Regional Economy

Sunset on the Nushagak River, transporting salmon catch to processors. (Photo by Lauren Oakes)

The waters in the Bristol Bay region have long been an integral part of the State's economy and have provided sustainable jobs, subsistence foods and other benefits to Alaskans for generations.  Bristol Bay’s regional economy depends largely on the availability of wild resources.

There are roughly 7,500 individuals living in the region, 66% of whom are Alaska Native.  That's relatively high, compared to Alaska as a whole at 16%.  The Native communities in this area rely upon resources like the salmon, berries, and caribou as their main sources of food.  Salmon represents 52% of the subsistence harvest, and on average the Bristol Bay communities bring in 2.4 million pounds a year.  In addition to sustaining the customary and traditional ways of life Bristol Bay residents, the wild resources here sustain the greater portion of jobs in the region, and contribute significantly to the local and state economies through the commercial fishing, and recreation and tourism industry.

Bristol Bay's salmon fishery is the most valuable in Alaska and has the most permit holders, with more than 2,800 people.  In 2006, commercial fishing harvest earnings were roughly $95 million and earnings from processing Bristol Bay fish were $225 million.  The salmon harvest earnings from Bristol Bay contributed nearly one third to all of Alaska's salmon harvest earnings.  The Bristol Bay economy has a seasonal boom with more than five times as many jobs in the summer than in the winter.   The vast majority of jobs are based on Bristol Bay's fish and wildlife, with commercial fishing-related jobs accounting for nearly 75% and fishing, hunting and tourism another 5%.   The annual payroll for employment based on fish and wildlife is $175 million.  During the peak season, the harvest and processing industries provide nearly 12,500 jobs. 

Recreation and tourism spending brings in another $90 million. Sport fishing accounts for roughly $60 million of that spending, with non residents and high-end lodge clients contributing the most.

By placing the region's wild salmon, its world-class reputation as a clean and healthy food source,  and the many other assets of this pristine watershed at risk, the Pebble mine and BLM mining district directly threaten the existing economic system in Bristol Bay.  What's even worse - mining itself is unlikely to make significant contributions to the local or state economy.

While state revenue from oil and gas amounts to about 20% of total production value, the mining industry's return is far less.  State revenue generally amounts to less that 1% of the mined resource value, while an additional 1% is paid to municipalities.  Mining companies just do not contribute enough of the profits to local or state economies. 

Alaska's mining industry bears a light tax burden compared to Alaska's other high value resource industries. State revenue generally amounts to only about 7/10 of 1% of the mined resource value, while an additional 1% is paid to municipalities. State revenue from oil and gas amounts to about 20% of total production value, while an additional 2% is paid to municipalities. State revenue from fisheries amount to about 2.8% of the total production value, while an additional 2.5% is paid to municipalities, excluding property tax, vessel and license fees.

Although the Pebble Partnership plans to employ some 2000 people during the 2 year construction, and 1,000 throughout its operation, most of those jobs won't go to the local residents. All the more reason to help SAVE BRISTOL BAY.