The Socio Economic Development of the Marine Sector in the Atlantic Area

Stephen Hynes

Overview

•SEMRU and its role in Marine Socio-economic analysis

•Defining Ocean and Coastal Economies in the Atlantic Area

•Regional Perspective importance within context of MSFD

•MARNET proposal

SEMRU

Building Socioeconomic Marine Research Capacity

Being a focus for socio-economic marine research in Ireland; establishing an international research reputation; run a marine socio-economic PhD programme; developing national and international research networks will marine stakeholders

Constructing Databases, Monitoring the Evolution of the Marine Sector and Underpinning Policy

Modelling and analysis of the marine sector and monitoring it’s evolution and competitiveness; supporting policy formulation for value added enhancement of the marine sector.

Developing a Credible Research ProgrammeExpanding and deepening the existing research programme through winning additional funding

SEMRU Research Programme

Ocean Economy

Coastal Economy Society

Environment

MarineIndustries

Consumer

• Analyse using social science investigation tools issues relating to :– Marine Economics– Environmental

Econ.– Coastal Sociology– Coastal Geography– Spatial Analysis

Macro-economy

Policy

Some current research projects

• The impact of regulation on the development of the marine industry in Ireland

• The role of the consumer in driving sustainable consumption of seafood

• Impact of the marine sector on the local economy and employmentEconomic evaluation of the marine based energy sources

• Measuring the non-market benefits of the marine ecosystem services and resources in Ireland

• Analysing the impact of human economic activity on Irish water quality

• Irish fisheries knowledge project• Benefit Transfer for Irish Water • Socio economic effects of management measures of the future CFP

Atlantic Area’s Ocean and Coastal Economies

• The Ocean Economy – the economic activity, which indirectly or directly uses

the ocean as an input.• The Coastal Economy

– all economic activity which takes place in a specified coastal region; the sum of employment, wages, and output in the region.

• Ocean economy sub section of the coastal economy.

The Coastal and Ocean economies are Not the Same

Economic Activity

Along the Coast Economic Activity Using

the Marine as an Input

Coastal Economy

Ocean Economy

Coastal regions of EU Sea basins

Official statistics availability at NUTS 3 Level

Data Type Socio-Economic Data in coastal regions

Economic Data on Coastal Regions

Population Gross Domestic Product

Gender Breakdown Gross Value Added by Sector

Ages and Marital Status Primary Sector Data Education Qualifications Sea Fish Landings by Port Housing Statistics Secondary Sector Data Labour market in coastal regions

Maritime Transport of Goods and Passengers

Employment and Unemployment Rates

Tertiary sector Data

Hotels located in Coastal areas

Available from Eurostat statistics

Coastal Economy Statistics

Coastal regions GDP per capita bySea basins, 2007 Coastal regions GDP per

capita, 2006

Other Interesting StatisticsLandings of Marine animals, tonnes, 2007

Density of tourism capacity in coastal regions, by NUTS 3 regions, 2007Camping and hotel bed places per km2, 2007

Coastal Economy Statistic for Ireland

Data Type Data Source Shoreline

ED Coastal County

EU Coast (NUT3)

Population/Ages/Marital Status/Gender Census of Population Education / Housing Statistics Census of Population Affluence Index Score Haase & Pratschke (2008) Economic Status/ Occupations Census of Population (Un)employment Rates/Industries Census of Population GDP/GVA by sector CSO Data HH Income/Wages and Saleries CSO Data Sea Fish Landings by Port CSO Data Farm Holdings/Livestock Density Census of Agriculture Farm size/Farm Type/Crops Census of Agriculture Family Farm Income/Gross Margin NFS/SMILE Model Maritime Transport of Goods and Passengers Eurostat Hotels, Guest Houses and B&B (Statistics on Rooms and Bed numbers) Failte Ireland Accommodation Figures An Post Geo Directory

Industries in the Atlantic Ocean Economy

Marine Services Sector Marine Resources Sector

Marine Manufacturing

Ship Owners Fisheries* Boat Building*Port & Maritime

Logistics*Aquaculture* Marine Construction*

Marine Tourism Seafood Processing* Marine Engineering*International Cruise Seaweed &

BiotechnologyOther Marine

ManufacturingHigh Tech Services Oil & Gas*Marine Commerce Renewable Energy

Other Services

• Ocean Economy quantified in France, Ireland and UK. Indices of marine sub-sectoral activity available in Portugal, information not available in Spain.•No consistency across available data in Atlantic area

The Irish Ocean and Coastal Economy

The Irish Ocean and Coastal Economy

•Turnover of €3.4 billion

•€1.44 billion was attributable to GVA

•Employed 17,000 FTE.

•Provided 1% of Ireland’s total GDP in 2007

•Coastal County Economy €149 billion

•Shoreline ED Economy €44.3billion

Marine Strategy Framework Directive

• Article 24 of Directive 2008/56/EC of the European Parliament and Council:

“As a first step in the preparation of programmes of measures, Member States across a marine region or subregion should undertake an analysis of the features or characteristics of, and pressures and impacts on, their marine waters, identifying the predominant pressures and impacts on those waters, and an economic and social analysis of their use and of the cost of degradation of the marine environment”.

The initial ESA under the MSFD in the Atlantic Area

• An economic analysis– Atlantic Area’s Ocean Economy

• A social analysis– Defining Statistical Coastal Regions for Atlantic Area

and describing the socio-economic characteristics there in.

• The cost of degradation of the marine environment– Compiling non-market marine ecosystem service data

and scenario building for Atlantic Area

MARNET Project Proposal

• Marine Atlantic Regions Network– Creation of a European Atlantic Periphery Marine Socio-Economic

Network– Put in place a formal network charter.

• Develop a methodology for the collection of marine socio-economic indicators across the European Atlantic Periphery at an appropriate spatial scale and with results that are comparable across partner countries

• Marine Socio-Economic Indicator Atlas for the European Atlantic Arc

• 10 Partners from 5 Atlantic Arc countries

Key Factors driving the Atlantic Marine Economy

• Macro-Economic Issues– Transport dependent on industrial production, exports on

world demand– Industry sensitive to cyclical trends– Foreign Exchange Fluctuations

• Oil Prices– Dominates shipping, offshore and related marine activities

• Environmental and other Regulations– CFP, Habitats Directive, MSFD, etc

• Climate change

Climate Change Adaption and Inaction Cost Estimates versus Actual in the Atlantic Area

Scientific cost of Inaction per annum (€millions),

1995 -2020

Scientific cost of Adaption per annum

(€millions), 1995 -2020

Actual average cost of Adaption per

annum (€millions), 1998-2015

Country Low SLR (22.6cm)

High SLR (50.8cm)

Low SLR (22.6cm)

High SLR (50.8cm)

UK 595 760 99 174 116Spain 36 52 21 41 52France 411 439 58 110 11

Portugal 9 9 11 22 7Ireland 26 72 27 46 5

Source: PESETA (2009)