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Resiliency of the Coastal Recreational For-Hire Fishing Industry to Natural Disasters

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Abstract

The financial condition of US Gulf of Mexico recreational-for-hire (RFH) fishing firms post-hurricane damage was examined within the context of the industry’s contribution to the resiliency of coastal socio-ecological systems (SES). Three key financial ratios—return-on-assets, assets turnover ratio, and debt-to-assets ratio—were calculated for 2009 from balance sheets and cash flow statements constructed from surveys of 247 RFH firms operating in the five Gulf states. The ratios were then recalculated using reported damage and operational losses from at least one named storm in the 2004–2008 period and combined with the results of a logistic regression model of profitability loss to assess the resiliency of the RFH industry. Results suggest that RFH firm resiliency was a function of operating class (head, charter, and guide boats), homeport, and the way in which the business was structured. Firms appeared to be the most resilient when they employed smaller vessels in intensively managed operations, perhaps due to their ability to move a vessel out of the path of storms and because their profitability and efficiency advantages allowed for self-insurance against losses. As a result, community contributions to, and benefits from, resiliency in the RFH industry may hinge on the development of more modern port facilities and well-functioning insurance markets.

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Notes

  1. Recognizing that some businesses operate more than one vessel, financial and operating information was only collected for the “primary vessel,” which was defined as the boat most used for RFH fishing operations in 2009.

  2. For consistency, financial variables are measured only for the primary vessel, which is reasonable as the majority of firms (76 %) operate only one vessel.

  3. Given space considerations, the complete financial statements used in this study are not presented. They can, however, be obtained from the authors upon request.

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Acknowledgments

Funding for the data collection, analysis, and reporting associated with this project was provided by the National Oceanic and Atmospheric Administration, the Louisiana Department of Wildlife and Fisheries, the Louisiana Sea Grant College Program, and the Louisiana State University Agricultural Center. The authors would like to thank the numerous individuals and agencies across the Gulf for their time and help in providing guidance, data, and insight into the operations and management of the RFH fishing industry in the Gulf. We would also like to extend our appreciation to the Gulf RFH captains whose participation in the survey helped make this research possible.

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Authors and Affiliations

  1. Center for Natural Resource Economics and Policy, Department of Agricultural Economics and Agribusiness, Louisiana State University Agricultural Center, 101 Woodin Hall, Baton Rouge, LA, 70803, USA

    M. A. Savolainen, R. F. Kazmierczak & R. H. Caffey

  2. Louisiana Sea Grant College Program, 179 Woodin Hall, Baton Rouge, LA, 70803, USA

    M. A. Savolainen & R. H. Caffey

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  1. M. A. Savolainen
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  2. R. F. Kazmierczak
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  3. R. H. Caffey
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Correspondence to M. A. Savolainen.

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Savolainen, M.A., Kazmierczak, R.F. & Caffey, R.H. Resiliency of the Coastal Recreational For-Hire Fishing Industry to Natural Disasters. Estuaries and Coasts 38 (Suppl 1), 114–123 (2015). https://doi.org/10.1007/s12237-013-9648-6

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