Examining ATVing Trends and Economic Benefit. Submitted to Municipality of Dysart et al. April 06, 2010

Transcription

1 Examining ATVing Trends and Economic Benefit Submitted to Municipality of Dysart et al. April 06, 2010 Stacy J. Kirkbride Community Researcher U-Links Centre for Community-Based Research Box 655 Minden, Ontario K0M 2K0 This paper discusses current trends and economic benefit studies as they relate to the recreational use of ATVs. In particular, a focus has been placed on future trends and impacts as they relate to the province of Ontario, County of Haliburton and the Municipality of Dysart et al. The purpose of the study is to provide information on the trends and economic benefits of ATVing for the purpose of informing municipal policy decisions on recreational activities and trail use. This paper is a literature review of current information related to ATVing trends and economic impacts, but does not constitute a full study on the actual economic impact as it directly relates to the municipality of Dysart. Particular emphasis is placed in predictions for future use and related policy. Studies have been reviewed that identify and examine economic impacts in other areas; including managed ORV trail systems. Conclusions have been provided for future research opportunities.

2 DEFINITIONS... 3 ALL-TERRAIN VEHICLE (ATV)... 3 OFF-ROAD VEHICLE (ORV)... 3 REGULATIONS/LEGISLATION... 4 CENTRAL ONTARIO TOURISM PROFILE... 4 TOURISM CLIMATE-ONTARIO... 6 INBOUND NON-BUSINESS... 6 SNOWMOBILING AND ATVING TRAVEL MARKET... 8 CANADA... 8 Demographic Profile... 8 Travel Motivations and Preferences... 8 Market Size...10 US TRAILS IN ONTARIO TRAIL CONFLICTS ATVING IN HALIBURTON COUNTY MANAGED ORV TRAIL AREAS/ ATV TOURISM DEVELOPMENT HATFIELD-MCCOY PAIUTE TRAIL ELLIOT LAKE ECONOMIC IMPACT LEWIS COUNTY (NEW YORK) TUG HILL REGION CANADA ALBERTA ONTARIO ECONOMIC BENEFITS VS COST SOCIAL AND HEALTH ENVIRONMENTAL CHALLENGES AND OPPORTUNITIES FUTURE TRENDS USE OF MUNICIPAL ROADWAYS KAWARTHA LAKES BEST PRACTICES CONCLUSION

3 Definitions All-Terrain Vehicle (ATV) The Canadian Off-Highway Vehicle Distributor s Council (COHV) defines an all-terrain vehicle (ATV) as a motorized off-highway vehicle designed to travel on four low pressure tires, having a seat designed to be straddled by the operator and handlebars for steering control (COHV, 3). Similarly, the Ontario Ministry of Transportation defines an off-road vehicle as: Has four wheels, the tires of which are all in contact with the ground. Has steering handlebars. Has a seat that is designed to be straddled by the driver Is designed to carry a driver only and no passengers; and Meets requirements of federal Motor Vehicle Safety Act (MTO, 1) Off-road Vehicle (ORV) In some literature, the term off-road vehicle is used to refer to any type of vehicle which is capable of driving on and off paved or gravel surface (Wikipedia). Many documents and regulations refer to ORVs using a definition typically used to refer specifically to ATVs (specifying the number of tires and intended use). A few broader definitions have been used which define ORVs as any wheeled or tracked motorized vehicle designed or adapted for cross-country travel (Manitoba). The government of New Brunswick, for instance, includes in their definition of off-road vehicles ATVs, dirt bikes, snowmobiles and even amphibious vehicles. In general, most definitions provided for off-road vehicles exclude utility vehicles such as tractors, golf carts and personal mobility devices. 3

4 Regulations/Legislation In Ontario, the use of off-road vehicles is governed by the Off-Road Vehicles Act (when operating off-road) and the Highway Traffic Act (when operating on roadways). As of July 31 st, 2003, ORVs are now permitted access to certain highways across Ontario (shoulders and some paved portions). This includes access to most 500 to 899 and 7000 series highways. It excludes all 400 series highways and the Trans-Canada highway. Anyone operating an ORV on a highway must have a valid driver s license, registration and insurance. They are also forbidden from carrying passengers and must be wearing a helmet. Off-road vehicles are not permitted access to municipal roads unless the municipality chooses to create a specific by-law granting access. Each municipality has been given the option to decide whether or not they wish to grant access. If a municipality chooses to provide access to ORVs the by-law can specify which roads or sections of road can be used, hours and season. Specific speed limits can also be created to manage ORVs on municipal roadways. These new regulations apply specifically to one type of off-road vehicle known as all-terrain vehicles (ATVs). The new regulations do not apply to all types of ATVs or any other type of off-road vehicle. While access to public roads is restricted to those holding a valid drivers license, children under 12 are permitted to ride on public and private lands if supervised by an adult over the age of 18. A child under the age of 12 can ride an ATV without adult supervision provided the vehicle is being operated on the owner s property. Riders over the age of 12 do not require adult supervision. Currently, there is no legislation requiring safety courses or training prior to operating an ATV. Helmets are only mandatory when operating an ATV on public land or using roadways. Central Ontario Tourism Profile The municipality of Dysart et al is located within Haliburton County is divided into four municipalities (Dysart, Minden Hills, Algonquin Highlands and Highlands East). The Haliburton Highlands has long since been a popular destination for outdoor/nature adventures due to its picturesque landscape, rolling hills and large variety of waterways. 4

5 Currently, no specific information exists calculating the number of visitors to Haliburton County, the activities they participate in and the economic impact of their spending. The Ontario Ministry of Tourism provides a regional tourism profile for Central Ontario. This profile shows that in 2007 Central Ontario saw approximately 20 million visitors. Visitors were divided almost evenly among overnight and same-day travelers. A large portion of visitors to Central Ontario come from the Greater Toronto Area, Simcoe County, Peterborough County, Waterloo area and Haliburton. For 94% of visitors the main purpose of the trip was for pleasure and/or visiting friends/relatives (OMT). Visitation tended to be heaviest during the summer and fall months. On average, 79% of visitors were travelling in adult-only parties with an average party size of 1.4 (OMT). The median age was 42.9 and the average length of stay 2.8 nights (OMT). The most popular activity while on trip in Central Ontario was outdoor and sports-related activities; followed by visiting national/provincial parks. In 2007, over 27 million nights of accommodation were used (OMT). The most popular form of accommodation was in private homes and cottages. Other popular accommodations included campsites, trailer parks and roofed commercial hotel/motels. The average visitor spent $116 per day or $178 for overnight (OMT). Total visitor spending for 2007 in Central Ontario was $2,343,011,000 (OMT). Overnight visitors made up the bulk of this spending with a total of $1,739,427,000 (OMT). The largest spending category was for food & beverage ($816,199,000) (OMT). The second largest spending category was for accommodation ($461,580,000) (OMT). The third largest spending category was for vehicle operations ($463,671,000) (OMT). While hotel occupancy rates declined between 1999 and 2007; the average daily room rate increased from $98.63 to $ (OMT). The economic impact of tourism in Central Ontario is significant contributing a GDP (gross domestic product) total of $1,424,859,000 (OMT). The contribution to wages and salaries in 2007 was a total of $848,629,000 and represented a total of 25,230 jobs (OMT). Tax revenue for 2007 was $847,891,000 (OMT). Central Ontario has a wealth of tourism establishments including approximately: 800 accommodation providers, 2,250 food & beverage providers, 320 transportation providers and 5,600 retail services (OMT). Travel services totals approximately 160. Meanwhile, Central Ontario offers over 1,100 arts, entertainment and recreation services. 5

6 Tourism Climate-Ontario In 2007, the total tourism receipts in Ontario equaled $22 billion (OMT-1). A total of 300,000 (OMT-1) jobs are created either directly, indirectly or induced by tourism in Ontario. Of these, 200,000 (OMT-1) are directly created through tourism. Ontario has over 150,000 (OMT-2) tourism-related businesses. A large portion of these are retail or service related; and another significant portion dedicated to recreation, entertainment, transportation and accommodation. These businesses represent nearly 900,000 (OMT-2) employees. The largest portion of tourism receipts are generated by travelers from Ontario (63%) (OMT-3). The second largest from US travelers (17%) (OMT-3). Other estimates predict that upwards of 80% of travelers in Ontario are from Ontario; making the domestic market the most significant. Overseas and visitors from other Canadian Provinces create an additional 21% (OMT- 3) of tourism receipts. As demonstrated by the following table, the latest forecast from the Ontario Ministry of Tourism shows an increase in pleasure travelers or non-business travelers to Ontario from here to A slight decrease is predicted in overnight overseas visitors. The largest market remains with same-day visitors from Ontario. Similarly, there remains a slightly larger market of sameday visitors from US border states; as opposed to overnight and non-border state visitors. In general, same-day visitors remain a slightly larger market in total combining all visitors to Ontario. Inbound Non-Business Tourism Forecast Inbound Non-Business Non-Business to Ontario US Border States Visits Percent Change ,097 7,534 7,301 7,503 7, % -7.0% -3.1% 2.8% 1.2% Sameday 4,932 4,540 4,241 4,363 4, % -8.0% -6.6% 2.9% 0.0% Overnight 3,165 2,994 3,060 3,140 3, % -5.4% 2.2% 2.6% 2.9% US Non-Border States 1,974 1,971 2,014 2,062 2, % -0.2% 2.2% 2.4% 3.2% Sameday % -2.7% 0.9% 1.1% 3.1% Overnight 1,488 1,497 1,536 1,579 1, % 0.7% 2.6% 2.8% 3.3% Total US 10,071 9,504 9,315 9,565 9, % -5.6% -2.0% 2.7% 1.6% Sameday 5,418 5,013 4,719 4,846 4, % -7.5% -5.9% 2.7% 0.3% Overnight 4,653 4,491 4,596 4,719 4, % -3.5% 2.3% 2.7% 3.0% UK % -1.2% 4.7% 6.2% 0.4% Sameday % -0.3% 9.1% 13.3% 8.6% 6

7 Overnight % -1.2% 4.5% 5.9% -0.1% France % 4.1% 4.2% 4.5% 1.5% Sameday % 1.1% 3.2% 6.9% 2.6% Overnight % 4.3% 4.3% 4.3% 1.5% Germany % 2.3% 5.5% 3.0% 0.3% Sameday % -2.3% 5.1% 10.1% 4.6% Overnight % 2.9% 5.6% 2.2% -0.2% Japan % 0.4% 4.7% 7.8% 6.9% Sameday % 5.7% 1.4% 6.5% 3.2% Overnight % -0.9% 5.6% 8.1% 7.9% Other Overseas 1,140 1,152 1,224 1,294 1, % 1.1% 6.2% 5.7% 2.7% Sameday % 1.2% 5.7% 8.2% 3.4% Overnight ,054 1,110 1, % 1.1% 6.3% 5.3% 2.6% Total Overseas 1,707 1,723 1,822 1,925 1, % 1.0% 5.7% 5.6% 2.3% Sameday % 1.3% 5.5% 8.4% 3.8% Overnight 1,486 1,499 1,586 1,667 1, % 0.9% 5.8% 5.1% 2.0% Ontario 77,084 77,865 78,170 78,802 79, % 1.0% 0.4% 0.8% 1.1% Sameday 47,629 47,784 47,975 48,228 48, % 0.3% 0.4% 0.5% 0.7% Overnight 29,455 30,081 30,195 30,575 31, % 2.1% 0.4% 1.3% 1.6% Other Canada 3,112 3,050 3,098 3,160 3, % -2.0% 1.6% 2.0% 2.3% Sameday % -8.6% 0.5% 1.3% 1.7% Overnight 2,249 2,260 2,305 2,356 2, % 0.5% 2.0% 2.2% 2.6% Total Canada 80,197 80,915 81,268 81,962 82, % 0.9% 0.4% 0.9% 1.1% Sameday 48,493 48,574 48,768 49,031 49, % 0.2% 0.4% 0.5% 0.7% Overnight 31,703 32,341 32,500 32,931 33, % 2.0% 0.5% 1.3% 1.6% Total North America 90,268 90,419 90,583 91,527 92, % 0.2% 0.2% 1.0% 1.2% Sameday 53,911 53,587 53,487 53,877 54, % -0.6% -0.2% 0.7% 0.7% Overnight 36,356 36,832 37,096 37,650 38, % 1.3% 0.7% 1.5% 1.8% Total International 11,778 11,228 11,137 11,489 11, % -4.7% -0.8% 3.2% 1.8% Sameday 5,624 5,221 4,938 5,084 5, % -7.2% -5.4% 3.0% 0.5% Overnight 6,139 5,990 6,182 6,386 6, % -2.4% 3.2% 3.3% 2.8% Total 91,974 92,142 92,405 93,451 94, % 0.2% 0.3% 1.1% 1.2% Sameday 54,117 53,795 53,706 54,115 54, % -0.6% -0.2% 0.8% 0.7% Overnight 37,842 38,331 38,682 39,317 40, % 1.3% 0.9% 1.6% 1.8% From: (OMT-4) Perceptions of Ontario as a tourism destination are favorable to the outdoor and nature tourism industry. US travelers, for instance, rated Ontario 7.4 out of 10 (OMT-5) as an outdoor travel destination. This was the highest rating given to any of tourism activity options for Ontario. Travelers appeared more likely to consider Ontario as a destination if they had previously had an experience within the province. 7

8 Several issues have been identified with tourism in Ontario by both public and private enterprises. Among these issues, a key topic appears to be a need or desire for more consistent marketing and imaging of Ontario. This includes creating a recognizable tourism brand that will be making Ontario stand out as a destination and be used province-wide. Several other barriers in tourism development exist in Ontario. Some of the most prevalent include a need for greater capital to support business development and improvement; along with necessary upgrades and improvements to infrastructure, partnerships, training and education. Snowmobiling and ATVing Travel Market Canada In 2007, a Travel Activities & Motivation Survey was completed for the Ontario Ministry of Tourism looking at the Canadian Travel Market. A profile report was released identifying the travel characteristics and demographic profile for Canadian travelers taking part in snowmobiling and ATVing in Ontario. The survey focused specifically on the overnight travel market (defined as those staying away from home for one or more nights). The following provides a summary of those results and background on the Canadian ATV and Snowmobile travel market in Ontario: Demographic Profile The majority of travelers taking part in snowmobiling and/or ATVing are between the age of 18 to 44 (57.7%) and male (Lang, 2). 68.8% of these travelers are married and a large portion (67.3%) do not have any children at home under the age of 18 (Lang, 6). Snowmobile and ATV travelers were more likely to have a higher than average income (median income $77,737), but less likely to have a post-secondary education (Lang, 6). Of this group, 39% have a high school education or less (Lang, 6). Travel Motivations and Preferences In , approximately 2 million or 8.4% of Canadians participated in snowmobiling or ATVing while on an overnight trip (Lang, 5). This activity ranked as the 13 th most common (out of 21) among outdoor activities while on trip (Lang, 2). Of those surveyed, 40.2% or 840,100 people stated that snowmobiling or ATVing was the basis for taking at least one trip during the year (Lang, 4). 8

9 Similar to other travel segments within Central Ontario, snowmobilers and ATVers show a preference for staying in campgrounds and consider the availability of camping as an important factor when choosing a travel destination. Other top forms of accommodation used by this travel segment include: lodges, resorts and RVs. A preference is shown for wilderness locations or lake side accommodations. ATVers tend to be very active in other nature/outdoor activities including: hunting, fishing, camping, snowshoeing, motorcycling, horseback riding, wildlife viewing, boating, crosscountry and downhill skiing. Typically a younger male demographic, considerable interest is also shown in team sports, extreme sports and sporting events. When not travelling this segment participates in a similar array of outdoor activities; they also enjoying dining out, attending festivals/fairs, live music, dancing and sporting events. A high portion of snowmobilers and ATVers live in rural areas. They typically have less access to cultural events, galleries and museums. They enjoy participating in agro-tourism activities. Among outdoor enthusiasts, snowmobilers and ATVers are more likely to go on wilderness tours, cruises and air tours. The snowmobile and ATV market put particular preference on traveling for leisure. The TAMS report notes that the top reasons for taking a leisure vacation include: To get a break from your day-to-day environment To relax and relieve stress To create lasting memories To enrich your relationship with your spouse/partner/children To have a life with no fixed schedule From: (Lang, 15) ATVers plan their vacations usually with a specific destination in mind. Typically, the vacation is planned around the types of activities they would like to pursue and a region that will provide maximum opportunities. 44.9% begin planning their vacation around a specific destination; while 24.7% begin by seeking a particular activity (Lang, 17). Only a small portion of the ATV and Snowmobile market look for packaged vacations (1%) (Lang, 17). This market can be reached through sports media, travel/trade and/or sport shows and sports-related websites. 9

10 Market Size The Snowmobile and ATV travel market is estimated to be 2,091,778 or 8.4% of Canadians (Lang, 5). The largest portion of this market is for same day excursions with approximately 1.4 million or 5.6% of the Canadian population (Lang, 4). ATV same day excursions represents 7.6% of travelers (Lang, 4). The overnight ATV travel market remains smaller representing only 1.6% of the Canadian population (385,488 people) and only 2.1% of travelers (Lang, 4). Within the Canadian travel market, ATVers are less likely to live in Ontario and BC; and tend to be over-represented in the prairie provinces. On average, the ATV market represents only 7.1% of the total Ontario population (Lang, 5). In the research completed by Thorburn it was noted that the majority of ATVers from Ontario only ride within their home province. Typically this is within a 50 kilometer range from their home. This would be similar to a province wide tourism trend towards travelling closer to home. In particular, the domestic market makes up the majority of Ontario s tourism market. Thorburn also noted that Ontario ATVers ride frequently; with a large portion riding every week. US The US Snowmobile and ATV Market in Ontario varies slightly from the Canadian market. While the average age remained dominated by males 18 to 44 with an above-average income level ($83,490) (Lang-1, 7); the US market was more likely to have children under 18 still at home. The US Snowmobile and ATV market also tend to be more frequent travelers and are more likely than other US travelers to have come to Canada. Top destinations for this segment include Ontario, BC and Quebec. US Snowmobilers and ATVers travelling overnight travel to Ontario more often than other provinces. The US market tended to have a higher education level with 41.7% having completed a university degree and 12.3% having a post-graduate education (Lang-1, 7). In total, the US Snowmobile and ATV market represents 5.5% of the US travel market or approximately 12 million (Lang-1, 6). 34.1% demonstrated that snowmobiling or ATVing was a key factor in taking at least one trip throughout the year (Lang-1, 2). This segment participates heavily in other outdoor activities while on trip. These include: extreme sports, hunting, snowshoeing, cross-country, agro-tourism, wildlife viewing, boating, hiking, climbing & paddling, fishing, golfing and horseback riding. Like the Canadian Market, this segment greatly enjoys participating in cruises and tours. While at home, this market continues to show preference for active outdoor activities including jogging, swimming, exercising, gardening, hunting, team sports, hiking, camping and cycling. 10

11 In terms of accommodation choices, the US market is very similar to the Canadian market with a strong preference for campsites and lodges. A high preference was also shown for lakeside resorts and RVs. The benefits or reasons for travelling were also similar to the Canadian Market. While on an overnight trip, the US market demonstrated a much higher interest in visiting cultural sites including museums and galleries (60.4%) (Lang-1, 12). They also demonstrated a high interest in fine dining and spas (43.7%) (Lang-1, 12). The US Travel Market sought destinations with particular attributes including a feeling of safety, variety of activities available, budget and mid-range accommodations, destination information and booking available online, and convenient transportation access. Trails in Ontario The development and promotion of trails and tourism is a key focus throughout the province of Ontario. Ontario currently has over 60,000 kilometers of developed trails (MHP, 6) that are used for a variety of outdoor based activities including: hiking, cycling, snowmobiling, dog sledding, mountain biking, ATVing, equestrian sports and cross country skiing. These trails also help facilitate a wide range of nature-based activities including bird watching and wildlife viewing. Trails offer a variety of benefits to residents and visitors in Ontario. The development and maintenance of trails and associated activities leads to direct economic impacts on a provincial and local level. This includes revenue generated from trail passes (for user-pay systems), increased revenues for local businesses, development of new tourism services and job creation in a wide range of sectors. It has also been shown that property values tend to be 5 to 30% higher when located near a trail (MHP, 7). Recent tourism trends have documented that more people are choosing to spend their vacation time closer to home. This trend is sometime referred to as stay-cations. Ontario has historically maintained a strong domestic travel market and this continues to make up the bulk of all travelers within the province. Recent economic events have increased the trend towards selecting inexpensive closer to home tourism activities. On average the Ontario Trails Council estimates that trails contribute at least $2 billion a year to the provincial economy (MHP, 7). The most profitable trails are those that are longer in length and rurally located. A study conducted in Southwestern Ontario (focusing on the Trans Canada Trail) found that average spending for hikers was $35.00 per person while on a day trip and $76.00 while staying overnight at hiking location (RDC, 5). It has also been noted that higher revenue is derived from longer trails that are in rural locations. Most revenue is acquired near the trailhead of the trail or within a 10 km corridor on either side of a trail route (RDC, 5). 11

12 Aside from economic benefit, trails provide ample social and health benefits. On a whole, trails offer to a community increased opportunities for volunteering, skills development, partnerships, connections and social activities. They also generate numerous opportunities for community members to actively engage in environmental stewardship or to acquire an increased appreciation for the natural environment. Trails greatly contribute to a community s capacity for active transportation and involvement in outdoor recreation. It has been found that 1/3 of Canadian adults exercise by regularly participating in outdoor, recreational activities (RDC, 4). Over the next few decades ¼ of Canada s population will be over the age of 65 (RDC, 4). This increase will be especially evident in Canada s rural regions where older adult populations make up a higher percentage per capita. The growth of aging populations is predicted to cause 25 percent increase in low impact walking and hiking activity participation (RDC, 4). It is also likely to decrease participation in higher impact outdoor recreation activities. The level of economic benefit that can be derived from trails is highly dependent on the community capacity to offer a variety of opportunities for different types of users. It also greatly depends on the other types of services available locally. The Ministry of Health Promotion has identified several obstacles that may affect trails in Ontario. Overall, there are limited financial resources to support continued development, management and maintenance of trail infrastructures. Land resources are also becoming scarce and further aggravated by growth province-wide in population density. In general, the cost of liability insurance has become a barrier for many different types of trail organizations. There are many challenges that are specific to ATVing. In particular, while sales of ATVs are on the rise, many riders lack access to appropriate places to ride. There is also a rise in illegal or inappropriate off-trail ATV use and a need has been identified for further education. Many communities across Ontario are facing similar obstacles when it comes to trail use, development, management and user-group conflict resolution. Some of the most common issues are related to: Providing education and adequate trail information Insurance Public policy decisions Trail safety Land rights and access Capacity to support increased activity Conflicts between different recreational activity user groups Land and funding limits Collaboration among trail organizations 12

13 Trail Conflicts A considerable amount of conflict exists that greatly dampers the potential for communities to draw economic, social and health benefits from trails. There are many organizations across Ontario dedicated to the marketing, management and protection of trails in Ontario. Almost every trail and recreational activity has at least one guiding organization or promotional body. ATVs alone are represented by dozens of clubs and several larger federations and/or lead organizations. Many have pointed to their being a significant gap in terms of guidance in matters related to trails. In particular, there remains a defined need for a primary authoritative body to provide leadership. The Ontario Trails Strategy developed a vision for a world-class system of diversified trails, planned and used in an environmentally responsible manner to enhance the health and prosperity of all Ontarians (MHP, 3). The plan, which identifies strategies for the long term development and use of trails across Ontario, was created through a collaborative process involving a diverse number of government and non-governmental organizations and trail stakeholders. A report by the Ministry of Health Promotion stated that the success of the trail strategy would be reduced significantly because of current conflicts among different user-groups. In general, it has been found that there is a lack of consensus on certain key issues concerning implementation of user-pay systems. There have also been many gaps identified in standards, guidelines and trail user education. Recurring issues identified in literature on trails are conflicts between various user groups and land owners. The report by Clute and Associates stated significant conflicts among: motorized ORV users and public and private land owners; motorized and non-motorized recreational trail users; ATV users and snowmobile users; ORV users and environmentalists/conservationists; and Motorized recreation organizations and public health professions. (Clute, 3) 13

14 It was believed that other factors have further aggravated these concerns among trail user groups. A particular issue for the ATV community is that vehicle sales continue to rise, but Ontario still lacks the trail capacity necessary to support this growth. This in turn leads to a rise in issues related to off-trail riding and illegal use of private/public lands. As Clute demonstrates, the exact number of dedicated ATV trail kilometers in Ontario is not known some trail organizations indicate extensive trail riding opportunities (Clute, 5). There are, however, more dedicated kilometers for snowmobiling than ATVing. Some other conditions that are currently contributing to conflicts include: limitations in trail capacity, lack of organization, growing safety concerns and health costs, lack of consensus among trail groups, lack of infrastructure and resources to meet market demand, lack of guidance from governmental bodies, limitations in funding and other resources. ATVing in Haliburton County The Haliburton ATV Association is already well established with a membership base of approximately 800. A large portion of these members are from outside of the Haliburton region and travel to the County for ATVing. Activities run by the club include both informal and formal club rides. The club collects annual membership dues which go to support insurance for all its members while travelling on specified trails; along with trail maintenance and development. Membership dues also go towards supporting signage, equipment, development and distribution of maps, and supporting other local initiatives. Currently, HATVA has 1,700 + kilometers of signed trails. The club also organizes volunteer wardens who monitor the trails and check for trail passes. Managed ORV Trail Areas/ ATV Tourism Development In 2008, a report was created by Dr. Meg Thorburn commissioned by the Haliburton Highlands Trails and Tours Network to look at the potential for a user-pay ATV and dirt bike trail system in the county. The report noted that the availability of vast networks of scenic and varied trail has already made HC [Haliburton County] a destination for motorized recreationists (Thorburn, 3). A comparison was developed between potential opportunities in Haliburton County and managed trail system known was Hatfield-McCoy located in West Virginia. 14

15 Hatfield-McCoy The Hatfield-McCoy development is one example of successful implementation of a managed ORV trail system. The system, which was developed after the collapse of the natural resource industry, is anticipated to bring in approximately 600,000 visitors. Currently, the Hatfield-McCoy trails remain partially funded through public and private sources. The largest sales revenue is for trail permits. It is estimated that the trail system will eventually become selfsustainable and bring in a yearly profit of roughly $100,000,000 (Thorburn, 5). As Thorburn indicates, the economic impact of this trail system is an increase in output of $7,776,116, an increase in income of $2,789,036 and the generation of 146 new jobs (Thorburn, 7). The annual permit rate for non-resident is presently between $40 and $50. This rate provides riders with the opportunity to explore well signed trail geared for a variety of difficulty levels. The trails are mapped and connect into the local community for access to services. Thorburn identified several similarities between Haliburton County and the Hatfield- McCoy development. One significant connection is that Haliburton, like West Virginia, has an abundance of trails. A large portion of these trails are also remaining from previous natural resource related activities. Both areas are also within close proximity to several major urban centers. As Thorburn notes, these urban centers also experience a relative shortage of motorized trail-related opportunities (Thorburn, 8). There are, however, several critical differences between the Hatfield-McCoy region and Haliburton County. In areas across the United States there is very little public land available for recreational use. This means that areas developed for the use of ATV or OHV recreation must rely on combining the use of both public and private lands. In Ontario (and in particular Haliburton County), there is an abundance of crown land. However, Thorburn cautions that using crown land in Ontario for user-pay OHV recreation might be more administratively/legislatively complicated than using private land (Thorburn, 8). There exist several other legislative differences which may further complicate the development of a user-pay system. Some of the barriers or differences that Thorburn noted were: Liability issues surrounding the use of private land Limitations surrounding by-law or regulation enforcement Adequate trail leadership and authority Access to adequate funding and resources Seasonal limitations It is particularly important to take note that West Virginia benefits from a longer operating season. Haliburton County does have the advantage of having an already established and well promoted motorized recreational community. However, the county has also placed strong focus on promoting non-motorized activities and tourism. Thorburn made final recommendations which stressed the need for further studies to do a full feasibility analysis for the development of a user-pay system in Haliburton County. 15

16 Paiute Trail Several lessons can be learned from exploring current user-pay ORV facilities. The Paiute Trail, in South Central Utah, is the largest user-pay ATV trail system in the United States. The success of this project is directly linked to its ability to mitigate trail user-group conflicts and develop partnerships across multiple communities. In total, the Paiute system is linked to 16 communities across 4 rural regions. The success of the Paiute Trail system has been evident in the impacts it has had economically for the region. Currently the trail attracts approximately 80,000 users per year (Midhurst, 5); over half of which come from outside the operating area. These users spend an average of $110 a day and in total provide 5 million in revenue to the 16 participating communities (Midhurst, 5). Other indicators of success have been tracked including a notable 60% decrease in highway traffic (Midhurst, 6). Registration and bookings are coming up to a year in advance and business ownership in the region has tripled. The area has also seen the installation of a new campground and a 20% room tax revenue increase (Midhurst, 6). As previously identified, several conflicts have arisen which have made motorized recreational vehicles controversial among trail communities. Trail systems, such as Paiute, are working towards tackling these issues by providing safe, appropriate places for ATV users to ride. Along with this comes a strong focus on trail design that lowers the level of environmental damage. One criticism of many riding areas is that poor design, construction and maintenance has created environmental degradation and unsafe riding conditions (Midhurst, 17). A properly managed trail system can effectively monitor damage levels, enforce safe riding practices and educate ATV users. It has been noted that a lack of legal places to ride has further encouraged illegal riding among an ever expanding ATV community. In looking at the Paiute Trail System, several best practices can be noted. A key lesson is that the trail system was developed close enough to several communities to make it attractive as a tourism destination. The success of the trail system can also be linked to increased rider safety making it attractive to a broader range of outdoor recreationists. Through the Paiute system several on-going issues have been observed. These include: environmental impacts, safety, conflicts between different user groups and on-going funding requirements. These issues have been moderated through the development of a trail committee, fundraising efforts, increased community partnerships and trail rangers for enforcement. 16

17 Elliot Lake The City of Elliot Lake (with a population of roughly 14,000) is currently home to a 300 kilometer ATV trail network. This network is the largest insured trail system of its type in Ontario. The development of the ATV trail network was part of an initiative intended to increase tourism opportunities and generate economic growth. Elliot Lake, once a resource-based mining town, has more recently been known as a retirement destination. The development of the trail network reflected the cities new goal to increase Elliot Lakes profile as a top ATV tourism destination. The first phase of this development was supported with investment from the Northern Ontario Heritage Fund Corporation. It also included strong partnerships between the Discovery North Resource Center, Elliot Lake ATV Club, City of Elliot Lake, Ontario Tourism Marketing Partnership Corporation and federal agencies. Funding provided for this project included the creation of a best-practices manual aimed at helping other areas interested in following the same model for building a community-based ATV tourism product. The trail system was built to suit riders of all ages and experience levels. It was also created in order to support day trips and multi-day adventures. The looped structure of the network allows riders to be no more than 20 minutes away from services at any time. The trail provides access directly into the city. The project also engages local businesses in selling packages, developing guided trips and providing services including: equipment sales/service/rental, accommodations, food, etc. The third phase of development in Elliot Lake included a focus on other tourism opportunities, experiences and packages. This has included the improvement and expansion of a larger trail network to increase opportunities for motorized and non-motorized trail activities. The goal of the entire project was to strengthen local business, create jobs and revitalize the local economy through tourism. The ATV trail network was an instrumental first step in paving the way for other opportunities. Elliot Lake is now host to a 1,200 kilometer multi-use trail system. Their efforts are now focused on increasing lakeshore development, cycle tourism and active transportation opportunities throughout the city. The City of Elliot Lake is a member of Tread Lightly! Canada. Canada a non-profit group focused responsible riding and respect for the environment. 17

18 In response to rising ATV sales, a manual for developing Community-Based ATV Tourism Product was created in 2003 in partnership with the Ontario Tourism Marketing Partnership Corporation, Fednor, Northern Ontario Heritage Fund, Canadian Tourism Commission and a variety of Ontario communities. One of the goals of the manual was to ensure that ATV s are used responsibly and do not impede the enjoyment of trails and public lands by other user groups (Suthey, 9). The City of Elliot Lake has been used as a pilot and model community for ATV development. Overall, developments in Elliot Lake were included in the community strategic plan and have incorporated the interests of a wide range of stakeholders. The manual provides tools and strategies based on the best practices of pilot communities across Ontario. It also addresses key issues tied to ATV tourism including: environmental responsibility, shared-use trails and community-based development. The manual addresses a variety of steps to developing a community-based product including: community planning, feasibility assessment, business planning, marketing, management, trail planning, supplier development, sustainability and quality control. Economic Impact All-terrain vehicles have been part of the recreation and tourism market since the early 1970s. Since then, sales and popularity of ATV use have been on a steady increase. As is demonstrated by the chart below, sales of ATVs in Canada have grown with little setback and have far surpassed that of snowmobiles. In the US, sales have seen an increase of over 280% since 1994 (Snyder, 1). In Ontario, ATVs are the fastest growing out of all off road vehicle activities. This growth has also contributed to significant direct, indirect and induced economic benefits. In Ontario, ATV sales are estimated to continue increasing approximately 6% per year (GSP, 11). While the use and sales of ATVs have risen significantly over the last few decades, this has not been matched with an appropriate amount of legal places to ride. From: (Suthey, 9) 18

19 Lewis County (New York) Tug Hill Region The region of Tug Hill in Lewis County, New York examined the potential impact of developing an ATV trail system to meet a noticeable increase in ATV recreation. The area boasts a long history of snowmobile and other motorized recreation; along with a well developed snowmobile trail system. Prior to development, stakeholders sought an assessment to better understand the potential environmental, social and economic impacts. The region of Tug Hill is comprised of 41 towns and villages and has a population of approximately 100,000 people (Camoin, 16). Roughly only 10% of the land in the region is publicly owned. The local economy is largely supported through forestry. Other strong industries in the region include agriculture and tourism. The tourism industry is heavily based in outdoor recreation including hiking, atv riding, hunting, snowmobiling and skiing. The proposed development would include expanding the existing trail network and includes the use of specific roadways throughout the county. The study included an examination of methods to mitigate potential impacts and plan for responsible growth. The study found that trail development and ATV activities could have potential impacts on: (from: Lewis, 3-6) Fish, Wildlife, Plants, and Ecologically Sensitive Areas. Historical or Archaeological Resources Water Resources Wetlands Soils Noise Air Quality Traffic on roadways Other Recreational Activities Growth and Character of the Community Community Services Among these potential impacts, the report provided recommendations for further research and exploration. A number of recommendations were made for possible improvements and techniques that could be used to reduce impacts. 19

20 Currently, ATVing in Lewis County operates on a permit system which helps to pay for maintenance to roadways, trails on private and public lands and reforestation projects. The State of New York does not provide funding for ATV recreation and has closed public state land. This has in turn increased pressures to develop and find other ways to provide legal riding opportunities. A permit for riding on the trail system costs $40 per ATV (members) or $80 (nonmembers). This cost includes a trail map and funding for enforcement, education and patrolling. Fines are established for violations and speed limits set at 25 miles per hour. All riders between the ages of are required to ride with an adult and have to complete a mandatory safety course. A study conducted by Camoin Associates, on behalf of the Cooperative Tug Hill Council, examined the economic impact of ATVs in the region. The study consisted of a series of surveys distributed by to ATV club members and to local business owners. Additional surveys were also distributed by intercepting riders at trail heads throughout the region. The study also included interviews, focus groups, public feedback on preliminary results and a review of best practices from other trail management systems. The Camoin report acknowledges that their findings are limited to only those items that are quantifiable in terms of dollar amounts (Camoin, 2). Other non-economic impacts are discussed and it is acknowledged that there is a lack of information or research in these areas. A key impact that is often discussed is noise. Noise levels from ATV users have been raised as a concern due to the potential for disruption of wildlife, enjoyment by other trail users and nearby landowners. Many social and environmental impacts (while regarded as being more qualitative) were identified as having a potential negative influence on the overall quantifiable (economic) benefits that could be derived from ATVing. One example would be displacement of other trail users and a loss of revenue from other recreation enthusiasts. Camoin calls this the crowding out effect and cautions that if ATV use is supplanting already existing economic impacts then the economic impact of ATV use is proportionally diminished (Camoin, 44). A key concern for the Tug Hill Region is the potential for impact from illegal riding. This is particularly important given the relative lack of public lands and high percentage of private land ownership in the area. Liability is also an issue for an area dependant on the use of private land for ATV riding. The rising popularity of ATVing has only served to increase issues related to illegal riding. Other areas of concern include environmental damage; along with the cost of repairs and enforcement. The study recognized that on top of economic benefits, there was an inherent use value or social value to providing opportunities for ATVing in the area. It was recognized that given the popularity of ATVing, riders would continue to pursue these activities in another area if they are not given an opportunity locally. As is demonstrated by the economic findings of the Camoin study, ATV was also seen as having high financial benefits for local tourism and business. 20

21 The Camoin study was primarily focused on determining the economic impact of ATVing in the Tug Hill Region. Their research concluded that direct impact from local business sales was $23.1 million and responsible for 564 individual jobs (Camoin, 37). The indirect and induced impacts from these sales totaled $12.2 million and 137 individual jobs (Camoin, 37). The total impact for the region of Tug Hill was $35.2 million and 701 individual jobs or the equivalent of 369 full-time jobs (Camoin, 37). An increase of ATV activities by 25% would create an additional impact of $14.1 million and the equivalent of 147 full-time jobs (Camoin, 47). The following table demonstrates the fiscal impacts from sales, occupancy and property taxes. The net impact from taxes is approximately $1.5 million. From: (Camoin, 42) The table below demonstrates the total impact of ATVing on employment and wages in the Tug Hill Region. This includes full-time, part-time and seasonal positions. Equivalents are given for full-time employment. From: (Camoin, 3) The Camoin study also considered the potential cost of establishing new ATV trails in the Tug Hill Region. This includes costs related to construction, management, environmental impacts and insurance. The table below notes the varying subsidies required to support a range of different trail formats. The figures are based on costs associated with creating forty miles of new trail with the assumption of an average of $20,000 per mile. Camoin uncovered that a private system would require significantly less public funding support and subsidies. This type of system would also be beneficial for other reasons with the potential to alleviate management concerns typically associated with a public trail system. This would include reducing trail user conflicts that arise from multi-user public trail systems. 21

22 From: (Camoin, 5) A general consensus existed among local enforcement and policing agencies that current funding was inadequate top cover current enforcement and policing requirements for ATV use. Currently, enforcement and police agencies spend approximately $100,000 per year respectively (Camoin, 41). It was estimated that enforcement costs would more accurately be calculated at $400,000 per year and policing upwards of $1.6 million per year (Camoin, 41). An analysis of spending patterns among ATV groups in the Tug Hill Region determined average spending amounts. The table below details the types of expenses common during ATV trips; along with maximum and average spending amounts. Figures represent an average group size of 6 people with spending per day of $360 (Camoin, 29). Individual spending per day is approximately $60 (Camoin, 29). From: (Camoin, 29) 22

23 The above figures are reflective of non-resident spending per day or trip. The table below provides an overview of average spending by residents of the Tug Hill Region while participating in ATV-related activities. From: (Camoin, 39) Of the business owners surveyed through this study, 59.5% believed that there was a noticeable increase in sales to ATV users (Camoin, 30). The following table lists specific industries and the sales benefits from ATV use. The two industries with the largest benefit were food service and gasoline. However, significant impact is also noted in the sale of sporting goods and accommodations. From: (Camoin, 38) The impact of ATV use to local employment was also measured by industry. The highest employment impact is seen in the food service industry. This is followed by the gasoline and sporting good industries. An impact is also noted on the number of ATV users and their decision to purchase 2 nd homes in the area. This also positively impacted revenue from property taxes in the region. 23

24 From: (Camoin, 38) Canada The Canadian All Terrain Vehicle Distributors Council commissioned a study by Smith Gunther and Associates to look at the economic impact of ATV activities nationally and provincially. Their research found that impacts could be found more intensely in the provinces of Ontario, Quebec and Alberta. The strongest growth was seen in Alberta; largely attributable to an overall increase in population. Across Canada, 66% of ATVs are used for recreation, 10% as part of commercial fleets and 24% on private property (Gunther, 8). All provinces, except British Columbia, have licensing requirements for operation of ATVs. Primary ATV-related spending activities were: Clothing and ATV-related accessories New ATVs, trailers and vehicle accessories Club memberships, licenses and insurance Food and accommodations Fuel Trade shows In 2005, there were 975,000 operating ATVs which contributed $3.3 billion in direct spending across Canada (Gunther, 2). As demonstrated in the chart below, the top purchases were in new sales of ATVs, accommodations and gasoline. A total of 11% of sales went towards insurance (Gunther, 2). While a typical ATV used for recreational purposes only uses approximately 59 gallons per year of fuel (Gunther, 10), expenditures in this category remain high as they include travel to recreation destinations, use of other vehicles, trailers and other transportation related expenses associated with ATV activities. 24

25 From: (Gunther, 10) ATV activities also contributed to direct employment for 24,000 Canadians (including those who are self-employed) (Gunther, 2). Direct and indirect employment totaled 37, 619 in 2005 (Gunther, 2). In total, direct government taxation revenues from ATV-related activities were $577 million and a GDP contribution of $2.01 billion (Gunther, 2). Employment is higher in Ontario and Quebec where there is a higher concentration of ATV-related manufacturing jobs. More than half of all ATV-related employment is within the service industry. From: (Gunther, 12) The table below indicates the number of ATVs (sales and fleets) by province for The largest sales were in Ontario, Quebec and Alberta. Ontario and Quebec boasted the largest ATV fleets. Gunther estimated that even if annual sales remain flat, the number of operating ATVs will grow at over 5.86 percent annually out to 2010 (Gunther, 2). This rate of increase would make the fleet size in Ontario at well over 390,000 by

26 From: (Gunther, 9) In 2008 the Motorcycle and Moped Industry Council reported that 80% (MMIC, 2) of ATV sales in Canada were made through Canadian Off Highway Vehicle Distributors Council members. In 2008, the combined sale of motorcycles, scooters and ATVs reached over 2 billion dollars (MMIC, 2). The sale of ATVs accounted for over 45% of new sales across Canada (MMIC, 2). The table below demonstrates a significant rise in new ATV sales from 2002 to 2008 (with a slight decrease between 2006 and 2008). This growth, however, is predicted to continue from 2008 and beyond. From: (MMIC, 9) New Unit Sales in Canada have dropped from over 90,000 in 2002 to slightly above 80,000 in From: (MMIC, 9) 26

27 Between 2002 and 2008, Ontario, Quebec and Alberta held the highest percentage of new unit sales across Canada. From: (MMIC, 10) The sale of new ATVs is highest during the spring season with equal sales throughout summer and fall. Approximately 15% of sales occur during the winter months. From: (MMIC, 11) 27

28 Alberta A study conducted by the Alberta Off-Highway Vehicle Association uncovered that ATV-related spending contributes significantly to a variety of industries across Alberta. In particular, the study concluded that ATVing creates stable and nature-based employment for hundreds of mechanics, salespersons, insurance agents, skilled workers and ordinary workers located throughout Alberta (Econometric, 2). It was noted that this was particularly significant in terms of rural development. The direct economic impact from Off Highway Vehicle expenditures were approximately $649 million in 2002 (Econometric, 2). Off Highway vehicle activities were also responsible for over 12,000 full-time jobs throughout the province of Alberta. Tax revenues were realized across all levels of government to a total impact of over 260 million (Econometric, 2). The table below provides a break-down summary of economic impacts for snowmobile, ATV and off-road bike related activities. A significant direct impact of over 400 million comes from ATV and off-road bike related activities. In total, ATV and off-road bike related activities had an employment impact nearly double that of snowmobiles. From: (Econometric, 3) 28

29 Ontario A report completed by Clute & Associates, on behalf of the Ministry of Health Promotion, noted that Ontario ATV sales are double that of snowmobiles. The chart below demonstrates a rise and decline in sales for ATVs, snowmobiles and Off-road motorcycles from 1997 to While off-road motorcycle sales remained relatively steady, snowmobile sales have seen a considerable decline from 18,000 to 9,400 per year. ATV sales in Ontario have risen from approximately 5,700 in 1997 to over 24,000 in This rise is estimated to continue each year by roughly 2,000 units at an average new unit sale price between $6,000 and $12,000. From: (Clute, 27) It is estimated that there are approximately 300,000 registered ATVs in Ontario and roughly 50,000 unregistered ATVs. There are differing opinions on the number of ATVs currently in operation in Ontario and these figures range from 300,000 to up to 700,000. In 2006, economic impact from all ORV-related activities in Ontario was over $3 billion and it was estimated this involved over 900,000 ATVs (resident and non-resident owned vehicles) (Clute, 6). The table below exhibits the economic impacts from ORV sales and use in Ontario for

30 From: (Clute, 29) As Clute indicates these revenues are expected to grow about six per cent per year, which would double the number of ATVs in Ontario by 2020 (Clute, 5). The impact of ATVs is more readily felt in rural communities across Ontario where ATVs are a significant contribution to tourism revenues. In Northern Ontario alone this includes over 10 resorts that rely primarily on ATV and off-road motorcycle activities (Clute, 6). The following table demonstrates the labor income and employment generated through ORV-related activities in Ontario. From: (Gunther, 46) As demonstrated by the Gunther report, Clute also estimates that ORV-related activities are responsible directly for approximately 6,400 full-time jobs in Ontario (Clute, 6). Direct and indirect employment from ORV-related activities is responsible for over 10,000 full-time jobs in Ontario. 30

31 The projected economic impacts from recreational ORVs in 2010 are $1 billion in total revenues. Employment remains at just under 10,000 for direct and indirect full-time jobs. Tax revenues from all levels of government are estimated at over $2 million. From: (Clute, 31) In 2010, it is estimated that there are over 380,000 ATVs in operation in Ontario. This is predicted to increase to over 500,000 by 2015 (Clute, 6). Sales revenues have also been rising significantly. ATV sales revenues were over 100 million in 2005 and predicted to reach over 210 million by 2015 (Clute, 6). Other ATV-related revenues (including sales from accessories, tourism, insurance, etc.) are predicted to rise from over 280 million in 2005 to nearly 500 million by Clute forecasts that the total direct expenditures by recreational ATV users in Ontario are projected to increase from $430, 835, 979 in 2005 to $767, 760, 383 in 2015 (Clute, 6). Economic impact from direct, indirect and induced sources from all ATV-related activities in Ontario are estimated to climb to nearly 1.5 billion by 2015 (Clute, 7). This rise in revenues will also be mirrored with an increase in non-resident ATV tourism related expenditures. The table below shows economic impact predictions for ORV activities in Ontario as produced by the Ontario Ministry of Tourism for

32 From: (Clute, 31) The Clute report concluded that ATV recreational activities in Ontario were a significant and growing component of the provincial economy (Clute, 7). It was determined that appropriate management and conflict resolution would be necessary in order to garner the maximum benefit from future growth in ATV activities. Economic Benefits VS Cost In response to the Nova Scotia Government Department of Health and Promotion and Protection statement that ATVing is a healthy, active lifestyle that also brings environmental and economic benefits to the province (Bissix, 3), a literature review was conducted to analyze the social, economic and environmental impacts of ATVing. The specific focus of the review and report was on policies as they relate to the Nova Scotia rail to trail focus on shared use trail systems. The study concluded that literature on the subject of ATVing was inconsistent and that there is a significant lack of conclusive research on environmental, health and social impacts. The authors found that the majority of economic impact studies lacked depth and only presented a narrow view of the total potential impacts. The focus of most studies is on the direct, indirect and induced impacts from sales and use of ATVs. However, very little research has included a full cost' analysis of the social, health and environmental expenditures related to ATVing. It was also found that revenues were potentially dubious as gross economic sales leak substantial revenue to suppliers (Bissix, 4) located outside of the province (and in particular to ATV suppliers in the United States). The majority of studies ignore the social, health and environmental costs to communities which would greatly reduce the estimated gains. 32