A Changing Island Economy

“We have priced ourselves out of the market.” That, according to Ms Rene Balter, Director of the Oak Bluffs Association, is why the island’s tourist trade is off this year. I hope that her statement will not apply to the entire island economy a few years hence as I watch prices here continue to escalate far beyond the rate of inflation.

Many Island businesses fail to realize that the Island population and the Island economy have changed significantly over the past twenty years. Tourists are not the only source of revenue here any longer.

The latest census figures show that the fastest growing age group on the Island is the over 55 seniors. Many of these older citizens spend a lot of their dollars off Island in part because of the lower prices there and in part because some services cannot be obtained here. As one of these older citizens, I would much rather spend all my dollars here and am willing to spend a reasonable premium for the privilege of living here. But, a gasoline premium of 20% or more, a food premium of 10 – 15%, etc. seem to me a bit unreasonable.

As has been pointed out often, the early morning boats deliver a number of workmen to our shores. But, the Vineyard’s export trade that has been enabled by technology is seldom mentioned. Off the top of my head I can think of a number of year-round Islanders who earn their living from clients or companies on the mainland while spending most of their time here. Here are just a few that come to mind: an artist selling his work on E-bay, the consultants who visit their clients in London, Australia, New York, etc. every month or two, the banker who spends three nights a week in Boston, the software designer who works for a firm in the Mid-West, the fundraiser serving colleges across the country, the writer for a company in Florida, the nurse who works at Falmouth Hospital, the oceanographer commuting to Woods Hole, the antiques dealer finding treasures across New England. I could go on, but you get my point. And, I don’t know that many people!

A tourism-based economy does not focus on these two segments of the population. By definition, it has to focus on the visitors, whether here for a day or a month; it’s an economy based on the short term. Yet, the Vineyard economy of today needs to be served by those interested in the long term. And, you don’t serve the long term interest of the Vineyard by charging unreasonable prices.

I am not saying that tourism is wrong for the Vineyard. Clearly, it was the economy’s driving force for many years. It will always be an important factor in our economy as long as we preserve and nurture that which makes the Vineyard unique. But, as Mark London said at the recent MVC forum, “We have to think about longer-term, bigger changes.”