Report: Inland Bays key economic driver in coastal Sussex

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According to a recent report, Delaware’s inland bays generate more than $4.5 billion in economic activity.

The report from the Delaware Center for the Inland Bays (CIB) and the Delaware Sea Grant College Program calculated that the bays support over 35,000 jobs with 89 percent of the economic activity and 94 percent of the jobs in Sussex County. 

The report goes on to indicate that investments in protecting the bays and improving water quality are necessary if the area is to continue to thrive.

The report was authored by Christian Hauser of Delaware Sea Grant and Christopher Bason of CIB.  Key-Log Economics, an ecological and economic research firm based in Charlottesville, VA.

According to report author Christian Hauser, the report provides important information to the public, resource managers, and policy makers. “Delaware Sea Grant is committed to helping Delaware’s coastal stakeholders make informed decisions about resource management. This report demonstrates the importance of the Inland Bays as the base of a sustainable and resilient coastal economy in Delaware.”

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The report chronicles economic growth of this region and how it has been developed as a housing hub and tourism destination. The Wall Street Journal recently declared that Sussex County is one of the best places to retire in America, due to its “mix of farmland and quaint beach towns, (and is known for) saltwater bays and for its sights and serenity.” 

This influx of new residents has driven development and construction, which, according to the report, contributes almost a quarter of a billion dollars to the Inland Bays economy each year. From 2017 through 2020, the number of new subdivision lots proposed in Sussex County averaged over 4,300 per year and more than 10,000 building permits were issued each year during the same four-year period. 

However, the report also notes that population growth and associated development can bring drawbacks, and if poorly planned, can adversely affect the bays.

Anna Fagan, Acting Executive Director of the CIB, said of the rapid growth around the Inland Bays in Sussex County: “Now is an absolutely critical time to ensure that sound environmental policies and investments in open space protect the Inland Bays from the impacts of development.” 

“The Center is committed to working with our elected officials and the development community to support open space protection efforts commensurate with the level of development that is happening,” said Fagan. “In the end, caring for our waterways benefits the environment, homeowners and developers. It is why people come here in the first place,” she said.

The report also indicated that investments in water quality improvement projects can increase the value of the Inland Bays economy.  

Based on these results, report author Chris Bason noted that the study supports renewed focus on achieving the water quality goals of the Inland Bays Pollution Control Strategy.  “Water quality remains poor in many areas of the Bays,” he said. “We share an amazing economic asset here and we need to take care of it by investing more in pollution control through the protection of forests and wetlands.”    

The study specifically found that the enhanced impact of improved water quality on real estate and outdoor recreation alone, which total approximately $11.2 million per year, will pay for almost 50 percent of the estimated annual cost to implement the Inland Bays Pollution Control Strategy. 

The importance of the Inland Bays to Sussex County and Delaware and the need to protect and restore these critical waterbodies is recognized by many. Sussex County Council recently took action to increase open space protections through an ordinance expanding buffers between wetlands and waterways and new subdivisions.  

The ordinance did draw fire with opponents claiming the council caved into demands from developers.

“The Inland Bays are one of Sussex County’s truest ecological and economic gems,” Sussex County Council President Michael H. Vincent said. “It is home to countless species of fish and wildlife, and a draw to hundreds of thousands of visitors who invest hundreds of millions ($218 million according to the report) in the Inland Bays region annually.” 

“The bays and their tributaries are quite literally the lifeblood coursing through our coastal region and its local economy,” said Vincent, “supporting jobs, recreation, and a community’s collective way of life. That’s why it’s imperative that we work together – government, advocates, the private sector, and everyday citizens – to do what we can to protect this valuable resource and ensure its beauty and bounty for generations to come.”

Report highlights:

  • – Economic activity within the Inland Bays study region provides tax revenue to federal, state, and county governments estimated at $458 million.
  • – The Bays’ thriving marina and boating economy contributes $76 million in activity
  • – Accommodations, including at least 13 privately operated RV and tent campgrounds near the Inland Bays, contribute $144 million in activity and over 1,000 jobs.
  • The study cites research indicating that in  2019, 7.5 million visitors came to Sussex County and that tourism is now the fourth largest employer in the state. 

The Delaware Inland Bays consist of three interconnected coastal lagoons in southeastern Sussex County: Indian River Bay, Little Assawoman Bay, and Rehoboth Bay. Collectively, the Bays and their tidal tributaries cover 32 square miles with a watershed of approximately 320 square miles.

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