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University of Delaware & Delaware Sea Grant Coastal Economy Report

Seaside to Statewide: UD study explores economic impact of DE coast

Delaware’s coastal economy is a crucial pillar of the state’s prosperity as detailed in a new report, “Seaside to Statewide: The Economic Contributions of Delaware’s Coastal Region,” published by the University of Delaware and Delaware Sea Grant with funding from Delaware’s Association of Coastal Towns. A follow-up to a 2012 study, this report reveals that Delaware’s coastal economy grew five times faster than the rest of the state’s economy between 2011-2022. It highlights the immense value the coastal economy brings to the rest of the state in terms of jobs, output and revenue. 

As of 2022, Delaware’s coastal industries employed 74,030 people, distributed $4.1 billion in employee income, and generated $14.2 billion total in revenues within the “Infrastructure zone” bordering the Atlantic coast, the Inland Bays and lower Delaware Bay. This economic activity is led by tourism, real estate, fishing and agriculture. Notably, the coastal economy also supported economic productivity throughout the state. For every $100 of annual revenue in the coastal region, an additional $59 in revenue is earned throughout the state. This amounts to $8.3 billion in annual statewide revenue that is supported by economic activities at the coast.

“Delaware’s beach and inland bay communities are more than retirement homes and boardwalks. They support a fabric of businesses and spending that draws economic activity to the rest of the state,” says president of the Association of Coastal Towns, Ron Calef.  Accounting for these broader economic effects, coastal activities generate over $3.3 billion in tax revenue annually, including approximately $210 million for local governments and $820 million for the state.  “It cannot be overstated – the state needs us,” says Calef.

Dr. James Rising, a faculty member in UD’s College of Earth, Ocean and Environment, who authored the report with Caitlin Wilson, emphasizes this connection. “Delaware’s coastal economy acts as a cornerstone for the overall economic health of the state,” says Dr. Rising. “But it also faces tremendous threats from sea level rise and extreme weather.  Some local business owners are even concerned that flooding and sea level rise will undermine tourism and growth in the future without sound investments.” 

Because of this, the report argues that investing in coastal resilience to climate change is of the utmost importance, requiring regional approaches to hazard mitigation and adaptation.  These approaches could include greater investments in beach nourishment, wetland restoration, and stormwater management.

To read the full report, visit: www.deseagrant.org/hazards#seaside-statewide

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