Economic impacts of harmful algal blooms on fishery-dependent communities

Abstract

The recreational razor clam fishery is the largest recreational bivalve fishery in the Pacific Northwest and a major source of tourism-related income to small communities in the region. Delays and closures of recreational shellfisheries due to the increasing frequency of harmful algal blooms (HABs) threaten to have significant negative impacts on fishery dependent communities. Coupling previous recreational shellfishing expenditure estimates from the literature with a novel dataset of daily visits to local businesses, we estimate a range of economic impacts resulting from the cancellation of razor clam digs at Long Beach, WA, the most popular beach in the State for recreational clam diggers. Our results indicate that a full season closure can lead to lost sales revenues of $16,875 for gas stations, $117,600 for food stores, $217,800 for accommodations and $491,400 for food service places for a total lower bound economic impact of $843,675. We discuss the opportunity for early warning systems, like the Pacific Northwest HAB Bulletin, to guide policy and facilitate business decisions that hedge the risk of revenue losses associated with dig cancellations.