The Economic Contribution of Natural Resources to South Carolina's Economy

This report focuses on the economic impact of natural resources on South Carolina's economy. Rather than using a broad definition of natural resources and including much of the state’s economy (for example, agribusiness that is directly tied to the land), our emphasis is on the traditional natural resources: outdoor recreation (hunting, fishing, wildlife watching, and nature-based tourism), forestry, mining, boat manufacturing, and commercial fishing.

South Carolina’s diversified economy and competitive advantage will only thrive if its natural resources are protected, promoted, and developed to ensure sustained growth of its economy.

Outdoor Recreation - Economic Impact

Outdoor recreation is a broad area of economic activity and includes many activities: bicycling, camping, fishing, hunting, motorcycling, off-reading, snow sports, trail sports, water sports, and wildlife-viewing. Over half of South Carolinians participate in outdoor recreation each year (Outdoor Industry Association 2016) and the outdoor consumer has wide demographics, including all genders, ages, ethnicities, and income levels. Outdoor experiences range from backyards to wilderness. Consumer spending, economic impact, tax revenues generated, and job creation make it one of the nation’s significant economic sectors.

Spending for outdoor recreation has two main components: the purchase of gear and vehicles and dollars spent on trips and travel. Gear purchases include items like outdoor apparel and footwear, bicycles, skis, fishing gear, tents, rifles and shotguns, and backpacks. Vehicles include boats, motorcycles, recreational vehicles, snowmobiles, and all-terrain vehicles. In order to use all this gear consumers must spend money on day and overnight trips, airfares, rental cares, lodging, campgrounds, restaurants, groceries, gasoline, and even souvenirs. They also pay for river guides and outfitters, lift tickets and ski lessons, entrance fees and licenses. These activities support many small businesses. Rafting outfitters on the Chattooga River in Oconee County provide a good example. As these consumers visit outdoor recreation areas they benefit from services provides by land managers, park rangers, wildlife managers, and nonprofit organizations. This is what adds up to the economic contribution.

Over one-third of South Carolinians participate in hunting, fishing, and wildlife viewing (U.S. Fish and Wildlife Service 2014).

South Carolina's Outdoor Recreation Resources - Water

The total land area of South Carolina (not including water bodies) is 19.2 million acres and just over twothirds of that area, 13.0 million acres, is forested (Rose 2015). A little over 1.3 million acres of South Carolina is surface water.

The state has 1,617 lakes larger than 10 acres in size that cover a total surface area greater than a half-million acres.

Lakes Thurmond, Hartwell, and Russell are three of the largest Corps projects in the country and some of the most popular recreational lakes under their management.

These lands support recreation areas, campgrounds, picnic areas, and wildlife management areas. South Carolina has 11,000 miles of rivers and streams.

South Carolina's coast measures about 190 miles. But that is deceptive, if the outer coast, offshore islands, sounds, bays, rivers, and creeks to the head of tidewater are considered, the miles of coastal shoreline increases to 2,876 miles (eleventh longest in the nation).

South Carolina Outdoor Recreation Resources – Parks, Forests, and Wildlife Areas

The South Carolina Department of Natural Resources (SCDNR) manages over 1.1 million acres in the state for wildlife 850,000 acres of Wildlife Management Areas.

The SCDNR also manages 74 Heritage Preserves that total over 90,000 acres throughout the state. These range from 1 acre to 24,000 acres.

There are eight national wildlife refuges in South Carolina: ACE Basin, Carolina Sandhills, Cape Romain, Pinckney Island, Santee, Savannah, Tybee, and Waccamaw. South Carolina has 47 state parks, a national park, five state forests, two national forests, 1.1 million acres of wildlife management areas, 74 heritage preserves, eight national wildlife refuges, and nearly 3, 000 miles of trails.

Fishing, Hunting, and Wildlife-watching as Economic Activities

The survey collects data on total expenditures, and breaks that down into trip-related (food, lodging, and transportation), equipment (rods, reels, lines, guns, ammunition, camping equipment, special clothing, boats, vans, and binoculars), and other categories (licenses and permits, magazines, land leasing and ownership).

Average number of days per year spent by anglers was 15 days, by hunters was 17 days, and by wildlife-watchers (away from home) was 11 days. Popular activities involving wildlife-watching (away from home) include feeding, observing, and photographing wildlife, maintaining natural areas and plantings, and vising parks and natural areas. TotalAverage number of days per year spent by anglers was 15 days, by hunters was 17 days, and by wildlife-watchers (away from home) was 11 days. Popular activities involving wildlife-watching (away from home) include feeding, observing, and photographing wildlife, maintaining natural areas and plantings, and vising parks and natural areas.

Annual Economic Impact of Fishing, Hunting, and Wildlife Viewing on the South Carolina Economy

The overall effect, or total economic contribution, of fishing hunting and wildlife viewing to South Carolina is $2.74 billion and 31,958 jobs.

If saltwater fishing was included the direct effect is increased by $195 million and the total effect would be increased by $329 million.

Coastal Tourism

Coastal tourists generally spend dollars on hotels, fishing supplies, gasoline, guide services, food and accounted for 63.8% of all South Carolina tourism revenues in 2012.

The total annual economic contribution (effect) of Coastal Tourism on the South Carolina economy is $8.96 billion and 99, 325 jobs.

Commercial Fishing Industry

The state’s major fisheries are shrimp, shellfish, crabs, and offshore finfish. Sustaining an economic viable commercial fishing industry strongly compliments and promotes the long-run growth of South Carolina’s growing coastal tourism industry.

Annual Economic Impact of the Commercial Fishery Sector on the South Carolina Economy Impact Direct Effect Indirect Effect Induced Effect

Annual Economic Impact of the Boat Sector on the South Carolina Economy

Annual Economic Impact of the Mining Sector on the South Carolina Economy

Overall Economic Contribution of South Carolina's Natural Resources

The total economic contribution of South Carolina’s six natural resource-based economic sectors considered in this study is summarized in Table 9. Total direct output expenditure is $20.7 billion and the total contribution to the state economy is $33.4 billion. The total contribution value represents an increase of $4.4 billion relative to the 2009 study, a 15% increase in total economic activity. As defined in this study, the six natural resource sectors are responsible for 8.3% of gross state product and 8.6% of all jobs in the state. Direct employment in the six natural resource sectors is 130,891 jobs at an average salary of $35,959. Overall, after accounting for the multiplier effect, the six natural resource-based sectors contribute 218,719 jobs to the state economy at an average salary of $39,337.

Annual Economic Impact of the Forestry Sector on the South Carolina Economy

Annual Economic Impact of All South Carolina Natural Resource Sectors on the South Carolina Economy

Employment is the number of jobs supported by the activity. Labor Income (wages paid to salaried employees and proprietors), Value Added (also referred to as Gross State Product is the sum of labor income, indirect business taxes, and property income), and Output (sum of value added and intermediate input cost) are reported in dollars. Individual column effects (direct, indirect, and induced) sum to each reported total effect. However, labor income and value added do not sum to output for two reasons. First, labor income is a component of value added. Secondly, the value (cost) of intermediate products purchased is not reported. Total sales (output) minus the value (cost) of intermediate goods is equal to value added.

Summary and Conclusions

Over the last seven years, the collective economic contribution of South Carolina’s natural resource-based sectors has grown by 15%. Today, the natural resourcebased sectors annually contribute $33.4 billion dollars economic activity and 218,719 jobs to state economy. The state’s valuable natural resource base needs to be managed in a sustainable manner to protect both longrun economic growth and the amenity values these resources provide.

A copy of The Economic Contribution of Natural Resources to South Carolina's Economy is available in the Adobe PDF file format.