INDUSTRY ECON UPDATE - Federal Economic Report Includes SxS Recreation

Designated SxS/ATV/MC Trail

BLM's Chappie-Shasta OHV Area

 As motorized recreation continues to grow as an important economic contributor, QWR believes it is important for both private and public sector researchers to detail vehicle-specific analytics to better inform decision-makers, planners, and other stakeholders.

Off-Road Motorcycle Trail

CA's Carnegie State Vehicular Recreation Area

A recent update from NOHVCC and the Motorcycle Industry Council (MIC) confirms that SxS recreation WAS included in the Bureau of Economic Analysis (BEA), an agency of the U.S. Department of Commerce.

LINK TO MIC NEWS RELEASE ON SXS USE COUNTED IN BEA STUDY

https://www.nohvcc.org/economic-data-shows-motorcycling-atv-riding-side-by-side-driving-among-nations-largest-outdoor-recreation-activities/

Don Amador, QWR President, states, “Today, OHV recreation not only provides access to high quality casual use trail opportunities and permitted events, but also provides motorized access to non-motorized activities.  I have friends and colleagues from both the OHV and conservation communities that also utilize SxSs for resource management, wildlife viewing, hunting, and stewardship projects.”

Open Sand Riding for SxS/ATV/MC and other OHVs

Forest Service's Oregon Dunes National Recreation Area

“I believe outdoor recreation economic reports and updates are a critically important tool and breaking out data about the fiscal benefit that comes from specific vehicle types will better inform land management agencies as they plan for current and future OHV use on designated roads, trails, and areas,” Amador concludes.

FEDERAL RECREATION ECON REPORT MISSES SxS USE - AGAIN

SxS Touring on BLM Lands 

BLM, Needles Field Office, CA

QWR greatly appreciates the Outdoor Recreation Roundtable (ORR) and their ongoing efforts to highlight the important fiscal contribution that outdoor recreation makes to the U.S. economy.

SxS Backcountry Exploring

Eldorado National Forest, CA

A news release last week from ORR about a new update from the Bureau of Economic Analysis (BEA) states this is the second consecutive year that the BEA, an agency of the U.S. Department of Commerce, has released formal, national-level data, a notable milestone for the industry now identified as a unique sector of the economy. For the first time, BEA also released preliminary data on the outdoor recreation economy at the state level for all fifty states and the District of Columbia. Having a rich set of both state and national data on outdoor recreation to draw upon will inform decision-making by businesses, policymakers, and managers of public lands and waters.

LINK TO ORR NEWS RELEASE

https://recreationroundtable.org/new-government-report-reaffirms-outdoor-recreations-role-as-a-significant-economic-driver

As you may remember, on September 20, 2018, the Outdoor Recreation Satellite Account (ORSA) and the U.S. Department of Commerce’s BEA released data that shows the outdoor recreation economy accounted for 2.2 percent ($412 billion) of current-dollar Gross Domestic Product (GDP) in 2016. The BEA report notes the outdoor recreation economy grew 1.7 percent in 2016 which was faster than the 1.6 percent growth for the overall U.S. economy.

SxS Trail Use

BLM, Eagle Lake Field Office, CA

At that time, QWR contacted the BEA about our concerns that the agency may actually be underreporting the economic impact of “off-road” motorized recreation.  While BEA disaggregated motorcycle and ATV use from other motorized activities such as RVing, it appears the agency again fails to capture the direct and growing off-road economic impact of larger OHVs such as Side x Sides (SxS), jeep-type vehicles, four-wheel drive pickups, and all-wheel drive SUVs.

Jeep on Rubicon Trail 

Eldorado National Forest/El Dorado County

QWR believes it is important for both private and public sector economists and researchers to “ground truth” their assumptions before starting their outdoor recreation economic studies.   This is not only important for BEA but for other government agencies as they try to quantify the recreation economic benefits to local communities and the U.S. GDP.

UPDATED FEDERAL REPORT – Outdoor Recreation has $412B Economic Impact

Florence Yamaha/Polaris Dealer

SxS Sales, Service, and Accessories

Near OR Dunes National Recreation Area

On September 20, 2018, the Outdoor Recreation Satellite Account (ORSA) and the U.S. Department of Commerce’s Bureau of Economic Analysis (BEA) released updated data that shows the outdoor recreation economy accounted for 2.2 percent ($412 billion) of current-dollar Gross Domestic Product (GDP) in 2016. The BEA report notes the outdoor recreation economy grew 1.7 percent in 2016 which was faster than the 1.6 percent growth for the overall U.S. economy.

LINK TO BEA NEWS RELEASE

https://www.bea.gov/news/2018/outdoor-recreation-satellite-account-updated-statistics-2012-2016

These updated fiscal numbers are an increase from an earlier BEA preliminary report issued in February 2018 that showed the outdoor recreation economy accounted for 2.0 percent ($373.7 billion) of current-dollar GDP in 2016.

BEA Chart on Outdoor Recreation Economic Impact

The new report states that motorcycling/ATVing activities accounted for $20.3 billion of real gross output in 2016, representing one of the fastest-growing activities at 8.0 percent growth from the previous year.

Factor 55 - Aftermarket Company 

Manufactures Closed System Winching Products

Vendor at 2018 Pomona Off-Road Expo 

After an initial review of this new report, QWR believes BEA may be actually underreporting the economic impact of “off-road” motorized recreation.  While BEA should be commended for disaggregating motorcycle and ATV use from other motorized activities such as RVing,  it appears the agency has failed to capture the direct and growing off-road economic impact of larger OHVs such as Side x Sides (SxS), jeep-type vehicles, four-wheel drive pickups, and all-wheel drive SUVs.

SUV Exploring Designated OHV Route

Eldorado National Forest

QWR found it hard to identify where BEA captured the economic impact that comes from off-road motorized access to non-motorized recreation activities such as hunting, fishing, driving for pleasure, races, and wildlife viewing which are often highly dependent on motorized vehicle use.

SxS Touring on BLM Historic "Route 66" OHV Trail

Don Amador, President of Quiet Warrior Racing/Consulting, states, “I believe BEA should try and capture the ‘off-road’ motorized recreation economic benefits where the larger OHVs are used as the primary activity or they provide access to non-motorized recreation activities. Most federal and state land agencies consider any motorized vehicle to be an OHV or off-road vehicle when being operated on native surfaced routes.”

Off-Road-based Camping Products

Photo Credit - Del Albright

“There are huge economic benefits associated with off-road recreation.  A growing number of rural economies are based on SxS and/or street-legal OHV use.  Also, off-road recreation oriented manufacturing, aftermarket, and vehicle dealers deserve to have their economic impact factored into future BEA reports,” Amador concludes.

Off-Road Touring Event for Street Legal 4WD Vehicles

Rubicon Trail - Eldorado National Forest 

 QWR believes this BEA economic impact report provides land agencies and government officials with important information that can and should be used in current and future recreation planning efforts.

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