Summary Report

Rhode Island For-Hire Fluke CooperativePilot Program

2013-2014

November 2014

EXECUTIVE SUMMARY

Beginning in 2010, a group of Rhode Island charter boat captains began a three-year effort to research and design a model program to test a new approach to charter boat fishing. In May 2013, eight captains launched a voluntary pilot program—the first of its kind in the world—that combined increased catch accountability with fishing flexibility. The program was continued in 2014 with 10 participating captains. This report summarizes the experience, observations and results from this two-year pilot program with regards to achieving the following goals:

1) Create incentives for stewardship and accountability in the fluke resource;2) Reduce discards of fluke;3) Better serve customer needs and manage charter boat businesses;4) Improve the customer experience of charter boat fishing for fluke.

The pilot program participants were organized as the Rhode Island For-Hire Fluke Cooperative. All captains who participated in the program are active members of the RI Party and Charter Boat Association (RIPCBA). The group branded the pilot program initiative as Rhode Island Fish for the Future and created a logo. They also launched a website, www.rifishforthefuture.com , to raise awareness of the program and its goals.

The captains voluntarily limited their fluke catch below the amount they were allowed to harvest under the general recreational fishing regulations while allowing their customers to keep more of the fish that were caught. Their approach greatly increased catch accountability while significantly reduced discards of undersized fish. In addition, it improved the collection of scientific information needed for fluke conservation through strict electronic catch and discard record-keeping. This information may be used by fishery managers to better inform scientific stock assessments.

The Cooperative purchased fluke for this pilot program through the Mid-Atlantic Fishery Management Council’s Research Set Aside (RSA) program. Funds for the purchase of RSA fish was provided through a research grant from the National Fish and Wildlife Foundation (NFWF). It is important to note that the captains only fished for fluke under the RSA program. As part of the pilot, the captains voluntarily chose not to catch any fluke under the Rhode Island Recreational Fishery in order to effectively test the pilot program’s catch limit model. The captains subdivided the purchased RSA fluke according to group agreements. Individual captains were held accountable for fishing within their individual catch limit.

For two years in a row, the Cooperative did not even come close to fishing to its designated limit. This shows that captains are not seeking to fish to their maximum limit or raid the species when participating in programs like this one. This year the Cooperative averaged 300 fluke per boat.

Over the term of the 2-year pilot program, members of the Cooperative made 252 fluke fishing trips between with customers catching a total of 5049 fluke, of which they kept 3199 and released 1850 fish that were under the 16” minimum size adopted by the Cooperative members. If the customers had been fishing under the general recreational regulations they would have kept only 1445 fish and discarded 3604. As a result, the average number of fish kept per trip was 12.7 under the pilot program. If they had been fishing under the general recreational fishing rules, the average number of fish kept per trip would have been 5.7.

The captains carried an average of 4.6 anglers per trip who kept an average of 2.8 fluke per angler. If they had been fishing under the general recreational fishing rules, these anglers would have been able to keep only 1.2 fluke per person.

The Cooperative members achieved the required resource conservation by voluntarily limiting their total catch in return for increased flexibility. While the general recreational rules use larger minimum sizes and bag limits as the method of limiting the total catch by recreational fishermen, the pilot program was able to reduce the minimum size and eliminate the need for bag limits while still maintaining conservation equivalencies. Contrary to popular belief, recreational rules are set to control the total catch, not to control any adverse effect on the biology of the fish.

The member captains have taken a long-term view of the benefits expected from fishing under the cooperative rules. Many of the captains had all but given up fluke fishing as increasingly restrictive regulations made it difficult to book trips in advance due to uncertainty regarding the opening of the season, minimum size restrictions and catch limits. In addition, increases in the minimum size required much of the customer catch to be discarded, resulting in an unfavorable customer experience, lower perceived value of the trip, and ultimately less repeat business for fluke trips.

Because the recreational fluke fishery does not operate under an annual quota, regulators attempt to limit the total catch through adjustments in the length of the season, the minimum size limit, and the bag limit.

As a result, anglers discard as much as 75 percent of the fish that they catch. These high discard rates can discourage both charter customers and captains and potentially undermine conservation. However, under the rules adopted by the Cooperative, member captains fished under an annual catch limit that assured adequate conservation without additional regulations that diminish the fluke fishing experience.

Along with the annual catch limit, the captains adopted a 16-inch minimum size that allows 100 percent of fluke to reach sexual maturity while reducing the number of dead discards that must be included in the total fishing mortality.

Charter boat fishing is an integral part of the Ocean State's tourism industry, attracting nearly 50,000 visitors to the state and generating as much as $34 million in tourism related spending annually. It is therefore imperative for Rhode Island to develop programs that conserve ocean resources while continuing to support and grow charter boat fishing in the state. The For-Hire Fluke Cooperative captains believe that their 2013 pilot program has successfully demonstrated a model that can both achieve conservation goals while strengthening the economic viability of the charter boat industry.

OVERVIEW

The RI For-Hire Fluke Cooperative is a group of eight charter boat captains who voluntarily designed and participated in a research pilot program to test an innovative approach to better stabilize the fluke resource while improving the economic viability of the charter boat industry. The mission of the pilot program was to test whether an alternative approach can achieve the following:

• Create incentives for stewardship and accountability in the fluke resource; • Reduce discards of fluke; • Increase flexibility, predictability and certainty to better serve customer needs and manage our charter

boat businesses; • Improve the customer experience of charter boat fishing for fluke.

WHY A PILOT PROGRAM?

The captains participating in the For-Hire Fluke Cooperative pilot program believe that the charter boat industry could benefit from an innovative approach to fisheries management that protects the long-term stability of fish stocks while supporting the economic viability of the Ocean State's for-hire charter boat industry and larger tourism economy. A new approach could help the fluke fishery better maximize the environmental, social and economic value while maintaining integrity of the resource.

Under current regulations, customer discard rates of fluke are harming the industry and the resource. In past seasons, discard rates have reached 400 discards to 22 keepers (1 keeper for every 18 caught) per boat. This leaves customers dissatisfied and stresses the fluke resource unnecessarily, increases vulnerability for overfishing and adds instability.

Increasing fishing pressure and tighter conservation requirements have resulted in increased restrictions on recreational charter boat captains, making it more difficult for them to plan and market their businesses. Unstable and unpredictable season dates, fewer days to fish, bag limits and size limits significantly reduce charter boat anglers' ability to access fish and charter captains' ability to attract customers and sustain their businesses.

Unless a new regulatory system is developed, customers coming to Rhode Island for charter boat fishing experiences will continue to decline, and RI's captains—as well as the local economy that services anglers and tourists—will increasingly lose revenue.

The more than one hundred licensed and active party and charter boats in Rhode Island are businesses that provide employment and income for the state economy. Like other businesses, party and charter boats stand to benefit from stability in the regulations under which they operate. All aspects of business planning, from buying and financing a boat to developing marketing materials, require the business operator to know what he will have to sell in the years and months ahead. Charter boats don’t require a large volume of fish, but they do require certainty.

There are some critical differences between general recreational fishermen and for-hire charter boat captains despite the fact that both groups are currently managed under the recreational fishery. (See Appendix B for additional information)

ECONOMIC IMPACT

Charter boat fishing is an integral part of the Ocean State's economy, particularly related to the tourism industry. In a state that relies heavily on revenue from out-of-state visitors, charter boats contribute significantly to the economy through both direct and indirect consumer spending.

$34 Million - Recreational fishing ranks in the top ten tourist activities in Rhode Island, and is an important spending driver for a key segment of the state’s tourism economy. As much as $34 million (or 10%) of tourism-related spending could be attributable to saltwater fishing.

$5.8 Million - The amount charter boat customers spent in 2009 on RI for‐hire fees and generated significant additional local and state revenues from non‐fishing activities, including hotels, souvenirs and meals. The majority of this spending came from out of state residents.

46,000 - The estimated number of visitors charter boats bring to Rhode Island each year.

GOALS

Accountability & Conservation Goals (biological and ecological)

• Conserve fish populations for the future by creating incentives for stewardship of ocean resources and habitat.

• Be accountable to a specific catch limit of fish and fish within that sustainable catch limit in order to continue to rebuild and maintain the summer flounder fishery.

• Test new, innovative catch accounting and reporting for the recreational sector that provides more accurate and timely fishery-dependent data to fishery managers and scientists.

• Reduce regulatory discards and associated mortality.

Flexibility & Stability Goals (economic and social)

• Increase flexibility of when to fish in order to better serve the customers of charter boats. • Improve business planning by achieving stability, predictability and certainty in fishing rules and

resource conservation. • Maximize the value of Rhode Island's fluke resource to the benefit of fishing businesses, fishing

communities, ancillary shore/dock side businesses, and the overall State economy. • Implement stakeholder co-management in Rhode Island in such a way as to align the interests of

charter boat businesses with the interests of the public in conserving and utilizing fishery resources.

PARTICIPATING CAPTAINS

Capt. Steve AndersonCharter Vessel: Bare Bones ChartersPort of Origin: Warwick, RI

Captain Steve Anderson is originally a native of RI and currently lives in Warwick. Steve has been fishing as a charter captain since 2003 when he says he "just kind of fell into it." He operates a 31 ft. vessel that can accommodate up to 6 customers. When he is not fishing, Steve repairs boats through his own boat repair business that he has run for over 30 years.

Steve's favorite fishing spot is Block Island where he primarily fishes for stripers, fluke, scup sea bass, and blue fish. His girlfriend and his son typically serve as his first mate on charter trips. Steve has been featured in a variety of magazines including the Rhode Island Fishing Magazine. While on trips, he enjoys taking many pictures of his customers and their fish.

Capt. Rick BellavanceCharter Vessel: Priority TooPort of Origin: Point Judith, RI

Captain Rick Bellavance is a lifelong Rhode Island resident. Under the watchful eye of his dad, Rick began his career on the water at 10 years old. Here, he would run his 12 foot wooden skiff around Narragansett Bay harvesting shellfish and winter flounder. He has worked on some of Point Judith's most respected charter boats and is quietly gaining the reputation as a professional skipper. Rick acquired his U.S.C.G. 100 ton Masters License in 1994. He is the current President of the Rhode Island Party and Charter Boat Association and a member of the Rhode Island Marine Fisheries Council. Capt. Rick also sits on several regional and federal advisory boards where he works to develop responsible management plans which promote sustainable fisheries and economically viable fishing industries.

Capt. Andy Dangelo, Jr.Charter Vessel: Maridee IIPort of Origin: Galilee, RI

“We hope that this pilot program will prove to be an effective model for conservation and accountability and for helping charter boat captains sustain and grow their small businesses for many years to come.” - Capt. Rick Bellavance

“The flexibility alone would be a great improvement for the charter boat industry. This program gives us the ability to book trips further in advance which has always been a challenge under existing regulations and hurts our business. It also lets us take customers fishing when the fishing is good and to let them keep fishing if the fish are biting. I don’t see a downside for anyone.”

-Capt. Steve Anderson

This pilot program is the first of its kind in the world. While that is a great accomplishment, we didn’t do it to be first. We did it to prove that we could design a different (and more voluntary) approach to regulating our industry that can work for everyone.

-Capt. Andy Dangelo, Jr.

Captain Andy Dangelo Jr. has been fishing big game for over 20 years. Now working with his son, he aims to give his customers a way to “get away from it all.” The Dangelos are out tracking the fish every day so that their customers get the best fishing experience, regardless of experience level. His charter boat, Maridee II, sails out of Galilee, RI and is fully equipped for fun and relaxation. Whether you’re looking to fish for cod, bluefish, striped bass, black fish, or bigger game like tuna, marlin, shark, and fluke, the Maridee II has everything you need.

Andy Dangelo is Treasurer of the Rhode Island Party and Charter Boat Association.

Capt. Paul JohnsonCharter Vessel: Carol JPort of Origin: Wakefiled, RI

Captain of the Carol J, Paul Johnson has over 60 years of experience fishing in the Rhode Island waters. At the age of 10, his birthday present was a trip out of Galilee on a local head boat for cod. He was officially “hooked” for life. Captain Johnson runs the Carol J charter boat and loves to share the joy of fishing with others. He is the father of three children and grandfather of nine. He lives in Wakefield with his wife Carol. The Carol J. Is a 31 JC Casco Bay Sport fisherman with a Cat diesel and all the necessary safety equipment. ′ I look for “under fished” spots that historically produced fish.

The Carol J is perfect for first time angles, family trips, and experienced angles looking for big game fish such as Fluke, Black Fish, and Scup. In addition, the boat is available for Lighthouse Tours, Scenic Trips, Bird Watching Trips, and Company Outings.

Capt. Johnson is a member of the Rhode Island Party and Charter Boat Association.

Capt. Dave MontiCharter Vessel: Angel LightPort of Origin: Warwick, RI

Captain Dave Monti has been fishing and shell fishing on Narragansett Bay for over 40 years. For fifteen years he held a scallop license on Nantucket where he fished in the winter months. He holds a captain's master license and is the author of "No Fluke," a respected weekly fishing column.

If you like to fish or want to know more about fishing, you will enjoy fishing with Captain Dave and/or reading his No Fluke column. Captain Dave knows where the fish are because he fishes often, has successfully fished

“Rhode Island is called ‘The Ocean State’ for a reason. Not only is it essential for tourism, but we rely on the ocean to provide for our businesses. This is why changing the system to become more sustainable is an absolute necessity.” - Capt. Dave Monti

“I heard about this program last year from several captains who were participating in the pilot. They all said it was a better way to fish and to run their business. So it tried it this year. They were right. We are able to use the resources responsibly by not wasting any fish and the customers love it.”

the Bay and nearby coastal waters for many years, and as a fishing columnist he is alerted weekly to where the bite is by area fishing guides, charter captains, bait and tackle shop owners that are featured in his column.

Dave is a member of the Rhode Island Party & Charter Boat Association and the Rhode Island Saltwater Anglers Association.

Capt. Joe PaganoCharter Vessel: Stuff ItPort of Origin: Point Judith, RI

Captain Joe Pagano has been guiding for over 38 years. At eight years of age he caught his first shark and says, “I remember it like it was yesterday. After that, I was hooked!” Throughout high school, Joe spent his summers as a mate on his uncle's charter boat. As soon as he graduated high school, he took the coastguard exam and has been guiding ever since.

His first fifteen years were spent guiding off shore, catching tuna, marlin, and sharks. As the fishery changed, so did his boat and his fishing spots. Now Joe’s days and nights are spent floating just outside the surf line, in what he calls, "surf fishing from the other side." Joe still enjoys cruises to deep water for off-shore adventures and enjoys sharing his techniques and his boat with people interested in the outdoors. Over the years, Joe have been fortunate to have won dozens of tournaments and have appeared in television programs, newspaper articles and outdoor shows.

Capt. John RainoneCharter Vessel: L'il TootPort of Origin: Point Judith, RI

Captain John Rainone has been a charter boat captain for over 31 years, and has experience in catching every species of fish from flounder to giant blue fin tuna. He has been known to grab his fishing rod and sneak in‐between his customers to wet a line and catch a few fish. He loves to fish and enjoys being out on the water where every day brings fun, excitement and memories of great times shared between customers, captain and crew.

John participates in the NMFS Shark & Tuna Tagging Programs as well as the American Littoral Society Striped Bass Tagging Program. He has served as President of the Rhode Island Party & Charter Boat Association and is a member of the Tautog Enforcement Advisory Panel for the State of Rhode Island's Marine Fisheries Council. He is co‐editor of the Rhode Island Fishing magazine and has written and supplied many articles and photos for the magazine.

“The pilot program will allow my customers to keep more fish and plan their vacations ahead of time which will ultimately provide more stability for my business.” - Capt. Joe Pagano

“Testing new and innovative approaches that can help protect species, improve accountability and ensure the viability of charter boat businesses is essential to the future of the charter fishing and tourism industries in RI.”

-Capt. John Rainone

Capt. Lin SaffordCharter Vessel: Cherry PepperPort of Origin: Charlestown, RI

Captain Lin Safford grew up fishing on the south shore beaches across the street from his Rhode Island home. His first boats were small and wooden, but his current boat, the Cherry Pepper is anything but small. This 32’10” boat sails out of Snug Harbor and can accommodate up to six people. It is described as “a rugged offshore machine that didn’t forget the comfort,” making it perfect for big game fishing. The crew welcomes anglers of all levels and say they love being there to witness the excitement of someone’s first catch.

All members of Lin Safford’s crew are experienced fishermen and members of the Rhode Island Part and Charter Boat Association.

Capt. Kelly SmithCharter Vessel: C‐Devil IIPort of Origin: Point Judith, RI

Captain Kelly Smith is a charter captain with over 25 years of experience. He grew up in Portland, CT on the Connecticut River where his love of boats began at the ripe old age of 12. Eventually Kelly became a first mate aboard a charter boat where they fished the coastal waters of Connecticut and Rhode Island. He earned his captains license in 1989.

Kelly has been a member of the Rhode Island Party and Charter Boat Association since 1993 and served as secretary from 1997 to 2009. Kelly's photographs have appeared on the covers of various fishing magazines such as Nor' East Saltwater, The New England Fisherman and Rhode Island Fishing Magazine.

Capt. Lynn SmithCharter Vessel: Lil' DevilPort of Origin: Point Judith, RI

Captain Lynn Smith is a fishing guide and fly‐casting instructor who hails from the town of Charlestown, Rhode Island. Considered by many to be a rising star in the saltwater fly fishing industry, Lynn has been featured in

“I initially got involved with the pilot program to make an effort to conserve fish for the future. Our current system doesn’t seem to be working, which is why it is time to try a new approach.”

- Capt. Lynn Smith

“I’ve been fishing for a long time and have always thought that there could be a better way. A way that would help me manage my business better, make the fishing experience better for my customers yet still respect and protect the ocean’s natural resource. I think this program can do that.”

-Capt. Kelly Smith

“I had a very positive experience participating in this pilot program this year. It’s a different approach but one that I think works and is good for the long-term viability of the species and the charter boat industry in RI.”

-Capt. Lin Safford

the Newport Daily News, as well as appearing on the covers of Nor' east Saltwater and Rhode Island Fishing magazine. She also appeared on the television show "One More Cast" with Shaw Grigsby and was featured in an article "Women in Fishing" in The Fisherman Magazine.

An active outdoors woman, Lynn is a member in good standing with The International Game Fish Association (IGFA) and Secretary for the Rhode Island Party and Charter Boat Association. She is also a Pro Staff member of Triton Boats and St Croix Rods.

APPROACH

Beginning in 2010, a group of Rhode Island charter boat captains began a three-year effort to research and design a model program to test a new approach to charter boat fishing. In May 2013, eight captains launched a voluntary pilot program—the first of its kind in the world—that combined increased reporting and catch limit accountability with fishing flexibility. The program was continued in 2014 with 10 participating captains.

Under the pilot program, the captains had the flexibility to allow the customers to land more fish by using a safe, lower minimum size limit while still maintaining conservation of the resource, and extend their fishing season if they choose.

Catch cooperative programs such as this can give participants an incentive to be good stewards of their share of the catch while increase stability and predictability for their business. Similar programs in the commercial fishing industry have proven to increase the economic integrity of fishing businesses while meeting high standards for fishery conservation. This group wanted to test this concept, for the first time, in the recreational charter boat industry.

Participating captains voluntarily chose not to fish for fluke under the Rhode Island Recreational Fishery during the 2013 and 2014 fishing seasons. Instead of fishing under traditional recreational allocation rules, the captains purchased a much smaller aggregate amount of fluke under the Mid-Atlantic Fishery Management Council’s Research Set Aside (RSA) program. Funds for the purchase of the RSA fluke allotment were provided through a one-time research grant from the National Fish and Wildlife Foundation (NFWF). The captains then subdivided the purchased allotment according to group agreements. Individual captains were held accountable for fishing within their individual catch limit.

RSA programs are managed by the Northeast Cooperative Research Program and are not given funding from the federal government. Instead, funding is provided annually by the sale of fish that are set-aside for research purposes and are sold either as a fixed poundage, a percentage of the annual quota, or a number of the year's total allowed fishing days. Money generated by the sale is used for further research. Other RSAs include programs for Atlantic sea scallops, Atlantic herring, monkfish, and Mid-Atlantic multi species which includes Atlantic mackerel, black sea bass, bluefish, butterfish, Illex squid, Loligo squid, scup, and tilefish.

Monitoring & Reporting The captains tested an innovative approach to electronic monitoring and reporting that was cost

effective and tracked catch data, including discards. Harbor Light Software, LLC was hired to customize their Fishnet™ software which was installed on Microsoft hand held tablets. The software collected critical fishery-dependent data, such as catch, effort, temporal, spatial, and biological data in real time. Timely data collection was considered essential to the programs ability

to monitor the total catch and discards of fluke. Temporal and spatial data served to validate the trips taken throughout the pilot period.

GoPro HD Cameras were deployed on some boats to record the trips activities and validate catch. The pilot program will help RI DEM determine whether a charter catch cooperative is a workable

system by comparing its performance to the status quo. DEM may consider performance metrics like customer satisfaction, customer discard rates, adherence to strict catch limits, number of fluke trips taken, and the overall economic performance of the program.

A Few Lessons Learned

Purchasing fluke under the RSA program was a good way to test and prove the model but is not a desired or economically feasible approach for moving forward. The cost of purchasing fish would negate or outweigh any boost to business from the program. While customers seemed open to paying more for trips under the pilot program, captains did not feel that raising rates was appropriate.

Sector management for these types of pilot programs is probably best handled by a non-sector participant.

Electronic software and touch screen tablets for trip data reporting are not perfect. While much work is needed to improve the user experience and the ease of data collection/aggregation, participating captains felt that any requirements for increased accountability and reporting in return for increased flexibility were worth the effort.

The use of video camera for onboard monitoring has potential. However, battery life for the cameras used in this pilot made them impractical.

DATA SUMMARY AND ANALYSIS

Over the 2-year program, the participating charter boat captains took 252 customer trips with a total of 5,049 fluke caught and an average of 4.6 anglers per trip. The following tables show a comparison of catch data from the pilot program versus what the catch would have been under the current regulations for the recreational fluke fishery.

2-year Summary Total Fluke Caught Total Fluke Landed Total Fluke Discarded

Discard Rate

Pilot Program 5049 3199 1850 36.6%Current Rules 5049 1445 3604 71.3%

DATA POINT:

Under the pilot program, charter boat customers were able to land and keep an additional 1754 fish without any negative biological impact to the species based on the sizes of the fish caught and released.

Under the current rules, the overall discard rate would have been more than 71%. This means that captains would have been required to discard nearly 3 out of every 4 fish caught by their customers. Under the pilot program, charter boat captains were able to reduce discards from 71.3% of the total catch to 36.6%. As a result, discard mortality was reduced by more than 49%.

2-year Summary Average Number of Fluke Kept per Charter Trip

Average Number of Fluke Kept per Customer (angler)

Pilot Program 12.7 2.8Current Rules 5.7 1.2

DATA POINT:

Under the pilot program, customers were able to keep significantly more of the fish they caught. The captains believe that this led to a better customer fishing experience and overall trip value which significantly improves customer loyalty, repeat business and word of mouth references that can lead to new customers.

In fact, there were several trips where a charter group of 4-6 customers would have caught a total of 15-20 fish and been able to keep only one fish or, in some cases, none. The flexibility to allow customers to keep these fish “saved” the trip from the perspective of both the customers and the captains.

*Additional summary data can be found in Appendix B

CAPTAINS’ FEEDBACK

Customers seemed excited to be actively participating in a conservation program and were eager to help record catch data on the boat. Some customers even referred to the fluke they caught as “program fish”. This increased customer engagement and added to the overall experience of the trip.

Several captains were able to book new half-day and full-day trips for fluke after explaining to program to prospective customers and noted that the program generated strong “word of mouth” referrals and repeat customers.

The program led to trips for other species of fish with customers who had a good experience fluke fishing and also opened doors for new types of customers.

The size limit flexibility of the program “saved” several trips for captains and their customers by allowing customers to land and keep fish that they would have normally been required to discard.

The program helped captains “make up” several trips that were cancelled due to bad weather and fishing conditions at the start of the season.

One captain noted that he was able to shift several charter trips that were originally booked for bass fishing. When the bass weren’t biting, he was able to switch to fluke fishing and the customers ended up catching and keeping fish to take home.

RHODE ISLAND PARTY AND CHARTER BOAT ASSOCIATION SURVEY

At the conclusion of the two-year pilot program, the group surveyed their fellow members of the Rhode Island Party and Charter Boat Association (RIPCBA) to ask how they felt about the pilot program and its goals.

1. Percentage of charter boat captains who indicated that they were impressed with results of the pilot program:

90%

2. Percentage of charter boat captains who believe new fisheries management approaches are needed for the charter boat industry:

82%

3. Percentage of charter boat captains who would consider participating in a pilot program to test a new approach if given the opportunity:

52% - Yes

38% - Maybe

10% - No

4. Types of flexibility charter boat captains would like to see in the way charter boat fishing is regulated:

Reduced minimum size so long as there is no negative biological impact on the species (68%)

Not restricted to season open/close dates set by state (63%)

Raise or eliminate per trip bag limits (37%)

5. Benefits of Increased flexibility for charter boat captains (respondents were asked to check all that apply):

Offer customers a better fishing experience (81%)

Attract more new business (71%)

Better manage use of the natural resource (71%)

Attract more repeat business (57%)

Manage charter boat business better (52%)

6. Conditions charter boat captains would be willing to agree to in return for greater flexibility (respondents were asked to check all that apply):

Electronic catch and discard recordkeeping and reporting (67%)

Reporting additional data that could help fisheries science (67%)

Individual catch limit (33%)

Individual catch limit with option to share within a cooperative program (43%)

7. Percentage of charter boat captains who believe rules that provide increased flexibility and predictability would allow them to operate a more successful charter boat business while needing to catch fewer total fish.

68%

8. Percentage of charter boat captains who, if given the opportunity, would you be willing to participate in a program in 2015 that offered increased flexibility and predictability for your charter boat business in return for greater accountability?

62% - Yes

33% - Maybe

5% - No

9. Percentage of charter boat captains who agree that their customers would be interested in fishing under a program that was designed to help protect fish species from overfishing:

43% - Strongly Agree

38% - Somewhat Agree

19% - Neither agree or disagree

10. Percentage of charter boat captains who believe creating a charter boat sector with its own rules and allocation separate from the recreational sector would be beneficial and is something that should be considered in Rhode Island:

86% - Strongly Agree

10% - somewhat

5% - strongly disagree

CUSTOMER SURVEY

During the 2013 For-Hire Fluke Cooperative pilot program, the participating charter captains asked their customers to complete a short survey prior to the start of the trip in order to better understand customer demographics and attitudes toward the goals and objectives of the pilot program.

Key finding from the survey include:

Most charter boat customers are from out of state (91%). Most have come to RI specifically to fish (80%) and are traveling in a group of 4 or more people (85%). All customers indicated that they spent money on non-fishing activities during their visit to RI with the

majority spending money at restaurants and bars. Time on the water and likelihood of catching fish were most important to charter customers. 95% of customers said they were more likely to fish with a pro-conservation captain and more than

half are willing to pay more for the trip. Flexibility in booking trips and catching fish are attractive to customers and can be a deciding factor in

booking a charter trip in RI.

Survey Results

When booking a charter boat trip, what are the top 5 most important things to you? (listed in rank order):

1. Length of time on the water2. Likelihood of catching fish3. Price4. Being able to book the trip a long time in advance5. Keeping the fish we catch

If you knew a captain was participating in a program that helps protect fish species from overfishing, would you be more likely to fish with this captain?

53% - Yes, and I would consider paying more.

42% - Yes, if the price were the same.

If a pro-conservation Captain were able to fish a longer season, would you be interested in taking fishing trips in months of the year that are not open to other in-state fishing?

65% - Yes31% - Maybe

If charter boat fishing in Rhode Island was open during times when surrounding states were closed, would you be likely to book a trip in RI during these times?

50% - Yes36% - Maybe14% - No

If you knew that this pro-conservation Captain participated in a program that allowed them to sustainably land higher bag limits, would you be more likely to purchase such a trip?

52% - Yes, and I would be willing to paying more.32% - Yes, if the price were the same.

What types of fishing do you do? (listed in rank order)

1. Saltwater surfcasting2. Freshwater angling 3. Charter boat trips4. Private boat trips

Do you live in RI or another state?

86% - Live in another state9% - Live in RI5% - Live in another state but have a summer residence in RI

How long is your visit? (out of state respondents)

63% - Day trip 37% - 2-5 days

How many people in your group are out-of-state visitors to RI?

75% - 4-6 people in our group are from out of state15% - 1-3 people in our group are from out of state10% - More than 6 people in our group are from out of state

What is the primary purpose of your visit to RI?

80% - Fishing trip20% - Vacation with family with fishing as one of many activities

Where are you staying during your visit in RI?

67% - Not staying overnight22% - With family/friends11% - Hotel/motel

What other types of activities will the members of your group do during your visit?

60% - Visit restaurants/bars20% - Other recreational activities 20% - Other – 20% (visit with family/friends)5% - Shopping 5% - Attend sporting/entertainment/cultural events

FINDINGS AND CONCLUSIONS

Good for the species (fluke)

Electronic trip reporting provides valuable data that aids fisheries science Catch limit accountability promotes conservation and stewardship No negative biological impact on the species Reliable data justifies reduced size Fewer “wasted fish” Same total catch but better use of the resource

Good for customers

Better customer experience and perceived value Catch and keep more fish Customers were attracted to the program for both its conservation goals and the improved fishing

experience

Good for Business

Better way to run a charter boat businesso On average, the captains caught about the same amount of fluke under the pilot program as

they had in previous seasons yet were able to manage their businesses better Gives RI charter captains more to offer than surrounding states Captains are not interested in fishing to their limit or raiding the species. They just want flexibility

to run their business more effectively Attracted new customers and more trips Saved trips that would have been “shut-outs”

Key Findings Statement:

Flexibility and predictability in return for accountability is a win-win-win for captains, customers and the resource.

As non-sector charter boat captains learned more about the program and its results during the season, they expressed interest in participating in the future

Good growth potential if given the chance to build the program over several years

SUMMARY

Charter boat fishing is an integral part of the Ocean State's tourism industry, attracting nearly 50,000 visitors to the state annually and generating as much as $34 million in tourism related spending each year. It is therefore imperative for Rhode Island to develop programs that conserve ocean resources while continuing to support and grow charter boat fishing in the state.

The charter boat captains believe that they can ultimately improve the value of Rhode Island's fluke resource if they are given the discretion to manage their portion of the catch both profitably and sustainably. The best interests of the citizens of Rhode Island are served by maximizing the economic activity generated by each fish available to the State. This pilot research program was conducted to demonstrate that charter boat captains can significantly reduce the total number of fluke needed (landed and discards) while, at the same time, increasing the viability of their charter boat businesses.

The For-Hire Fluke Cooperative captains believe that their 2013 pilot program has successfully demonstrated a model that can both achieve conservation goals while strengthening the economic viability of the charter boat industry. The captains feel strongly that the data and personal experiences from the pilot program support that belief.

APPENDIX A

INFOGRAPHIC

APPENDIX B

FOR-HIRE FLUKE COOPERATIVE TRIP DATA SUMMARY

Category2013

2014 2-year Summary

# of PARTICIPATING CAPTAINS 8 10 n/a# OF COOPERATIVE TRIPS 92 160 252

TOTAL FLUKE CAUGHT2049

3000 5049

TOTAL FLUKE LANDED1170

2029 3199

PERCENTAGE OF TOTAL CATCH LANDED 57% 68% 63%TOTAL FLUKE RELEASED 879 971 1850# OF FUKE LANDED 18"+ 448 997 1445

# OF FLUKE LANDED 16-17.9" 7421032 1774

# OF FLUKE RELEASED ALIVE 14-15.9" 691 745 1436# OF FLUKE RELEASED ALIVE UNDERSIZED (under 13.9") 188 226 414AVG. # OF FLUKE LANDED PER TRIP (pilot program) 12.7 12.8 12.7AVG. # OF FLUKE LANDED PER TRIP (current rules) 4.9 6.2 5.710% DISCARD MORTALITY(# OF FLUKE) - Program 88 97 9210% DISCARD MORTALITY(# OF FLUKE) - Current rules 160 200 185TOTAL # OF ANGLERS (all trips) 411 746 1157AVG # OF ANGLERS PER TRIP 4.5 4.6 4.6AVG # OF FLUKE LANDED PER ANGLER (pilot program) 2.8 2.7 2.8AVG # OF FLUKE LANDED PER ANGLER(current rules) 1.1 1.3 1.2

APPENDIX C

Differences between for-hire charter and party boat fishing and recreation fishingThere are some critical differences between general recreational fishermen and for-hire charter boat captains despite the fact that both groups are currently managed under the recreational fishery.

Party and Charter Boats are Businesses

The more than one hundred licensed and active party and charter boats in Rhode Island are businesses that provide employment and income for the state economy. Like other businesses, party and charter boats stand to benefit from stability in the regulations under which they operate. All aspects of business planning, from buying and financing a boat to developing marketing materials, require the business operator to know what he will have to sell in the years and months ahead. Unlike recreational fishermen, charter boat operators have financial commitments that depend on their fishing businesses.

The current regulatory framework for fluke does not recognize the needs of for-hire fishing businesses. Instead, the for-hire fishing industry is treated as if they were recreational fishermen who fish primarily for pleasure (referred to here as “private anglers”). Yet unlike private anglers, for-hire fishing businesses must develop and carry out business plans that require advance bookings tailored to the demands of their customer base.

For-hire fishing is a seasonal business. Fishing trips for the upcoming season are marketed and sold during the winter trade-show season. In order to run a successful for-hire fishing business, it is imperative to know when a captain can start fishing, how many fish can be caught, and how long the season will be. Charter boats don’t require a large volume of fish, but they do require certainty.

Interstate competition is strong. Rhode Island charter boat operators compete with other for-hire fishing businesses throughout the Northeast. Potential customers from Pennsylvania, for example, are just as likely to book a trip out of New Jersey, New York, or Massachusetts if a Rhode Island captain can’t promise them a trip that meets their needs.

The Rhode Island for-hire fishing fleet consists of small to mid-sized vessels (19-70 ft) that are owned and operated by independent family businesses. These boats represent capital investments that can range from $100,000 to over one million dollars. Like most business investments, a majority are financed. The repayment of these loans comes from fishing business income. The for-hire-fisherman’s financial success is heavily dependent upon providing access to Rhode Island’s diverse fish stocks to an equally diverse range of customers with specific preferences.

Party and Charter Boats are Licensed by the State and Federal Governments

Both the state of Rhode Island and the federal government place additional licensing and reporting requirements on for-hire fishing vessels. Many for-hire vessels fish in both federal and state waters and must therefore obtain a federal fishery permit in addition to a Rhode Island charter fishing license. For-hire fishing vessel captains must hold a Coast License to carry passengers.

In contrast to the requirement for federally permitted fishing vessels to report all landings monthly, private anglers are not required to report their catch on a regular basis. Because of the very large number of private

anglers, it is virtually impossible to monitor the recreational fishery with enough precision to know when a specific harvest level is reached.1

Charter boats that participate in the proposed cooperative will be subject to enhanced monitoring, reporting and accountability requirements that will provide accurate, verifiable and timely for-hire catch data to fishery managers to further improve information used in the fishery management process.

The Charter Boat Industry Occupies a No-Man’s Land between the Commercial and Recreational Fisheries

Treating for-hire fishing businesses as if they were part of the private angler sector seems to be an accident of history. Amendment 2 to the Summer Flounder Fishery Management Plan was approved by the federal National Marine Fisheries Service (NMFS) on August 6, 1992. This amendment, which is the management program enforced today, includes a moratorium on commercial fishing permits, state-by-state annual commercial landing quotas, and a 14” minimum size for commercial fishing vessels.

The recreational fishery is managed differently. Instead of a hard landing quota, the 40 percent of the allowable biological catch allocated to recreational fishing is a harvest target. Each year, the Atlantic States Marine Fisheries Commission (ASMFC), the Mid-Atlantic Fishery Management Council (MAFMC), NMFS, and the states establish recreational fishing regulations (seasons, bag limits, and size limits) that are expected to restrict the recreational fishery to its target.

Despite the fact that for-hire fishing is a business, the for-hire fluke fishery is managed with the same daily possession limits and seasonal closures that apply to private anglers. While the business-owners in the for-hire sector obviously cater to recreational anglers, their business interests are quite different from the fisherman they cater to, and those who access the fishery from private vessels.

During the first year of the summer flounder FMP, the coast-wide recreational minimum size was set at 14” with a six fish possession limit and a fishing season from May 15 through September 30. Since that time, the season, size limit, and bag limit for the recreational fishery have been adjusted continually in an attempt to achieve the adopted fishing mortality rate reduction strategy.

Charter and party boats have been negatively affected by changing rules that result from the uncertainty surrounding the overall recreational catch, even though charter and party boats must have licenses and permits and file timely catch reports. Many charter boats reduced their fluke fishing activity as a result of these continual changes in the rules.

The problems created by treating the for-hire industry the same as private anglers include unnecessary discards, unpredictable fishing seasons, and a regulatory environment that has not given adequate consideration to the requirements of for-hire fishing businesses. These problems reduce the economic benefits that could be generated from Rhode Island’s fishery resources.

In contrast to the large numbers of independent private anglers, the for-hire sector consists of a small number of boats that are easily capable of keeping their allotted catch within the desired limits without compromising their business needs.

Forward thinking and progressive for-hire fishermen know that they can improve the value of Rhode Island’s fluke fishery if they are given the discretion to manage their portion of the catch both profitably and sustainably. The best interests of the citizens of Rhode Island are served by maximizing the economic activity generated by each fish available to the State. For-hire fishing serves that purpose while utilizing a fraction of Rhode Island’s overall fluke resource.

1 The H. John Heinz III Center for Science, Economics and the Environment, 2002. Managing Summer Flounder: A Heinz Center Dialogue on Marine Fisheries Initiative.