Protecting Lives and Property at Our Coastlines A Disaster Roundtable Workshop The National Academies Our National Marine Sanctuary Foundation Capitol Hill Ocean Week The Economy of US Coastal Communities Dr. Judith T. Kildow, Director and PI The National Ocean Economics Program The Monterey Bay Aquarium Research Institute June 6, 2007

Topics Contribution Trends Uniqueness Challenges What to do Summary

Coastal counties contribute 45% to the US economy Coastal counties contribute 45% to the US economy BUT They are at risk Our Coasts Drive the Nation

The Contribution 2005 US Coastal County Economy = $5.6 Trillion US Coastal State Economy = $10.3 Trillion US Total Economy = $12.4 Trillion

US Coastal Counties % of Jobs 55% of Wages 45% of GSP 50% of Population 50% of Housing All on 7.6% of Land

Coastal Leisure and Hospitality $340 Billion to US Economy 10 million Jobs Average wage - $10,500 Trade, Transportation, and Utilities $950 Billion 11 million Jobs Average wage - $37,000 County Sector Contributions 2004

Economic Trends Industry shifts –Manufacturing and production to services –Tourism and Transportation increasing –Fishing, offshore minerals, ship building decreasing Demographic shifts –Bifurcated population between rich and poor –Second homes growing and changing communities Environmental impacts affecting economy –Climate change: sea level rise - erosion, –warming- toxic blooms, intense storms - floods

Trends Declining fishing communities New industries substituting o Whale watching o Wildlife viewing Small communities of cottages turned to mansion strongholds

Uniqueness Extraordinary natural assets

Dependence on the sea Uniqueness

Uniqueness Uniqueness Exposure to increased natural hazards Intense Storms Floods Toxic Blooms Erosion (Griggs photo)

Challenges How to live with Natural Hazards –Erosion –Floods –Sea Level Rise –Natural resource threats Toxic blooms Shifting ecosystems Ocean response to climate change

Florida at Risk Ocean Warming Sea Level Rise Vero Beach, Florida

4% of US Economy (.5 trillion $) 0.33% of US Land 68% of state GSP 67% of state Jobs Florida Shoreline Counties 2004

Coastal County Comparison 11% of US economy 1.1% of US land area 79% of state jobs 83% of state GSP 75% of state residents 25% of state land area 4% of US economy.33% of US land area 67% of state jobs 68% of state GSP 77% of state residents 56% of state lands California Florida

Gulf Coastal Counties 5% of US Economy 1.4% of US Land Area 29% of Gulf Economy 27% of Gulf jobs 29% of Gulf States GSP 27.2% Of People 11.2%of Gulf state lands

Challenges From Human Activities Controlling Population growth Affordable housing Seasonal demands and downside of tourism Expanding transportation and other infrastructure Protecting built infrastructure –Power plants, sewage treatment, communications Protecting fresh water supplies from saltwater intrusion And more…….

National Security/Economies at Risk Offshore Minerals Transportation Nuclear Power Pebble Beach 18th hole Fishing Tourism Real Estate ( griggs photo)

Size of the Coastal Economy 2005 Coastal States: $10.3 trillion GSP (83% of US) ~ 106 million jobs ~ $4.5 trillion in wages Coastal Counties: $5.6 trillion GSP (45% of US) ~ 54 million jobs ~ $2 trillion in wages US Coastal Tourism: $340 billion GSP ~ 10 million jobs ~ $105 billion in wages US Coastal Trade, Transportation, and Utilities: $950 billion GSP ~ 11 million jobs ~ $407 billion in wages

What to Do Divert economic and population growth inland Control growth at the coast Diversify coastal economies Balance coastal economic contributions with federal government investments Compensate coastal communities for large cost burden to sustain natural assets that contribute disproportionately to US economy Educate people how to strengthen community economies.

Effective Policies to Decrease Social and Economic Vulnerability and Increase Strengths Political Will Healthy Coastal Communities Information

Face Realities

The National Ocean Economics Program Sponsors –NOAA Coastal Services Center –Monterey Bay Aquarium Research Institute –The David and Lucile Packard Foundation –University of Southern California Wrigley Institute and USC Sea Grant –California State University at Monterey Bay –EPA Office of Water –Others