Since the first limited entry Bristol Bay drift and set gillnet permits were issued in 1975, many local residents have sold their permits to non-resident fishermen. Declining local permit ownership destabilizes the main economic base of the region. Previous studies have documented the decline of locally owned permits and have proposed social and economic hypotheses that could explain why local permit ownership is declining in limited entry fisheries in Alaska. To stem the outward flow of permits, the Bristol Bay Economic Development Corporation operates a Permit Loan Program to assist Bristol Bay watershed residents in buying permits. Despite its generous benefits, it has not reversed the decline in local permit ownership. This paper examines why residents enter or exit the fishery. Hypotheses on permit retention were tested through interviews with Bristol Bay fishery participants. Interviewees indicate stronger cultural and familial ties than economic factors to fishing. As local permit ownership has declined, these ties are being lost, leading to declining interest in the fishery. Commercial fishing is a competitive and costly enterprise. Successful participants in the fisheries, especially the drift gillnet fishery, are financially savvy with supplemental non-fishing income that outcompete residents by catching most of the fish. The Bristol Bay Economic Development Corporation Permit Loan Program appears unable to stop the local loss of permits. There are no obvious ways to expand local permit ownership and retaining local permits remains a major challenge for the region. However, it is important for local residents to participate in the fishery because it keeps communities economically and socially healthy, gives residents access to their local resources and strengthens their voice in managing their local resources. (C) 2015 Elsevier Ltd. All rights reserved.
