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The federal Bureau of Economic Analysis (BEA) released numbers showing the Outdoor Industry comprises 2 percent ($373.7 billion) of the entire 2016 U.S. Gross Domestic Product.
The federal Bureau of Economic Analysis (BEA) released numbers showing the Outdoor Industry comprises 2 percent ($373.7 billion) of the entire 2016 U.S. Gross Domestic Product. (Photo: Holly Mandarich/Unsplash)

Government Puts Outdoor Industry Size at $373 Billion

That鈥檚 2 percent of overall GDP鈥攑utting it on par with other major economy-drivers (and larger than oil and mining).

Published: 
The federal Bureau of Economic Analysis (BEA) released numbers showing the Outdoor Industry comprises 2 percent ($373.7 billion) of the entire 2016 U.S. Gross Domestic Product.
(Photo: Holly Mandarich/Unsplash)

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The outdoor recreation economy is officially a big deal. On Wednesday, the (BEA) released numbers detailing the economic power of the outdoor recreation industry, showing it comprises 2 percent ($373.7 billion) of the entire 2016 U.S. Gross Domestic Product.

It鈥檚 an impressive figure that like construction (4.3 percent); legal services (1.3 percent); agriculture, including farming, forestry,听补苍诲 fishing (1 percent); and, most significantly,聽mining, oil, and gas extraction (1.4 percent). The report also stipulates that the outdoor industry is growing by 3.8 percent, a faster rate than the overall economy (2.8 percent).

The BEA report was two years in the making, initiated when President Obama signed the Outdoor Recreation Jobs and Economic Impact Act. Signed in 2016, it directed the federal agency to measure the outdoor economy with the same tools it uses to chart other industries and the economy as a whole. 鈥淲e鈥檝e wanted our industry to be counted as a discrete sector of the economy for more than a decade now,鈥 says Amy Roberts, executive director of the Outdoor Industry Association (OIA). 鈥淲e are really pleased to have data that allows us to talk about our industry in the same ways that other industries that use public lands are discussed.鈥

Wait, I thought we already had numbers for the size of the outdoor industry?

The BEA鈥檚 report differs from the聽, which said that outdoor recreation was $887 billion in size. Both reports measured the breadth of outdoor recreation鈥攆rom outdoor equipment manufacturing and retail, to recreation businesses like ski resorts and fishing guiding services, to travel expenses like lodging and gas. The big difference was in methodology. In addition to the $373 billion GDP figure, the BEA also measured gross output from the outdoor recreation economy, a figure that totaled $673 billion, and is as close as it gets to an apples-to-apples comparison with the OIA report. There are two big differences between the OIA and BEA approaches, however.聽The BEA report did not measure the revenue generated from apparel and equipment manufactured overseas (the lion鈥檚 share of outdoor gear), though it did account for the revenue generated when that gear was sold at retail.聽

Perhaps more important, the BEA did not measure travel expenses or spending on recreation trips less than 50 miles from home. 鈥淲e know that two-thirds of all outdoor recreation happens within those 50 miles,鈥 says Roberts, who says that difference is likely to blame for the discrepancy between the BEA and OIA figure.

What exactly聽is the outdoor recreation industry?

The report broke down the outdoor economy into three sections: 鈥渃onventional core activities鈥 (things like bicycling, hiking, hunting), 鈥渙ther core activities鈥 (like agritourism, outdoor festivals, and even amusement parks), and 鈥渟upporting activities鈥 (travel, government, construction).

The core activities we typically think about when we think of the outdoor economy make up nearly 40 percent of the industry total. By far the largest sector was the motorized vehicle industry, which was valued at roughly $60 billion. That was followed by the boating and fishing industry, hunting and shooting, the equestrian industry, and, finally, what the聽report called 鈥渙ther conventional outdoor recreation activities鈥濃攂ackpacking, climbing, and other outdoor gear-related sports鈥攚ere valued at $10 billion, well behind the hook-and-bullet industries.

Granted, a custom RV, sprinter, or bass boat can run tens, if not hundreds, of thousands of dollars. But the discrepancy will no doubt cause some controversy and a bit of reflection within the industry鈥攎any hiker, bikers, and climbers barely even think of hunters and ATVers as being in the same category. But some hope the report will bring the various cultures and user groups together. 鈥淭oday especially, people within those cultures pop across the boundaries all the time,鈥 says Luis Benitez, director of Colorado鈥檚 Outdoor Recreation Industry Office. 鈥淚 have a gun safe, I hunt, I fly-fish, hike, climb, I also have a dirt bike. So the time has come to bring all those together.鈥

Indeed, Roberts, the OIA鈥檚 executive director, notes that the 聽in 2017 on Utah Representative Jason聽Chaffetz to sell off public lands was so effective in killing the bill largely because it was led by sportsman鈥檚 groups. 鈥淚t shows that to protect public lands we need to be unified,鈥 she says.

So the government did some math鈥攚hat鈥檚 the big deal?

It makes a big difference that this is a number derived from an established and trusted government agency and not a private industry association. The OIA could publish as many detailed reports as it wants. That doesn鈥檛 mean that its number could be used by civil servants as they make decisions that concern the land people recreate on. 鈥淟and managers haven鈥檛 been able to gauge the positive impacts on the economy for recreation,鈥 says Steve Barker, co-founder of the travel gear company Eagle Creek and former interim executive director of the OIA. 鈥淭hey knew how many board feet were taken out, or how much the mining revenue was, but now they鈥檒l be able to look at the impact of recreation in these communities.鈥

What鈥檚 more, the number gives a solid comparison with other industries. Before, activists and conservationists聽could only point to a number derived by the OIA. (The equivalent of Exxon Mobil touting all the great things that the American Petroleum Institute said about the industry.) Now, the industry knows where it stands. 鈥淚n the past we haven鈥檛 been recognized as a viable part of the economy,鈥 Barker says. 鈥淣ow we can show that we are, and that we鈥檙e growing faster than the overall economy.鈥

How do we turn these numbers into more recreation opportunities?

Roberts notes that the foremost opportunity presented by the bill is to pressure Congress to restore funding to recreation opportunities on public lands. 鈥淲ith these numbers we can show that investing in outdoor rec will spur the economy,鈥 she says. 鈥淭he upcoming infrastructure bill is a great opportunity to build trails and keep campgrounds open. Putting dollars into outdoor recreation infrastructure, especially in rural areas that have been suffering from the decline in extraction industries, is a smart way to rebuild those economies.鈥

Former聽Black Diamond president, Peter Metcalf, who now serves as a board member for several conservation organizations, agrees. 鈥淲e need a large, organized, pro recreation, pro public lands聽campaign,鈥 he says. 鈥淚t should be funded by a pro-public lands PAC. We need several telegenic talking heads who can take this message to TV and radio in places that are impacted by public lands. The underlying narrative must be that these numbers are larger and more sustainable than the contributions of dying legacy industries.鈥

Lead Photo: Holly Mandarich/Unsplash

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