EXECUTIVE SUMMARY

Horseshoe crabs may be ugly, but they are good business for Virginia.

The horseshoe crab plays an important role in one of the fastest growing recreational industries in Virginia and in the country -- bird and wildlife watching. Tourism is already Virginia's largest industry. Horseshoe crabs are not only good for business, but they are vital for the biomedical industry. The blood of the horseshoe crab is an essential tool relied on by Virginia hospitals and clinics to ensure pharmaceuticals and other medical devices are free from bacteria.

The State of Virginia's failure to put reasonable limits on the landings of horseshoe crabs puts tens of millions of dollars of Virginia business income at risk and threatens the viability of these creatures. More than a million migratory shorebirds depend on horseshoe crab eggs as a food source during the spring migrations. Significant declines in migratory shorebirds have accompanied the overfishing of horseshoe crabs that has occurred during the 1990s.

Irresponsible action by Virginia is threatening hundreds of millions of dollars of business income in other Mid-Atlantic seaboard states that have taken tough action to restrict the landings of horseshoe crabs. A strict limit on the landings of horseshoe crabs is good for all segments of Virginia business -- ecotourism, the biomedical industry, and commercial fishing interests.

THE IMPACT OF BIRD AND WILDLIFE WATCHING ON VIRGINIA'S ECONOMY

More than 2 million people spent a total of almost $700 million in Virginia on bird and wildlife-watching activities in 1996, according to the U.S. Fish and Wildlife Service. According to a study by Southwick Associates, $108.3 million in retail sales alone were generated in Virginia by non-consumptive bird use (non-hunting activities), supporting more than 3,000 jobs. These activities generated more business in Virginia than in Delaware ($11.5 million), Maryland ($83 million), and New Jersey ($87.5 million).

The State of Virginia itself has recognized the importance of birding and eco-tourism to the state's economy. The Virginia Department of Natural Resources has a campaign underway to promote birding and other ecotourism activities as good investments for Virginia business. The following item is from the Virginia Department of Natural Resources Web page http://www.state.va.us/~dcr/dnh/songfact.htm.

Recently, more and more localities are learning how conservation of biodiversity can lead to economic benefits. In Northampton County, local citizens encourage tourism focused specifically on the area's ecological resources. The Eastern Shore of Virginia National Wildlife Refuge and Kiptopeke State Park conserve biodiversity and attract tourists. The Eastern Shore Birding Festival, held in Northhampton County every year during the second weekend in October, draws nature enthusiasts from around the state and around the country to birdwatch and experience fall migration. Such events have been shown to be a significant boon for area businesses and provide examples of how conservation enhances rather than diminishes economic opportunity. [emphasis added]

Governor Gilmore trumpeted the importance of Virginia tourism in a recent radio program saying, "Tourism is a major accomplishment of this Administration. We can expand tourism dramatically."

As other parts of the nation have recognized, promoting birding and eco-tourism activities makes good business sense. The Virginia Tourism Commission has even advertised in Audubon magazine to promote tourism during the past year.

CHINCOTEAGUE, VIRGINIA -- WHERE DOLLARS, BIRDS, AND HORSESHOE CRABS CONVERGE

Chincoteague, Virginia provides a good example of the direct link between horseshoe crabs, shorebirds, and economic prosperity. In Chincoteague, what is good for the horseshoe crab is good not only for migratory shorebirds, but also for Virginia business.

The importance of birding to Chincoteague's economy was documented in a recent tourism survey, "The Economic Impact of Birding Ecotourism on the Chincoteague National Wildlife Refuge Area, Virginia." The report notes that the average visitor to the refuge was worth between $62 and $101 for the Eastern Shore economy. This is a significant amount, particularly considering that Chincoteague receives between 1.3 and 1.5 million visitors annually, making it one of the most visited refuges in the US. According to the tourism study, over 95,000 birders visited the refuge from 32 states (not including VA or MD). The report declares, "Birders and other ecotourists are an important economic factor in the Chincoteague economy."

The Master Plan for the Chincoteague National Wildlife Refuge draws the direct connection between the horseshoe crabs and migratory birds. The Master Plan states that, "Intertidal sand and mud flats on the cove side of Toms Cove Hook abound with horseshoe crab eggs and other high quality food during the entire shorebird season." It also states that, "horseshoe crab availability makes Toms Cove second only to Delaware Bay as a popular feeding area for ruddy turnstones, red knots, dunlin, semipalmated sandpipers, and sanderlings."

According to the U.S. Fish and Wildlife Service study Banking on Nature, non-consumptive-use visitors to Chincoteague spent over $30 million in the region. The study further points out that non-Virginia residents spent over $20 million in the area and created 545 jobs directly related to wildlife activities. Banking on Nature concludes, "Chincoteague's visitation is highly important to the local economy."

HORSESHOE CRAB BLOOD: $50 MILLION BIOMEDICAL INDUSTRY -- RELIED ON MY HOSPITALS AND CLINICS IN VIRGINIA

The blood of the horseshoe crab is a life-saving tool used by the biomedical industry. Hospitals and clinics in Virginia rely on horseshoe crab blood, whether they know it or not. A substance known as Limulus Amoebocyte Lysate (LAL) is obtained from the blood of living horseshoe crabs. According to a report from a University of Delaware forum on horseshoe crabs, "The animals are bled (approximately 20% of blood volume) and returned unharmed to the ocean, as prescribed by Food and Drug Administration regulations."

LAL is then used to detect the presence of dangerous bacteria in injectible drugs and surgical implants such as pacemakers and prosthetic devices. LAL has become the worldwide standard screening test for bacterial contamination. Batches of drugs leaving a pharmaceutical company are first tested for purity with LAL.

This life-saving, non-consumptive use of horseshoe crabs supports a $50 million LAL industry worldwide, according to the Atlantic States Marine Fisheries Commission. "This estimate," the Commission observed, "is based on bleeding 250,000 horseshoe crabs per year, generating approximately $200 per crab in revenue for the biomedical industry." The value of pharmaceuticals protected by LAL is estimated to be hundreds of millions of dollars.

One of the major suppliers of LAL is Bio-Whittaker, with a major facility located in Chincoteague, Virginia.

Overfishing of the horseshoe crab could seriously affect the supply of this vital substance. The Washington Post accurately noted in August, 1997, that, "Ironically, the crab is becoming imperiled just as scientists are fully realizing its potential for improving human health."

SAVING BUSINESS: NEW JERSEY, DELAWARE, AND MARYLAND ACT

The overfishing of horseshoe crabs in the 1990s posed a serious dilemma for the Governors of New Jersey, Delaware, and Maryland. While concerned for the plight of watermen and commercial fishing interests, there was clear evidence that overfishing was threatening the horseshoe crab, the migratory shorebirds, the local businesses that thrived on the millions of eco-tourism dollars, and the long-term livelihood of the watermen.

The Governors of these states, after weighing the evidence, took decisive action to restrict the harvest of the horseshoe crab. Governor Whitman (NJ) imposed a ban on trawling, Governor Carper (DE) worked with the Delaware legislature to impose severe restrictions on hand-harvest and landings, while Governor Glendening (MD) issued emergency regulations reducing Maryland's horseshoe crab landings by 75%. The combination of these actions reduced the allowed take of horseshoe crabs from 1.7 million to 676,000 horseshoe crabs.

When presented with the serious business and ecological importance of horseshoe crabs, New Jersey, Delaware, and Maryland Governors acted to save business and horseshoe crabs. Virginia's horseshoe crab policy is a bad business decision by allowing the destruction of the valuable horseshoe crab resource.

STRIP MINING HORSESHOE CRABS

From the early 1990s to the present, there has been an explosion in the number of horseshoe crabs landed. The primary use of horseshoe crabs is to provide bait for the eel and conch fisheries. Virtually the entire catch of the eel and conch fisheries is exported to Asia and Europe. The Richmond Times-Dispatch noted that there are about 50 full-time boats fishing for conch in the lower Chesapeake Bay and Virginia's Atlantic Coast.

The commercial fishing industry continually fights efforts to limit the overfishing of horseshoe crabs. The commercial fishing industry and many regulators have ignored the scientific evidence of increased landings, declining horseshoe crab egg counts, declining migratory bird populations, and abundant anecdotal evidence of horseshoe crab decline. At a recent Virginia Marine Resources Commission public hearing, a commissioner declared that horseshoe crab landings should be based on demand, not on supply! They have maintained a shoot-all-the-buffalo mentality.

Restricting horseshoe crab fishing would preserve the long-term economic viability of the horseshoe crab fishery for the commercial fishing industry. Without restrictions, the horseshoe crab, like so many other fisheries, is being strip-mined without regard to the long-term viability of the resource.

VIRGINIA: LOOPHOLE STATE OR GOOD FOR BUSINESS?

While New Jersey, Delaware, and Maryland have acted to restrict the landings of horseshoe crabs, Virginia has emerged as the "loophole state." According to the Baltimore Sun, the commercial fishermen "have taken advantage of Virginia's giant loophole in the state's protection: crabs caught in other states' waters are being landed through Virginia ports." Additional crabs are being caught in federal waters (before they come into a given state's jurisdiction) and also landed in Virginia.

Indeed, between 1997 and 1998, the increase in landings of horseshoe crabs in Virginia jumped 20-fold. The horseshoe crab landing levels set by the VMRC for 1999 are a 2600% increase over 1997 landings. This action by the VMRC codified and enlarged the loophole through which horseshoe crabs that other states are trying to protect are landed in Virginia. The very horseshoe crabs that other states made a sound business and ecological decision to protect are being brought to Virginia. Virginia's failure to restrict landings of horseshoe crabs threatens tens of millions of dollars of business not only in New Jersey, Delaware, and Maryland, but in Virginia as well.

SOURCES

Atlantic States Marine Fisheries Commission. Interstate Fishery Management Plan for Horseshoe Crab. December 1998.

"Crash of Delaware Bay Shorebirds Linked to Overfishing of Horseshoe Crabs," Living Oceans News. National Audubon Society, Fall, 1997.

Horton, Tom. "Virginia Rejects Chance to Shield Horseshoe Crab". Baltimore Sun, August 21, 1998.

Latane, Lawrence. "Demand for Crabs Presents Dilemma". Richmond Times-Dispatch, February 21, 1999.

Southwick Associates. The Economic Contributions of Bird and Waterfowl Recreation in the United States During 1991. Arlington, VA, March 1995.

"Status of the Resource, Proceedings of the Horseshoe Crab Forum". University of Delaware. February 23, 1996.

U.S. Fish and Wildlife Service. Banking on Nature: The Economic Benefits to Local Communities of National Wildlife Visitation. July 1997.

U.S. Fish and Wildlife Service, U.S. Department of the Interior and U.S. Department of Commerce. 1996 National Survey of Fishing, Hunting, and Wildlife-Associated Recreation. November, 1997.

Warrick, Joby. "Ugly Horseshoe Crab May Have a Future to Match on Delaware Bay". Washington Post, August 4, 1997.

Virginia Department of Natural Resources Web Page -- "Migratory Songbird Habitat in Virginia's Coastal Plain". http://www.state.va.us/~dcr/dnh/songfact.htm/

Virginia Governor James Gilmore. "Ask the Governor". WTOP Radio 1500 AM. March 23, 1999.

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