New Economic Data Illustrates Gulf Oil Disaster’s Significant Impact on Recreational Fishing-Dependent Businesses
Sportfishing industry urges Congress to ensure that recreational fishing-dependent businesses are specifically included in disaster relief allocations
Alexandria, VA – May 27, 2010 – As efforts mount to address the aftermath of the largest oil leak disaster in U.S. history, the economic impact on one of the nation’s most vibrant recreational fishing areas will run into the tens of billions of dollars. On May 24, 2010, U.S. Commerce Secretary Gary Locke declared a fishery disaster in the Gulf of Mexico because of the economic impact of the Deepwater Horizon oil spill on recreational and commercial fisheries in the region. The declaration permits the federal government to direct economic assistance to Alabama, Louisiana and Mississippi due to the ongoing oil leak in the Gulf of Mexico.
The American Sportfishing Association (ASA), the trade association representing the sportfishing industry, has provided economic data to the administration, Members of Congress and the National Oceanic and Atmospheric Administration (NOAA) to ensure that recreational fishing businesses are accounted for in federal appropriations and through BP’s disaster response fund as the economic evaluation and assistance process evolves. ASA sent letters to Secretary of Commerce Gary Locke and to the House and Senate Committees on Appropriations urging that they address and mitigate the impacts on the recreational fishing-dependent business community.
“Although we hope the top kill process being used to seal the oil leak will work, the economic impacts will be far reaching and will affect not just local bait and tackle shops but a variety of associated business, including equipment and tackle manufacturers and distributors, the boating industry, marinas, charter vessels and guides, sportfishing clubs, tournament operators, motor sales and repairs” said ASA President and CEO Mike Nussman.
“At this point, NOAA has closed 22 percent of the Gulf to all fishing which is having a devastating effect on business in the region regardless of proximity to the oil’s impact,” said Nussman. “Phone interviews of recreational fishing-dependent businesses conducted this week show that May sales losses range from 45 to 60 percent compared to May 2009. No business can sustain this level of loss.”
Nussman further said, “To put this into perspective, should the worst case scenario occur and the entire Gulf of Mexico is closed to recreational fishing, there would be a per day $8.6 million dollar loss in recreational fishing trip expenditures for purchases of bait and tackle, food and beverages, ice, gas, lodging and other items needed for recreational fishing.”
According to Gary Zurn, SVP, Marketing and Dealer Services, Big Rock Sports, Inc., a national wholesale tackle distributer with over 2,300 customers in the Gulf region and an ASA member, it is vital that this disaster be put into perspective. “No one really knows what the future holds as far as the oil leak’s impact on the fisheries. Although vast areas of the Gulf of Mexico remain open to recreational fishing, many anglers throughout the U.S. are cancelling or postponing trips to the region, even freshwater fishing trips. Taken in total, the economic impact numbers are staggering, but behind those numbers are thousands of family-owned businesses, many whom I know personally, who stand to be financially decimated due to this disaster. It’s important that the sportfishing industry’s voice is heard as the economic assessment and financial compensation efforts move forward.”
Recreational fishing contributes $41 billion dollars in economic output in the Gulf Coast region annually and supports over 300,000 jobs. The Gulf of Mexico is one of the most popular areas for recreational fishing in the United States with nearly six million saltwater anglers taking over 45 million fishing trips each year, fishing for red drum, spotted seatrout, sheepshead and red snapper among others.
Nussman concluded, “We urge Congress and the administration to ensure the important economic contributions from sportfishing and the community economic infrastructure supported by sportfishing are included in any legislation for disaster relief in the Gulf.”
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The American Sportfishing Association (ASA) is the sportfishing industry’s trade association, committed to looking out for the interests of the entire sportfishing community. We give the industry a unified voice speaking out when emerging laws and policies could significantly affect sportfishing business or sportfishing itself. We invest in long-term ventures to ensure the industry will remain strong and prosperous as well as safeguard and promote the enduring economic and conservation values of sportfishing in America. ASA also represents the interests of America’s 60 million anglers who generate over $45 billion in retail sales with a $125 billion impact on the nation’s economy creating employment for over one million people.
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