of boating, but also to provide information that will help managers, planners and other decision makers make more informed decisions regarding coastal resource use and development," added NYSG's coastal processes and facilities specialist, Jay Tanski, who served as project manager.

New York is one of the nation's major boating states, and boating is a key recreational industry in virtually all areas of New York, especially the marine waters, Hudson River, Great Lakes, St. Lawrence River, the Finger Lakes and Lake Champlain. The economic data will be used to develop tools that will allow managers to better evaluate the impact of boating on a regional scale.

The New York Sea Grant study broke out expenditure and economic impact figures by boating region and major water body for trip-related expenditures, non-trip-related expenditures and total economic impact by region.

The study was conducted in 2004 with the aid of an advisory panel of agency and boating industry experts from around the state. The estimates were based on a mail survey of 6,000 boaters registered in New York state in 2003. These figures may be conservative for the marine region since data indicate boating activity may have been suppressed due to the weather that year.

"Last June was one of the wettest on record and the threat of Hurricane Isabel striking New York's marine coast in September resulted in many people pulling their boats early, further shortening the season," said Tanski. In addition, the figures do not include spending by transient boaters and others who are not registered in the state. Additional expenditures are most likely made in water bodies bordering other states, especially around Long Island and New York City. Non-motorized boaters, such as those with kayaks, canoes and small sailboats, also are likely to have made economic contributions throughout the state but were not included in the study since they are not registered by the state.

The 81-page report is available on the Web at http://www.seagrant.sunysb.edu/CoastalGeo/boatingexpenditures03.htm.