A. Clean Marinas -- Clear Value Literature Review and Bibliography

September 21, 1995

Foreword

Each state within the US coastal zone has the responsibility to implement and encourage compliance with nonpoint source (NPS) pollution control measures that are mandated by Section 6217 of the Coastal Zone Act Reauthorization Amendments (CZARA) of 1990. Enforcement of such measures at marinas and recreational boating facilities is difficult. However, owners and operators of many marinas have voluntarily made environmental improvements in their operations. Case study examples of actual savings or profits realized from the application of various NPS control practices may help encourage marina owners to invest in such modifications to their operations.

With over 16.6 million recreational boats in use today, marina and boatyard facilities are in high demand. Total recreational boating business retail sales for 1994 hit $14.1 billions showing significant recovery from the industry recession which started in 1989 and bottomed out in 1992. Of the total US population, between 21 to 31 million people are involved in some form of boating activity (fishing, power boating, water skiing, canoeing, sailing) (Boating Industry, 1994).

Environmental impacts to surrounding surface waters from marina-related activities can include toxicity in water, dissolved oxygen depletion, and contamination of fish and shellfish. Economic impacts of water quality degradation extend to the commercial fishing industry, water-related tourism, and nearby real estate values (Hayes et al., 1992; Kirshner and Moore, 1988). Thus, investments in water quality controls at the roughly 9,000 marinas and boatyards in the United States may realize environmental and economic benefits beyond the marina and boating industries (Boating Industry, 1994).

After an extensive search, it was determined that very little public literature is available that documents firm level benefits and costs from investments in environmental improvements. A 1992 EPA study estimated the costs of NPS control measures to marinas, but did not consider possible benefits from such investments. A 1986 publication from the Institute for Local Self-Reliance documents in case study format the benefits and costs of pollution prevention measures to companies in the chemical and manufacturing industries. Finally, there is currently an effort within the hotel industry, spearheaded by a hotel management consulting firm, to reform hotel management practices to become environmentally friendly through reducing waste and conserving energy and water.

Each of these four references is summarized here, along with comments on their usefulness for the "Clean Marinas Clear Value" study.

Annotated Literature Summary

Summary: This Jellicorse et al. (1992) study estimates the costs of nonpoint source (NPS) pollution control measures to coastal marinas. The analysis is conducted through hypothetical scenarios of various management practices. The report first reviews the sources and impacts of NPS pollution related to marina operation, and characterizes the design and distribution of marinas in the US coastal zone.

Jellicorse et al. establish six hypothetical "model" marinas of varying size, location, services provided, and financial standing to represent the types of marinas found in the coastal zone. Costs of implementation are estimated for three management scenarios, each gradually more stringent in number and type of control measures. NPS controls were specified in the general categories of: siting and design, storm water runoff, sewage disposal, and operations and maintenance. Costs of implementation were estimated to vary between less than 1% of sales up to 8% of sales for privately owned marinas, depending on the management scenario and the characteristics of the marina.

Summary: The largest hotel company in Canada, Canadian Pacific Hotels & Resorts, developed "The Green Partnership Guide" for its 27 hotels across the country. The 129-page guide book was made available to all managers, with suggestions for environmental improvements in all departments at each hotel including: waste disposal, laundry, kitchen, grounds, plant management, stores, housekeeping, repairs and renovations, food service, and golf course management. The initial ideas for savings/improvements came from workers in each of these departments by way of a questionnaire. One of the chain's hotels incurred an initial outlay of $100,000 to implement some of the suggested practices, and netted $250,000 in savings.

Comments: Canadian Pacific has outlined many examples of cost savings at its hotels throughout the country, including savings on energy costs and waste disposal costs. In addition, the chain as a whole received a great deal of publicity from the implementation of this "environmentally-friendly" program. At least seven different publications covered the story of the company's innovative environmental policies. The benefits that Canadian Pacific realized from this "free" positive publicity are unknown. However, many companies pay thousands of dollars for equivalent advertising space.

d. Dela Cruz, Tony. "Two Years After Bombing, Vista Reopens as First Ecotel." Hotel Business. November 14, 1994. pp. 1b, 18b.

HVS Eco Services. "Environmental and Energy Consulting for the Hotel Industry Awards the ECOTEL Certification." Company prospectus. Mineola, New York.

Summary: In Fall of 1994, the New York Vista Hotel was the first company to be awarded an "ECOTEL" certification from HVS Eco Services. HVS Eco Services awards an "ECOTEL" designation to hotels that have exhibited environmentally stringent management practices.

Summary and Conclusions

Only one compilation of case studies provides actual examples of profits and savings from resource conserving and waste reducing investments. Presentation of case studies in the marina industry may perhaps be modeled after this industry guidebook, published by the Institute for Local Self-Reliance.

Finally, the marina industry may consider the current movement within the hotel industry to establish a green seal of approval for environmentally sound management of individual hotels. Such an award system carries with it a sense of pride that may encourage marina owners to "join the ranks" of those who are investing in better management practices. Positive publicity (local or national) may be an added bonus to marinas that make these investments. Marketability of environmental improvements can help establishments regain, and even profit from their investments.

Other References

Hayes, K., T. Tyrrell, and G. Anderson. "Estimating the Benefits of Water Quality Improvements in the Upper Narragansett Bay." Marine Resource Economics. 1992. v. 7. pp. 75-85.

International Marina Institute. National Marina Index - Marina Industry Financial Performance. Quarterly Report. January 1990.

Kirshner, D., and D. Moore. "The Effect of San Francisco Bay Water Quality on Adjacent Property Values." Environmental Defense Fund. Oakland, CA. unpublished. 1988.

Ofiara, D.D., and B. Brown. Marine Pollution Events of 1988 and Their Effect on Travel, Tourism, and Recreational Activities in New Jersey. Bureau of Economics Research, Rutgers University. New Jersey. March 1989.

Rorholm, N., and D. Burrage. Economic Impact of the Rhode Island Boating Industry. University of Rhode Island Department of Resource Economics. Sea Grant Report. 1983.