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Economic Benefits Associated with Corps of Engineers Programs

Economic Benefits Associated with Corps of Engineers Programs. Sales. Jobs. Income. NED Benefits. Dr. Wen-Huei Chang Wen-Huei.Chang@usace.army.mil PROSPECT COURSE - ECONOMIC ANALYSIS, March 2009. Overview. Types of economic benefits associated with CE recreation program

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Economic Benefits Associated with Corps of Engineers Programs

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  1. Economic Benefits Associated with Corps of Engineers Programs Sales Jobs Income NED Benefits Dr. Wen-Huei Chang Wen-Huei.Chang@usace.army.mil PROSPECT COURSE - ECONOMIC ANALYSIS, March 2009

  2. Overview • Types of economic benefits associated with CE recreation program • Why do Economic Impact Analysis? • Technical approaches • Applications • Communication methods

  3. Public Use of Natural Resources • More than 400 Recreation Projects with 5000+ parks in 43 states • 12 million acres of federal lands and waters • 56,000 miles shoreline • Critical green space for wildlife and human populations • 100 million fishing visits annually--31% of total on US lakes • 9 million hunting visits • 63 million wildlife watchers

  4. Types of Economic Benefits • National Economic Development (NED) benefits- consumer surplus • Regional Economic Impact Analysis (EIA): actual flows of money into a region

  5. A barge load of goods: NED benefits: Money saved in transportation costs compared to other alternatives Regional economic impacts: Jobs and income generated in this region from transportation and related industries Navigation: A group of campers to a CE lake: NED benefits: The amount of money campers would be willing to pay beyond what they actually have to Regional economic impacts: Jobs and income generated in this region from visitor spending in recreation and related industries Recreation:

  6. NED vs. Regional Benefits • Regional Economic Impacts are estimated using Visitor Surveys/ Input-output (I-O) Models • NED benefits are captured in Rec-BEST using Unit Day Value approach These are two different accounts and should not be compared/added to each other

  7. Why Do Economic Impact Analysis? To answer: • How much do visitors spend in the region? • How does visitor spending contribute to the region’s • Sales • Income • Jobs • Tax revenue

  8. J Strom Thurmond Lake

  9. How We Produce the Estimates • Visitation: Visitation Estimation and Reporting System (under revision) • Visitor Spending Surveys (ongoing efforts) • Regional Economic Models (IMPLAN) • The US Army Corps’ Recreation Economic Assessment System (REAS) Regional Economic Impacts = Visits  Spending  Multiplier

  10. $26 goes to other regions (leakages) Visitor Spending Retail & Service Other Suppliers Wholesale Manufacturer $7 $15 $100 $52 $23 Employees $25

  11. Regional Economic Impacts = Visits Spending Multiplier

  12. Regional Economic Impacts = Visits Spending  Multiplier

  13. Regional Economic Impacts = Visits  Spending Multiplier

  14. Regional Economic Impacts = Visits  Spending  Multiplier

  15. Economic Benefits of CE Recreation Program • In 2006, there were 372 million visits to Corps Lakes • Total regional economic effects (from both residents and non-residents): • Total Visitor Spending: $13 billion on trips and $5 billion on durable goods • With multiplier effects, visitor spending supported 350,000 full and part time jobs and generated $22 billion in value added

  16. Applying EIA Tools- Recreation Infrastructure Investment • Once implemented, the proposed $125 million Recreation Area Modernization Program will in three years stimulate: • $200 million in visitor spending • $214 million in personal income • 7,000 jobs

  17. Great Lakes of Georgia • Economic impact information of the nine Corps Lakes stimulated the partnership to market the “Great Lakes of Georgia” • Results- Within two days 18 CVB’s committed $65,000, which was matched by the State for marketing campaign • Links to NRM Gateway from http://www.greatlakesofgeorgia.com

  18. Applying EIA- Other Business Areas Maintaining navigation infrastructure for Oregon Ports supports recreation and benefits regional economy: • 945,400 visits a year • $79 million on trip spending • $39 million on durable goods by boaters • Generated $42 million in personal income and supported 1,700 jobs in Oregon

  19. EIA Tools on the NRM Gateway @ CorpsLakes.usace.army.mil

  20. EIA data on Value to the Nation @ www.CorpsResults.us

  21. Conclusions • The Corps is important to the local, regional and state economy–it is an important story to tell • Need for continued R & D to estimate, maintain, and update EIA data • Process of assessing economic impacts can be applied to other business areas

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