I decided to do my write up on the economic impacts of sport fishing in the state of Alaska. Because of its geological location and environment, Alaska’s economy is best known for its oil, and fishing industries. Sport fishing in Alaska attracts tourist-seeking sport in all kinds of fishing, including salmon, bottom fish and shellfish. The sport fishing industry in Alaska accounts for over $1.4 million dollars in total expenditures by all anglers, resident and non-resident. Also, sport fishing in Alaska brings nearly 12,000 jobs to the states economy. 63% of those jobs are from guided trips and the remaining 37% is accounted for by non-guided trips. Furthermore, guided fishing trips support approximately $641 million dollars in angler expenditures; where as non-guided trips support $462 million dollars in angler expenditures, totaling over $1 billion dollars combined.
Recently, the state of Alaska Department of Fish and Game has required the guided Halibut fishing industry in South East and South Central Alaska be a limited entry system, meaning only business who were in effect before this legislation was enacted can legally operate. The problem with this system is it limits more competition essentially creating a government-controlled cartel. By decreasing the number of guided boats allowed to operate, prices will increase and quality of the charters will likely go down. Also, ADFG has limited the two fish limit for halibut down to one fish in South East Alaska. The problem with this is that the limit only affects guided boats; private boats can still catch the standard limit of two fish. This will make it hard for those businesses who were previously operating attract customers because who wants to pay over $200 to catch one fish, and on average that fish is only going to be 30 pounds. The reason for all of this legislation is because the commercial Halibut fishing industries is trying to control the allocation of the resource. Furthermore, in the fishing industry both sides have a dominant advantage to cheat and fish like hell, depleting the resource and creating less surplus then could be reached.
In conclusion, the fishing industry accounts for most of the states economy whether it be commercial, guided, or private. However with a resource that no body controls it can be tough to allocate the resource to the right sector for the best economic growth.
That is exactly what the department of fish and game is doing. By not allowing more businesses to open they are forcing the market to either use the limited amount of guided trips that they offer, or go buy your own boat and fish privately. Eventually not having so many guides will allow our salmon numbers to increase, however if they are limiting guided trips and not private ones, everyone is just going to fish privately so that they can either cheat and catch more. Or so that they can catch two fish instead of just one and they will avoid guide charges. What the Department of fish and game is doing is stupid because they are just forcing people to fish privately by lowering the amount of fish you can catch on their guides and not privately.
ReplyDeleteWell you have to understand that there is a limited number of fish in the sea. Am I right? The government is trying to make sure that the amount of fish being caught does not exceed the rate in which these fish are reproducing. The reason why Southeast has a bag limit is because they were catching way more than what they were suppose to. This creates a problem for the commercial fisherman who catch the allocated amount because there is total number of fish that each region is allowed to catch and if one region over fishes then the rest of the regions must suffer for their inconsiderate choices. In other words you can look at this as if several stings were tied together and one of the stings pulled on theirs to make it longer, then all the other stings tied to it would be effected by the pull. Also you must understand that fishing is a cooperation game and the best outcomes is attained when all players choose the more sustainable outcome.
ReplyDeletedoesnt this ultimatly create blackmarket guided and fishing as well as more incentive to find ways to cheat the system for personal gain?
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