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SUNDAY, JULY 23, 2006
Oregon Inlet impact study shows value
By CHARLEY BUNYEA
Outer Banks Sentinel
The results in-depth study on the value of Oregon Inlet to Dare County's economy was presented at the Dare County Board of Commissioners meeting last Monday. "The study reveals that the effect of losing Oregon Inlet as a navigable waterway for commercial and private boaters could be devastating," states a release from the Dare County public relations office. "The overall losses for Dare County could reach an estimated $682 million in revenue and directly or indirectly affect over 9800 jobs."
Last year, only $7.1 million was budgeted for limited dredging of Oregon Inlet. It is estimated that $10 million will be needed to keep the inlet passable. While the upcoming federal budget is being negotiated, the Senate version includes $10 million for dredging but the House version includes no funding for the project.
The document entitled, "A Study of the Benefits of Oregon Inlet to the Economy of Dare County and the Surrounding Region," was prepared by Moffat & Nichol for the Dare County Inlet and Waterways Commission. It reviews all aspects of the revenue stream associated with the inlet, including the commercial fishing, boat building, recreational fishing, sport fishing and tourism industries.
The objective of the report was to examine the benefits of keeping the inlet navigable to the region.
"Federal funding has been reduced for shallow draft navigable projects nationwide and the dredging of Oregon Inlet is crucial in monetary value to Dare County," said the researchers.
Research methodology involved reviewing literature, collecting data, on-site interviews with individuals knowledgeable of inlet usage and related economic impacts, and detailed economic modeling and analyses.
In the field interview section of the study, researchers concluded that there has been a general decline in the commercial fishing industry over the last 30-40 years. Most notably, commercial seafood businesses have declined from 40 to 50 in the 1960's to their present state of only 10 to 20. All interviewees noted a loss of income due to declining inlet conditions and two businesses have moved a portion of their operations to Virginia, says the study.
The commercial fishing industry was reported to have a total annual economic benefit of 90 jobs and $7.2 million to Dare County and the surrounding region.
The seafood packing and processing industry which depends on the viability of the inlet consists of six businesses in Dare County which have a combined revenue of $12.5 million a year in packing and processing sales. In the 1980's the cost of raw fish per dollar of seafood was $0.73 and in 2002 the average cost declined to about $0.29.
The study revealed that the seafood and packing industry has a total economic benefit of 238 jobs and $33.4 million to Dare County and the surrounding region through Oregon Inlet-dependent landings.
The boat-building industry has been predicted to experience a decline in sales in coming years of between 50 and 100 percent while the marine support industry which is made up of 88 businesses, is expected to see a decline between 80 and 100 percent.
Dare County has the highest concentration of boat builders in the world, and it is known for its unique "Carolina Style" boats. There are 16 boat-building companies in Dare County that build an average of 25 boats a year. At any given time, there is an average of 500-600 employees working on 30 boats throughout the county.
Assuming an average sale price of $3 million, the industry experiences $75 million a year in boat building sales. The entire boat building industry, including support services, has an annual economic benefit of 1,235 jobs and $139.8 million in revenue to Dare County and the surrounding region.
Researchers interviewed eight individuals associated with the recreational and tourism aspects of Oregon Inlet and concluded that inlet usage is extremely high and experiences an average of 200 trips a day from Oregon Inlet Fishing Center. There are 14 known fishing tournaments in Dare County with more than 500 boats participating annually. According to tournament organizers, annual participation has declined due to perceived shallow inlet conditions.
The recreational fishing and tourism industry experiences a total economic benefit of 8,288 jobs and $502.3 million in revenue to Dare County and the surrounding region.
In conclusion the study revealed that Oregon Inlet is one of the most commercially viable inlets in North Carolina. If Oregon Inlet is not maintained commercial fisherman would likely be forced to relocate.
When the sectors are combined, Oregon Inlet is directly associated with providing 9,851 jobs and $682.7 million in revenue to Dare County and the surrounding region.
The study will be used by elected officials when they travel to Washington, DC to meet with representatives in an attempt to secure funds for the dredging of Oregon Inlet.
charley@obsentinel.com | 480-2234
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