Category: Outdoor Economy

Outdoor Recreation Generated $10.8 Billion for Michigan Economy

11/14/2022

Last week, the U.S. Bureau of Economic Analysis released statistics measuring the outdoor recreation economy. In 2021, outdoor recreation accounted for $862 billion in economic output (consumer spending), 1.9 percent or $454 billion of gross domestic product (GDP) and supported 4.5 million jobs. In Michigan, outdoor recreation in 2021 contributed $10.8 billion to the state economy, supported 109,000 jobs, and $5 billion in wages.

Heart of the Lakes, mParks, and Michigan Trails & Greenways Alliance are thrilled to celebrate the 2021 report. The new data shows a $173 billion increase in consumer spending in 2021 vs 2020. This analysis demonstrates outdoor recreation's powerful and positive economic impact on the U.S. economy as the nation rebounded from the COVID-19 pandemic and Americans prioritized time outside.

"In the last few years, we have seen so many new people trying new outdoor activities. The availability and accessibility of outdoor recreation have welcomed a whole new population of outdoor enthusiasts," said Clay Summers, executive director of mParks. "It's no longer exclusionary, and we welcome all new participants and stewards of our public spaces."

In 2021, Michigan ranked in the top ten in dollars generated from Boating/Fishing (#5) and RVing (#6), each generating $947,910,000 and $719,914,000, respectively. The state sits within the top 20 of all other measured activities: Hunting/Shooting/Trapping (#10), Motorcycling/ATVing (#13), Equestrian (#19), Climbing/Hiking/Tent Camping (#11), Snow Activities (#15), Bicycling (#20), Recreational Flying (#17).

"The year-over-year increase in value-added by hiking, biking, running, and paddling are proof that Michigan's investments in trails have big payoffs," said Andrea LaFontaine, executive director of Michigan Trails & Greenways Alliance. "We continue to attract destinations for travelers while maintaining beautiful public lands for our residents."

Inflation-adjusted GDP for the outdoor recreation economy increased by 18.9 percent in 2021, compared with a 5.9 percent increase for the overall U.S. economy.

"The rate at which the outdoor recreation economy continues to increase is a great sign for our state. As more jobs are being created, more talent is moving to Michigan, more money is being generated, and in turn, more investments are being made in our outdoors spaces,” said Jonathan Jarosz, executive director of Heart of the Lakes.

Outdoor Recreation has sustained remarkable growth over the years, supporting people, communities, and economies in Michigan and across the country, especially in rural areas. The outdoor recreation economy came back stronger than ever after the COVID-19 pandemic and remained a steady source of strength nationally and a booming job creator locally. Coupled with the Outdoor Foundation's recent findings that outdoor participation levels are at an all-time high, the economic data reinforces the strength of the outdoor industry as both an economic and social force.

Outdoor Recreation Generated $688 Billion in Economic Output

11/12/2021

This week, the U.S. Bureau of Economic Analysis (BEA) released new data showing the economic impact of outdoor recreation in 2020. This analysis demonstrates outdoor recreation’s powerful and positive economic impact on the U.S. economy during a difficult and uncertain year defined by the pandemic which led to restrictions and closures.

Despite the challenges, the BEA found outdoor recreation accounted for $688 billion in gross output (consumer spending) and 1.8 percent ($374 billion) of gross domestic product (GDP) in 2020.

As outdoor spaces became respites during the pandemic, outdoor recreation participation in 2020 was record-setting. According to the Outdoor Industry Association, 53 percent of Americans ages 6 and over participated in outdoor recreation at least once, the highest participation rate on record. Of those who started or resumed walking, bicycling, fishing, or running/jogging during the pandemic, more than 60 percent intend to continue once restrictions lift. The study found that new participants primarily sought socially-distanced outdoor activities in order to spend time with loved ones safely, to exercise, stay healthy or to reduce screen-time fatigue.

Additionally, the study found that the new participants did not mirror traditional outdoor recreation participants. The new participants are more likely to be female, younger, living in an urban area and slightly more ethnically diverse than existing participants. New participants were also largely motivated by outdoor recreation opportunities with low barriers to entry that are available and accessible within 10 miles of their homes, including walking, running, biking and hiking.

“Identifying these new outdoor recreation participants and their values is a huge step in moving our spaces to be more inclusive and accessible,” said Jonathan Jarosz, executive director of Heart of the Lakes, “we have a whole new audience to serve now, and we are excited to welcome them.”

In Michigan, BEA found that outdoor recreation in 2020 contributed $9.5 billion to our economy, supported 108k jobs, and $4.6 billion in wages. Outdoor participation soared, especially close-to-home recreation, highlighting the importance of better access to the outdoors for all communities. The prioritization of outdoor recreation continues into 2021 with strong numbers in participation and sales data.

“We’re always thrilled to see the impact outdoor recreation has in our state, but the focus on close-to-home recreation is especially exciting,” said Clay Summers, executive director of mParks, “this really puts an emphasis on the importance of local parks.”

In 2020, Michigan ranked 13th among all states in ORSA value-added and in the top 20 in value-added dollars for each of the identified activities: Boating/Fishing, RVing, Hunting/Shooting/Trapping, Motorcycling/ATVing, Equestrian, Climbing/Hiking/Tent Camping, Snow Activities, Bicycling, and Recreational Flying.

“Amidst these challenging times, Michigan’s outdoor recreation economy grew in certain key segments,” said Brad Garmon, director of the Michigan Outdoor Recreation Industry Office, “proving that our strong outdoor recreation sector will be essential in the recovery of our economy."

“The increase in value truly reflects the amenities Michigan has to offer,” said Andrea LaFontaine, executive director of Michigan Trails and Greenways Alliance, “people discovered our multi-use trails and waterways and used them all year long.”

BEA launched its outdoor recreation economy project in 2017 to “deepen the public’s understanding of the economic impact of outdoor recreation, inform decision making, and improve governance and long-term management of public lands and waters.” In 2019, the agency announced it would also start sharing prototype statistics on state-level data. The BEA’s data joins long-standing work from the Outdoor Industry Association’s compilation of key national and statewide data informing on the economic impact of outdoor recreation.

Outdoor Recreation Generated $10.8 Billion for Michigan Economy

Outdoor Recreation Generated $688 Billion in Economic Output

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