Port Economic Impact

Executive Summary (2018)

The Port of Bremerton operates two marinas, a general aviation airport, and an industrial park. It also has industrial tenants at the marinas and at the airport. The marinas and airport lead to expenditures on the part of tenants, for moorage fees, airfield hangar and tiedown fees, and numerous other expenses. These other expenses include fuel, accommodations, food and beverage costs, electricity, maintenance, and many other expenses. Tenants have expenditures to manufacture their output or to produce their service, including labor costs.

 

It is estimated that these activities supported $1.187 billion in output (sales), 5,602 jobs, and $348.3 million in labor income in Kitsap County in 2018. Statewide impacts are estimated to be larger, $1.440 billion in output, 6,840 jobs, and $424 million in labor income in 2018. These activities also generate significant tax revenues. Statewide sales tax revenue is estimated to be $13.7 million, while local sales tax revenue in Kitsap County is estimated to be $3.5 million. Statewide B&O tax collections are estimated to be $6.2 million. Other tax impacts include state fuel excise tax, local accommodations taxes, a local leasehold tax, and local B&O taxes.

 

These economic impact figures were estimated through use of the Washington State input-output model. This model was configured to provide impacts specific to Kitsap County, and impacts on the larger Washington State economy. Data used to make these economic impact estimates were based on two tenant surveys, and on estimates of direct expenditures made by industrial park tenants and other Port of Bremerton tenants at the marinas and airfield. The Port of Bremerton provided contact information for tenants at the marinas and the airfield. GMA Research reached out to these tenants with an online survey, using a questionnaire developed specifically for this study. Tenants were asked a variety of questions related to their tenure in 2018, including how long they were tenants in 2018, how large their boating parties were for adults and children, about their flying habits (solo or with others), and the size of their flying parties. They were also asked a variety of questions about categories of expenditures related to their tenure in 2018.

 

Moorage tenants reported average expenditures of $10,351 in 2018, or a total of $7.616 million. Airport tenants reported average expenditures of $12,250, or a total of $2.262 million. A total of 176 valid questionnaires were obtained from marina tenants; the marinas were estimated to have 738 tenants in 2018. A total of 37 valid questionnaires were received from airport tenants, out of a total of 185 airfield tenants in 2018. Industrial park, marina, and airport tenant employment was classified into the sectors in the input-output model. It was estimated that these establishments had 2,436 employees in 2018, using data provided by the Port of Bremerton. Ratios were formed of output per employee to estimate total sales by these tenants. These sales estimates were used to derive estimated direct labor income and direct purchases, which were in turn inserted into the input-output model to develop the economic impact estimates reported above. It was estimated that industrial park and other business tenants had direct revenues of $455 million, and labor income payments of $137 million in 2018.