Coral Reefs 
Coral reefs are among the most unique marine 
ecosystems. Formed by the skeletons of living ani- 
mals, coral reefs are important to the marine systems 
of Guam, Hawaii, the Trust Territories, Virgin Is- 
lands, and the southern extension of Florida. They 
are easily damaged by contamination from sewage, 
erosion from runoff, chemicals, or waters of high 
temperatures. Silt from dredging operations near 
coral reefs can smother the living coral, thereby 
impeding its growth or killing it. Although not ex- 
tensive in range, coral reefs are of immense benefit 
to the coastal regions where they are found. They 
afford cover for fish and sedentary species which 
form the coastal fisheries of tropical marine eco- 
systems and serve as storm barriers for adjoining 
mainland areas. 
Economic Activity 
The economy of the coastal region is based upon 
diverse income-producing activities which range 
from extractive industries, agricultural enterprises, 
and manufacturing to services, transportation, and 
the retail trade. It is a microcosm of the national 
economy, but is skewed toward ocean-related uses. 
The uses of the coastal region fall into six basic 
categories: (1) living space and recreation—perhaps 
the consequence of, rather than the cause for, eco- 
nomic activity, although they cannot be separated; 
(2) industrial and commercial activities—including 
ports, power production, mining, and commercial 
development; (3) waste disposal—frequently the final 
resting place of unwanted industrial and domestic 
wastes; (4) food production—largely fishing, but 
also including land-based agriculture; (5) natural 
preserves—wetlands and waterfowl preserves; and 
(6) special government uses—portions of the coastal 
zone which are used for military and civil activities 
that require a coastal location for security or opera- 
tional reasons. 
The coastal conference sponsored by the Woods 
Hole Oceanographic Institution and the Institute of 
Ecology in 1972, from which the report The Water's 
Edge—Critical Problems of the Coastal Zone® was 
produced, discussed the more important economic 
activities in the coastal region. The conference noted 
that commercial fishing in 1970 was a $600 million 
industry, with 45 percent of the catch taking place 
in nearshore waters.’ Marine sport fishing was esti- 
mated to add an additional $800 million to the 
economy, based on 1965 data.*° 
Among the nonrenewable resources considered, 
offshore oil and gas was then yielding 18 percent 
of the oil and 15 percent of the natural gas recovered 
in the Nation and was projected to go significantly 
higher." Sand and gravel extracted from beneath 
coastal waters was valued at $100 million annually. 
8 Bostwick Ketchum. The Water’s Edge—Critical Problems of 
the Coastal Zone. Boston: MIT Press, 1972, p. 13. 
8 Ibid., p. 45. 
10 Ibid., p. 86. 
11 Ibid., p. 66. 
12 Ibid., p. 70. 
Recreation, the conference reported, was the leading 
economic activity in the coastal region. In 1968 it 
was estimated that about 112 million people partici- 
pated in a total of 7.1 billion ocean-oriented occa- 
sions and spent about $14 billion for the experi- 
ence.‘ The report noted further that 40 percent 
of the industrial capacity of the Nation was in the 
coastal region as defined by the estuarine counties, 
which cover 15 percent of the total land area.* The 
conferees were unable to assign a total value to 
housing, energy production, transportation, and 
waste disposal. 
In 1973, a conference on “The Oceans and Eco- 
nomic Development,” sponsored by the National 
Oceanic and Atmospheric Administration, stated that 
43 percent of the industrial work force was in the 
coastal region, which was defined as the coastal 
counties excepting Hawaii and Alaska.'® This figure 
represented a growth of 4 percent in the period 
1940-70. Growth slowed after 1960, and a small 
decline was noted in 1970 (table 4-1). 
A comprehensive attempt to arrive at the eco- 
nomic value of ocean-related activities was per- 
formed by Nathan Associates for the Congressional 
Research Service at the request of the Senate Na- 
tional Ocean Policy Study in 1974.'* Although the 
study dealt with all ocean resources generally, the 
findings apply to a subset of coastal activities as well. 
Nathan Associates cautioned in the report that 
estimates of economic value in many cases should 
be considered as only “a rough order-of-magnitude 
indication of economic value,” because “relevant in- 
formation is frequently scanty or non-existing.” 
The value of the domestic fisheries industry, in- 
cluding processing and marketing, had risen to $2.2 
13 Jhid., p. 89 
14 [bid., p. 107. 
15 U.S. Congress, Senate, Committee on Commerce. The 
Oceans and the National Economic Development. Washington, 
D.C., Government Printing Office, 1973. 
16 U.S, Congress, Senate, Committee on Commerce. The Eco- 
nomic Value of Ocean Resources to the United States, by 
Nathan Associates. Washington, D.C., Government Printing 
Office, 1974. 
17 Ibid, p. 1. 
IV—4 
