Economic and Social Impacts of BSAI Crab Rationalization on the Communities of King Cove, Akutan, and False Pass

Abstract

This report examines economic and social impacts of the first two years of crab rationalization on the Aleutians East Borough communities of King Cove, Akutan and False Pass. The study was conducted by the University of Alaska Institute of Social and Economic Research (ISER) for the Aleutians East Borough (AEB) and the City of King Cove. Crab rationalization resulted in dramatic consolidation in Bering Sea crab fisheries. During the first two years of rationalization, consolidation reduced the number of boats participating in the Bristol Bay Red King Crab fishery and the Bering Sea Snow Crab fishery by about two-thirds. This consolidation in the fleet, and the corresponding reduction in crab fishing jobs and crab boat spending, was a major immediate short-term factor driving economic impacts on the three study communities to date. Longer-term concerns of community residents extend beyond these immediate economic impacts to many other issues. The report is based on a literature review, interviews conducted during visits to each study community, analysis of federal and state and local fisheries data and community data, and a household survey conducted by the City of King Cove. The primary focus of the study is on King Cove, because it is a larger community which has experienced greater effects of crab rationalization.