Investing in the Coast Pays Off

Thanks to ongoing research, we know how much America’s coast contributes to the national economy. But what does that mean on a local level?

The national economic impact of beaches is clear – in tourism and taxes, in revenues and returns on investment. Consider these facts:

• Beaches help generate $225 billion a year for the national economy, contributing about $25 billion in federal tax revenue.*
• 85%* of all tourism-related revenue in the U.S. is generated in coastal states — where beaches are the leading tourist attraction.
• Beaches drew an estimated 2.2 billion visits in 2010 – more than twice the number of visitors to all our federal and state parks.*
• For every $1 the federal government spent on beach restoration in 2013, it collected an estimated $570 in beach tourist tax revenues.*
• International tourists generate about $215 in tax revenues for every $1 the federal government spent on beach restoration.*

On a local level, however, the benefits of beaches to the larger non-beach community is equally clear – in similar and different ways from the national picture:

• Yes, beaches bring tourists and tourists spend dollars – which ends up as tax revenue for local and state governments. But those dollars also create jobs and build businesses, which keeps people employed and helps communities thrive.
• When beaches bring visitors, those visitors want things – things that the permanent community may not be robust enough to support on their own. But these assets also contribute to the general quality of life, which in turns can make an area more attractive to relocating residents – even if they’re not interested in living right on the beach.
• Coastal property owners and businesses also contribute considerably to the local economy, typically generating tax revenues (for schools, government and more) that end up benefiting inland communities who are part of the same governmental unit. Many coastal communities end up being tax donors, contributing far more than the services they demand in return – particularly in more institutional infrastructure such as schools and roads, where the benefit is less site-specific.
• Want to see a graphic example of the economic power of the coast? Look at an area where beaches have eroded to an unhealthy state, and look at the health of the coastal economy that relies on them. Come back to the same area after the coast is restored to better health, and you’ll see the economy coming back as well.

Another example might be to compare two communities that started out more or less the same in terms of the building blocks of a community economy – except one of them is on the coast while the other is inland. Chances are 50 years down the road the coastal community will have grown far larger than the inland one… because the coast is a potent economic engine.

There are myriad reasons to protect and preserve our coasts – the environmental benefits, protecting habitat and species, acting as a strong barrier to winds, waves and rising tides. But the economic incentive for a healthy coastline cannot be overstated and certainly cannot be overlooked.
Investing in the coast pays off, and the non-coast partners who benefit from a healthy coastline should never be allowed to forget that.

SOURCE: * Houston, James, 2013. “The economic value of beaches — a 2013 update.” Shore & Beach, 81(1), 3-11.