Estimating Ocean Production Values in Regional Coastal Communities: A Case Study from Southern New South Wales

Abstract

Coastal regions worldwide are highly dependent on the oceans for their economic development, yet the contribution of ocean-dependent industries to regional coastal economies is poorly understood. The literature to date has largely focused on national studies that use a taxonomic approach, that is, they identify the different sectors that constitute the ocean economy and then quantify the contribution of each of those ocean industries. In this article, we present a pragmatic and low-cost approach to estimating the production values of ocean-dependent industries at a community scale, using the southern New South Wales (NSW) coastal region of Australia as a case study. Building on key international and Australian literature, we compiled a representative list of ocean economy industries and then estimated the gross value added (AU $363 million) and employment (2,045 full-time jobs) generated by the ocean economy in this region in 2016. This paper also uses maps and tables of specific areas along the coastal region to illustrate their contribution to and reliance on the ocean economy. The ocean production estimates, developed in this study at a finer geographic scale than previously available, provide crucial baseline data for coastal management, planning and impact assessment. The approach also enhances our awareness of the economic interconnectedness of the ocean, coast and hinterland, which contributes to an improved understanding of regional coastal communities, their economic composition, self-dependence, and resilience.

Keywords:

• coastal economy
• New South Wales
• ocean economy
• production value
• regional reliance

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

1 While GVA is the most appropriate indicator to measure industry productivity (as undertaken in the current study), it may understate an industry’s economic importance to a region because it excludes the value of inputs produced within the region.

2 Iron smelting and steel manufacturing activities, including Australia’s first natural gas terminal, and the Unanderra Industrial Park, are located next to the Port Kembla port, with an active marine manufacturing industry, equipment manufacturing for the oil and gas sector, and ongoing investments in the defence-manufacturing sector.

3 The Australian financial year is from July to June.

Additional information

Funding

This research was funded by the University of Wollongong’s Global Challenges program as part of the “Launching a Blue Economy” research project.