Fore & Aft, December 2001

News magazine for the Yacht Harbour Association of the UK
Marinas’ Contribution to the Economy in the United States
by Ron Stone

Marinas are significant contributors to national, state and local economies in the United States.

Sheer number attests to this. According to findings by the National Marine Manufacturers Association (NMMA), the number is well above 10,000 nationwide and growing. One state (Florida) boasts more than 2,200 marinas, which exceeds the total number of pleasure yacht facilities in several other popular recreational boating market countries.

Nationally, the number of berths offered by these facilities is estimated to exceed 1.1 million. Though the majority of privately owned boats in use on U.S. waters are still under 71/2 meters stored in garages or parked in driveways at home on trailers, the frequency of permit applications for marina development and expansion in recent years indicates an increasing number of boat owners are opting for wet—or close to the water—slippage.

At the same time, the receptivity of local governments to having marinas sited within their boundaries, let alone getting into the marina business themselves, is gaining.  

The reason more communities and private developers are embracing the marina approach to access to recreational waters is primarily due to its underlying healthy economics.  

Marina construction and renovation creates jobs in the building industry. Studies in the U.S. indicate that approximately 65 percent of the cost of a facility is attributable to labor. For example, building a $3 million marina could contribute $1.95 million to the local economy from just the wages paid; likely more, to the extent that construction materials are purchased locally.

Marina construction and operation is attractive to municipal, county and state governments as a source of additional revenues in property, income, sales and other taxes.

Employment within the marina equates to about 3 jobs per 100 berths. That’s roughly a base of 32,000 full-time workers nationwide; many thousands more, counting part-time workers. Localities that levy a tax on employment within their jurisdiction, not to mention state and federal governments, derive meaningful revenues from marina employment.  

Marinas generate sales income directly on site, and indirectly in the community at large. Studies indicate that between 40 and 60 percent of all marine related products are sold through marinas and boatyards. Multiplier values for non-tourist oriented marinas in the continental United States typically range between two and three, meaning that every dollar spent at the marina generates two to three dollars of income for the community at large. Related businesses—restaurants, gift and clothing stores, hotels, gasoline stations, auto repair shops and others—benefit from the extra spending activity slip holders represent. Continue »