EPA > Water gt; Liquid Assets 2000: The Business of Clean Water

The impact of clean water on the recreation and tourism industry is profound. But the same is true for many other sectors of our economy. In many ways clean water is the fuel that powers the nation's economic engine. Commercial fishing, agriculture, real estate, and manufacturing are just a few of the sectors that rely on clean water to operate and ensure productivity. Every day these and other sectors of the U.S. economy rely on clean water to grow, process, or deliver their products and services.

Fishing Revenues Return to Lake Winnebago

Lake Winnebago in Fond Du Lac County, Wisconsin, is the host of many national fishing tournaments. When residents got tired of seeing summer algae blooms (sometimes so bad that they covered the entire lake, creating a foul smell) they formed the Lake Winnebago East Priority Watershed Project to save their precious lake and fishing tourism revenues. The project worked with local farmers to install manure storage facilities and fence cows from area streams. The Wisconsin Department of Trade and Consumer Protection and the Fond du Lac County Land Conservation Department joined to install a sediment control basin and grassed waterway. These efforts will keep an estimated 320 tons of sediment out of the water each year, preventing excess nutrients from polluting the lake.

Beautiful beaches, white-water rivers, and calm, cool lakes contribute to a flourishing recreation and tourism industry in this country. Water has a powerful attraction for people, which is translating into jobs and profits for our economy. The travel, tourism, and recreation industries supported jobs for more than 6.8 million people and generated annual sales in 1996 of more than $450 billion. Water-related recreation and tourism make for a large part of those jobs and revenue. Almost all Americans participate in water-based recreation and tourism and spend about 10 percent of their income on recreational activities. Sales of kayaks and canoes in 1996 alone exceeded $99 million

When people decide to plan vacations and travel for pleasure, there is a strong tendency to head to the water. A third of all Americans visit coastal areas each year, making a total of 910 million trips while spending about $44 billion. Coastal tourism supports businesses like hotels, resorts, restaurants, outdoor outfitters, chartered fishing services, cruiselines, and real estate and travel agencies. For many Americans, a day at the beach provides recreation, relaxation, and a chance to renew the spirit.

A significant portion of recreational spending is tied to fish and wildlife, both of which require high quality water and habitat (e.g., wetlands, vegetated stream banks, and silt-free streambeds) for survival. Thirty-five million American anglers, aged 16 or older, spent $38 billion in pursuit of their sport in 1996. Fishing expenditures increased by 37 percent between 1991 and 1996. Over the period from 1955 to 1996, angler participation rates increased by more than twice the rate of population growth. If sportfishing were incorporated as a single business, it would rank 24th on the Fortune 500 list of top sales producers, surpassing such giants as General Motors, Exxon, Mobil, and AT&T.

Big and small game and migratory birds that depend on clean water also generate economic activity for the recreation and tourism industry. In 1996 nearly 14 million people spent about $20 billion hunting game and migratory waterfowl. They made 223 million trips and spent $5.2 billion on trip-related expenses and $11 billion on equipment. Even more Americans watch and photograph wildlife. More than 62 million people participate in this relaxing--and sometimes exciting--pastime every year, spending more than $29 billion.

Baltimore journalist H.L. Mencken once described the Chesapeake Bay as a giant protein factory because of its incredibly productive fish and shellfish habitat. Every year our nation's protein factories--the Great Lakes, the Gulf of Mexico, and other coastal areas--produce more than 10 billion pounds of fish and shellfish. The seafood industry in California alone generates sales exceeding $800 million annually, according to the California Seafood Council. But profitable fisheries and a prosperous economy have come at a cost to fish populations in coastal waters, a situation only worsened by polluted waters.

Data from the National Marine Fisheries Service show declining populations for many species, including salmon, halibut, perch, cod, haddock, and flounder. These declines can be linked to a number of factors, including overfishing and habitat loss. Environmental degradation is a key factor. Wetlands provide critical habitat during various life cycle phases for about 70 percent of all commercial fish species. Although we have significantly reduced the rate of wetland loss, wetlands are being degraded at a rapid rate by sediments, nutrients, hydromodification (i.e., building of dams and channelizing streams), invasive species, and other causes. In the Clean Water Action Plan, the President set a goal of reversing the historic pattern of wetland losses in the United States and achieving a net increase of 100,000 acres of wetlands each year, beginning in 2005.

When it comes to real estate, a waterfront view is a prime selling feature--as long as the water is clean. Ocean, lake, and riverfront properties often sell or rent for several times the value of similar properties located inland.

Community and business leaders also understand the potential value of waterfront locations. Today waterfronts are often a focal point for urban renewal in many cities. Before passage of the 1972 Clean Water Act, many of our rivers and waterfronts were so polluted that no one wanted to go near them, much less invest in new development. But times are changing. Twenty-five years ago, the Connecticut River was considered a polluted nuisance. Today, this American Heritage River has become a source of beauty, recreation and economic revitalization. Along with the Clean Water Act, efforts by Riverfront Recapture, Inc. and state and local groups have paid off. In the shadow of the downtown Hartford skyline, people are fishing, rowing and water skiing. Outdoor sporting events like top-level bass tournaments are doing more than showcasing the river, they are generating millions for the local economy. With the emergence of riverfront parks, land near the river is becoming highly desirable again. Riverfront Plaza will soon be home to a convention center, hotel, retail and entertainment facilities, housing, and an aquarium or discovery center. With nearly a billion dollars worth of development planned for sites along the river, the Connecticut is reclaiming its role as the region's economic lifeline.

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