The Economic Importance of the Chicago Harbors

Marinas

Value(s) to Communities

Values to other Community Businesses

Value(s) to boating businesses

Value(s) to boaters

The VALUE(s) of Marinas

Recreational & Quality of Life

Value(s)

Community Development• Tourism

• Retail• Residential

Income(s)

JobsMarina Values

The Value(s) of Chicago The Value(s) of Chicago Harbor MarinasHarbor Marinas

Economic (market) value(s)

• Employment – jobs• Income• Sales• Profit and rents

Non-market value(s)

•Preservation of blue space•Access - Active and passive•Community Development

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The Economic Impacts of Spending

By the Owners of Boats Kept at Chicago Marinas

Edward Mahoney Jose Cisneros Daniel Stynes

Recreation Marine Research Center

Michigan State University April 2005

The Economic Impacts of Spending By the Owners of Boats Kept at Chicago Marinas

Information from two different national boating studies were employed to estimate economic impacts.

Estimates of annual craft spending for boats kept at marinas were taken from a national survey of more than 12,500 boaters conducted for West Marine in December 2005 by the Recreation Marine Research Center (RMRC) at Michigan State University.

Trip sending estimates including what boaters spend on groceries, lodging, entertainment and restaurants came from a 2004 National Survey of more than 6,000 boaters also conducted by RMRC.

Chicago Marinas Provide Chicago Marinas Provide Recreation Opportunities for Recreation Opportunities for

Thousands!Thousands!

Table 4. Summary of Craft Characteristics, Annual Craft Spending and Trip Spending by Different Types and Size Boats Kept at Chicago Harbors Used to Estimate Economic Impacts. Power

Boats 16-24’

Power Boats 25-39’

Power Boats 40’+

Sail Boats 16-24’

Sail Boats 25-39’

Sail Boats 40’+

All Boats

Number of boats 258 1,865 1,242 111 751 420 4,647 Average days of boating per boat 31.0 41.0 44.0 31.0 41.0 44.0 41.3 Total boat days 7,998 76,465 54,648 3,441 30,791 18,480 191,823

4,647 boat owners191,823 days of recreation

Table 1. Total Estimated Craft Related Spending by Owners of Power and Sail Boats Kept in Slips in Chicago Harbors

2005 Craft Related Spending by Expenditure Category a

Number of Boats

Storage Insurance Boat Loan Payments

Taxes New

Outboard Motors

New Trailers Fuel b Repairs & Services

Accessories Total

Spending

Power Boats 16'-24' 158

Percent that Spent in 2005 100% 95% 20% 17% 0.6% 0.4% 98% 74% 75%

Mean/Average Spending ($) 1,833 302 2,824 357 5,075 2,405 538 799 498

Median ($) 250 2,100 144 4,142 2,399 384 482 297

Average Spending for all Boats ($) 288 574 61 30 10 525 593 374 4,288 c

Total Spending for all Boats ($) 289,565 45,520 90,619 9,688 4,756 1,563 82,981 93,707 59,028 677,427 d

Power Boats 25'-39' 1,512

Percent that Spent in 2005 100% 97% 46% 23% 0.4% 0.4% 96% 79% 93%

Mean/Average Spending ($) 2,525 599 7,722 504 7,054 3,247 1,631 1,582 1,081

Median ($) 498 6,000 262 2,600 3,000 1,152 1,074 633

Average Spending for all Boats ($) 580 3,554 114 28 14 1,559 1,256 1,004 10,635

Total Spending for all Boats ($) 3,818,540 877,298 5,374,240 172,359 42,326 21,297 2,357,768 1,898,713 1,517,497 16,080,039

Power Boats 40+ 1,078

Percent that Spent in 2005 100% 100% 56% 52% 0.6% 0.2% 98% 89% 89%

Mean/Average Spending ($) 4,629 1,433 15,234 1,974 6,182 4,800 2,623 3,900 3,118

Median ($) 1,000 12,000 500 2,500 4,000 2,000 3,000 1,548

Average Spending for all Boats ($) 1,433 8,463 1,023 37 9 2,574 3,467 2,771 24,408

Total Spending for all Boats ($) 4,990,273 1,545,248 9,123,565 1,103,207 40,154 9,288 2,775,169 3,737,237 2,987,509 26,311,650

The 2,748 owners of powerboats kept in slips in Chicago Harbor Marinas spent $43 million on craft related spending in 05’.

The 665 owners of sailboats kept in slips in Chicago Harbor Marinas spent $5.1 million on craft related spending in 05’.

Table 1. Total Estimated Craft Related Spending by Owners of Power and Sail Boats Kept in Slips in Chicago Harbors

2005 Craft Related Spending by Expenditure Category a

Number of Boats

Storage Insurance Boat Loan

Payments Taxes

New Outboard

Motors

New Trailers

Fuel b Repairs

& Services

Accessories Total

Spending

Sail Boats 16'-24' 11 Percent that Spent in 2005

100% 83% 3% 14% 0.6% 0.5% 89% 63% 91%

Mean/Average Spending ($)

1,833 288 3,184 302 1,233 1,600 82 798 446

Median ($) 200 2,000 100 950 900 30 390 285 Average Spending for all Boats ($)

238 91 43 8 8 73 502 408 3,203

Total Spending for all Boats ($)

20,160 2,621 1,001 475 84 85 801 5,518 4,487 35,231

Sail Boats 25'-39' 398 Percent that Spent in 2005

100% 97% 23% 22% 0.4% 0.2% 94% 78% 99%

Mean/Average Spending ($)

2,525 406 7,324 429 1,913 2,643 116 1,753 1,331

Median ($) 367 5,500 120 1,550 2,300 75 900 703 Average Spending for all Boats ($)

393 1,705 95 8 6 108 1,364 1,317 7,522

Total Spending for all Boats ($)

1,005,145 156,601 678,577 37,906 3,059 2,398 43,076 542,747 524,287 2,993,796

Sail Boats 40+ 256 Percent that Spent in 2005

100% 100% 38% 57% 0.5% 0.1% 95% 90% 97%

Mean/Average Spending ($)

4,629 1,288 13,198 1,069 2,680 4,368 310 5,167 3,601

Median ($) 1,000 12,000 300 2,600 3,800 225 2,800 2,100 Average Spending for all Boats ($)

1,288 5,028 611 14 6 295 4,675 3,486 20,031

Total Spending for all Boats ($)

1,185,074 329,677 1,287,119 156,339 3,543 1,475 75,513 1,196,721 892,526 5,127,988

The owners of power and sailboats kept at moorings Chicago Harbor Marinas spent $12.1 million on craft related spending in 05’.

Table 2. Total Estimated Annual Craft Related Spending by Owners of Power and Sail Boats Kept in Moorings in Chicago Harbors

2005 Craft Related Spending by Expenditure Category a

Number of Boats

Storage Insurance Boat Loan Payments

Taxes New

Outboard Motors

New Trailers Fuel b Repairs & Services

Accessories Total

Spending

Power Boats 16'-24' 100

Percent that Spent in 2005 100% 95% 20% 17% 0.6% 0.4% 98% 74% 75%

Mean/Average Spending ($) 761 302 2,824 357 5,075 2,405 538 799 498

Median ($) 250 2,100 144 4,142 2,399 384 482 297

Average Spending for all Boats ($) 288 574 61 30 10 525 593 374 3,216 c

Total Spending for all Boats ($) 76,138 28,810 57,353 6,132 3,010 989 52,520 59,308 37,360 321,619 d

Power Boats 25'-39' 353

Percent that Spent in 2005 100% 97% 46% 23% 0.4% 0.4% 96% 79% 93%

Mean/Average Spending ($) 1,010 599 7,722 504 7,054 3,247 1,631 1,582 1,081

Median ($) 498 6,000 262 2,600 3,000 1,152 1,074 633

Average Spending for all Boats ($) 580 3,554 114 28 14 1,559 1,256 1,004 9,120

Total Spending for all Boats ($) 356,553 204,819 1,254,700 40,240 9,882 4,972 550,458 443,284 354,283 3,219,191

Power Boats 40+ 164

Percent that Spent in 2005 100% 100% 56% 52% 0.6% 0.2% 98% 89% 89%

Mean/Average Spending ($) 1,524 1,433 15,234 1,974 6,182 4,800 2,623 3,900 3,118

Median ($) 1,000 12,000 500 2,500 4,000 2,000 3,000 1,548

Average Spending for all Boats ($) 1,433 8,463 1,023 37 9 2,574 3,467 2,771 21,303

Total Spending for all Boats ($) 249,920 235,084 1,388,001 167,835 6,109 1,413 422,196 568,559 454,500 3,493,617

Sail Boats 16'-24' 100

Percent that Spent in 2005 100% 83% 3% 14% 0.6% 0.5% 89% 63% 91%

Mean/Average Spending ($) 761 288 3,184 302 1,233 1,600 82 798 446

Median ($) 200 2,000 100 950 900 30 390 285

Average Spending for all Boats ($) 238 91 43 8 8 73 502 408 2,132

Total Spending for all Boats ($) 76,138 23,829 9,097 4,314 764 773 7,286 50,163 40,787 213,150

Sail Boats 25'-39' 353

Percent that Spent in 2005 100% 97% 23% 22% 0.4% 0.2% 94% 78% 99%

Mean/Average Spending ($) 1,010 406 7,324 429 1,913 2,643 116 1,753 1,331

Median ($) 367 5,500 120 1,550 2,300 75 900 703

Average Spending for all Boats ($) 393 1,705 95 8 6 108 1,364 1,317 6,007

Total Spending for all Boats ($) 356,553 138,895 601,853 33,620 2,713 2,127 38,206 481,381 465,009 2,120,356

Sail Boats 40+ 164

Percent that Spent in 2005 100% 100% 38% 57% 0.5% 0.1% 95% 90% 97%

Mean/Average Spending ($) 1,524 1,288 13,198 1,069 2,680 4,368 310 5,167 3,601

Median ($) 1,000 12,000 300 2,600 3,800 225 2,800 2,100

Average Spending for all Boats ($) 1,288 5,028 611 14 6 295 4,675 3,486 16,926

Total Spending for all Boats ($) 249,920 211,199 824,561 100,155 2,270 945 48,376 766,649 571,774 2,775,849

Total Craft Related Spending 1,365,220 842,637 4,135,566 352,296 24,747 11,218 1,119,041 2,369,346 1,923,713 12,143,784 e

a These spending estimates are derived from a National survey of 12,500 boaters conducted in December 2005. The survey collected detailed information about the spending profiles of boats kept at marinas b Annual fuel expenditures were later converted to spending per trip for estimating economic impacts. c Spending per boat d Spending by all power boats 16-24’ kept in moorings in Chicago harbors e Total spending by all boats kept in moorings in Chicago harbors

Table 3 Total Estimated Trip Spending (not including boat fuel) by the Owners of Power and Sail Boats Kept in Chicago Harborsa 2005 Trip Spending by Expenditure Category

Number of

Boats Average Days

Boated Lodging Restaurant Groceries Auto Fuel

Recreation/ Entertainment

Shopping Total Trip Spending

Power Boats 16'-24' 258 31 b

Mean/Average Spending ($) 13 23 17 12 3 4 73 c

Total Spending for all Boats ($) 106,402 189,266 138,027 98,273 27,177 31,908 591,053 d

Power Boats 25'-39' 1,865 41

Mean/Average Spending ($) 11 37 25 6 8 7 95

Total Spending for all Boats ($) 804,598 2,813,817 1,918,891 487,313 622,425 529,820 7,176,865

Power Boats 40+ 1,242 44

Mean/Average Spending ($) 12 49 50 6 8 16 141

Total Spending for all Boats ($) 662,998 2,721,319 2,766,436 322,971 416,506 873,727 7,763,957

Sail Boats 16'-24' 111 31

Mean/Average Spending ($) 13 23 17 12 3 4 73

Total Spending for all Boats ($) 45,777 81,428 59,384 42,280 11,692 13,728 254,290

Sail Boats 25'-39' 751 41

Mean/Average Spending ($) 11 37 25 6 8 7 95

Total Spending for all Boats ($) 323,996 1,133,070 772,701 196,232 250,639 213,349 2,889,987

Sail Boats 40+ 420 44

Mean/Average Spending ($) 12 49 50 6 8 16 141

Total Spending for all Boats ($) 224,202 920,253 935,510 109,217 140,847 295,463 2,625,493

Total Trip Spending 2,167,974 7,859,154 6,590,948 1,256,286 1,469,286 1,957,996 21,301,644 e

a These trip spending estimates do not include boat fuel but was later converted to a trip expenditure for estimating economic impacts (see Table 4) b The estimate of boat days was derived from a National Survey of 12,500 boaters conducted in December 2005 c Average spending per boat day d Spending by all power boats 16-24’ kept in Chicago harbors e Total trip spending by all boats kept in Chicago harbors

Power and Sail Boaters Sent $21.3 million (not counting FUEL) in 2005 while on Boating Trips.

Craft & Trip Spending

Leakage Out of theEconomy

Direct SpendingSales - Employment - Income

Indirect (Re-spending) in the Economy Sales –Employment - Income

All the original spendinghas leaked out of the

Economy

Indirect (Re-spending) in the Economy Sales –Employment - Income

The craft spending produces49.2 million is sales, 421 jobs, and $30.6 million of income using Cook CountyMultipliers

Table 6. The Economic Impacts of Annual Craft Spending by Boaters Different Types and Size Boats Kept at Chicago Harbors Using Chicago Area Multipliers

Sector/Spending Category Sales

($000's) Jobs

Personal Income ($000's)

Value Added ($000's)

Direct Effects Slips and storage $ 12,673 107 $ 4,745 $ 7,962 Insurance $ 3,798 25 $ 1,847 $ 3,293 Repairs $ 9,845 60 $ 2,004 $ 5,254 Retail Trade $ 3,359 61 $ 1,637 $ 2,141 Wholesale trade $ 804 5 $ 310 $ 543 Local Manufacturing $ 338 2 $ 86 $ 105

Total Direct Effects $ 30,817 259 $ 10,630 $ 19,298 Secondary Effects 18,341 162 7,079 11,329

Total Effects $ 49,159 421 $ 17,709 $ 30,626 Multiplier 1.6 1.6 1.7 1.6 a. Sales are sales to firms in Cook county b. Jobs are not full time equivalents, but adjust seasonal jobs to an annual basis c. Personal income is wages and salaries including payroll benefits d. Value added is personal income plus rents and profits plus indirect business taxes

Trip spending produces30.7million is sales, 396 jobs, and $11.9 million of income using Cook CountyMultipliersTable 5. The Economic Impacts of Annual Trip Spending by Boaters of Different Types and Size

Boats Kept at Chicago Harbors Using Chicago Area Multipliers.

Sector/Spending Category Sales ($000's) Jobs

Personal Income ($000's)

Value Added ($000's)

Direct Effects Lodging 2,206 29 962 1,562 Restaurant 7,815 167 3,754 4,235 Recreation/entertainment 1,477 12 553 928 Food processing 815 3 151 230 Petroleum Refining 532 0 43 58 Retail Trade 4,038 73 1,968 2,573 Wholesale Trade 999 6 385 674 Other Local Production of Goods 36 0 12 18

Total Direct Effects 17,919 291 7,828 10,278 Secondary Effects 12,812 105 4,083 3,321

Total Effects $ 30,732 396 $ 11,911 $ 13,599 Multiplier 1.7 1.4 1.5 1.3 a. Sales are sales to firms in Cook county b. Jobs are not full time equivalents, but adjust seasonal jobs to an annual basis c. Personal income is wages and salaries including payroll benefits d. Value added is personal income plus rents and profits plus indirect business taxes

Chicago Harbors produce79.9 million in sales, support 817 jobs, and generate 29.6 million is income!

BOATING MEANS BUSINESS! Table 7. The Estimated Total Economic Impacts of Combined Annual Craft and Trip Spending by Boaters Different Types and Size Boats Kept at

Chicago Harbors Using Chicago Area Multipliers

Sector/Spending category Sales

($000's) Jobs Personal Income

($000's) Value Added

($000's) Direct Effects Trip Spending Lodging 2,206 29 $ 962 1,562 Restaurants 7,815 167 $ 3,754 4,235 Amusements/entertainment 1,477 12 $ 553 928 Retail Trade 4,038 73 $ 1,968 2,573 Wholesale Trade 999 6 $ 385 674 Local Manufacturing 1,384 4 $ 206 305 Annual Craft Expenses Slip/Storage 12,673 107 $ 4,745 7,962 Repairs 9,845 60 $ 2,004 5,254 Insurance 3,798 25 $ 1,847 3,293 Retail Trade 3,359 61 $ 1,637 2,141 Wholesale trade 804 5 $ 310 543 Local Manufacturing 338 2 $ 86 105 Total Direct Effects 48,737 550 $ 18,458 29,576 Secondary Effects 31,154 267 $ 11,162 14,650 Total Effects 79,890 817 $ 29,620 44,225 a. Sales are sales to firms in Cook county b. Jobs are not full time equivalents, but adjust seasonal jobs to an annual basis c. Personal income is wages and salaries including payroll benefits d. Value added is personal income plus rents and profits plus indirect business taxes

Attention boaters purchasing larger vessels. Attention boaters purchasing larger vessels. Please be aware that if you buy a boat that Please be aware that if you buy a boat that requires a larger size slip/mooring than your requires a larger size slip/mooring than your current assignment, we may not be able to current assignment, we may not be able to accommodate you. All of the slips and almost accommodate you. All of the slips and almost all of the moorings in the system have been all of the moorings in the system have been assigned and we have almost no flexibility of assigned and we have almost no flexibility of reassigning them. If you have a question about reassigning them. If you have a question about this please call our office before you make this please call our office before you make your purchase.your purchase.

Space in the Chicago Harbor Marinas, Like Many Marinas in

the Country is LIMITED