surfonomics overview

Highly Marketed but Undervalued:

Establishing economic values for surfers

Dr. Chad NelsenSurfrider Foundation

California Beaches:17.8 million

visits $15 billion/year(Source: Pendleton et al. 2011, King, 1999)

(Source: CIC Research, July 2009)

Solana Beach, CA Beach Use

Trestles

$0

Economic Impact vs Economic Value• Economic Impact:

– Expenditures– Support local businesses– Create jobs– Provide salaries and wages

• Economic Value:– Willingness to Pay (Consumer Surplus)– Travel Cost Model– Revealed preference– Negative sloping demand function– Single Site Model (total use value)

Approach

• Develop & Test Survey• Data Collection

– Web-based survey (non-random)– Intercept survey (random?)

• Data Analysis– Economic Impacts

• Travel Cost Model – Economic Values

Trestles: Economic Impacts

Total Visits 367,000

Surfer Visits 330,000

Ave Expenditure/Visit Range

$23 - $40

Economic Impact Range $8-13 million

Per year(Nelsen, Pendleton 2007)

Huntington Beach

South Orange County

Oceanside

North County SD

Imperial & Ocean Beach

Demand Curve

Trestles: Economic Value

Total Visits 367,000

Surfer Visits 330,000

Value/Visit Range $29 - $80

Consumer Surplus Range $10-26 million

Per year(Nelsen 2010)

Trestles Results

• Attendance: 330,000 surfers/year

• Demographics: = coastal population

• Ave. Expenditure: $40/person/day

• Consumer Surplus: $138 / person/day

Surfrider / Surf-First Study

Who: 5,360 surfers

What: Surf behavior / demographics

Where: Internet-based opt in survey

When: November 2008 -September 2009

Why: 1st US characterization of surfers

Limitation: This is a non-probabilistic method of data collection and is not random so the results cannot be extrapolated to the larger surfing population

Surf Behavior

Parameter Median

Experience 16 years

Number of boards 4

Arrival time 8:15 AM

Duration 2.5 hours

Distance Travelled 10 miles

Annual visits 108

Surfer Demographics

Parameter Median

Age 34 year

Education 62% ≥ college

Household income $75,000 annual

Employment 67% fully employed

Expenditure $66/visit*

*Average

US Surfer Economics

Surfers 3.1 million

Visits / year 76 million

Expenditures $25-66 / visit

Economic Impact $2-5 billion / year

Sources: NSRE 2001, Hanneman 2004

More..

US Surf econ study: http://bit.ly/us_surfecon

Coastal Blog:surfrider.org/coastal-blog/c/surf-protection

Chad Nelsencnelsen@surfrider.orgtwitter: chadenelsen

Questions

Chad Nelsencnelsen@surfrider.org t: chadenelsenwww.surfrider.org/coastal-blog