Abstract
This study estimates the impacts of the North Jersey Coast Line (NJCL) summer weekend riders’ spending on the economies of the Jersey shore communities known for beach-oriented recreational activities. The NJCL is a commuter rail line that provides access for a large number of workers to their work places on weekdays throughout the year. However, the line also provides direct access for a large number of recreational visitors from New York City and other parts of New Jersey to the Jersey shore communities on summer weekends. To estimate the economic benefits for the shore communities from the spending of the NJCL summer weekend riders, this study uses a regional input-output (I-O) model developed by the Rutgers Economic Advisory Service (R/ECON™) of Rutgers University. Visitor expenditure data from an onboard survey of NJCL riders were used as model inputs. The survey, conducted during the summer of 2013, was completed by a total of 2,241 riders who were returning from the shore area. The R/ECON™ I-O model provided estimates of economic benefits to the shore communities in terms of jobs, earnings, gross domestic product, state taxes, and local taxes. The model also generated return-on-investment multipliers for these variables. The study showed that the $14.8 million spent by the NJCL summer weekend riders in the shore communities generated approximately 225 annualized jobs, more than $9 million in earnings, and more than $1 million in state taxes. More than 80% of the economic benefits were generated from out-of-state visitors’ spending.