The Economic Impact of Proposed Wind Turbines on Long Beach Island, NJ’s Tourism

The picturesque shores of Long Beach Island (LBI) in New Jersey could soon face an unexpected challenge, according to a recent report prepared by Tourism Economics for Long Beach Township. The proposal by Atlantic Shores Offshore Wind, LLC to install wind turbines spanning over 100,000 acres of ocean off the coast is projected to have significant economic repercussions due to its potential to deter tourists.

Visual Disamenities and Tourism Decline

The report highlights the adverse effects of visible wind turbines on tourism, a crucial component of the local economy. Citing studies and employing economic modeling, the findings suggest a stark decrease in tourism, estimating a 25% reduction in visitors to LBI municipalities. This equates to a substantial loss of approximately 835,000 visitors annually, drawn from a 2022 baseline where LBI municipalities welcomed 3.3 million visitors who contributed $1.8 billion in visitor spending.

“Each year, Tourism Economics analyzes the impacts of the New Jersey visitor economy on behalf of VisitNJ. Based on Tourism Economics’ latest report, ‘The New Jersey Visitor Economy 2022’, Ocean County welcomed 10.3 million visitors and $5.4 billion in total visitor spending in 2022.”

https://www.pashmanstein.com/assets/htmldocuments/TE%20-%20Wind%20Turbine%20Visitation%20EI%20Report%20Final%2003-26-2024.pdf

Economic Ramifications

This decline in tourism is expected to have a ripple effect through various sectors of the local economy. The report details a projected $450.2 million direct loss in visitor spending, which would lead to a total economic downturn of $668.2 million in Ocean County. This figure encapsulates not only direct losses but also indirect impacts (like purchases from local suppliers) and induced impacts (additional consumption generated by incomes linked to tourism).

“The $450.2 million in reduced visitor spending will generate $668.2 million in total economic losses throughout Ocean County. This total economic loss will include approximately 6,700 total lost jobs and $47.6 million in reduced state and local tax revenues.”

https://www.pashmanstein.com/assets/htmldocuments/TE%20-%20Wind%20Turbine%20Visitation%20EI%20Report%20Final%2003-26-2024.pdf

Employment and Income Impact

The economic contraction is projected to lead to substantial job losses, with an estimated 6,700 jobs affected. This includes direct, indirect, and induced job losses across various industries, significantly impacting local livelihoods. The associated labor income is also expected to decrease by around $169.5 million.

Fiscal Impacts

The fiscal health of both state and local governments will likely suffer as well. The report forecasts a decline in tax revenues totaling $145.3 million, encompassing federal, state, and local taxes. This includes $80.3 million in reduced state and local tax revenues, severely affecting the financial capabilities of these governments to provide public services.

“The proposed wind turbines will generate an estimated $80.3 million in reduced state and local tax revenues.”

https://www.pashmanstein.com/assets/htmldocuments/TE%20-%20Wind%20Turbine%20Visitation%20EI%20Report%20Final%2003-26-2024.pdf

Conclusion

The proposed wind turbine projects, pose a considerable threat to the economic vitality of Long Beach Island and surrounding areas. The loss of tourism, coupled with downward economic spirals in business activities, job markets, and tax revenues, paints a challenging picture for local stakeholders. Decision-makers are now faced with the critical task of weighing these potential economic impacts against the any imagined environmental benefits of renewable energy projects like offshore wind turbines.

The comprehensive analysis provided by Tourism Economics underscores the need for an approach that considers the economic realities of such significant infrastructural developments.

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Aetiuz
May 8, 2024 10:06 am

Reduce tourism is not a problem. Always remember, Biden and the Dems hate America. If the policies they propose hurt Americans, that’s a feature, not a bug.

Reply to  Aetiuz
May 8, 2024 6:56 pm

Republican Texas is the state with the largest combined wind and solar energy production and is proud of it,
https://www.texasmonthly.com/news-politics/texas-number-one-in-renewable-and-nonrenewable-energy/

Reply to  scvblwxq
May 9, 2024 6:14 am

That just shows that some republicans can be as stupid as virtually all democrats. That being said, ERCOT is adding gas turbine capacity to help offset the unreliability of wind and solar. If they were smart, they would simply decommission wind and solar and add FF powered generation.

May 8, 2024 10:07 am

Bidenomics at work.

strativarius
May 8, 2024 10:18 am

For people who claim they wish to save the planet they certainly seem keen to trash it. In the UK even a Green candidate is opposed to, er, renewables

“While it’s great that we can host more renewable generation, and contribute to addressing climate change, this development is enormous and will cover thousands of acres of high quality farmland with black glass solar panels. The impact on the landscape and visual amenity of both residents and visitors could be quite dramatic.”
https://order-order.com/2024/05/08/greens-campaign-against-solar-power/

Fortunately?

Sunak to allow oil and gas exploration at sites intended for offshore wind”. https://www.theguardian.com/environment/article/2024/may/02/sunak-to-allow-oil-and-gas-exploration-at-sites-intended-for-offshore-wind

It is an election year….

paul courtney
May 8, 2024 10:19 am

I spent a few summer vacations on LBI, the beaches are great. I recall seeing enormous gains/losses of beach sand over a single season. Some days windy, others not so much. Sometimes a thick fog would indicate no wind. I wouldn’t mind wind towers out to sea, if they supplied electricity 24/7, but they don’t.

The Dark Lord
May 8, 2024 10:38 am

people go to the beach for the sun and sand and alittle water and waves … I don’t see how wind turbines miles offshore will cause a 25% drop in people going to the beach ?
feels like the 25% drop was pulled out of thin air …

J Boles
Reply to  The Dark Lord
May 8, 2024 11:03 am

I bet you have NO solar panels on your roof, typical for those who like to talk the talk but not walk the walk, you know, climate hypocrites.

paul courtney
Reply to  The Dark Lord
May 8, 2024 12:24 pm

Mr. Lord: Ever heard of boating?
Further, I doubt they would be miles out, they’d probably be right about where you see dolphins swim past, some of us like to see the dolphins, watch for them. How about them? Again, I’d accept them if they provided grid-quality electricity. They don’t.

Reply to  The Dark Lord
May 8, 2024 12:29 pm

Will certainly cause a drop in recreational boating as well.

And all just to line the pocket of some greenie billionaire.

Sparta Nova 4
Reply to  The Dark Lord
May 8, 2024 12:30 pm

100,000 acres of ocean off the coast

is not a small project and how many years will construction be ongoing and how much of the beach will need to be roped off to support the construction, no to mention the power lines and other infrastructure?

Who said it would be miles offshore? The deeper the water, the greater the challenges.

While I also challenge the 25%, it is within the realm of reason, but I would have expect the number to be higher.

We have no measure of the noise that wind farm will generate or how it will affect waves and tides and breezes.

State park beach is a tad over 10 miles long. 100,000 acres is 10 miles by 15.6 miles.

Reply to  The Dark Lord
May 8, 2024 4:50 pm

As wind affects wave generation and is necessary for sailing, what effect will the results of this research have on the tourism?

https://joannenova.com.au/2024/05/wind-turbines-could-steal-as-much-as-38-of-the-power-off-turbines-downwind-and-even-from-ones-50-kilometers-away/

oeman50
Reply to  The Dark Lord
May 9, 2024 6:34 am

I must admit that I don’t think wind turbines would affect my enjoyment of the beach, even though I think they are stupid as an electricity source.

bo
Reply to  The Dark Lord
May 9, 2024 3:41 pm

A little something I threw together as an example of what the proposed turbines (GE 18MW) off of Ocean City MD would look like at moonrise. They are plenty visible

wgt_moon
George Thompson
May 8, 2024 11:45 am

Look at it this way:If no tourists visit, and people lose jobs, money,homes-well less need for lots of electricity. Look, ladies and germs-a successful transition to – um, low production renewables! After all, Long Beach won’t need the juice. Win-win.

strativarius
May 8, 2024 11:50 am

Story tip

Judas edition

Every household should be forced to have a smart meter, says British Gas boss”.

The chief executive of British Gas has said every household should be forced to have a smart energy meter to help hit net zero targets, despite widespread resistance to the devices.”
https://www.telegraph.co.uk/business/2024/05/08/ftse-100-markets-latest-news-currency-interest-rates-cuts/

Sparta Nova 4
May 8, 2024 12:20 pm

While it is possible the adverse effects on tourism and local economy are real and the projecction are accurate, the whole of it is based on a model.

Enough said.

Bob
May 8, 2024 12:26 pm

Wind turbines don’t work, they are expensive, they are short lived and they are not recyclable. That is why they shouldn’t be built. They are also ugly.

May 8, 2024 4:44 pm

hurricanes can go right up the Atlantic coast- how well will sea based wind turbines handle a hurricane? This sort of event must have happened somewhere. It’s one thing on land, but on the sea, I’d think the effect must be much worse.

sherro01
May 8, 2024 5:10 pm

Sure, people like time at nice places like LBI and they spend money in the usual holiday ways and the local coffee shops make more money for their owners. Some economic theories say that keeping money moving is important, but others say that there are good ways to spend money and there are bad ways. Spending more on vacation coffee is not as good as spending money to help build a new nuclear reactor.
Arguing from extremes, are we heading for a future where fewer and fewer workers are in productive jobs while more and more become baristas serving coffee to other off-duty baristas before noon, then swapping coffee places after noon?
No way am I advocating government directives on how to spend personal money. But, each spender ought to know there are good ways and poor. Don’t include a boost to hospitality industries in a development proposal. We can do without baristas more than we can do without doctors and nurses, but where is their analysis in planning papers? Geoff S

May 9, 2024 6:53 am

No fan of huge wind farms, but is it possible that there might be other reasons people have stopped going to New Jersey over the last two years? I can think of some.

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