Business Model Canvas (BMC)- A new venture concept
Long Beach Island Case Study
1.
2. Overview
• Representing Local Businesses Owners
• Many businesses are location-dependent
o Example: yacht clubs must be located on a lot with water access.
• Heavily Impacted by barrier island tourism
o Lodging, Food & Beverage, Retail, Recreation, and
Transportation
o LBI businesses represent 32% of total tourism spending for
Ocean County
• 2011 Total Tourism revenues of $1.2B
3. LBI Tourism Economics
Tax Contribution
• Generated nearly $300M in total taxes in 2011
• 3% of all tourism-initiated taxes for NJ
• Ocean County’s 200k+ households would need to pay
additional $826/year to match current levels
Job Creation
• Directly supports 20,300+ jobs
• 14% of all Ocean County employment
• 83% of tourism spending stays in Ocean County
Source: http://nj1015.com/files/2012/10/SOCC-2011-Econ-Impact-Final-10-2012.pdf
4. Environmental Analysis
• Taxpayer equality issues
• 5th amendment concerns
• Federal flood insurance
• EPA and other agencies
• Has decision-making power and
wide sphere of influence
• Save wetlands, estuaries,
aquifers, and water supply
• Limited power to affect
decisions but can influence
• Value empirical evidence
• Advocate immediate
solutions to climate change
• Limited power to make
decisions but can influence
• Gentrification
• Rely on constant engineering
• Insurance costs
• Resistant to moving but have
limited power
• Source of revenue for the state
and county
• Attract and maintain tourism
• Advocates for status quo
• Sewage pollution and littering
• Appease local populations
• Concerned about tourism and
tax revenues
• Power to make decisions and
influence federal government
5. Climate Change Assumptions
Precipitation
• Northern region of the U.S. projected to become wetter
• More intense Atlantic hurricanes
o 1.8°F increase in tropical sea surface temperatures
o Stronger winds, increased rainfall
Sea Level Rise
• Melting glaciers and ice caps
• Since 1870 sea levels have rose 8 inches
• Conservatively projected 1.5 ft. rise in New York and
New Jersey by 2050, 2.3 ft. by 2100
o Some scientists project 6 ft. rise by 2100
Source: http://www.epa.gov/climatechange/science/future.html
6. Climate Change Impact
Storm Surge Impact
Lower Manhattan
Year 2100
Assumes 5-ft rise in
sea levels
7. Impact to Barrier Islands
• Shoreline erosion as sea levels rise
o Loss of beaches
o Homes and businesses threatened
o Decreased tourism
o Loss of jobs
• Increased frequency and severity of storms
o Coastal flooding leads to property damage
o Increased insurance premiums
o Sea level has risen consistently since 1993
o Effects of severe storms = negative affects
10. Retreat
Benefits Disadvantages
• Minimizes human suffering
• Less expensive than armoring
• Allow restoration of flood
buffering wetlands and natural
shoreline
• Protection costs avoided
• Fewer post-disaster decisions
to abandon developed land
• Businesses close
• Political quagmire; legal and
equity issues
• Negative impact to tourism
and tax collection
• Incremental costs– e.g. site
clean up to remove toxics
• In-migration land use conflicts
• Short term vs. long term costs
11. No Coastal Protection
Benefits Disadvantages
• Provides natural erosion
and habitat
• Natural vegetation
• Prevents dramatic shifts
in natural ecosystem
• Critical components to
local geology
• Loss of business
• Re-filling island in short
term
• Thermal expansion of
coastal waters
• Extreme construction costs
• Degradation of natural
environment
12. Raise the Island
Benefits Disadvantages
• Prevents island from breaking
apart
• Minimally disruptive
• Can be done gradually
• Businesses do not relocate
• Local jobs can be retained
• $1.2B in tourism revenue
• Maintain tax revenue for local
governments
• More costly than other options
• Disruption of marine life and
erosion of wetlands
• Potential tax increase to pay
for project
• Logistics concerns
• No storm surge protection
13. Construct Levees
Benefits Disadvantages
• No institutional changes/
physical interference
• Beach can be maintained
• Avoid inundation
• Constant Monitoring
• Storm surge protection
• Must abandon properties
• + $$$ for sand
• Waterfront aesthetics
• Hoist boast / climb over
• Initial investment: pump
system, land, & construction
• Constant maintenance
• Interference w/ sea life
15. Recommendation
Raise the island
• Saves hundreds of small local businesses and
preserves thousands of jobs
• $1.2B in revenue generation annually
• Positive tax impact for state and local governments
• Preferred over levees
• Unspoiled ocean views
• No disruption to businesses reliant on boats
• Costs less than levees at EPA projection of 2ft sea level rise
• Can be implemented gradually
16. Implementation
• Partner with local and state governments
• Construction done in off-season months to
minimize impact to tourists
• Project funding via:
• Federal and state grants
• Toll revenues
• Marketing campaign highlighting greater LBI area
• Increased emphasis on environmental
sustainability