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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Federal Outdoor Recreation Economic Report Shows Motorized Use is Significant Contributor

Backcountry Touring in 4WD Vehicles

Tahoe National Forest

QWR commends the U.S. Department of Commerce's Bureau of Economic Analysis (BEA)recent release of new prototype statistics from the Outdoor Recreation Satellite Account (ORSA) that shows that the outdoor recreation economy accounted for 2.0 percent ($373.7 billion) of current-dollar GDP in 2016 (table 1). In addition, the outdoor recreation economy grew 3.8 percent in 2016, compared to growth of 2.8 percent in the overall economy.

Riders and Families Enjoy Shasta Dam GP

BLM Shasta-Chappie OHV Area - Redding, CA

The BEA stated that the historical lack of detailed federal data regarding outdoor recreational activities has handicapped both the private and public sectors. They also said the release is a milestone for business executives, small-business owners, entrepreneurs, and government officials, who will rely on these detailed data to plan, grow, and gain new insights into this dynamic part of the U.S. economy.

LINK TO BEA REPORT

https://www.bea.gov/newsreleases/industry/orsa/orsanewsrelease.htm

The BEA data (see chart below) showed that Motorized Vehicles was the largest activity within conventional outdoor recreation in 2016, accounting for $59.4 billion of gross output. Recreational vehicles accounted for more than half of this value at $30.0 billion.

QWR believes this analysis supports other recreation-based economic impact reports which show that motorized recreation is a significant contributor to the economy.

RVs with OHV Line Up to Enter a KOA Campground

OR Dunes National Recreation Area

QWR also encourages both private and public sector stakeholders to contact the BEA with comments on this preliminary report.  Your comments are due by April 27, 2018. 

Send comments to: OutdoorRecreation@bea.gov