The Outdoor Recreation Economy
Released: 2019-10-22T00:00:00

Introduction

Congress plays an overarching role in shaping outdoor recreation throughout the nation through legislation and oversight. Congress's role in outdoor recreation resources, policies, and programs often involves the agencies that manage recreation resources on federal lands and waters. However, Congress also has supported crosscutting legislative, analytic, and planning efforts dedicated to outdoor recreation broadly, and it has established programs that facilitate recreation on nonfederal lands. Legislation, hearings, and congressional reports have indicated the significance of outdoor recreation economic activity as a decisionmaking consideration in many contexts, not just those involving federal lands. As Congress continues to debate outdoor recreation issuesâincluding provision of federal resources, planning efforts, and fundingâdata on the size, distribution, and relative importance of the outdoor recreation economy may inform these debates.

Outdoor Recreation Jobs and Economic Impact Act

In April 2016, the Secretary of the Interior announced that the Department of the Interior would sign a memorandum of understanding with the Department of Commerce to undertake a feasibility study to analyze outdoor recreation's impact on the U.S. economy. The Secretary noted that "credible data on the tangible economic benefits of public lands" would be a valuable resource for stakeholders, including Congress, and that the study would count the contributions of the outdoor recreation economy in a "comprehensive and impartial" way. Later that year, Congress explicitly authorized these efforts through passage of the Outdoor Recreation Jobs and Economic Impact Act. In addition to ensuring the availability of economic data on outdoor recreation, the act ensured methodological uniformity with other statistical activities of the Bureau of Economic Analysis (BEA) that analyze the economic impact of private industries.

The act directed the Secretary of Commerce, acting through BEA, to assess and analyze the outdoor recreation economy of the United States and its contributions to the economy generally. The act required the Secretary to consider employment, sales, and contributions to travel and tourism, in addition to any other items the Secretary considered appropriate. Consequently, BEA developed the Outdoor Recreation Satellite Account (ORSA), an account using the same data and methods as BEA's gross domestic product (GDP) statistics.

BEA released the first ORSA prototype statistics for comment in February 2018, and it released the first official ORSA statistics in September 2018. BEA released the most recent ORSA statistics on September 20, 2019. Congress has indicated general approval of the ORSA and directed BEA to develop regional statistics in future years; BEA included state-level prototype statistics in the 2019 release. The House Appropriations Committee also directed the Department of Commerce, in coordination with the agencies of the Federal Recreation Council, to continue to refine the account and to report on the feasibility of identifying amounts allocated by the federal government to outdoor recreation efforts.

The National Outdoor Recreation Economy

About the Outdoor Recreation Satellite Account

BEA prepares the ORSA statistics as required by the Outdoor Recreation Jobs and Impact Act. The most recent ORSA statistics, released in September 2019, measured the period from 2012 to 2017.

The ORSA "measures the size of the outdoor recreation economy and the link between outdoor recreation and the broader U.S. economy." BEA constructed the ORSA by isolating outdoor recreation spending and production from the broader industries and categories that BEA already tracked. BEA compiles data into industry accounts (e.g., retail trade, manufacturing, construction, and others) and uses all this data to calculate gross domestic product (GDP). The ORSA is a satellite account in that it isolates and combines the parts of many individual industries that are related to outdoor recreation. For example, as described by BEA, existing industry accounts show "the production of all apparel, whereas the ORSA shows the production of apparel used specifically for outdoor recreation activities, such as wetsuits and hiking boots."

The ORSA divides outdoor recreation activity into core activities and supporting activities. Core activities include the production and purchase of goods and services used directly for outdoor recreation, such as equipment, fuel, concessions, and fees. Supporting activities are defined as goods and services that facilitate access to outdoor recreation activities, such as travel and tourism expenses, local trips, construction, and government expenditures that support outdoor recreation (including local, state, and federal spending). BEA also organizes its statistics using conventional and broad views of outdoor recreation. The conventional activities include "all recreational activities undertaken for pleasure that generally involve some level of intentional physical exertion and occur in nature-based environments outdoors," such as camping, fishing, hiking, and hunting. Other activities include additional activities undertaken for pleasure that occur outdoors that may not meet the conventional definition (i.e., do not require intentional physical exertion or occur in a nature-based setting), such as outdoor concerts and festivals and games and sports fields. The two categories of activities can be combined to generate a broad view of the outdoor recreation economy.

BEA calculates the ORSA from the same data used to calculate GDP broadly. Â As such, the ORSA is directly comparable to other BEA products, including other satellite accounts, like those for arts and cultural production. In addition, the estimates used to create the ORSA follow internationally recognized standards for national accounting, including creating GDP, value added, and other measures. Thus, in theory, the ORSA results can be compared to other measures of GDP, gross output, and value added, although differing assumptions, data, and methods may influence to what degree other measures are equivalent to ORSA statistics. As described above, the ORSA combines data from many different BEA industries; thus, although very general comparisons can be made, direct comparisons risk double-counting. For example, comparing the size of the ORSA to the size of the apparel industry would be inaccurate, because some value added from the apparel industry is included in the ORSA.

Outdoor Recreation Satellite Account Estimates

According to the ORSA statistics, in 2017, the current-dollar value added of the outdoor recreation economy was $427 billion. The outdoor recreation economy accounted for 2.2% of GDP. As shown in Figure 1 , supporting activities, such as construction and travel and tourism expenses, accounted for approximately half of outdoor recreation value added in 2017, approximately $213.9 million current dollars. Conventional outdoor recreation accounted for 30.7% of value added. Other recreation accounted for 19.3%.

BEA organizes its accounts by industry. BEA reports that the arts, entertainment, recreation, accommodation, and food services industry was the largest contributor to the outdoor recreation economy in 2017, accounting for $112.9 billion of current-dollar outdoor recreation value added. The second-largest industry in 2017 was retail trade, accounting for $95.7 billion of current-dollar value added. Figure 2 provides a full breakdown of contribution to value added by industry.

BEA reported that the outdoor recreation economy generated approximately 5.1 million jobs in 2017. The arts, entertainment, recreation, accommodation, and food services industry was the largest industry included in the ORSA for both compensation ($67.3 billion current dollars) and employment (2.1 million) in 2017. Retail trade was the second-largest industry for both compensation ($49.8 billion current dollars) and employment (1.6 million) in 2017.

The largest amount of value added in 2017 from an individual conventional outdoor recreation activity (as defined by BEA) came from boating/fishing, accounting for approximately $21Â billion in current-value dollars, or approximately 5% of value added from outdoor recreation (see Figure 3 ). The activities that generated the most value added are not necessarily the most popular, according to an FS participation survey. For example, although equestrian activities were among the six largest activities in terms of value added, an FS survey found that equestrian activities were among the three smallest activities for number of participants (see " National Outdoor Recreation Participation " for more information).

Although much of the economic activity tracked by BEA to calculate value added can be linked to a specific activity (see " About the Outdoor Recreation Satellite Account "), some economic activity cannot. For example, multiuse apparel and accessories (such as backpacks, bug spray, and other items) that can be used for many activities accounted for approximately $48.6 billion in current dollars, or over 11% of value added.

In real terms, the outdoor recreation economy grew 3.9% between 2016 and 2017, faster than the 2.4% growth for the overall U.S. economy. Real gross output, compensation, and employment all grew faster in the outdoor recreation economy than in the overall economy in 2017. Between 2012 and 2017, the outdoor recreation economy grew by approximately 9.9%.

In 2017, BEA released prototype statistics on the percentage of each state's GDP from outdoor recreation (see Figure 4 ). BEA's preliminary results found that Hawaii, Montana, Maine, Vermont, and Wyoming had the five highest proportions of state GDP from outdoor recreation. However, other measures of economic importance vary considerably by state. For example, California, Florida, and Texas had the highest total outdoor recreation value added. Wyoming, Hawaii, and Alaska and Maine (tied) had the highest percentage of state employment from outdoor recreation. The relative importance of recreation in individual states depends on the size of the outdoor recreation economy, the state's economy generally, and the state's employment and compensation patterns. It is unclear to what extent these estimates may change if BEA adjusts its methods for calculating state statistics. Official state statistics are scheduled for release in fall 2020.

Other Estimates of Economic Activity

In addition to the estimates created by BEA, researchers, advocacy groups, and industry associations create estimates of the outdoor recreation economy. Many groups estimate impacts of individual activities, sectors, geographic areas, or outdoor recreation areas (e.g., angling, winter snow sports, a given watershed, or a given state). The broadest of these is the Outdoor Industry Association's (OIA's) Outdoor Recreation Economy report, which has been produced annually since 2006. Prior to publication of the ORSA, OIA estimates were sometimes cited to gauge the size of the outdoor recreation economy as a whole.

According to OIA's 2017 report, the outdoor recreation economy generated $887 billion in consumer spending, the majority of which ($702 billion) was trip and travel spending, including airfare, lodging, fuel, groceries, tickets, lessons, guides, and other unspecified expenses spent anywhere away from home. OIA estimates that the outdoor recreation economy directly supports 7.6 million jobs. OIA also estimates that the outdoor recreation economy generates $65.3 billion in federal tax revenue and $59.2 billion in state and local tax revenue.

OIA's estimates of the size of the outdoor recreation economy, and other estimation efforts, cannot be directly compared to the ORSA. This may be due to differences in method, assumptions, measurement, or statistics reported. Specifically, the OIA reports measure consumer spending and tax revenue, which are not part of the ORSA and are not directly comparable to any statistic reported in the ORSA. OIA's estimate of jobs (7.6 million) is higher than BEA's estimate of jobs (5.2 million), but it is unclear to what extent the data reported are similar in measurement or whether they represent the same year.

BEA excluded exports and imports in its calculation, and these figures may be captured in OIA's statistics. BEA states that external reports on the outdoor recreation economy that include "activities with a high share of spending on imported goods and services (such as apparel) will likely have higher estimates than the ORSA." BEA also states that other reports may include spending on items not used for outdoor recreation (for example, bicycles used for commuting). In general, because other reports do not give the same statistics as the ORSA, and due to methodological differences, it is unclear whether (and to what degree) the ORSA and other reports may or may not be in disagreement, despite apparent large differences in results.

The results of the ORSA and OIA reports have certain broad commonalities. For example, both reports find that large amounts of economic activity are driven by activities requiring relatively expensive purchases, such as vehicles (for example, boating or off-highway vehicle activities). Both reports also find that expenses related to travel, such as lodging, airfare, and food away from home, constitute large shares of the economic activity generated by outdoor recreation.

National Outdoor Recreation Participation

According to one source, measures of national trends in outdoor recreation participation are based primarily on the National Survey on Recreation and the Environment (NSRE), a population-based survey conducted by the U.S. Forest Service (FS), sampling all areas of the country and participation in 17 outdoor activities. The NSRE measures both participation (the number of respondents who report engaging in the activity at least once over the course of a year) and consumption (the number of times the respondent indicates engaging in the activity). The survey does not estimate the total number of participants in outdoor recreation generally, only participation rates in the 17 activities studied. The most recent NSRE was completed for the period 1999-2009, and an update is ongoing.

The NSRE estimated that, for the activities considered, a maximum of 194 million people (visiting developed sites) and a minimum of 8 million people (primitive skiing) participated every year (see Table 1 for additional details). FS estimated that approximately 82% of NSRE respondents participated in visiting developed sites, the activity with the highest participation rate. In terms of the frequency with which participants engaged in each activity (shown as "Activity Days" in Table 1 ), FS estimated that participants engaged in the most popular activity (viewing nature) over 32.4 billion times; this activity, however, is a major outlier, and participants engaged in the next several most popular activities between 8.3 billion and 1.8 billion times.

Between 1999 and 2009, FS estimated that participation in nature-based outdoor recreation generally increased. The number of U.S. participants in the surveyed activities increased by 7.1% over this period. Certain activities, such as those oriented toward viewing and photographing nature, off-highway vehicle activities, and several physically challenging activities (e.g., kayaking, snowboarding, surfing) had relatively large increases in participation compared to the average over this period.

More people overall participate in outdoor recreation in the eastern United States than in the western United States, in large part because most of the U.S. population resides in the East. However, participation rates (measured as the number of participants per hundred people) are higher in the West for all activities except hunting and fishing. In addition to this broad trend, demographic factors, such as population size, age, gender, race, ethnicity, education, and income, are correlated with the rate of outdoor recreation. For example, relative to the general population, people engaging in hunting and fishing are more likely to be rural residents, and people engaging in skiing and snowboarding are more likely to be urban residents. Availability of and proximity to recreation settings also are highly correlated with the rate of outdoor recreation participation.

The amount of recreation that occurs on lands of differing ownershipâfor example, federal, state, local, and privateâlikely varies widely by activity and location (see section on " Recreation Visits to Federal Lands " for further discussion of recreation on federal lands).

Approximately 60% of lands in the United States are privately owned, and approximately 28% of the total land area is federally owned; the remainder is in a mix of state, local, tribal, and other ownerships. Over 92% of federal land is located in 11 western states and Alaska. The uneven distribution of federal land between the eastern and western United States influences what lands provide outdoor recreation opportunities in different regions of the United States, particularly given that, for some federal land management agencies, at least half of visits to the properties they administer come from people who live within 50 miles.

FS found that private lands were a more important recreation setting in the East, with the total number of recreation visits on private lands in the East nearly four times the number in the West. In the West, respondents reported that they spent the majority of activity days in all surveyed activities on publicly owned lands of any kind. In contrast, respondents in the East spent the majority of activity days in some surveyed activities on private lands and some on publicly owned lands.

Outdoor Recreation on Federal Lands

The ORSA statistics measures the state of the outdoor recreation economy generally. From the standpoint of public lands management, there is often congressional interest in how the government's provision of recreational opportunities translates into economic activity in communities around federal recreation resources. Legislation, hearings, and congressional reports have indicated the significance of this economic activity as a policy consideration in contexts involving federal lands. In the past decade, federal agencies and interagency groups have conducted studies measuring economic contributions specific to federal lands. Because these studies examine multiple agencies under a single framework, and because they report value added, the results are comparable to one another. In the sense that value added is a consistent concept, they also may be generally comparable to other measures of value added, such as the ORSA results, although differences in methods, data, and assumptions mean any comparison can be, at best, highly general.

According to these studies, in FY2017 dollars, visitors spent approximately $54 billion in the local economies of federal recreation areas in FY2012 and $49.8 billion in FY2016, generating $55 billion in value added in FY2012 and $53.9 billion in value added in FY2016 (see Table 2 ). The studies indicate that outdoor recreation on federal lands directly supported 880,000 jobs in FY2012 and 826,000 jobs in FY2016.

The authors of the studies in Table 2 limited their studies of visitor spending to areas within 50 miles of the federal recreation site. The authors state that this limitation provides a conservative estimate. Although research suggests that many visits to federal recreation sites do indeed originate from nearby, the nationwide estimates discussed above (see " The National Outdoor Recreation Economy ") indicate that a large proportion of economic activity derives from travel-related expenses. If the travel-related portion of economic activity related to federal sites is not being captured in these results because that activity occurs more than 50 miles from the federal recreation site, these studies may undercount the true value. Similarly, results of national studies indicate that activities requiring major purchases (e.g., vehicles) account for a large proportion of the outdoor recreation economy. If visitors do not report such expenditures, it also may result in undercounting. The agencies used different methods to measure visitation and economic activity; thus, estimates may be only generally comparable.

Federal Lands' Recreation Resources and Uses

Federal lands comprise approximately 640 million acres in the United States, about 28% of the total land area. Approximately 92% (573 million acres) of federal lands are located in 11 western states and Alaska, with over one-third (224 million acres) of all federal land in Alaska alone. The Forest Service (FS) and the Bureau of Land Management (BLM) manage the majority of federal land. Nearly all federal land is open and available to the public for recreation.

Although there is considerable overlap in the recreation opportunities across agencies, some agencies could be considered to have dominant niches. FS and BLM offer a range of opportunities, from camping, picnicking, and birdwatching in developed settings to activities in undeveloped backcountry, motorized recreation, and others. Opportunities on Fish and Wildlife Service land emphasize wildlife, fish, and birds. The National Park Service (NPS) is associated with "iconic natural and cultural resources." Opportunities on land owned by the Bureau of Reclamation, National Oceanic and Atmospheric Administration, and U.S. Army Corps of Engineers (USACE) tend to center on water and underwater resources. Although some agencies' resources are used mostly by locals, all agencies have resources with regional, national, or international markets.

Recreation Visits to Federal Lands

Table 3 presents information from various sources on recreation visits to federal lands from FY2012 to FY2017. In general, these statistics are not comparable to the NSRE estimates given above due to differences in measurement. The statistics indicate that, in general over this period for agencies with complete data, FS and NPS had the most visits. These statistics underscore that size and location are imperfect predictors of recreation resource use; USACE, for example, has higher visitation than several agencies that manage more federal land area. These differences may be due to proximity to population centers, the types of resources available on different lands, and other factors.