Americans are increasingly acknowledging the benefits of outdoor recreation: personal health and wellbeing; economic value; aesthetics; community wellbeing; and business opportunities. $646 billion direct expenditure on outdoor recreation activities annually: Ranges from fishing, hunting, boating, hiking, walking, biking, picnicking, camping, recreational vehicles, birding, horseback riding, climbing, sightseeing, kayaking, canoeing, rafting, trail running, ATVs/ROVs, etc. These expenses are mainly on gear, vehicles, trips, travel-related expenses and more. This expenditure creates jobs, supports communities, generates tax revenue, and helps drive the economy: 6.1 million direct jobs, $39.9 billion in federal taxes, and $39.7 billion in state and local tax revenue.
Despite the economic downturn in 2007, outdoor recreation didn t slow down much (Outdoor Foundation). 160 140 120 100 80 60 40 20 0 134.4 138.4 135.9 137.8 137.9 141.1 141.9 142.6 49.1 50.0 48.6 48.9 48.6 49.4 49.4 49.2 2006 2007 2008 2009 2010 2011 2012 2013 Participants (millions) Participation rate (%) are all genders, ages, shapes, sizes, ethnicities, and different income levels
In short, outdoor recreation is a growing and diverse economic sector that is a vital cornerstone of successful communities that cannot be ignored. It s a must have. Most popular adult outdoor activities by order are Running, Jogging, and Trail Running,16% Fishing, 14.8% Bicycling, 13.1% Hiking, 11.4% In addition Bird Watching, Wildlife Viewing, and Hunting are the favorite outdoor activities. Top states are California, Florida, New York, Texas, and Georgia.
In Alabama outdoor recreation generates $7.5 billion in consumer spending a year which translates in 86,000 direct jobs, $2 billion in wages and salaries and $494 million in state and local tax revenue. At least 57 percent of Alabamians participate in outdoor recreation each year excluding participants in hunting, fishing, and wildlife viewing. A study by Troy University found that 48 percent of Alabamians strongly support outdoor recreation and only 5 percent think it s not important. Walking/jogging trails, bicycle trails, camping sites, ATV trails, and horseback riding were among the top stated outdoor recreational needs in Alabama according to Statewide Comprehensive Outdoor Plan 2008 2012. About 707,000 hunters and anglers spend $5 million a day in Alabama i.e. $1.7 billion a year. Employs 30,500 jobs vs. 30,000 by UA, Auburn, UAB, and Alabama Power Approx 460,000 hunters and anglers in the Black Belt region alone spending $3.2 million a year Alabama is the 7 th top State by number of resident hunters; 492,000 resident hunters generating retail sales of $1.1 billion. A wide range of outdoor recreation activities are accessible throughout the State through partnerships with federal agencies, state departments, local governments, and private sector organizations and individuals. Alabama has 22 state parks of which 5 are within West Alabama. The parks offer a wide variety of outdoor recreation opportunities that include hiking, biking, swimming, camping, fishing, horseback riding, lodging, museums, cave tours, golf, dining, or relaxation. A CBER study found that 2007 2011 the parks had $167.8 million expenditures generating statewide economic impact of $336.1 million in gross business sales (4,784 direct and indirect jobs).
Central Alabama has the most diverse trail system with 52 miles for walking/hiking, mountain bike, non-road bike, horseback riding, family oriented activities (Lake Lurleen), and spectacular views. The region has a multitude of God-given natural resources from its rivers, lakes, and streams to more than 10 million acres primed for hunting, fishing, and all forms of outdoor recreation including golfing, fishing, mountain biking, canoeing and bird watching. Majority of Alabama s recognized trophy bucks are from The Black Belt Region. Eighty percent of Alabama s outfitters are located in The Black Belt Region. 1 out of 3 anglers fish in the region and 56 percent of hunters hunt there. Hunters and anglers spend $3.2 million a year generating almost $1billion in economic impact: (11,000 jobs)
In 2006 there were 48 million birders over age 16. The average birder is over 50 years old, more likely has a better income and education than average and lives in the South in an urban area. Birding is a low overhead outdoor recreation with minimal impact on the ecosystem but very high economic impact ($36 billion nationwide). Tampa Bay example: A bird group tour guide and photographer; A shop owner who also leads bird walks ($35 minimum per visitor). In Alabama 19 percent of residents participate in birding.
Most business opportunities are associated with the outdoor recreation expenses; lodging; food and beverages; transportation expenses; and other expenses such clothing, souvenirs, maps, books, etc. In many cases, most of these expenses are incurred within a radius of 30 miles of the recreation attraction site. With budgets straining every level of government these days, publicprivate partnerships provide solutions to keeping parks open through concessionaires. Offers business and employment opportunities although cash flow may be seasonal. Best strategy is to form a group of individuals with similar interests. Outdoor recreational businesses are characterized by seasonality and most don t operate year round. A Wisconsin study of 117 privately owned recreational business, found that 87 percent had satisfactory returns to investment.
Greenways provide business opportunities. On-site concessions, permittees, partnerships with other groups, special events, commercial filming, etc. Examples: Arizona s 13 concessionaires generated over $17.5 million annually in receipts; Special events- Take a Walk in Wisconsin drew over 1200 hikers and raised $30,000 against $15,000 expenses; San Joaquin river trail s Evening on the River raised $10,000; Bike rallies/challenges; Horseback rides;
Kilungu Nzaku knzaku@cba.ua.edu Tel. 205.348-1540 Center for Business and Economic Research cber.cba.ua.edu