Introduction

In April of 2001, the Massachusetts Marine Trades Association (MMTA) commissioned a survey of the marine trades to establish a range of basic benchmark economic statistics that demonstrate the contribution the recreational marine trades make to the economy of Massachusetts.

Since the last survey of this type was conducted over 12 years ago, the MMTA has conservatively estimated the marine industry's contribution to the Massachusetts economy has increased significantly. Indeed, with its nearly 1500 miles of coastline, over 2700 square miles acres of inland waters, and roughly 1260 (1) marine trade businesses and individuals, the Massachusetts recreational marine economy is one of the most vibrant marine economies in New England and in the country. A state rich in maritime history and culture, Massachusetts recreational boaters account for roughly 15% (2) of the spending on recreational boating in the United States and generate nearly $1.5 billion dollars for the Massachusetts economy. (3)

The following statistics outline a modern industry adapting to the challenges of today's marketplace while retaining many of the traits that make it a traditional Massachusetts industry. Recreational boating and the marine trades are a "critical and emerging" (4) industry that not only contributes to the economic strength and well-being of Massachusetts, but also to the state's residents and those who travel to our shores.

The Massachusetts Waterfront

Massachusetts has 1500 miles of saltwater coastline.

Roughly 45 percent of Massachusetts' 10,555 square miles are in the saltwater coastal zone.

Nearly 5 million Massachusetts residents, three-quarters of the state's population, live within 10 miles of the ocean. In addition, the state's boaters have access to nearly 1200 fresh and saltwater ramps and public access points to the state's countless freshwater lakes, streams and ponds.

There are over 186,000 registered and Coast Guard documented boats in the State of Massachusetts. (1)

On any given high-season weekday, between 56,000 to 90,000 Massachusetts residents go boating on the state's waterways. (2)

On an average high-season weekend, the numbers of boaters enjoying recreational boating jumps to between 130,000 to 195,000. (2)

Massachusetts boaters' annual spending on new boats, engines, trailers, and accessories. $192,917,000 (3)

Total estimated combined spending attributable to the recreational boating experience in Massachusetts = $1,700,000,000 (4)

Economic Development

Marinas, as well as passive and active recreational waterfront access, have significant economic benefit to the immediate and surrounding communities.

There are roughly 25,000 permitted, publicly administrated slips and moorings used for recreational boating along the coastline of Massachusetts. In addition, there are an estimated 10,000 privately maintained slips, moorings and docks along the Massachusetts coast. It is estimated that this fleet of boaters generate $297.5500,000 in spending surrounding their recreational boating experience on a variety of services such as repairs, insurance, supplies, and groceries.

These purchases generate tax revenue for the State. Assuming a flat 5 percent sales tax, economic activity related to recreational boating would generate a significant $15 million in sales tax collections. Furthermore, studies of the waterfront economy have shown that multiplier values for even non-tourist-oriented recreational marinas range between two and three. Consequently, for every dollar spent at the marina, two to three dollars of income is pumped into the local community. In a state such as Massachusetts, which draws $1.5 billion in coastal tourism, the multipliers can be argued significantly higher, perhaps as high as ten to fourteen.

35,000 moorings and slips (1)

$297,500,000 in peripheral and associated spending (2)

$14,875,000 total sales tax collected on peripheral spending (3)

$1,338.750,000 net effect on the local communities from peripheral spending

The Ripple Effect

A new 100-slip marina is being built in Provincetown at a total cost of $18 million dollars. Engineers are brought in, contractors place bids, employees are hired, and construction begins.

The construction and operation of a marina have substantial one-time and lasting benefits to the state and the local community. Increased employment, wages, and the ultimate enhancement of the tax base all result from new waterfront development.

In addition to providing more access points to the waterfront and additional recreational opportunities for the public, facilities designed around boating and docking in particular have been found to increase residential real estate values between 25 and 75 percent with consequent increases in tax revenues from higher real estate assessments. (1)

Employment & Labor

The Massachusetts marine industry is an employment engine generating careers and tax revenues for the state.

1260 Massachusetts marine trade businesses and individuals (5)

17,741 full time employees (2)

$508,654,167 total annual payroll (3)

$25, 432,708 in annual income tax revenues (4)

Case Study

Estimated One-Time Economic Benefits to the State and Local Community from the 100 Slip Provincetown Marina Project*

Direct Fiscal Benefits to the Commonwealth (1)

$860,130	Total annual marina operations payroll (2)
$603,950	One-time state income tax collected from construction payroll (3)
$13,875	Estimated transient boater daily spending ashore (75% occupancy) (4)
$777,000	Estimated transient boater seasonal spending ashore (5)
$256,000	Lodging taxes (6)
$500,000	Annual state income taxes (6)
$525,000	Annual sales and use taxes (6)

The marine trades in Massachusetts as in most areas of our country, has been designated a "critical and emerging" industry. Growth in the recreational marine industry in the 1980's and 1990's has been phenomenal. The industry has responded to consumer demands for boating products and services with growth and strong efforts to meet those demands. The industry is actively supporting programs to modernize and to increase professionalism within our ranks.

Two areas of critical need have been identified by MMTA: the need for waterfront facilities and services and the need for trained service professionals, notably marine technicians. MMTA is addressing these needs with active participation in waterfront issues, legislation, and regulatory efforts; by promoting education with programs and grants; by promoting boating activities and boating safety; by advocating for public access; sponsorship of annual Winter and Fall Boat Shows; and by advocating for the boating public.

MMTA would like to acknowledge that our mission and goals have often received support from many interested parties, including:

• National Marine Manufacturers Association (NMMA)

• Marine Operators Association of America (MOAA)

• United States Coast Guard, United States Coast Guard Auxiliary

• United States Power Squadron, Massachusetts Public Access Board

• Commonwealth of Massachusetts Division of Law Enforcement

• Commonwealth of Massachusetts Division of Fisheries and Wildlife

• Marine Retailers Association of America (MRAA)
  
  These groups, among many others working in Massachusetts, help to make our State's waterfront facilities some of the most attractive and economically vibrant in our country. As a representative of the marine trades and recreational boaters in Massachusetts, the MMTA looks forward to working with our legislators and interested public groups to continue to grow and develop our waterfront recreational platform for the benefit of all.
  

Massachusetts Marine Trades Association

An organization of dedicated men and women employed in the marine industry providing a framework for furthering the interests of the marine trades and the boating public through . . .the promotion of boating; participation in legislation; professional improvement programs; serving as the focal point for exchange of ideas concerning marine matters; and maintaining high standards of professional and ethical conduct among its membership.

Massachusetts Marine Trades Association
P. O. Box 272
Milton, Massachusetts 02186
Tel/Fax 781-545-2803
www.boatma.com