• TABLE OF CONTENTS
HIDE
 Title Page
 Title Page
 Table of Contents
 List of tables/List of figures
 Acknowledgement
 Introduction
 Part 1: The inventory
 Part 2: Geographical analysis of...
 Part 3: Economic base study and...
 Part 4: Conclusions and recomm...
 Bibliography
 1: Marine-related business...
 2: Public marine recreation facilities...
 3: Bay County marine business interview...






Group Title: Technical paper ;, no. 15
Title: Marine-related recreation businesses and public facilities in Bay County, Florida
CITATION PAGE IMAGE ZOOMABLE
Full Citation
STANDARD VIEW MARC VIEW
Permanent Link: http://ufdc.ufl.edu/UF00072270/00001
 Material Information
Title: Marine-related recreation businesses and public facilities in Bay County, Florida
Series Title: Technical paper
Physical Description: v, 82 p. : ill., maps : ; 28 cm.
Language: English
Creator: Fernald, Edward A
Publisher: State University System of Florida Sea Grant College, University of Florida
Place of Publication: Gainesville
Publication Date: 1979
 Subjects
Subject: Marine resources -- Economic aspects -- Florida   ( lcsh )
Outdoor recreation -- Economic aspects -- Florida   ( lcsh )
Genre: government publication (state, provincial, terriorial, dependent)   ( marcgt )
bibliography   ( marcgt )
non-fiction   ( marcgt )
 Notes
Bibliography: Bibliography: 69-70.
Statement of Responsibility: by Edward A. Fernald...et al.
General Note: "October 1979."
Funding: This collection includes items related to Florida’s environments, ecosystems, and species. It includes the subcollections of Florida Cooperative Fish and Wildlife Research Unit project documents, the Florida Sea Grant technical series, the Florida Geological Survey series, the Howard T. Odum Center for Wetland technical reports, and other entities devoted to the study and preservation of Florida's natural resources.
 Record Information
Bibliographic ID: UF00072270
Volume ID: VID00001
Source Institution: University of Florida
Holding Location: University of Florida
Rights Management: All rights reserved, Board of Trustees of the University of Florida
Resource Identifier: aleph - 000990242
oclc - 12280099
notis - AEW7154

Table of Contents
    Title Page
        Title Page
    Title Page
        Page i
        Page ii
    Table of Contents
        Page iii
    List of tables/List of figures
        Page iv
    Acknowledgement
        Page v
    Introduction
        Page 1
        Page 2
    Part 1: The inventory
        Page 3
        Rationale
            Page 3
        Methodology
            Page 3
        Types of businesses
            Page 3
        Number of businesses
            Page 4
        Classification by business function or type
            Page 4
        Multi-functionction establishments
            Page 4
        Number of establishments by function
            Page 5
        Inventory of public facilities
            Page 6
    Part 2: Geographical analysis of the industry
        Page 7
        Location factors and spatial distribution of establishments by type
            Page 7
            Page 8
            Page 9
            Page 10
            Page 11
            Page 12-14
            Page 15
            Page 16
            Page 17
            Page 18
            Page 19
            Page 20
            Page 21
            Page 22
            Page 24
            Page 24
        Location of public facilities
            Page 25
            Page 26
            Page 27
            Page 28
            Page 29
            Page 30
            Page 31
            Page 32
        Size classification
            Page 33
            Page 34
        Spatial impacts
            Page 35
            Page 36
            Page 37
            Page 38
            Page 39
            Page 40
            Page 41
            Page 42
            Page 43
            Page 44
            Page 45
            Page 46
    Part 3: Economic base study and employment multiplier
        Page 47
        Objective
            Page 47
        Economic base theory
            Page 47
            Page 48
        Allocation of employment by sector
            Page 49
            Page 50
        Findings
            Page 51
            Page 52
            Page 53
            Page 54
            Page 55
            Page 56
            Page 57
            Page 58
        Economic impact of the marine recreation industry
            Page 59
            Page 60
            Page 61
    Part 4: Conclusions and recommendations
        Page 62
        Supply and demand relationshiops: Marine recreation businesses
            Page 62
            Page 63
            Page 64
        Public facilities
            Page 65
            Page 66
        Recommendations
            Page 67
            Page 68
    Bibliography
        Page 69
        Page 70
    1: Marine-related business inventory
        Page 71
        Page 72
        Page 73
        Page 74
        Page 75
        Page 76
    2: Public marine recreation facilities and boat ramps
        Page 77
    3: Bay County marine business interview schedule
        Page 78
        Page 79
        Page 80
        Page 81
        Page 82
Full Text













MARINE-RELATED RECREATION BUSINESSES
AND PUBL I FACILITIES
IN BAY COUNTY, FLORIDA
by
Edward A. Fernald, Karen Walby,
Sarah Jane Miller, and ohn Paul Jones III

The Florida Stte University
Tallahassee, Florida

TECHNICAL PAPER NO. 15
October 1979










i: .
^ '^ /oU 9


Florida Sea Grant

















MARINE-RELATED RECREATION BUSINESSES
AND PUBLIC#FACIL TIES
IN BAY COUNTY, FLORIDA
by
Edward A. Fernald, Karen Walby,
Sarah Jane Miller, and john Paul Jones III

The Florida Stae University
Tallahassee, Florida

TECHNICAL PAPER NO. 15
October 1979
















This document is a Technical Paper of the State
University System of Florida Sea Grant College, 2001
McCarty Hall, University of Florida, Gainesville, FL
32611 and was developed with support from the NOAA
Office of Sea Grant, U.S. Department of Commerce,
grant number 04-8-M01-76. Technical Papers are
duplicated in limited quantities for specialized
audiences requiring rapid access to information and
may receive only limited editing.





iii


TABLE OF CONTENTS


P



.......


LIST OF TABLES ..................

LIST OF FIGURES . . .....

ACKNOWLEDGEMENTS. . . ...

INTRODUCTION ........ ............

PART 1: THE INVENTORY . . . .

Rationale . . . . .
Methodology ...............
Types of Businesses ...........
Number of Businesses ............
Classification by Business Function or Type .
Multi-Function Establishments . .
Number of Establishments by Function .
Inventory of Public Facilities . .

PART 2: GEOGRAPHICAL ANALYSIS OF THE INDUSTRY


age

iv

iv


. . 3

. . 3






. . 6
..7oooo3


ooooooo 3


. 4o3



oeoooooo


Locational Factors and Spatial Distribution of Establishments
by Type . . . . . .
Location of Public Facilities. . . . .
Size Classification . . . . . .
Spatial Impacts . .. .. .. . .. .

PART 3: ECONOMIC BASE STUDY AND EMPLOYMENT MULIPLIER. .

Objective . . . . . . .
Economic Base Theory ................
Allocation of Employment by Sector ............
Findings . . . . . . .
Economic Impact of the Marine Recreation Industry . .

PART 4: CONCLUSIONS AND RECOMMENDATIONS . . .

Supply and Demand Relationships: Marine Recreation Businesses .
Public Facilities . . . . . .
Recommendations .....................


BIBLIOGRAPHY

APPENDIX 1:

APPENDIX 2:


APPENDIX 3:


MARINE-RELATED BUSINESS INVENTORY .

PUBLIC MARINE RECREATION FACILITIES AND
BOAT RAMPS ................

BAY COUNTY MARINE BUSINESS INTERVIEW
SCHEDULE . . . .


7
25
33
35

47

47
47
49
51
59

62

62
65
67

69

71


77


. 78

















LIST OF TABLES


TABLE 1:

TABLE 2:

TABLE 3:

TABLE 4:


TABLE 5:


TABLE 6:


TABLE 7:


TABLE 8:

TABLE 9:


FIGURE 1:

FIGURE 2:

FIGURE 3:

FIGURE 4:

FIGURE 5:

FIGURE 6:

FIGURE 7:


FIGURE 8:

FIGURE 9:

FIGURE 10:


Page

Bay County Marinas 1978 . . . 9

Bay County Boating Services 1978 . . .. 13

Bay County Fishermen's Supplies 1978 . ... 17

Bay County Charter Boats 1978 . . . 21

Bay County Head Boats 1978 . . .... 23

Bay County Divers' Equipment and Supplies 1978 .... .27

Bay County Public Marine Recreation Facilities and
Boat Ramps- 1978 ................. 31

Bay County Major Centers (with St. Andrews Inset) . 37

Grand Lagoon Area . . . . 39

Massalina and Watson Bayou Area. . . 43


Page

Marine-Related Recreation Establishments by Type . ... 5

Major Locational Factors by Business Category . .. 29

Employee Size Classification . . . .... 34

Employment Distribution and Public Facilities in Major
Impact Areas .. .. .. . . ..... 46

Distribution of Marine Recreation Employment by Type of
Establishment ....................... 52

Distribution of Basic Marine Recreation Employment by Type of
Establishment .. ... . .. .. .. .. .... 53

Distribution of Basic and Non-basic Employment by Standard
Industrial Classification. . . . . 55

Bay County Employment Allocated by Source of Demand, 1978. 58

Estimated Annual Payroll of Basic Marine-Recreation
Employment ... .. .. .. .. ... ...61


LIST OF FIGURES








ACKNOWLEDGEMENTS


A number of people provided assistance and direction during the

preparation of this report. A special thanks goes to Jeff Fisher, Multi-County

Marine Advisory Agent, for providing the impetus to this report, along with early

suggestions. Eugene L. Nakamura, Director of the National Marine Fisheries

Service's Panama City Laboratory, was very helpful in the early phases, and his

counsel led to the preparation of Part 3, which deals with the economic value of

marine recreation in Bay County. Captain B.3. Putnam, local businessman and

member of the Gulf Reef Fisheries Management Council, offered great amounts

of time and assistance throughout.

Additional thanks go to the Bureau of Economic Analysis, Florida

Department of Commerce; Robert McGill, Bay County Planning Department;

Chris Sullivan, Bureau of Plans, Programs, and Services, Florida Department of

Natural Resources; Pete Dicks, Resort Council of 100; Alfred O. Liesemeyer,

Bay County Motel and Restaurant Association; Dan Kelley, Florida Department

of Transportation; Tom Hudson, Mexico Beach Marina; and Andy Hoffman, Harby

Marina.

A special thanks goes to the many owners of marine-related recreational

businesses who gave their time to be interviewed. Many of their comments are

summarized in this report.

Finally, many thanks are due to the entire staff of the Florida Resources

and Environmental Analysis Center at Florida State University, including 3udy

Anderson, who assisted in the initial mapping; Betsy Purdum, who read and edited

the text; Jim Anderson and Dean Johnson, cartographers at FREAC, for their

superb work; Hunter Barnett, for her excellent typing; and especially to Frank

Unger, Director of FREAC, for his encouragement, ideas and coordinating

efforts.

Of course, any omissions or errors are the responsibility of the authors.










INTRODUCTION

Marine resources have made a substantial contribution to Florida's

economic viability. Yet one important by-product of this resource, recreational

activities, has been given very little evaluative attention. This study is an

attempt to place an economic and spatial value on marine recreation in Bay

County, as measured by marine-related business activities and public facilities.

Specifically, the purpose of this study can be summarized with the following

objectives:

To inventory marine-related recreation businesses in Bay County.

To describe the marine-related recreation businesses in terms of their
size, function, locational characteristics and spatial
interrelationships.

To evaluate the economic impact generated by the marine-related
recreation industry on the Bay County economy.

To develop a series of recommendations based on study findings and
problem areas identified which will benefit the future development of
the marine-related recreation industry in Bay County.

This analysis will be a first step in providing a data base and overview of

marine activities from which a county marine policy and/or management plan

can be derived. On an individual level, the users and operators of marine-related

facilities and businesses can benefit from this study by using it as an aid in their

management and location decisions. In keeping with the current concerns over

energy usage and shortages, the information collected could supplement further

research into the relationships between gasoline restrictions and marine-related

business activities.

The design of the study was threefold:

To arrive at an operational definition of marine-related businesses,
then to categorize and inventory the existing businesses and public
marine facilities.








To map the inventory information in order to identify the spatial
structure of marine activities.

To select from the mapped inventory a sample of businesses for
inclusion in a personal interview survey. The survey instrument
included questions about business characteristics, location factors and
the attitudes and perceptions of owner-operators concerning the
marine recreation industry's problems and prospects.

The report is divided into four parts. Part 1 reviews the inventory and

business classification methodology and results. Part 2 discusses the locational

factors of the businesses and spatial distribution of the industry based both on

the category of business and business size. A summary evaluation of land use

impacts in the county is also presented, using the concepts of major impact

centers, minor impact centers, and dispersed effects. An economic base model

and employment multiplier, constructed from the survey data and state

employment records, are presented in Part 3. Part 4 concludes with an analysis

of supply and demand considerations, an identification of problems, and

suggested recommendations for the private and public marine recreation

businesses and facilities.











PART 1: THE INVENTORY


Rationale

The inventory was conducted to provide the research team with an

indication of the number, size, function, and location of the marine-recreation

businesses and public facilities in Bay County. The inventory can be used by

local planning officials to assess the impact of future marine recreational

businesses and facilities in the county. In addition, various agencies such as the

county's Chambers of Commerce can use the inventory to assess the importance

of marine recreation to the economy of the county and to attract other

businesses to the county to serve both the established businesses and the

residents of the county.


Methodology

The inventory was compiled from several sources, including: the phone

book, Florida Department of Natural Resources publications, Florida Division of

Recreation and Parks inventories, the Florida Department of Labor and

Employment Security records, discussions with local officials and businessmen,

and through actual "field checking" of the establishments during the interview

phase of the study. Additions and deletions to the inventory were made through

telephone calls to the businesses to ensure that the inventory is as "up-to-date"

as possible.


Types of Businesses

Since the inventory was compiled with an emphasis on marine recreation,

only those businesses and facilities dealing with boating, fishing, and scuba diving

were included. Businesses that offer a wide range of ancillary goods and services











PART 1: THE INVENTORY


Rationale

The inventory was conducted to provide the research team with an

indication of the number, size, function, and location of the marine-recreation

businesses and public facilities in Bay County. The inventory can be used by

local planning officials to assess the impact of future marine recreational

businesses and facilities in the county. In addition, various agencies such as the

county's Chambers of Commerce can use the inventory to assess the importance

of marine recreation to the economy of the county and to attract other

businesses to the county to serve both the established businesses and the

residents of the county.


Methodology

The inventory was compiled from several sources, including: the phone

book, Florida Department of Natural Resources publications, Florida Division of

Recreation and Parks inventories, the Florida Department of Labor and

Employment Security records, discussions with local officials and businessmen,

and through actual "field checking" of the establishments during the interview

phase of the study. Additions and deletions to the inventory were made through

telephone calls to the businesses to ensure that the inventory is as "up-to-date"

as possible.


Types of Businesses

Since the inventory was compiled with an emphasis on marine recreation,

only those businesses and facilities dealing with boating, fishing, and scuba diving

were included. Businesses that offer a wide range of ancillary goods and services











PART 1: THE INVENTORY


Rationale

The inventory was conducted to provide the research team with an

indication of the number, size, function, and location of the marine-recreation

businesses and public facilities in Bay County. The inventory can be used by

local planning officials to assess the impact of future marine recreational

businesses and facilities in the county. In addition, various agencies such as the

county's Chambers of Commerce can use the inventory to assess the importance

of marine recreation to the economy of the county and to attract other

businesses to the county to serve both the established businesses and the

residents of the county.


Methodology

The inventory was compiled from several sources, including: the phone

book, Florida Department of Natural Resources publications, Florida Division of

Recreation and Parks inventories, the Florida Department of Labor and

Employment Security records, discussions with local officials and businessmen,

and through actual "field checking" of the establishments during the interview

phase of the study. Additions and deletions to the inventory were made through

telephone calls to the businesses to ensure that the inventory is as "up-to-date"

as possible.


Types of Businesses

Since the inventory was compiled with an emphasis on marine recreation,

only those businesses and facilities dealing with boating, fishing, and scuba diving

were included. Businesses that offer a wide range of ancillary goods and services











PART 1: THE INVENTORY


Rationale

The inventory was conducted to provide the research team with an

indication of the number, size, function, and location of the marine-recreation

businesses and public facilities in Bay County. The inventory can be used by

local planning officials to assess the impact of future marine recreational

businesses and facilities in the county. In addition, various agencies such as the

county's Chambers of Commerce can use the inventory to assess the importance

of marine recreation to the economy of the county and to attract other

businesses to the county to serve both the established businesses and the

residents of the county.


Methodology

The inventory was compiled from several sources, including: the phone

book, Florida Department of Natural Resources publications, Florida Division of

Recreation and Parks inventories, the Florida Department of Labor and

Employment Security records, discussions with local officials and businessmen,

and through actual "field checking" of the establishments during the interview

phase of the study. Additions and deletions to the inventory were made through

telephone calls to the businesses to ensure that the inventory is as "up-to-date"

as possible.


Types of Businesses

Since the inventory was compiled with an emphasis on marine recreation,

only those businesses and facilities dealing with boating, fishing, and scuba diving

were included. Businesses that offer a wide range of ancillary goods and services









were omitted, as were businesses that do not derive their sole purpose from

marine recreation. This would serve to exclude department stores that might

offer some fishing supplies, as well as campgrounds located on or near the water.


Number of Businesses

The final inventory includes 145 marine-related businesses in Bay County.

These establishments differ greatly in size, location, and function, and their

number suggests that marine recreation is a pervasive part of Bay County's

economy. To obtain a better understanding of the relationship between the

businesses and the economic structure of the county, the establishments were

classified on the basis of function, or business type.


Classification by Business Function or Type

Five major functions of businesses relating to marine recreation were

identified: marinas, boating services, fishermen's supplies, fishing vessels, and

divers' equipment. Two of these categories were further delineated on the basis

of functions within the major category. The fishing vessel category was divided

further based on the type of vessel, i.e., head boat or charter boat. Both types of

vessels charge a fee for sportfishing, but charter boats charge for the entire boat

per trip, while head boats charge for individuals on the trip. Charter boats are

smaller than head boats, and their average number of passengers, 7.9, is smaller

than that for head boats, 62 (Browder, 1978). The boating services category was

divided based on specific goods and services offered, i.e., boat dealers and

builders, boat and engine repair, and miscellaneous boating supplies.


Multi-Function Establishments

Many businesses perform two or more functions. For example, most boat

dealers offer boat and engine repair as a service, and many offer a selection of

boating supplies. Similarly, most marinas offer a wide variety of boating









were omitted, as were businesses that do not derive their sole purpose from

marine recreation. This would serve to exclude department stores that might

offer some fishing supplies, as well as campgrounds located on or near the water.


Number of Businesses

The final inventory includes 145 marine-related businesses in Bay County.

These establishments differ greatly in size, location, and function, and their

number suggests that marine recreation is a pervasive part of Bay County's

economy. To obtain a better understanding of the relationship between the

businesses and the economic structure of the county, the establishments were

classified on the basis of function, or business type.


Classification by Business Function or Type

Five major functions of businesses relating to marine recreation were

identified: marinas, boating services, fishermen's supplies, fishing vessels, and

divers' equipment. Two of these categories were further delineated on the basis

of functions within the major category. The fishing vessel category was divided

further based on the type of vessel, i.e., head boat or charter boat. Both types of

vessels charge a fee for sportfishing, but charter boats charge for the entire boat

per trip, while head boats charge for individuals on the trip. Charter boats are

smaller than head boats, and their average number of passengers, 7.9, is smaller

than that for head boats, 62 (Browder, 1978). The boating services category was

divided based on specific goods and services offered, i.e., boat dealers and

builders, boat and engine repair, and miscellaneous boating supplies.


Multi-Function Establishments

Many businesses perform two or more functions. For example, most boat

dealers offer boat and engine repair as a service, and many offer a selection of

boating supplies. Similarly, most marinas offer a wide variety of boating









were omitted, as were businesses that do not derive their sole purpose from

marine recreation. This would serve to exclude department stores that might

offer some fishing supplies, as well as campgrounds located on or near the water.


Number of Businesses

The final inventory includes 145 marine-related businesses in Bay County.

These establishments differ greatly in size, location, and function, and their

number suggests that marine recreation is a pervasive part of Bay County's

economy. To obtain a better understanding of the relationship between the

businesses and the economic structure of the county, the establishments were

classified on the basis of function, or business type.


Classification by Business Function or Type

Five major functions of businesses relating to marine recreation were

identified: marinas, boating services, fishermen's supplies, fishing vessels, and

divers' equipment. Two of these categories were further delineated on the basis

of functions within the major category. The fishing vessel category was divided

further based on the type of vessel, i.e., head boat or charter boat. Both types of

vessels charge a fee for sportfishing, but charter boats charge for the entire boat

per trip, while head boats charge for individuals on the trip. Charter boats are

smaller than head boats, and their average number of passengers, 7.9, is smaller

than that for head boats, 62 (Browder, 1978). The boating services category was

divided based on specific goods and services offered, i.e., boat dealers and

builders, boat and engine repair, and miscellaneous boating supplies.


Multi-Function Establishments

Many businesses perform two or more functions. For example, most boat

dealers offer boat and engine repair as a service, and many offer a selection of

boating supplies. Similarly, most marinas offer a wide variety of boating








services, as well as fishermen's supplies, such as bait and fishing tackle.

Nonetheless, every effort was made to place each business in the most

appropriate category, primarily by using the advertising section the

establishment chose in the Yellow Pages or by interviewing the owner. It should

be remembered, however, that the categories are not mutually exclusive; that is,

some establishments may offer services beyond those suggested by their

classifications.


Number of Establishments by Function

Table 1 provides a breakdown of the 145 businesses identified in the county.


TABLE 1

MARINE-RELATED RECREATION ESTABLISHMENTS BY TYPE
BAY COUNTY: 1979


Type of Establishment

Marinas

Fishing Vessels
Charter boats (56)
Head boats (14)

Boating Services
Boat dealers and builders (11)
Boat and engine repair (11)
Miscellaneous boating supplies (6)

Fishermen's Supplies (bait and/or tackle)

Divers' Equipment

Total Number of Establishments


Number of Establishments


18

70



28




23

6

145


Source: Tabulated by authors from interviews and field survey.


A complete list of the names and addresses of the businesses identified in

the inventory can be found in Appendix 1.






6


Inventory of Public Facilities

The inventory of public facilities was compiled from Florida Department of

Natural Resources, Division of Recreation and Parks records and the Bay County

Comprehensive Plan. The inventory records 36 public facilities and boat ramps

in the county that are marine-related (Appendix 2).










PART 2: GEOGRAPHICAL ANALYSIS OF THE INDUSTRY


Locational Factors and Spatial Distribution of Establishments by Type

The following section is a synthesis of the personal interviews of

owner/operators (see Appendix 3 for survey instrument) and a spatial analysis of

Figures 1-7.

Marinas. The on-water requirement for marinas (Figure 1) is the most

severe locational constraint imposed on any of the marine recreational

businesses. In addition to the requirement for an on-water location, marinas also

attempt to maximize their visibility by locating on major routes in the county.

The marinas need such visibility because they often compete with boat dealers

and other marine stores by offering a wide variety of ancillary goods and

services. Consequently, they are also influenced by the need for consumer

awareness, which is especially important when they attempt to attract visitors to

Bay County to their establishment.

The strictness of these requirements, as well as the fact that the best on-

water locations are those closest to the Gulf of Mexico, has resulted in nodal

concentrations of marinas. The major node is found on Watson and Massalina

bayous. A second area of concentration is in the Grand Lagoon area. A final

concentration point is in Mexico Beach, where three marinas are located. The

remainder of the marinas are dispersed.

A "spatial market" has developed about the marinas. A spatial market can

be defined as the tendency for certain businesses to cater to customers from

certain areas. In Bay County, the marinas closer to the beach tend to specialize

in trade with the visitors to the county. This phenomenon decreases eastward

and northward in the county.










PART 2: GEOGRAPHICAL ANALYSIS OF THE INDUSTRY


Locational Factors and Spatial Distribution of Establishments by Type

The following section is a synthesis of the personal interviews of

owner/operators (see Appendix 3 for survey instrument) and a spatial analysis of

Figures 1-7.

Marinas. The on-water requirement for marinas (Figure 1) is the most

severe locational constraint imposed on any of the marine recreational

businesses. In addition to the requirement for an on-water location, marinas also

attempt to maximize their visibility by locating on major routes in the county.

The marinas need such visibility because they often compete with boat dealers

and other marine stores by offering a wide variety of ancillary goods and

services. Consequently, they are also influenced by the need for consumer

awareness, which is especially important when they attempt to attract visitors to

Bay County to their establishment.

The strictness of these requirements, as well as the fact that the best on-

water locations are those closest to the Gulf of Mexico, has resulted in nodal

concentrations of marinas. The major node is found on Watson and Massalina

bayous. A second area of concentration is in the Grand Lagoon area. A final

concentration point is in Mexico Beach, where three marinas are located. The

remainder of the marinas are dispersed.

A "spatial market" has developed about the marinas. A spatial market can

be defined as the tendency for certain businesses to cater to customers from

certain areas. In Bay County, the marinas closer to the beach tend to specialize

in trade with the visitors to the county. This phenomenon decreases eastward

and northward in the county.











BAY COUNTY


MARINAS- 1978


SEAPATH MARINA
VAL'S BAYSIDE MARINA
HOLIDAY LODGE MARINA
SUN HARBOR LODGE AND MARINA
ST. ANDREWS MARINA
PANAMA CITY MARINA SERVICES
ETHRIDGE MARINA
HARBY MARINA
GULF MARINA
SNUG HARBOR MARINA
B & W PIER 98 MARINA
TREASURE ISLAND MARINA
PASSPORT MARINA
ANDERSON'S MARINA
MEXICO BEACH MARINA
MARQUARDT'S MARINA
HIDE-A-WAY HARBOR MARINA
TARPON DOCK MARINA


0 2 4 MILES


Figure 1


r'








Boating Services. The boating services (Figure 2) category is an

aggregation of the inventory's boating-related businesses including: boat dealers

and builders, boat and engine repair, and miscellaneous boating supplies.

Although each boating specialty might have a location determinant exclusive to

its particular service, there are several general locational observations that

apply to the entire Bay County boating industry.

Boating services are well dispersed in Bay County. It appears that there is

a large degree of spatial market differentiation for these establishments, with

some businesses serving primarily tourists, some serving military personnel, and

others serving county residents.

Although the market area is an important criteria in location choice for a

boating business, consumer awareness of the various services and suppliers is

equally significant. Therefore, consideration of visibility for the business is a

primary location factor. Nearly all boating businesses look for busy streets with

good access for customers when locating their establishments. For some, this is

satisfied by locating near a bridge, while others consider the traffic patterns on

major roads or major interchanges. These "road-based" establishments reveal a

great deal of dispersion. Few are located on the same highway, suggesting the

importance of dispersion of competitive establishments (Berry, 1968).

An additional factor in location choice is land availability, especially to the

boat dealers. This land requirement has two consequences. First, it tends to

keep most boat dealers away from waterfront property, because they require a

large amount of floor space for displaying their inventory. Second, it tends to

decentralize their locations outward from Panama City where the competition

for available land is less intense, and the land and sales taxes are lower.

The remainder of the boating businesses--the boat builders, the boat and

engine repair shops, and the miscellaneous boating supply stores--are less






15

influenced by land availability than the boat dealers, because their typical land

requirements are less than those of the boat dealers. Consequently, many of

these boat businesses, especially the repair shops and miscellaneous boating

supply stores, are located on or near the water. This is particularly true in the

Watson and Massalina Bayou area, where a concentration of such establishments

is apparent. In addition, the competitive dispersion tendency is less for these

waterfront businesses than it is for the boat dealers.

In summary, the boat dealers are generally road-based, while those

businesses with less land requirements may be located on the water. Some boat

builders are located on the water, and although they require a considerable

amount of floor space, they do not require as much visibility as boat dealers.

Only one boat dealer is located in the Panama City Beach area, and none are in

Mexico Beach. Within the remainder of the county, however, the major dealers

are dispersed. Most of the other boating businesses are dispersed, except for a

concentration in the Watson and Massalina bayou area.

Fishermen's Supplies. Fishermen's supply stores (Figure 3) generally offer

goods that are available in many locations. Consequently, they tend to locate

near major recreational facilities while at the same time attempting to

maximize their visibility by remaining on the county's major routes. For some of

the establishments these recreational facilities are marinas, charter boats,

beaches, and public recreational facilities such as camping areas and piers.

Establishments concentrating on the freshwater bait and tackle market are

dispersed to the eastern and northern sections of the county, yet in many cases

they do maintain some of the marine-oriented market. These establishments are

also located near recreational facilities, primarily those on the county's lakes and

rivers.







T{)


BAY COUNTY


FISHERMEN'S SUPPLIES

BAIT AND/OR TACKLE-1978

F _ 1 _T


DEER HAVEN BAIT AND TACKLE
LIBBY'S FISHING SUPPLIES
DEERPOINT DAM BAIT AND TACKLE
HOWELL TACKLE
BRANNON AND SON
RICHARD'S BAIT AND TACKLE
FISHER-STINSON HARDWARE CO.
TACKLE BOX
BELL TACKLE CO.
GANDY AND SONS
BRANNON'S SEAFOOD
PILCHER BAIT AND TACKLE
LEON'S BAIT AND TACKLE
R & H SPORTING VARIETY AND GROCERY STORE
FISHHOOK #3
FISHHOOK #2
ROY'S CORNER
HALF-HITCH TACKLE AND MARINE SUPPLIES
BILLY BOY'S BAIT AND TACKLE
HOLLEY'S GULF AND BEACH SUPPLY
FISHHOOK #1
WEST BAY FISH MARKET
CAIN'S FISHERMAN'S CATCH


I 0 2 4 MILES


Figure 3








Owners of the fishing supply stores generally expressed a desire to locate

away from competitive establishments. This is to be expected: It is recognized

that "lower order" goods and services, or lower unit-cost goods and services, will

not induce consumer travel to the degree that "higher-order", or higher unit-cost

goods and services will. This tends to disperse the fishing supply establishments.

Nevertheless, there is a concentration of establishments in the Grand Lagoon

area, owing to the desirability of such a location. A number of the recreational

facilities exist in that area, including marinas, charter boats, and boat ramps.

For the establishments without this location pattern, the major factor

tends to be that of access on a major road. These "road-based" establishments

reveal a great deal of dispersion. Few are located on the same highway,

suggesting again the importance of dispersion of competitive establishments.

Charter and Head Boats. Charter and head boats (Figures 4 and 5,

respectively) typically operate out of a marina. Several factors are considered

when choosing a location: the marina facilities, including the availability of boat

slips, the traveling time to the fishing grounds, the tourist accommodations

available nearby, and the availability of bait and tackle. The preferred locations

in Bay County are along St. Andrews Bay and Grand Lagoon. Marinas are located

in both of these areas, where the proximity to the Gulf of Mexico fishing grounds

demands the least amount of traveling time. Tourist accommodations (motels

and restaurants) and substantial fishing tackle stores are nearby. Charter and

head boats are not located in East, West, or North Bay, thus emphasizing the

attraction of the Gulf fishing grounds.

The ideal docking locations provided by St. Andrews Bay and Grand Lagoon

make shifts in charter and head boat locations unlikely. If any location changes

occur, however, they will probably be away from St. Andrews towards Grand

Lagoon, which is closer to the Gulf than docking points in St. Andrews Bay. This












BAY COUNTY


CHARTER BOATS 1978


I


'-'S

I

I,


1. HOLIDAY LODGE MARINA
Sweet Thing
Miss Dawn
Marian II
Osprey

2. ANDERSON'S MARINA
Big Daddy
Big Daddy II
Sea Hawk
Skipper
Barracuda
Capt. Buck
Billy Joe
Capt. Lee
Fu- Lin Yu II
Kingfisher
Capt. Joe Bishop
Sea Foam
Sonny Boy
A. R. Holley
The Hobo
Sea Horse
Genie
Nauti Lady
Crosswinds
Nick- Nack
Poseidon
Capt. Glenn
Daphne D


3. TREASURE ISLAND N
Miss Nell
Wendi
Duchess
Ruthie
Calypso
Pixie P
Shell Back
Afternoon Delight

4. BAY POINT MARINA
Lady M Too
Lucky Day

5. ST. ANDREW'S MARINA
Davy Jones
Miss Penny
Capt. Sparkle
Kelley Girl
Capt. Sandy
Crosswind III
Fisherman
Capt. Bill
Skipjack
Capt. Sandy II
Capt. Spanky
Bobby Two
Pastime
Victory Morn
A. R. Holley


6. SMITH YACHT BASIN
Capt. Bert
Bandit
The Hooker
Bonita
Scorpin II


0 2" 4 MILES


Figure 4


2



/







I- ---


BAY COUNTY


HEAD BOATS 1978


F -,rK.


1. HOLIDAY LODGE MARINA
Holiday Queen

2. ANDERSON'S MARINA
Capt. Anderson III
Capt. Anderson IX
Capt. Anderson X
Judy Beth
S. W. Anderson

3. TREASURE ISLAND MARINA
Florida Fisherman
Florida Girl

4. ST. ANDREWS' MARINA
San Queen
Ocean Queen
New Dixie Queen
Gemini Queen
Florida Queen
Star Queen


S 0 2 4 MILES


Figure 5


I
__ J








shift would be caused by rising fuel prices, giving Grand Lagoon vessels transport

cost savings.

Divers' Equipment. Divers' shops (Figure 6) may provide instructional

and/or equipment services. Their location is based partly on which services are

offered. A dive shop with instructional capabilities is especially drawn towards

marinas which are convenient launching sites. In addition, some advantage is

gained by locating dive shops near charter boats that are willing to serve as a

carrier for recreational divers. A dive shop close to a launch area is desirable to

the recreational diver for last minute equipment needs.

An equipment sales oriented establishment can benefit from locating near a

marina, but their location can also be based solely on local demand for their

product or services. Businesses with diving equipment available as an ancillary

good are less constrained in locational choice. Examples are sporting goods

stores which carry not only diving equipment, but also other sporting goods.

Dive shops in Bay County are well dispersed, indicating that there is a

degree of spatial competition in the industry. Nonetheless, the locational factors

discussed above are operating. Only one Bay County dive shop is not located

near a marina, and it is a multi-good sporting store.

Summary. Table 2 presents a summary of the major locational factors for

each of the business categories.


Location of Public Facilities

The public facilities (Figure 7) in Bay County are widely dispersed and tend

to conform somewhat to the general location patterns of the marine-related

businesses. There is a heavy concentration of facilities in the Grand Lagoon

area, including the St. Andrews State Recreation area. In addition, there is a

concentration of facilities on Watson and Massalina bayous and two facilities in

the St. Andrews area.









BAY COUNTY


DIVER'S EQUIPMENT

AND SUPPLIES 1978
| r ._Ij


1. C & G SPORTING GOODS
(Panama City Mall Store)
2. OLD TIMER'S DIVER SUPPLY
3. HYDROSPACE INTERNATIONAL
4. THE PRO DIVERS SHOP
5. C & G SPORTING GOODS
(Harrison Avenue Store)
6. THE DIVER'S DEN


*


I 0 2 4 MILES


Figure 6


r'



I










TABLE 2

MAJOR LOCATIONAL FACTORS BY BUSINESS CATEGORY


Other Sport-
Locational Fishing Boat Boating Dive fishing
Factors Marinas Supplies Dealers Activities Shops Vessels

Location on or x x x x
near major
routes

Dispersed from x x x
competitors

With similar x x x
businesses
acceptable

Tourist x
accommodations
should be nearby

Other x x x x
recreational
facilities
an asset

Waterfront x x
required

Land availability x x
a major
constraint in
new locations

"Road-based" x x x
locations
acceptable


x = This location factor is present for the majority of the businesses within the
category.


Source: Interviews of marine recreation business operators.










BAY COUNTY


PUBLIC MARINE RECREATION


FACILITIES AND BOAT RAMPS 1978 i
r--"---- ...... T --------- }!


FANNING BAYOU BOAT RAMP
McKENZIE ROAD RAMP
A. L. KINSAUL PARK
BOAT RAMP
MILL BAYOU PARK
DANLEY STREET RAMP
FRANK NELSON JUNIOR PARK
CARL GRAY PARK
BOAT RAMP
LAKE HUNTINGDON PARK
DOT WAYSIDE PARK
ST. ANDREWS RAMP
J. R. ASBELL MEMORIAL PARK
BOAT RAMP
WATSON BAYOU PARK
BOAT RAMP
SUDDUTH PARK
BOAT RAMP
COVE TERRACE PARK
ADAMS MEMORIAL PARK
CALLAWAY COMMUNITY PARK
CIRCLE DRIVE BOAT RAMP
MEXICO BEACH PIER
MEXICO BEACH PARK
ST. ANDREWS BAY STATE AQUATIC PRESERVE
ST. ANDREWS STATE RECREATION AREA


BOAT RAMP
BOAT RAMP
BOAT RAMP
BOAT RAMP
DOLPHIN STREET BOAT RAMP
SAFARI STREET BOAT RAMP
PANAMA CITY BEACH CITY PIER
BOAT RAMP
LAKE POWELL RECREATION AREA
BOAT RAMP


4


I 0 2 4 MILES


Figure 7


r






33

The public facilities and the private businesses appear to enjoy a positive

relationship, especially in the Grand Lagoon area. Much value of the Grand

Lagoon area's businesses can be attributed to the State Recreation area. Other

mutually supportive relationships between businesses and public facilities should

be supported. More specific recommendations for the public facilities are

presented in Part IV of this report.


Size Classification

One of the components of this report is the business size classification.

This classification allows the research team to analyze the marine-related

businesses' spatial and economic relationships.

Size is interpreted using the average number of employees per individual

business over a fiscal year period (FY 1977-78). It was felt that employee

enumeration presented the best indicator of business size, given the available

data.

The employee information was collected from personal interviews and

telephone inquiries with the marine-related business owners. The Florida

Department of Labor and Employment Security's employment and total wage

tabulations provided an additional source of information when personal

communication was not possible.

The size classification data can be used for business decisions and local

government policy considerations. Agglomerations of marine employment can be

observed, as well as possible gaps in the marine industry. In addition, this

information can be a step towards a predictive data base for the marine-related

sector in Bay County.

Table 3 represents the employee size classification for the categories.









TABLE 3

EMPLOYEE SIZE CLASSIFICATION

Small ( <4) Large (> 4)

Marinas 9 9

Boating Activities 15 7

Fishermen's Supplies 14 4

Charter Boats 62 0

Head Boats 0 14

Dive Shops 5 1


Employment and Location Relationships. Mapping the location of the

marine recreation businesses provides a good indication of the locational

attributes of the industry. In order to completely assess the impact of these

locations, however, the employment numbers of the marine businesses were

related to their location.

Marinas. As noted in the previous section, the marinas are concentrated in

three major areas: Watson and Massalina bayous, Grand Lagoon, and Mexico

Beach. These three centers have different employment characteristics. The

clustered marinas in the Grand Lagoon area are major employers, while those in

the Mexico Beach area are also clustered, yet small. The several marinas in the

Watson and Massalina bayous areas are varied with respect to size. Of the

dispersed marinas, only two are large, while the remainder have four employees

or less.

Boating Businesses. As is the case for marinas, the boating businesses in

the Watson and Massalina bayou area contain both large and small

establishments. The remainder of the large businesses are well-dispersed and

tend to be situated at "road-based" rather than "water-based" locations.

The small establishments are located close to the water in all areas of the

county, and they exhibit a greater deal of concentration than do the large








establishments. A major pattern between employment and location is the

relative lack of large businesses in the Grand Lagoon and St. Andrews areas.

These areas are centers of employment for other businesses, but not for boating

establishments.

Fishing Supply Stores. The fishing supply stores' employment tends to be

dispersed. Large bait and tackle stores are located in two primary areas: Grand

Lagoon and St. Andrews. The Massalina and Watson Bayou area is devoid of

fishermen supply stores, with the exception of one large wholesale employer.

Many of the small stores are located on the water, especially in the Deer Point

Lake and North Bay Area, and at Panama City Beach. All of the four large

fishing supply employers in the county are located near the water.

Charter and Head Boats. Charter boats employ less people per vessel than

do head boats. Within the categories of each vessel, however, employment

differs little. Since the employment data will differ little within the categories,

there will not be employment effects based on location other than those caused

by the location of boats themselves. This is discussed in the previous section,

Locational Factors and Spatial Distribution of the Charter and Head Boat

Industry.

Dive Shops. The employment data differ little for the six dive shops in the

county. Only one shop, located in the Grand Lagoon area, is a "large" employer.


Spatial Impacts

The spatial impacts of the marine-recreation businesses in Bay County can

be divided into major impact centers, minor impact centers, and dispersed

activities, or outliers. A major impact center signifies a marine-related

agglomeration of activities consisting of a concentration of diversified business

services with a relatively large amount of employment. Minor impact centers

are smaller agglomerations of activities that operate as more local nodes of









activity than major impact centers. Outliers are marine recreation businesses

located in a multi-use commercial area, separated from other marine-recreation

businesses (Lloyd and Dicken, 1977: 19-65).

There are three defined major centers for marine-related businesses in Bay

County: St. Andrews, Grand Lagoon and Watson and Massalina bayous (Figure 8).

The St. Andrews area (Figure 8) is the most intensely occupied major

center in Bay County. Within a small area of the county bounded by St. Andrews

Bay on the west and south, by 15th Street on the north, and by Wilmont Avenue

on the east is at least one representative from every business category in the

inventory. There is one marina, one dive shop, two fishermen's supply stores, two

boating activity establishments, and a number of charter and head boats. There

are 97 people employed in marine-related activities in the area, and the

concentration of employment relative to the land area is higher than for the

other centers.

The St. Andrews area has several advantages. This large agglomeration is

relatively close to the Gulf of Mexico, and it is the county's only concentrated

downtown tourist center. It is an attractive, older section of the city with an

appealing ambience.

The St. Andrews area has several disadvantages, and these should be

addressed by local decision makers. First, there is little available land in this

section, which inhibits the establishment of any other major employers. Second,

as energy costs rise fishing based in this area will become less attractive.

Nonetheless, the area does have promising possibilities as a marine recreation

area. These will be discussed in a later section.

The Grand Lagoon area (Figure 9) is the most important major center in

terms of employment. The area supports as many as 243 people during the

summer months. It can be classified as a major center based on the wide variety







FIGURE 8


BAY COUNTY BAYOU AREAS


ST. ANDREWS AREA









FIGURE 9


K


.'.


GRAND LAGOON AREA


,' ***"





41

of goods and services available. The area supports three marinas, two boating

businesses, five fishermen's supply stores, a dive shop, seven heat boats, and 33

charter boats. Also located in the Grand Lagoon area are numerous boat

launching sites and camping facilities at St. Andrews State Park.

The area is clearly the site of an agglomeration economy, with the

activities of each business or facility gaining an economic advantage from the

nearby location of other businesses or facilities. This is the relationship that

identifies a healthy economic area, and there are several reasons to suspect that

the agglomeration of facilities in this area will continue. First, this area is close

to the Gulf of Mexico fishing grounds. As energy costs rise, these businesses gain

an advantage over businesses farther away from the Gulf of Mexico. This is

especially true of charter and head boats, whose advantage can be expressed in

daily transport costs savings due to their location. Second, the area is relatively

new, and the cycle of business maturation is not yet revealed in the area's

landscape. Third, land and sales taxes are lower in this area than in Panama

City, although the cost of land is already quite high. Fourth, agglomerations c!

similar activities arise due to their special interrelationship with one another,

and this set of mutually supportive links is difficult to break. If one business in

the area leaves, the Grand Lagoon agglomeration should be stable enough to

withstand the impact of the loss of customers that business attracted.

The final major center is the large, relatively dispersed area south of

downtown Panama City on Watson and Massalina bayous (Figure 10). The area

supports an employment base of 98 people. Marine-related employers are one

divers' supply shop, six marinas, six boating services establishments, and one

fishermen's supply store. It is less diverse than the other first-order centers,

because it lacks any charter or head boats. The major advantage of this area is

the large number of marinas, which tend to attract other marine-related







FIGURE 10


MASSALINA AND WATSON BAYOUS







activities. Employment distribution and public facilities in the major impact

areas are summarized in Table 4.

Two minor centers exist in the county. They are characterized as localized

agglomerations of at least three marine recreation businesses. The area just

south of the eastern end of the Hathaway Bridge is one of the minor centers. In

this area one marina and two boating activity establishments are located. The

other minor center is the agglomeration of three marinas in Mexico Beach.

These marinas provide services similar to fishing supply stores, in addition to

their marina function.

The remainder of the impacts on Bay County's land use by marine

recreation establishments are dispersed. In some cases the establishments are

nearly contiguous to another marine recreation facility, but in no case do three

or more activities agglomerate. Some of the dispersed establishments are

located near the water, e.g., the North Bay and Deer Point Lake activities, yet

the remainder of the facilities are located primarily on major routes in the

county. These activities derive their locational advantage from consumer

visibility, rather than from the agglomeration effects found in the first and

second-order centers.

Some areas in Bay County are nearly devoid of marine recreation

development. These include the majority of the land in Tyndall Air Force Base,

West Bay, and the beaches west of Grand Lagoon.






46







TABLE 4

EMPLOYMENT DISTRIBUTION AND PUBLIC FACILITIES
IN THE MAJOR IMPACT AREAS


Employment

Marinas

Boating Services

Fishing Supplies

Charter Boats

Head Boats

Dive Shops


Grand Lagoon

130

4

8

66

30

5


St. Andrews

7

3

22

38

26

1


Total Employees


Number of Firms

Number of
Public Facilities


243


Source: Tabulated by authors from interviews, field survey, Division of Parks
and Recreation records, and Bay County Comprehensive Plan.


Watson
and
Massalina

24

60

10

0

0

4












PART 3: ECONOMIC BASE STUDY AND EMPLOYMENT MULTIPLIER


Objective

The objective of this section of the report is to estimate the economic

importance of the marine-related recreation businesses to the residents of Bay

County. In order to accomplish this objective, the authors completed an

economic base study of Bay County and computed an employment multiplier in

order to determine how much employment is generated locally by the sales of

marine-related recreation businesses to non-residents of Bay County.

An economic base study seeks to determine the key economic activities

that generate income and employment within a community. Goods and services

sold outside the community by local firms are called "exports." Sales to

residents from outside the county that take place in Bay County are also

considered to be exports. Just as sales of food and accommodations to Latin

American tourists in Miami are considered an American export activity, sales by

a restaurant or motel within Bay County to tourists (whether from neighboring

counties, other parts of Florida, other states, or other countries) can be

considered an export by the county.


Economic Base Theory

The underlying premise of economic base theory is that exports (sales to

non-residents and sales to non-local firms) play the most important part in the

economic growth and well-being of a community. These export activities,

therefore, are designated as basic activities. It is argued that without basic

activities a region would not have the means for payment of goods and services

that it does not itself produce, nor would there be reason for the existence of












PART 3: ECONOMIC BASE STUDY AND EMPLOYMENT MULTIPLIER


Objective

The objective of this section of the report is to estimate the economic

importance of the marine-related recreation businesses to the residents of Bay

County. In order to accomplish this objective, the authors completed an

economic base study of Bay County and computed an employment multiplier in

order to determine how much employment is generated locally by the sales of

marine-related recreation businesses to non-residents of Bay County.

An economic base study seeks to determine the key economic activities

that generate income and employment within a community. Goods and services

sold outside the community by local firms are called "exports." Sales to

residents from outside the county that take place in Bay County are also

considered to be exports. Just as sales of food and accommodations to Latin

American tourists in Miami are considered an American export activity, sales by

a restaurant or motel within Bay County to tourists (whether from neighboring

counties, other parts of Florida, other states, or other countries) can be

considered an export by the county.


Economic Base Theory

The underlying premise of economic base theory is that exports (sales to

non-residents and sales to non-local firms) play the most important part in the

economic growth and well-being of a community. These export activities,

therefore, are designated as basic activities. It is argued that without basic

activities a region would not have the means for payment of goods and services

that it does not itself produce, nor would there be reason for the existence of












PART 3: ECONOMIC BASE STUDY AND EMPLOYMENT MULTIPLIER


Objective

The objective of this section of the report is to estimate the economic

importance of the marine-related recreation businesses to the residents of Bay

County. In order to accomplish this objective, the authors completed an

economic base study of Bay County and computed an employment multiplier in

order to determine how much employment is generated locally by the sales of

marine-related recreation businesses to non-residents of Bay County.

An economic base study seeks to determine the key economic activities

that generate income and employment within a community. Goods and services

sold outside the community by local firms are called "exports." Sales to

residents from outside the county that take place in Bay County are also

considered to be exports. Just as sales of food and accommodations to Latin

American tourists in Miami are considered an American export activity, sales by

a restaurant or motel within Bay County to tourists (whether from neighboring

counties, other parts of Florida, other states, or other countries) can be

considered an export by the county.


Economic Base Theory

The underlying premise of economic base theory is that exports (sales to

non-residents and sales to non-local firms) play the most important part in the

economic growth and well-being of a community. These export activities,

therefore, are designated as basic activities. It is argued that without basic

activities a region would not have the means for payment of goods and services

that it does not itself produce, nor would there be reason for the existence of






48

support service industries (Isard, 1960: 190). These support service industries, or

nonbasic activities, are those that exist to serve the local population. Economic

base theory further assumes that when changes occur in the export or basic

sector, then changes necessarily occur in the service or nonbasic sector.

Further, when this change in the export sector takes place, the ratio of basic to

nonbasic employment will return to its original level. A simple example in terms

of employment will suffice to illustrate this point. Given the relationship:

Basic Employment + Nonbasic Employment = Total Employment,

assume that: Basic Employment = 1,000
Nonbasic Employment = 2,000
Total Employment = 3,000

If basic employment increases by 1,000, then the short-term result would be:

Basic Employment = 2,000
Nonbasic Employment = 2,000
Total Employment = 4,000.

The employment multiplier allows an estimation of the impact on the economy of

an increase in basic employment. The employment multiplier is computed in the

following manner:

Multiplier (employment) = Total Employment (1)
Basic Employment

In this example,

Multiplier(employment) = 3,000 3.0. (2)
1,000

To determine the change in total employment brought about by an increase of

1,000 jobs in the basic sector, the following relationship between the multiplier

(M), basic employment (BE), and total employment (TE), can be computed:

A TE = M(ABE), (3)

where A indicates "change". In this example, the equation becomes:

A TE = 3.0 (1,000) = 3,000. (4)








Thus, an increase in basic employment of 1,000 creates the need for 2,000

additional jobs in the nonbasic sector.


Allocation of Employment by Sector

Obviously, the first step in conducting an economic base study is the

allocation of employment between sectors, i.e., basic or export activity and

nonbasic or service activity. This study utilizes a combination of two methods:

a direct method and an indirect method. A direct method, the market survey,

was used to allocate employment between sectors of the marine-related

recreation businesses described in Parts 1 and 2. An indirect method, the

location quotient, was used to allocate employment between sectors for all other

firms in Bay County.

Market Survey. The best method for identifying basic and nonbasic activity

is the direct method of a market survey. By questionnaire and interview, the

location of the marine-related recreation businesses' market areas can be

ascertained and the basic/nonbasic ratio determined. For example, assuming

employment as the unit of measure, if 60 percent of the marina's sales are to

customers outside the area (tourists) and 40 percent to local customers, then 60

percent of the marina's employment would be allocated to the basic sector and

40 percent to the nonbasic sector. The obvious disadvantages associated with

this method are.its cost, the length of time required to complete the survey and

possible errors in the firm's estimate of the origin of its customers. Since marine

recreation firms in Bay County are relatively small, the authors felt that firm

owner-operators would be able to accurately estimate the percentage of total

sales purchased by local people and the percentage purchased by tourists.

Questions concerning employment and destination of sales were incorporated into

the survey instrument discussed in Part 2 and contained in Appendix 3.






50

Location Quotient. Because of the prohibitive costs of conducting a

market survey of the entire Bay County economy, the decision was made to

utilize the location quotient method to allocate the employment between sectors

for all other industries.

The location quotient is the ratio of an industry's share of the economic

activity of the economy being studied (i.e., Bay County) to that industry's share

of another economy (i.e., the United States). Assume that the study area is a

county (c) of a nation (n), and that employment (E) is the measure of economic

activity. Then the location quotient (LQ) for industry i may be expressed as:



E.
LQ = E. C (5)
in
En

where Eic and Ein represent the county's and nation's employment in industry i,

respectively. (A variant of the location quotient that uses population instead of

E and En was used to allocate employment in the retail and service industries,

such as department stores, health services, motels, and restaurants.)

If the location quotient for an industry is greater than 1.0, it is assumed

that the county exports the goods or services of that industry. For example, if a

county has 6 percent of its total employment in industry i, but the nation has

only 5 percent of its total employment in industry i, it is assumed that the county

has a surplus for export equal to 1 percent of its employment in industry i. If its

location quotient is greater than 1.0, the export or basic activity (Xic) of county

employment in industry i (Eic) can be calculated as:

Xic = 1-(1/LQi)Eic. (6)


In the example above, 1-1/(6/5) = 1/6 of the county's employment in industry i is

the basic sector. If the location quotient is equal to or less than 1.0 for an








industry, it is assumed that the industry does not export from the county, as the

county has less than its share of the industry.

The economic base multiplier, M in equation (1), can be calculated by

estimating export employment using equation (6) for all industries with location

quotients greater than one, summing the export employment of all those

industries and dividing the sum into total employment.

The economic base model assumes that exports are the only source of

growth of local or nonbasic activities. It has long been recognized, however, that

other exogenous sectors can play this role. Therefore, a more accurate

description of the employment multiplier is not the ratio of total to export

employment, but the ratio of total to exogenous employment (the latter includes

export employment).

All federal and state government employment should be assigned to the

export sector. Although some federal employees do serve local needs, federal

employment does have income-generating properties similar to exports.

Similarly, almost all motel employment in a county serves visitors to it

(Isserman, 1977: 36-37). Consequently, in this study, all federal and state

employment and 95 percent of motel employment were allocated to the basic or

export sector.*


Findings

The results of the market survey of marine-related recreation businesses

appear in Tables 5 and 6. A total of 581 marine-related recreation jobs were

identified. Marinas were the largest source of employment with 31.59 percent of

the total, Boating Services were second with 23.91 percent, and Charter Boats

were third with 19.29 percent.



*For a detailed discussion of the limitations of the location quotient method, see
SIsserman (1977).



















TABLE 5

DISTRIBUTION OF MARINE RECREATION EMPLOYMENT
BY TYPE OF ESTABLISHMENT

BAY COUNTY: 1978

Percent Number of Average
of Establish- Employ-
Establishment Type Employment Total ments ment

Boating Services 138.9 -23.91 28 5.0
Diver's Equipment 19.6 3.37 6 3.3
Fishermen's Supplies 65.3 11.24 23 2.8
Marinas 183.5 31.59 18 10.2
Sportfishing Vessels:
Charter Boatsa 112.0 19.29 56 2.0
Head Boats 61.6 10.60 14 4.4

Marine Recreation Industry 580.9 100.00 145 4.0









Source: Telephone and face-to-face interviews, and Florida Department of
Labor and Employment Security, ESA 202 Reports.

a
Employment figure for charter boats includes captains.
Browder, J. Study of the Structure and Economics of the Recreational
Paying Passenger Fisheries of the-Florida Gulf Coast. Southeast
Fisheries Center, NMFS. September, 1978.






















TABLE 6

DISTRIBUTION OF BASIC MARINE RECREATION
EMPLOYMENT BY TYPE OF ESTABLISHMENT


BAY COUNTY:


1978


Establishment Tvpe


Employ-
ment


Percent
Basic
Sales


Basic
Employment


Boating Services
Divers' Equipment
Fishermen's Supplies
Marinas
Sportfishing Vessels:
Charter Boats
Head Boats

Marine Recreation Industry


138.9
19.6
65.3
183.5

112.0
61.6

580.9


30.98
40.00
41.85
65.11

87.9a
95.0a


43.03
7.84
27.32
119.48

98.45
58.52

354.64


Source: Telephone and face-to-face interviews, supplemented by Florida
Department of Labor and Employment Security, ESA 202 Reports.

aBrowder (1978).


_L






54

The marine recreation business owner-operators were asked to estimate

what percentage of their total sales were purchased by persons not residing in

Bay County. These percentages were used to determine marine recreation basic

employment (Table 6). In terms of basic employment, marinas remain the largest

employer; however charter boats are now the second largest, followed by head

boats and boating services. Of the 581 employees in the marine-related

recreation industry, 355 or 61.1 percent can be considered involved in basic

activity.

The division of employment between sectors for all other industries in the

county, according to the modified location quotient method described in the

previous section, appears in Table 7. Of the 29,822 employees* in Bay County,

11,363 have been classified as basic or export-oriented and 18,459 as nonbasic or

service-oriented. This division between sectors results in an economic base

employment multiplier of 2.62 according to equation (1).

Table 8 further classifies the basic employment by showing where the

demand originates that provides jobs within the county rather than merely

showing the type of establishment for which people are working. In addition to

the 355 basic marine recreation jobs, 387 motel jobs, 341 restaurant jobs, 113

service jobs and 126 government jobs are involved in marine recreation tourist

activity.

The 113 service employees are engaged in marine-oriented amusement

activity, and the 126 government workers are involved in the marine patrol and

other marine recreation activities. The motel and restaurant jobs were allocated

to marine recreation basic employment based on surveys of tourists to Bay



*This figure includes the 29,705 employees from the Bay County ESA-202 Annual
Summary who are covered by unemployment compensation plus an additional 117
uncovered marine recreation employees.










TABLE 7

DISTRIBUTION OF BASIC AND NONBASIC EMPLOYMENT
BY STANDARD INDUSTRIAL CLASSIFICATION

BAY COUNTY: 1978



Standard Employ- Location Non-
Industrial ClAssification ment Quotient Basic basic



Agriculture, Forestry, & Fishing:
Agricultural Production 4 .1 4
Agricultural Services 36 .1905 36
Forestry 27 1.896 27
Fishing, Hunting, Trapping 46 3.69 46
Mining:
Oil and Gas Extraction 50 11.22 50
Nonmetallic Minerals, Except Fuel 6 .077 6
Construction:
General Building Contractors 759 1.352 198 561
Heavy Construction Contractors 432 1.145 55 377
Special Trade Contractors 1006 1.386 280 726
Manufacturing:
Food and Kindred Products 127 .2402 127
Apparel Products 195. .5968 195
Lumber and Wood 460 2.277 460
Furniture and Fixtures 4 .0464 4
Paper and Allied Products 925 5.561 925
Printing and Publishing 203 .5695 203
Chemicals and Allied Products 254 1.061 254
Rubber and Misc. Plastics Products 146 1.043 146
Stone, Clay, Glass Products 275 1.447 275
Fabricated Metal Products 112 .3887 112
Machinery, except Electrical 256 1.0139 256
Electric and Electronic Equipment 15 .0337 15
Transportation Equipment 107 .2688 107
Instruments and Related Products 20 .1603 20
Miscellaneous Manufacturing 274 3.69 274
Transportation and Public Utilities:
Local and Interurban Passenger Transit 13 .2000 13
Trucking and Warehousing 282 .8085 282
U.S. Postal Service 177 a 177
Water Transportation 282 2.566 282








(Table 7 Continued)


Standard
Industrial Classification


Employ- Location
ment Quotient


Non-
Basic basic


Transportation By Air
Transportation Services
Communication
Electric, Gas, & Sanitary Services
Wholesale Trade:
Durable Goods
Nondurable Goods
Retail Trade:
Building Materials and Garden Supplies
General Merchandise Stores
Food Stores
Automotive Dealers and Service Stations
Apparel and Accessory Stores
Furniture and Home Furnishings
Eating and Drinking Places
Miscellaneous Retail
Finance, Insurance, Real Estate:
Banking
Credit Agencies Other Than Banks
Security, Commodity Brokers and Services
Insurance Carriers
Insurance Agents, & Brokers, & Service
Real Estate
Combined Real Estate, Insurance, Etc.
Holding & Other Investment Offices
Services:
Motel and Lodging Places
Personal Services
Business Services
Automotive Repair Services & Garages
Miscellaneous Repair Services
Motion Pictures
Amusement & Recreation Services
Health Services
Legal Services
Educational Services
Social Services
Membership Organizations
Miscellaneous Services


61
7
669
212

813
462

261
1374
1527
853
387
292
2414
863

350
207
12
231
121
514
6
13

1172
312
419
244
105
86
519
1782
99
2827
198
61
315


.0167
.0736
1.155
1.6563

1.4068
.668

1.319
1.5199
1.408
1.3043
1.143
1.295
1.686
1.166

.7130
.7034
.190
.564
.622
.7617
.735
.2526

b
.732
.423
.962
.869
1.354
1.005c
.760
.416
a
a
.410
a


90
84

235


63
470
442
199
48
67
982
123


1113




86


61
7
579
128

578
462

198
904
108)
654
339
225
1432
740

350
207
12
231
121
514
6
13

59
312
419
244
105


467 52
1782
99
396 2431
45 153
61
27 288








(Table 7 Continued)


Standard
Industrial Classification


Employ- Location
ment Quotient


Non-
Basic basic


Public Administration:
Executive, Legislative and General
Justice, Public Order and Safety
Finance, Taxation & Monetary Policy
Administration of Human Resources
Environmental Quality and Housing
Administration of Economic Programs
National Security
Marine Recreation


TOTAL ALL INDUSTRIES


29,822


.11,363 18,459


Sources: Florida Department of Labor and Employment Security and Computations
by authors.

aAll federal and state employment was classified as basic and local
government as non-basic.

bNinety-five percent of hotel business was assumed to be by non-
residents.

cData was adjusted as a result of examining employment data by
individual firm and telephone conversation with proprietors as
to source of business.

dEconomic base employment multiplier.


1024
161
68
245
198
185
1612
581


82
102
35
211
138
185
1612
355


942
59
33
34
60
0
0
226












TABLE 8

BAY COUNTY EMPLOYMENT ALLOCATED BY INDUSTRY
AND SOURCE OF DEMAND, 1978


Basic Activity
Sales to Other Nonbasic
Marine Sales to Activity
Recreation Non- Sales to Total
Industry Tourists Residents Residents Employed

Marine Recreationa 355 -- 226 581
Hotels and Motelsa 387 727 58 1172
Restaurants 341 641 1432 2414
Agriculture, Forestry, -- 73 40 113
Fisheries
Mining -- 50 6 56
Construction -- 533 1131 1664
Manufacturing -- 2590 783 3373
Transportation, Cor- -- 633 1070 1703
munication, Utilities
Wholesale and Retail -- 1647 5185 6832
Finance, Insurance, and -- 0 1454 1454
Real Estate
Services 113 908 5946 6967
Government 126 2239 1128 3493

ALL INDUSTRIES 1322 10041 18459 29822



Source: Interviews of marine-related recreation business owner-operators;
Florida Department of Labor and Employment Security, ESA 202 Bay
County Annual Summary; and Bay County Auto Survey, Division of
Tourism.
aThese industry categories' employment figures are reported
separately and not included in the nine major industrial categories
below.









County. During the last three quarters of 1977 and the first quarter of 1978,

34.7 percent of the respondents in the Bay County Auto Survey indicated that

fishing and boating was an important activity to them. Thus, 34.7 percent of the

total basic employment in the motel and restaurant categories was allocated to

marine recreation basic employment. Thus a minimum of 1,322 jobs can be

attributed to marine-related recreation basic activity.


Economic Impact of the Marine Recreation Industry

The marine recreation tourist industry directly employs at least 1,322

persons in Bay County. Multiplying this basic employment figure by the

economic base multiplier of 2.62 estimates an impact on total employment of

3,364 jobs. Thus, the 1,322 marine recreation jobs generate the need for an

additional 2,142 jobs throughout the Bay County economy. In other words, if Bay

County did not have a viable marine recreation industry, it would lose a total of

3,364 jobs, 1,322 marine recreation jobs as well as 2,142 jobs in other industries.

Viewed in this manner, the marine recreation industry assumes a great deal

of importance: 11 percent of total employment in Bay County. In fact, this

industry directly and indirectly accounts for only 259 fewer jobs than currently

exist in the manufacturing sector. It accounts for more jobs than the number

existing in each of the following industries: Agriculture, Forestry, and Fisheries;

Mining; Construction; Transportation, Communication, and Utilities; and

Finance, Insurance, and Real Estate.

The impact of basic marine recreation employment can also be measured in

terms of the income flow it generates to Bay County's economy. In the absence

of firm specific payroll data the authors used the average wage for the

appropriate Two-Digit Standard Industrial Classification Code as an estimate of

the average wages paid by each type of marine-related recreation business. The

average wage was multiplied by the basic employment in each marine recreation





60


category to estimate total wages paid by category. Table 9 shows that basic

marine recreation employment generates an estimated $7,329,994 of income flow

into Bay county.

















TABLE 9

ESTIMATED ANNUAL PAYROLL OF BASIC
MARINE-RECREATION EMPLOYMENT
BAY COUNTY


Type of Establishment
(Two-digit SIC Code)


Basic
Employment


Boat Builders (37)
Boat Sales & Service (55)
Fishing & Diving Equipment
and Supplies (59)
Marinas (44)
Sportfishing Vessels
Motels (70)
Restaurants (58)
Services (79)
Government (95)


23.14
19.90

35.16
119.48
156.97
387
341
113
126


8153.36
9642.29

6405.40
8441.99
2891.00
4691.58
4108.17
6648.94
10,269.23


TOTAL


$ 188,669
191,882

225,214
1,008,649
453,800
1,815,641
1,400,886
751,330
1,293,923

$7,329,994


Source: Personal interviews of marine-recreation owner-operators and the
Bay County ESA-202 Reports, Annual Summary, Florida Department
of Labor and Employment Security, 1977.

aAverage wages (in 1977 dollars) for each type of establishment are the average
wages of the appropriate 2-digit Standard Industrial Classification (SIC) Code.


Average
Wages


Total
Wages










PART 4: CONCLUSIONS AND RECOMMENDATIONS


This section of the report discusses the supply and demand relationships for

the marine-related recreation businesses, the condition and utilization of the

public marine recreation facilities, and recommendations for both the private

and public sectors of the marine recreation industry in Bay County.


Supply and Demand Relationships: Marine Recreation Businesses

An analysis of the mapped inventory (Figures 1-7), in combination with the

interviews of local business people, provides a qualitative indication of the supply

and demand relationships for the marine-related recreational industry in Bay

County. This section evaluates the relationship between supply and demand for

the various business categories, and attempts to locate possible "gaps" in the

county's marine industry.

Marinas. The present marina capacity in the county is not large enough to

meet the demands of both the local residents and the tourists. This is indicated

by nearly 100 percent slip usage rates for many of the county's marinas. The

problem does not appear to be one of too few marinas, rather, the existing

marinas are unable to expand. The reasons for this situation are twofold:

First, the returns for marine expansion are not as high as the returns
from other forms of investment available to marina operators. The
construction of boat slips is very costly and available area for
expansion is scarce.

Second the permitting procedures for slip expansion are not only time
consuming and cumbersome, but they must also be carefully
correlated with the loan process. Consequently, most marina owners
are not willing to make the effort marina expansion requires.

Boating Services. Owner-operators from nearly all establishment types felt

that there is an oversupply of boat dealerships in the county. Reasons for the










PART 4: CONCLUSIONS AND RECOMMENDATIONS


This section of the report discusses the supply and demand relationships for

the marine-related recreation businesses, the condition and utilization of the

public marine recreation facilities, and recommendations for both the private

and public sectors of the marine recreation industry in Bay County.


Supply and Demand Relationships: Marine Recreation Businesses

An analysis of the mapped inventory (Figures 1-7), in combination with the

interviews of local business people, provides a qualitative indication of the supply

and demand relationships for the marine-related recreational industry in Bay

County. This section evaluates the relationship between supply and demand for

the various business categories, and attempts to locate possible "gaps" in the

county's marine industry.

Marinas. The present marina capacity in the county is not large enough to

meet the demands of both the local residents and the tourists. This is indicated

by nearly 100 percent slip usage rates for many of the county's marinas. The

problem does not appear to be one of too few marinas, rather, the existing

marinas are unable to expand. The reasons for this situation are twofold:

First, the returns for marine expansion are not as high as the returns
from other forms of investment available to marina operators. The
construction of boat slips is very costly and available area for
expansion is scarce.

Second the permitting procedures for slip expansion are not only time
consuming and cumbersome, but they must also be carefully
correlated with the loan process. Consequently, most marina owners
are not willing to make the effort marina expansion requires.

Boating Services. Owner-operators from nearly all establishment types felt

that there is an oversupply of boat dealerships in the county. Reasons for the








apparent overinvestment in boating dealerships are not entirely clear. One

dealer expressed the opinion that the industry is a glamorous one, and this may

attract more investment than would normally be warranted for the expected

returns. Overzealous expectations of boat sales to tourists may also be a factor.

The market will weed out the more uncompetitive dealers, but in the meantime

there will be a good deal of instability in the industry. On the one hand, the

oversupply causes extreme competition among the dealerships which results in

savings to the boat purchasers. On the other hand, it contributes to an

unnecessary and inefficient dispersion of these businesses, which results in

increased travel costs to the prospective boat purchaser. When excessive

competition forces dealers out of the industry, problems such as increased

unemployment for mechanics and salespeople can occur. Since marinas often sell

boats as well, the excessive competition affects their ability to invest in new

slips for storage.

The miscellaneous boating supply stores and the boat repair shops have a

degree of competition, yet they are able to locate near one another without fear

of excessive price cutting to drive competition out of business. This is especially

true of the small boating repair shops, which depend in large degree on

reputation and return customers. In general, these businesses appear to provide a

supply commensurate with the demand for their services.

Fishermen's Supply Stores. The number of fishermen's supply

establishments appears to be consistent with the demand for their goods and

services. One gap in the industry may be in the area of Watson and Massalina

bayous, where no bait and tackle stores exist.

A major economic problem for the small fishing supply stores is the

relatively widespread availability of their goods. In some cases even gas stations

and drug stores have entered the bait and tackle sales market. Many of the








larger department stores can offer tackle at prices that are below cost, and the

goods act as a "loss leader", enticing customers to the store.

To alleviate the problems caused by the decentralization of bait and tackle

sales, the fishermen's supply stores strive for convenience for the customers by

locating near the recreational facilities that are the destination of fishermen.

Another response of the fishing supply stores to decentralization is to specialize

in services, particularly in rod and reel repair. This has proven effective. In

summary, the main competition in the fishing supply industry comes not from the

other bait and tackle shops, but from other stores offering bait and tackle as an

ancillary good.

Charter and Head Boats. There does not appear to be much room for entry

into the charter and head boat industry in Bay County. The number of vessels is

in part limited by the extent of the marine resources, which have been declining

in recent years. This decline is reflected, in part, by a decrease in the number of

chartered fishing trips into the Gulf of Mexico for many of the vessels (Gulf of

Mexico Fishery Management Council, 1978). In addition, higher fuel costs will

affect the fishing vessels in two ways. One, as fuel costs rise the charter and

head boat captains must charge more per boat or per person. This will tend to

decrease the number of customers they provide services for, because some

people will be unwilling to pay the extra costs. Two, rising fuel costs may tend

to decrease the number of trips to Bay County by tourists. As noted in Part 3,

the charter and head boats depend significantly on the out-of-county customer.

Dive Shops. The supply of dive shops in Bay County appears to be equal to

demand, both in terms of their overall numbers and with respect to their

location. Six dive shops provide enough equipment for the residents and tourists

to 'shop around', and their dispersion indicates that they are competitive.









Public Facilities

Public marine recreation facility development and maintenance affects n6t

only the users' participation and enjoyment, but it also provides an impetus to

growth in the marine recreation industries. For example, the location of a boat

ramp in an area with good access to fishing grounds might be conducive to the

establishment of a bait and tackle store or some other business. Public facilities

may also have a negative effect on business. Poor maintenance of an existing

boat ramp might lead to a decline in users and hence have a declivitous effect on

any marine-related business located nearby.

There were several problems mentioned by the marine-business

owners/operators regarding public facilities. The most frequent comment was

that there is an insufficient supply of facilities, in particular, public docking

facilities and boat ramps. The condition of existing facilities was also noted as

being inadequate. Attention to these problems could have a favorable impact on

the county's economy.

Several special problems are outlined below. These are areas of immediate

need, and they should be given priority attention by decision makers.

Mexico Beach Canal. Mexico Beach, located along the coast in

southeastern Bay County, is a small community with approximately 88 year-

round residents. For the past ten years there has been a problem concerning a

canal which services three marinas and provides the primary tourist attraction in

the area. Continuous dredging of the mouth of the canal is needed to keep the

canal open. Beach renourishment efforts are also needed to lessen the

exacerbating affects caused by dredging efforts and jetty placement. The town

of Mexico Beach cannot afford the cost of the continual maintenance, but at

present the only assistance the town has received has been a gratuitous

acknowledgement of the canal problem by local, state, and federal governments.








A Coastal Plains Regional Commission survey (1979) indicated that of the

thirty-one businesses located in Mexico Beach, all reported that over 50 percent

of their gross sales resulted from tourist. activities. Eighteen indicated that

tourist expenditures were responsible for 90-100 percent of their gross sales.

The economic base of the community is clearly dependent on marine-recreation

activities, and in particular from the boating opportunities provided by the canal.

Town citizens and local officials have contacted numerous federal, state

and local agencies for funding for. the canal maintenance and beach

renourishment. The city has allocated money yearly to help alleviate the

problem, while local citizens have provided a work force for dredging activities.

Nonetheless, studies and recommendations have produced no positive result. The

potential for Mexico Beach is significant given that the canal can assume a 100

percent, year-round utilization. The economic stability of a community should

not be contingent upon the political influence of its local officials or on the

verbal and technical dexterity of its citizens. Additional interest should be

directed towards the Mexico Beach canal.

Boat Ramps. No problem area was cited more frequently than the need to

repair and maintain the county's existing boat ramps. Apparently funding

problems have caused the boat ramps to, be ignored by local decision makers.

This is being rectified, but the boat ramps need immediate attention because

they pose, in some cases, a safety problem to those who use them.

It is difficult to measure the impact that.improved boat ramps would have

on the marine recreation economy in the county. Nonetheless, it is a problem

that is recognized by business people from every category identified in the

inventory. Thus, it appears that the effect of improving the county's ramps

would be more than localized. This problem is clearly a case of public facility

upgrading that will have a positive effect on the private sector, possibly to the

point of spurring employment in the marine-related businesses.








Among the ramps mentioned most frequently as needing repair were those

at Carl Gray Park, Lynn Haven, Martin Lake, and St. Andrews State Recreation

area.

Artificial Reefs. The Bay County area is known for its sportfishing

opportunities; however, a decline in the Gulf's fish stock has been noticed in

recent years. Although additional research into the alternatives to natural

regeneration of the fish stock is needed, artificial reefs present a relatively quick

solution to the problem of the declining fish population. Artificial reefs act as

both an attractor and as a breeding instigator for many fish species. These reefs

also provide an excellent opportunity for the recreational divers in the area.

Unfortunately, there is an undersupply of artificial reefs in Bay County's

waters. Conflicts between the sportsfishermen, commercial fishermen, and

recreational divers have been reported. The Panama City Marine Institute

carries out reef construction and placement. However, sporadic public and

private funding has limited extensive reef construction and maintenance.

Additional reef construction, as well as a reef allocation system between user

groups, would both minimize existing conflicts and maximize economic benefits

to the county.


Recommendations

Industry Organization. Many of the problems of the marine recreation

industry in Bay County are the responsibility of the private marine-related

recreation businesses. The industry is highly fragmented, and as a result most of

the industry's problems remain unarticulated to local decision makers. To

alleviate this problem the marine-related recreation businesses should realize the

breadth of the interrelationships within the industry. All of the businesses

identified in this report are an integral part of a diverse industry. Both the

individual businesses and the Bay County economy as a whole would benefit from








an organization designed to promote the future development of the marine

recreation industry. In addition to alerting public decision makers to the

industry's special needs and problems, the organization could sponsor a variety of

special events benefiting both local residents and tourists, such as boat races,

skiing events, and fishing tournaments. It could also raise money to support the

construction of artificial reefs.

Countywide Marine Recreation Plan. A countywide marine recreation plan

is recommended to incorporate marine recreation and tourism goals into an

overall economic development plan. Such a plan would provide cohesiveness to

the marine recreation industry on a policy level. At present, incremental

decisions are being made that may have deleterious impacts on the marine

recreation industry.

At a minimim, the county plan should address the following:

o Methods of alleviating the severity of economic fluctuations in the
industry during the winter season;

e The feasibility of planning an intensive marine recreation community
in the St. Andrews area, which can be publicized as both an historic
and scenic area, with many recreational opportunities for the resident
and tourist;

o Providing public funds to those public facilities that have the most
impact on marine recreation in the county. Each public facility
should be evaluated in terms of its potential economic impact on the
marine recreation industry. This process would allow public funds to
be more efficiently allocated; and

a The likely impact of gasoline shortages and price increases on the
economic health of the county's marine recreation industry.

The ideal situation would be to incorporate this plan into the Bay County

Comprehensive Plan. Cooperation between county decision makers, residents,

and the private sector is necessary to attain a workable comprehensive marine

recreation plan that addresses in a meaningful way the needs of Bay County.











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Economic Impacts. Journal of the American Institute of Planners.
(January, 1977), p. 33-41.

Isserman, Andrew M. "Regional Employment Multiplier: A New Approach"
(Comment). Land Economics. (August, 1975), p. 290-293.

Leigh, R. The Use of Location Quotients in Urban Economic Base Studies. Land
Economics. (May, 1970), p. 202-205.

Lloyd, Peter and Peter Dicken. Location in Space: A Theoretical Approach to
Economic Geography. (New York: Harper and Row, 1977).

Mathew, Vinay and Harvey Rosen. Regional Employment Multiplier: A New
Approach. Land Economics. (February, 1964), p. 93-96.

Miller, Sarah 3. Coastal Plains Regional Commission Survey. On file with the
Florida Department of Commerce, Bureau of Economic Analysis, 1979.

National Marine Fisheries Service. The 1970 Saltwater Angling Survey.
(Washington, D.C.: USGPO, 1972).

North, Ronald M. Economic Values for Marine Recreational Fisheries. Marine
Recreational Fisheries. (Sportfishing Institute, Washington, D.C.: 197-6, p.
37-52.

Nourse, H. Regional Economics. (New York: McGraw-Hill, 1968).

Pfister, R. On Improving Export Base Studies. Regional Science Perspectives.
(1976), p. 104-106.

Sutherland, Doyle. Estimated Average Daily Instantaneous Numbers of
Recreational and Commercial Fishermen and Boaters in the St. Andrew Bay
System, Florida and Adjacent Coastal Waters, 1973. NOAA Technical
Report NMFS SSRF-724. (May 1978).

Tiebout, Charles. The Community Economic Base. (New York: Committee for
Economic Development, 1962).











APPENDIX 1

MARINE-RELATED BUSINESS INVENTORY*


Marinas (Figure 1)


1. Seapath Marina
Hwy. 77
Lynn Haven

2. Val's Bayside Marina
6325 Big Daddy Dr.
Panama City Beach

3. Holiday Lodge Marina
6400 W. Hwy. 98
Panama City Beach

4. Sun Harbor Lodge and Marina
5505 W. Hwy. 98
Panama City Beach

5. St. Andrews Marina
3000 W. 10th St.
Panama City

6. Panama City Marina Services
I Harrison Avenue
Panama City

7. Ethridge Marina
112-A 3rd. Ct.
Massalina Bayou

8. Harby Marina
1051 E. Hwy. 98
Panama City

9. Gulf Marina
1500 E. 5th
Panama City


10. Snug Harbor
1830 E. 5th St.
Panama City

11. B & W Pier 98 Marina
5904 E. Hwy. 98
Parker

12. Treasure Island Marina
3605 Thomas Dr.
Panama City Beach

13. Passport Marina
5323 N. Lagoon Dr.
Panama City Beach

14. Anderson's Marina
5500 N. Lagoon Dr.
Panama City

15. Mexico Beach Marina
Mexico Beach

16. Marquardt's Marina
Mexico Beach

17. Hide-a-Way Harbor Marina
Mexico Beach

18. Tarpon Dock Marina
Beach Drive
Massalina Bayou


*Businesses are listed by figure key numbers. (Refer to figures in text.)








Boating Services (Figure 2)


1. ABC Trailer Repairs
Hwy. 77
Lynn Haven

2. Gibbs Marine Services
520 Ohio Avenue
Lynn Haven

3. Queen Craft Inc.
3615 Calhoun Avenue
Panama City

4. Piranha Marine
511 E. 23rd St.
Panama City

5. Marshall Marine
E. Hwy 22
Springfield

6. Walker Boatworkers
7516 Walker Dr.
Panama City

7. 3oe"s Boat Repairs
Hwy. 22 & Comet Avenue
Callaway

8. The Boating Center
5615 E. Hwy. 22
Panama City

9. East Bay Marine
305 S. Tyndall Pkwy.
Panama City

10. P-C Marine
6001 E. Hwy 98
Parker

11. Davis Boat Repair
410 East Park St.
Parker

12. Parker Marine
1012 W. Park
Parker

13. Bay Marine and Propeller Co.
119 N. Church Avenue
Panama City

14. Sherman's Shipyard
11 N. College Avenue
Panama City


15. Seafood Specialist Boatworks
Sherman Avenue
Panama City

16. Austin Machine Works
2501 E. Business Hwy. 98
Panama City

17. Paul's Marine Repair
City Marina
Panama City

18. Tibbet's Boatworks
305 E. Beach Dr.
Panama City

19. Rich's Marine
618 Jencks Avenue
Panama City

20. 3 & L Marine Supply
1107 Beck Avenue
Panama City

21. International Outboard Parts
1310 Beck Avenue
Panama City

22. Mar-K Marine Services
1604 Louise Avenue
Panama City

23. A-i Marine Inc.
5601 W. Hwy 98
Panama City

24. Charles' Marine Services
5505 W. Hwy 98
Panama City

25. Brigg's Marine Repair
100 Thomas Drive
Panama City Beach

26. 3.3.'s Marine Service
and Custom Engineering
2505 Thomas Drive
Panama City Beach

27. The Sailor's Supply Co.
5323 N. Lagoon Dr.
Panama City Beach

28. Panama City Sailing Center
3608 Biltmore Dr.
Panama City Beach










Fishermen's Supplies (Figure 3)


1. Deer Haven Bait and Tackle
E. Hwy 77-A
Lynn Haven

2. Libby's Fishing Supplies
Hwy. 77
Panama City

3. Deerpoint Dam Bait and Tackle
Deerpoint Lake Dam


4. Howell Tackle
510 Tennessee Avenue
Lynn Haven


Brannon and Son
2537 St. Andrews Blvd.
Panama City


6. Richard's Bait and Tackle
2211 Hwy 231

7. Fisher-Stinson Hardware Co.
756 Airport Dr.
Panama City

8. The Tackle Box
4204 W. 23rd St.
Panama City

9. Bell Tackle
1315 Beck Avenue
Panama City

10. Gandy and Sons...
1122 Beck Avenue
Panama City

11. Brannon's Seafood
2824 E. 1st Ct.
Panama City

12. Pilcher Bait and Tackle
4612 Hwy. 22
Springfield


13. Leon's Bait and Tackle
Hwy. 22
Springfield

14. R & H Sporting Variety
and Grocery
6240 E. Hwy 98
Parker

15. The Fishook #3
Hwy. 98 (near jetties at
St. Andrews State Park)

16. The Fishook #2
Hwy. 98 (near entrance
to St. Andrews State Park)

17. Roy's Corner
Grand Lagoon and Thomas Dr.
Panama City Beach

18. Half-Hitch Tackle and
Marine Supplies
3104 Thomas Drive
Panama City Beach

19. Billy Boy's Bait and Tackle
3016 Thomas Drive
Panama City Beach

20. Holley's Gulf and Beach Supply
7103 W. Hwy. 98
Panama City Beach

21. The Fishook #1
16101 Hwy. 98
Panama City

22. West Bay Fish Market
Hwy. 79
West Bay

23. Cain's Fishermen's Catch
Phillips Inlet










Charter Boats (Figure 4)


i. Holiday Lodge Marina
6400 W. Hwy. 98
Panama City Beach

Sweet Thing
Miss Dawn
Marian II
Osprey

2. Anderson's Marina
5500 N. Lagoon Dr.
Panama City

Big Daddy
Big Daddy II
Sea Hawk
Skipper
Barracuda
Capt. Buck
Billy Joe
Capt. Lee
Fu Lin Yu II
Kingfisher
Capt. Joe Bishop
Sea Foam
Sonny Boy
A.R. Holley
The Hobo
Sea Horse
Genie
Nauti Lady
Crosswinds
Nick-Nack
Poseidon
Capt. Glenn
Daphne D

3. Treasure Island Marina
3605 Thomas Dr.
Panama City Beach

Miss Nell
Wendi
Duchess
Ruthie
Calypso
Pixie P
Shell Back
Afternoon Delight


4. Bay Point Yacht Club (private)

Lady M Too
Lucky Day

5. St. Andrews Marina
3000 W. 10th St.
Panama City

Davy Jones
Miss Penny
Capt. Sparkie
Kelly Girl
Capt. Sandy
Crosswind III
Fisherman
Capt. Bill
Skipjack
Capt. Sandy II
Booby Two
Pastime
Victory Morn
A.R. Holley


Smith Yacht Basin


Capt. Bert
Bandit
The Hooker
Bonita
Scorpio II










Head Boats (Figure 5)

1. Holiday Lodge Marina

Holiday Queen

2. Anderson's Marina

Capt. Anderson III
Capt. Anderson IX
Capt. Anderson X
Judy Beth
S.W. Anderson

3. Treasure Island Marina

Florida Fisherman
Florida Girl

4. St. Andrews Marina

San Queen
Ocean Queen
New Dixie Queen
Gemini Queen
Florida Queen
Star Queen










Divers' Equipment and Supplies (Figure 6)

1. C & G Sporting Goods
137 Harrison Avenue
Panama City

2. Old Timer's Diver Supply
4400 West Hwy 98
Panama City

3. Hydrospace International
3605 Thomas Drive
Panama City Beach

4. The Pro Divers' Shop
1218 Beck Avenue
Panama City

5. C & G Sporting Goods
Panama City Mall

6. The Divers' Den
4700 East Hwy. 98
Parker






77


APPENDIX 2

PUBLIC MARINE RECREATION FACILITIES AND BOAT RAMPS*


1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

15.

16.

17.

18.


Fanning Bayou Boat Ramp

McKenzie Road Boat Ramp

A.L. Kinsaul Park

Boat Ramp

Mill Bayou Park

Danley Street Boat Ramp

Frank Nelson Junior Park

Carl Gray Park

Boat Ramp

Lake Huntingdon Park

DOT Wayside Park

St. Andrews Boat Ramp

J.R. Asbell Memorial Park

Boat Ramp

Watson Bayou Park

Boat Ramp

Sudduth Park

Boat Ramp


*Facilities are listed by Figure 7 key numbers. (Refer to figure in text.)


19. Cove Terrace Park

20. Adams Memorial Park

21. Callaway Community Park

22. Circle Drive Boat Ramp

23. Mexico Beach Pier

24. Mexico Beach Park

25. St. Andrews Bay State
Aquatic Preserve

26. St. Andrews State
Recreation Area

27. Boat Ramp

28. Boat Ramp

29. Boat Ramp

30. Boat Ramp

31. Dolphin Street Boat Ramp

32. Safari Street Boat Ramp

33. Panama City Beach Pier

34. Boat Ramp

35. Lake Powell Recreation Area

36. Boat Ramp











APPENDIX 3

BAY COUNTY MARINE BUSINESS INTERVIEW SCHEDULE


NOTE: This questionnaire is confidential. Data recorded will not be reported
for individual businesses.

Interview I.D. No.

Name of Business

Location of Business

Owner

Telephone


1. Please describe briefly the major products or services of your
establishment.








2. What is your estimate of your establishment's gross sales for 1978? (All
responses confidential)






3. What percentage of your gross sales in 1978 were for saltwater purposes?
%; for recreational purposes? 6%.

4. In your best estimate, what percentage of your 1978 sales were sold to
customers from outside of Bay County? %

5. Of the total sales to customers outside of Bay County (question 4), what
percentage was sold to:

a. Tourist (in Bay County for recreational purposes) %

b. Other customers 6%








6. What is your. average number of employees (excluding yourself) for the
periods:

a. December to February
b. March to May
c. June to August
d. September to November

7. a. How long have you been in this type of business?

b. How long has your.business been at its present location?

8. a. How did you decide to locate your business at its present location?
(information sources, rationality, etc.)


















8. b. (If 7b is different from 7a) Where was your business previously
located? Why did you decide to relocate?








9. What other type of business could you operate at this location?













10. What businesses are your four most important competitors?

1st
2nd
3rd
4th

11. If you wanted to move to another location in Bay County, would there be
any obstacles (such as land prices or taxes, etc.) that might prevent you
from changing your business' location?


12. How did the location of similar, but non-competitive businesses or
amusements affect your decision to locate at your present site?








13. How important were these factors in choosing your business location?

a. Nearness to beach
Not at all
Somewhat
A great deal

b. Nearness to recreational facilities other than the beach
Not at all
Somewhat
A great deal










c. Bridges
Not at all
Somewhat
A great deal


d. Easy access for customers
Not at all
Somewhat
A great deal

e. Cheap land prices relative to your sales expectations
Not at all
Somewhat
A great deal

14. To what extent did a competitor's location enter into your decision to
locate at your present site? Did you try to locate away from, or close to, a
competitor? Why?









15. How might the local government, Chamber of Commerce, Planning
Department, etc. help your establishment (street improvements, publicity,
etc.)?










16. Are there any other factors you evaluated when you located your business?





17. Where do you feel the best location is for your type of business in the
county? (Please be specific.) Is there already another establishment
similar to yours in that area? If not, why don't you move there?









18. Is there an oversupply of any marine recreation businesses in Bay County?


19. Is there an oversupply or undersupply of any public facilities relating to
marine recreation in Bay County?


State University System of Florida Technical Papers are published by the
Marine Advisory Program which functions as a component of the Florida
Cooperative Extension Service, John T. Woeste, Dean, in conducting Cooperative
Extension work in Agriculture, Home Economics, and Marine Sciences, State of
Florida, U.S. Department of Agriculture, U.S. Department of Commerce, and
Boards of County Commissioners, cooperating. Printed and distributed in
furtherance of the Acts of Congress of May 8 and June 14, 1914. The Florida
Sea Grant College is an Equal Employment Opportunity-Affirmative Action
Employer authorized to provide research, educational information and other
services only to individuals and institutions that function without regard to
race, color, sex or national origin.




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