Gas price impacts local marine industry

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While high gas prices are taking a financial toll on drivers across the nation, the high cost of fuel is also hurting Long Island’s marine-based businesses and the boaters on which they depend.

From Montauk to East Moriches, the East End’s marine industry as a whole—including tourism-based ventures, charter and party boats, marinas and related service operations—are seeing a decline in revenue and a rise in costs. Some business owners said the industry is changing and adapting, but there are sectors that may never be the same.

Sag Harbor Village Harbormaster Ed Swensen said the village had 50 percent fewer boats moored in June 2008, compared to one year earlier. The village slashed dockage rates to attract more business. Possibly as a result, business is up at the docks this August.

Mr. Swensen explained that in order to lower costs for locals, rates were raised before the summer from $1 to $2 per foot for transient slips. But higher gas prices cut traffic so much that, in July, rates had to be returned to just 25 cents more than the original price.

Mr. Swensen noted that the high fuel costs are not “the end of the world, but there’s always unanticipated consequences with anything.” He said Sag Harbor boaters are now more destination oriented and few go cruising these days.

Mr. Swensen said the costs associated with going out for the day has prompted boaters to be more choosy, so “people are picking their days.” More than ever before, boaters are checking the weather, hitting the water only on the nicest days. “I’ve seen a marked decrease in waterskiing” he added, noting that all boating activities have slowed to some degree.

The Harbormaster expects people to begin using smaller outboard motors and watercraft that use less gas, such as Jet Skis and sailboats. “During the [gas crisis in] the ’70s, there was a real push to sail,” he said.

Inflatable motorboats, which can go all day on a couple of gallons of fuel, and kayaks serve the same purpose, he explained, but an unexpected problem has resulted because inflatable boats rarely have proper lighting, which can be dangerous in the harbor at night. People often treat them as toys, which they’re not, Mr. Swensen said.

In Montauk, where fishing and water tourism are a key component to the economy, gas prices are hurting everyone, from commercial fishermen to private charters and marina owners, and creeping inland to restaurants, hotels and retail establishments, according to two local business owners.

“The last three years, gas prices have tripled,” private fishing charter captain and part-time commercial fisherman Burt Prince of Susie E Charters said, noting on Monday that diesel fuel was $4.70 a gallon and had reached a high of $5.35 the month before. “We’ve had to raise prices for the charter,” Mr. Prince said, adding that the costs are changing the way he does business.

The captain said that when he takes customers fishing on his boat, he has to make sure not to go farther out to sea than necessary to catch fish. Tuna, for example, are 65 miles out in an area called “The Canyon,” and fewer people are requesting to fish for them because of the cost to get there. “Between that and fishing regulations, it’s a killer,” Mr. Prince said. When fishing commercially, he often has to weigh the cost of gas against what species of fish and the number he might catch in a given outing.

New York State has stricter fishing regulations than adjacent coastal states, where fisherman are permitted to catch more and have fewer size restrictions, Mr. Prince said. “It’s tough—you combine that with fuel, and it’s a double whammy, really,” he added, explaining that people may choose to fish in New England because of New York’s quotas. It’s not just fishing that’s affected but revenue for the entire Montauk economy, Mr. Prince said. “It’s a trickle-down thing.”

Richard Gosman, the owner of Gosman’s Wholesale Seafood Fish Market and Gosman’s Dock, a 65-year-old family business, said fishermen’s fuel costs increase the price of local fish. “It just adds to the pain, that’s all,” Mr. Gosman said, agreeing that federal regulations make it hard for fishermen to eke out a living. “A guy has to go out five days a week to catch what he can in an hour,” he said.

A boat is permitted to haul in 70 pounds of fluke a day, but a crew could very likely bring in 500 if allowed, according to the business owner. Mr. Gosman said if fishermen could catch the full amount on one trip, they would not be forced to buy gas for the seven trips required to match that number, and fishermen could have the other days to do something else.