Outdoor recreation is an economic colossus: its reach is massive, its wealth enormous, and its influence continues to grow as more boots hit the ground. You can see it in Joshua Tree鈥檚 crowded campgrounds or in Mount Tam鈥檚 trailhead parking lots; in the Appalachian Trail鈥檚 thru-hiking numbers聽or in REI鈥檚 record sales. Americans are heading outdoors in huge numbers and paying handsomely for the privilege. But how much, precisely? For years the industry鈥檚 contribution to the nation鈥檚 economy was as much guesswork as fact.
In 2005, the Outdoor Industry Foundation commissioned the first of the economic studies to measure the industry鈥檚 heft. The initial report returned impressive statistics, but it was the follow-up study six years later that stirred the giant from its slumber: the outdoor recreation economy, all $646 billion of it, was nearly as much as Americans paid for pharmaceuticals and motor vehicle sales and parts, combined. Most of the industry鈥檚 stakeholders happily accepted the number at face value, and few inquired about how the numbers were derived (primarily through surveys).聽
Now, thanks to the passage of a bipartisan bill that sailed through both the House and Senate last month, and was signed into law by President Obama on December 8,聽the outdoor industry is primed for a gargantuan reveal. , or REC Act, authorizes the Department of Commerce鈥檚 Bureau of Economic Analysis to assess outdoor recreation鈥檚 contribution to the nation鈥檚 gross domestic product, or GDP.聽
鈥淚t鈥檚 one of the most significant policy decisions in support of our industry in the last ten years,鈥 says Amy Roberts, executive director of the Outdoor Industry Association (OIA).
Here鈥檚 why.
First, outdoor recreation鈥檚 worth will be appraised by the same economists who determine the country鈥檚 GDP. If anyone questioned the survey methods with which the $646 billion was derived, or took issue with the OIA commissioning and paying for its own economic study, those concerns should now be laid to rest. For one, the BEA has no horse in this race. As for its methodology? It鈥檚 the gold standard. 鈥淗aving reliable information is going to inform better policy making on a lot of different fronts,鈥 says Adam Cramer, executive director of the Outdoor Alliance.聽
Second, at the heart of the industry鈥檚 economic engine lie approximately 640 million acres of public land and many more at the state, county, and municipal levels: the field upon which the outdoor recreationists play. The new economic valuation should make it easier for a variety of interests, including land managers, policy makers, lobbyists, and investors, to determine the best and highest use of the land. 鈥淣othing really can replace federal economists recognizing our economy as part of the GDP and that we actually have official statistics to point to,鈥 says Roberts. 鈥淭hat will help us when we go in on lands management decisions in terms of the importance and benefits to the U.S. of preserving places to play.”聽
Third, and perhaps as significant as the GDP study itself, the legislation effectively brings the industry out of the shadows and calls attention to its significance as a job creator and revenue booster. What鈥檚 more, outdoor recreation seems one of the few issues members of both parties can get behind. (The bill was co-authored and introduced this year by senator Cory Gardner, a Colorado Republican, and senator Jeanne Shaheen, a New Hampshire Democrat.) 鈥淭here are probably 20 bills that we鈥檙e tracking,鈥 says Jessica Wahl, OIA鈥檚 government affairs manager, 鈥渂ut this was the number one issue we wanted passed.鈥 It鈥檚 a big moment for an industry that鈥檚 not recognized as an industry at all by the North American Industry Classification System.
鈥淚t鈥檚 long overdue,鈥 says Bob Ratcliffe, the National Park Service鈥檚 recreation chief. 鈥淲e鈥檝e never really understood how the outdoor recreation economy works. When you start talking about communities and states that have a high degree of outdoor recreation in their economy, it鈥檚 important to understand it just as you would energy or trade or tariffs.鈥澛
Americans are heading outdoors in huge numbers and paying handsomely for the privilege. But its precise economic contribution has been more guesswork than fact.
As Ratcliffe explains it, the project will move ahead in two distinct phases. First, a team of about 20 economists from the BEA will be aided by a team of outside experts: land managers, outdoor industry experts, and consultants, who will take up to two years to model the outdoor recreation economy through an iterative examination of outdoor recreation鈥檚 imprint throughout the hundreds of industries and thousands of commodities the BEA tracks. Here鈥檚 the thing: the nation鈥檚 GDP already includes the outdoor recreation economy, so the model synthesizes the outdoor recreation account by assembling the far-flung bits of its DNA from throughout the nation鈥檚 economy, by industry, and assemble employment and compensation statistics. The process is anything but easy. Take backpacks. If they鈥檙e used outdoors to carry recreational gear, then they鈥檙e in. If they鈥檙e used to carry books, they鈥檙e out. Same thing with climbing shoes: if they鈥檙e used outdoors, they鈥檙e in; in a climbing gym only, they鈥檙e out. It鈥檚 not just retail sales, either. The BEA will track the development, manufacture, and marketing impact as well. At the end of Phase I, the team has what they call a prototype, which they float publicly for peer review.聽
In the second phase, which can take an additional two years, the team will massage the model to break out state-level statistics and to create employment detail as granular as, say, the myriad categories of jobs and compensation for outdoor recreation-related activities. With this second level of refinement, the BEA can even backcast and forecast to demonstrate trends. If the overall contribution to the nation鈥檚 GDP serves as a door opener, it鈥檚 this kind of fine-grained, geographic data that decision makers will find the most useful. These numbers should be published by 2020.聽
Sound like a grind? Not to an economist. The BEA will map the outdoor economy to a satellite account,聽a kind of virtual ledger used to group related economic activities across the U.S. economy under one umbrella.聽鈥淪atellite accounts are exciting for staff to work on because it鈥檚 a little bit of a testing ground and allows people to get outside what they would be doing on day-to-day production,鈥 says David Wasshausen, chief economist of the BEA鈥檚 National Income and Wealth Division.
It鈥檚 anybody鈥檚 guess where the number will come in, but bigger is obviously better. Prior to the establishment of its own satellite account, the National Endowment for the Arts鈥檚 own estimate of art and culture's contribution to GDP was about $500 billion. The Bureau of Economic Analysis鈥檚 value: $700 billion.
What鈥檚 the downside if the BEA鈥檚 number falls short of the $646 billion the industry鈥檚 been using for nearly five years?
鈥淲ell, then it鈥檚 a number that鈥檚 less than that,鈥 says Ratcliffe. 鈥淲hat happens if it鈥檚 more than that? What if it鈥檚 half a percent* of the nation鈥檚 economy and what if it鈥檚 10 percent? Somewhere between the two is probably somewhere closer to the truth, but I can鈥檛 see how it couldn鈥檛 be a significant number.鈥
To Don Beyer, the Democratic congressman from Virginia (and Appalachian Trail hiker) who introduced the REC Act to the House of Representatives last March, context, regionality, and timing are just as important as the sector鈥檚 contribution to GDP. 鈥淲hen we have the numbers and the statistics, it will be much easier to sit with Ryan Zinke from Montana or Liz Cheney from Wyoming and say, 鈥楲ook at the incredible contribution to your Wyoming/Montana economy from outdoor recreation. Let鈥檚 not jeopardize that by ramping up how much fossil fuel extraction is going on here.鈥欌
And that may be the biggest boon of the REC Act to the industry members and enthusiasts: valid and reliable economic data can serve as a kind of lingua franca to facilitate dialogue and bridge differences between competing interests. Adam Cramer cites the extractive industry鈥檚 extensive datasets detailing the economic value of commodities like minerals, timber, and hydropower. 鈥淚鈥檓 pretty excited to see how it鈥檚 going to even the playing field when everybody鈥檚 talking about different land uses using a common currency, so to speak,鈥 he says.
Beyer is similarly optimistic. 鈥淚 don鈥檛 want to pretend this is the silver bullet but I think it鈥檚 a great step forward in defining the ever-increasing importance of outdoor recreation on our economy,鈥 he says. 鈥淭he GDP created, the number of jobs created, the number of people who benefit from it, and to continue to expand the horizon and imagination of our policy makers at every level so they see how important it is to continue to develop outdoor recreation opportunities for all of us. Ever more places to climb, ever more places to raft. There鈥檚 an explosion of trails around the country. I鈥檓 not going to live long enough to hike them all.鈥