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Seaport Impacts. THE 2003 ECONOMIC IMPACT OF THE PORT OF SEATTLE SEAPORT. BY MARTIN ASSOCIATES SEPTEMBER 9, 2004. Purpose. Measure the economic impact of the Port of Seattle Seaport Operations: Marine Cargo Cruise Service Marina Activity
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Seaport Impacts THE 2003 ECONOMIC IMPACT OF THE PORT OF SEATTLE SEAPORT BY MARTIN ASSOCIATES SEPTEMBER 9, 2004
Purpose • Measure the economic impact of the Port of Seattle Seaport Operations: • Marine Cargo • Cruise Service • Marina Activity • Fishermen’s Terminal/Fishing Vessels Homeporting at POS Terminals • Real Estate
Purpose • Measure the baseline impacts by type of business • Develop impact models that can be used for sensitivity analysis • Compare the impacts with the 1999 impact study
FLOW OF ECONOMIC IMPACTS Seaport Activity Business Revenue Payroll Retained earnings, Dividends, Investments Local Purchases Indirect Jobs Direct jobs Re-spending Induced Jobs Taxes
Impacts Created by Port Activity • Jobs • Direct • Induced • Indirect • Users • Wages/salaries • Direct • Re-spending • Indirect • Business revenue • Taxes
2003 Economic Impacts of Seaport Operations • 35,161 total jobs • 18,206 direct • 11,316 induced • 5,639 indirect • $2.2 billion of wages and salaries • $978.2 million direct • $959.7 million induced and consumption • $212.4 million indirect • $2.5 billion business revenue • $443.3 million local purchases • $212.8 million state and local taxes • $87.7 million of revenue to Port of Seattle
Distribution Of Impacts By Type Of Business Within The Seaport Totals may not add due to rounding
Marine Cargo Methodology • 608 interviews with tenants, terminal operators, service providers • Develop operational models: • Surface transportation • Terminal operations • ILWU • Pilots/towing • Develop induced model • Bureau of Labor Statistics, Consumer Expenditure Survey • Personal income multiplier from Bureau of Economic Analysis (BEA) • Develop indirect model to convert expenditures into indirect jobs, income, and taxes – BEA RIMSII for Washington and King County • Develop Sensitivity Model: • Cargo levels • Terminal productivity and operations • New projects – terminal, warehouse, cranes, etc • Carrier and terminal analysis • Inland modal distribution • Comparative analysis of alternative uses • Ranking of projects
2003 POS Marine Cargo Impacts • 18,192 total jobs • 9,681 direct • 5,804 induced • 2,707 indirect • $1,055.3 million of wages and salaries • $480.7 direct -- $49,649 average earnings • $471.5 induced and consumption impact • $103.2 indirect • $1.4 billion of business revenue • $251.6 million of local purchases • $104.5 million state/local taxes • $41.7 million Port of Seattle revenue
Distribution of Direct Jobs by Commodity, POS 2003 Totals may not add due to rounding
Distribution of Direct Jobs by Category, POS 2003 Totals may not add due to rounding
Distribution of Direct Jobs By Place of Residence Totals may not add due to rounding
Revenue Impact by Commodity,POS 2003 Totals may not add due to rounding and excludes POS Revenue
Impact Of Container Operations Totals may not add due to rounding
Impact Of Grain Operations Totals may not add due to rounding
Impact of Bulk Operations Totals may not add due to rounding
Economic Impacts of POS Fishing Activity and Fishermen’s Terminal • Impacts based on 153 interviews with: • Vessel operators of boats moored at Fishermen’s Terminal • Vessel operators at Maritime Industrial Center • Operators of homeported vessels at Terminal 91 • Shoreside processors and freezer facilities • Individual fishermen/boat associations • Local purchases: • Ship stores • Gear • Shipyard/propulsion • Fuel • Repair and maintenance • Transportation • Develop induced and indirect impact models • Tax impacts from Tax Foundation
Fishing Methodology • Inventory of vessels moored at each facility, by type, provided by POS • Fishermen’s Terminal • Terminal 91 • Maritime Industrial Center • Interviews with tenants (suppliers, boatyards, restaurants, retail, brokers, insurance, lawyers) • Jobs to sales ratios and salaries developed from survey of suppliers, ship/boat yards, haul-out services, banking/insurance, equipment M&R • Combined with total expenditures, by type, at each terminal
POS Fishing Activity Impact, 2003 Totals may not add due to rounding
Methodology for Recreational Boating • Inventory of boats, by size and type at each POS marina, moored and transient: • Shilshole • Bell Harbor • Fishermen’s Terminal • Harbor Island • Interviews with tenants (yacht clubs, schools, restaurants, retail, etc.) • Development of typical annual expenditures by type and for transient • Development of jobs to sales ratios, revenue and income for suppliers of services from surveys • Development of visitors’ industry model from Census Data for Seattle SMSA and consistent with airport visitors’ industry model • Development of induced and indirect impact models – upland tenants and support industry sectors (RIMSII) • Expenditures from: • Boating 2000: A Survey of Boater Spending In Maryland, University of Maryland Sea Grant Program • Interviews with Northwest Marine Trade Association • Marine Manufacturers Association • The Economic Impact of Michigan’s Recreational Boating Industry, Michigan State University, Ed Mahoney • Marine Operators Association of America • Clean Vessel Act, Michigan Boating Survey, 1994-1995
Annual Operating Expenses by Type of Boat Boating 2000: A Survey of Boater Spending in Maryland – Adjusted to current dollars
Local Spending Per Trip for Transient Boats Boating 2000: A Survey of Boater Spending in Maryland – Adjusted to current dollars
Economic Impacts of Recreational Boating Activity, 2003 Totals may not add due to rounding
Study Purpose • Measure the baseline economic impact of the 2003 cruise activity at the Port of Seattle: • Consistent with previous studies conducted by Martin Associates since 1987 • Develop sensitivity impact model: • “What if?” scenarios • Projections of cruise activity
Cruise Impact Model • Number of vessel calls • Size of vessel • Type and length of cruise • Homeport vs. Port of call • Passenger levels • Passenger characteristics • Local purchases • Local residents vs. out-of-town • Pre and post cruise behavior • Different types of cruise service • Number of crew • Martin Associates Seattle-Tacoma Impact Model to estimate on-site airport impacts supported by cruise passengers using the airport
Cruise Methodology • Two sectors of the economy impacted: • Maritime Sector • Services provided to vessels • Interviews with cruise operators: • Princess Cruises • Holland America Line • Norwegian Cruise Line • Visitors Industry Sector • Services provided to passengers: • 600 passenger surveys • Crew survey • Consistent with Martin Associates Seattle-Tacoma model
Cruise Methodology Maritime Sector • Vessel purchases (homeport vs. port of call): • Food and liquor • Flowers • Local advertising • Water • Security • ILWU • Towing/pilotage • Repairs • Laundry • Trash disposal • Wharfage and dockage • Crew allowance • Cabs/buses • Logo items • Linehandling
Cruise Methodology Maritime Sector • Vessel Impacts: • Local purchases converted into jobs • Truck model for deliveries • Key to isolate where purchases are from • Survey of Local Vendors: • 35 local vendors identified • 5% of firm employment on average dedicated to cruise operations • 20% of produce locally grown • Dairy products typically from local producers • Flowers from Washington and British Columbia • Meats from Florida and California • Many nationwide distributors are used
Cruise Impact MethodologyVisitor Industry Sector • 600 passenger survey • Conducted August 16, 17 and September 6, 7 (2003) • Key passenger characteristics: • 73.9% arrive by air • 73% spend an average of 1.6 nights in area hotels and spend an average of $63 per person per night • Crew survey -- $120/crewperson day on restaurants and retail purchases
Average Daily Spending per Cruise Passenger in Seattle (Home Port Visits)
Cruise Impact MethodologyVisitor Industry Sector Port of Call Visits • Interviews with local tour operators • About 33% of passengers take land-side tours • Types of purchases: • Retail • Restaurants • Tour packages
Cruise Impact Methodology Visitor Industry Sector • Consistent with visitors industry model developed by Martin Associates for 1999 Seattle-Tacoma Airport Impact Study and current study • Convert local purchases by passengers into jobs in area based on local jobs to sales ratios in supplying visitor industry sectors
Economic Impact of 86 Homeport Calls and 13 Ports of Call in 2003
Real Estate • Consists of Port of Seattle Seaport Tenants that are not included in cargo, fishing, recreational boating, or cruise analysis • Based on a survey of 144 tenants not included in other types of Seaport Activity • Development of sensitivity model to assess future land uses • Additive with other Seaport types of business
Real Estate Impacts Totals may not add due to rounding Excludes activity counted in other types of Seaport business
Changes In Impacts Since 1999 1999 2004
Structural Changes • Personal Earnings Multiplier has fallen – more leakages outside of State • Jobs to sales ratios have fallen as productivity has increased • Expanded Methodology for Marinas and Fishing
Operational Changes • Tonnage Changes: • Loss of Autos • Closing of T91 – Chill, steel and breakbulk • Lower volumes of containerized cargo • Reduced petroleum tonnage • Operational Changes • Increased use of truck to serve the inland container market -- more local • Minimal use of on-dock rail • Terminal productivity remained nearly the same as did charges
Methodology Changes from 1999 • Focus on Port of Seattle cargo operations only – Harbor-wide impacts not included • Detailed allocation of shipbuilding and government to POS operations: • Increased number of non-allocated jobs to POS operations • Separation of domestic operations
Changes in Direct Jobs By Job Category, POS Totals may not add due to rounding
Comparison of POS Fishing Impacts Totals may not add due to rounding
Comparison of POS Marina Activity Totals may not add due to rounding