Economics of Outdoor Recreation in Alabama Tom Allen Tom@southwickassociates.com Outdoor Recreation is BIG! 57% of Americans (and Alabama residents) participate in some form of outdoor recreation Outdoor recreation is a key “industry” The economic contributions are growing Clean water and healthy environment are the “industry infrastructure” for outdoor recreation Consumer Spending on Outdoor Recreation in U.S. Outdoor Recreation Activities Trail sports Bicycling Camping Snow sports Water sports Fishing Hunting Wildlife watching Motorcycle Riding Off Roading TOTAL Source: Outdoor Industry Association Total Spending ($ billion) $ 80.6 $ 81.3 $ 143.4 $ 53.0 $ 86.2 $ 35.5 $ 23.2 $ 33.3 $ 42.5 $ 66.5 $ 645.6 Source: Outdoor Industry Association “Jobs vs. Environment” Conservation Investments: Alabama Source of Funding Federal govt. $ Million $ 373.1 AL % 69% US % 60% State govt. $ 89.8 17% 24% Local govt.* $ 9.2 2% 4% $ 70.3 13% 11% Private sector Total $ 542.4 100% 100% *Includes only funds transferred from state government for selected conservation purposes. Economic Contributions of Conservation Spending in AL Direct Impacts Total Impacts* ($ million) Total Spending Jobs Income State/Local Taxes Federal Taxes $ 542.4 3,214 $ 251.0 $ 12.9 $ 44.6 *includes multiplier effects Source: National Fish and Wildlife Foundation $ 636.2 5,675 $ 340.7 $ 27.9 $ 64.7 Outdoor Recreation in Alabama Outdoor Recreation Participation in Alabama Non-motorized Trail Sports Bicycling Camping Water Sports sub-total Motorized Motorcycling Off-roading Boating RV'ing 29% 27% 23% 15% 52% sub-total Overall = 57% Source: Outdoor Industry Association 11% 18% 21% 10% 36% Economic Contributions of Outdoor Recreation: Alabama Spending Gross State Product Jobs Income Federal Taxes State/Local Taxes Source: Outdoor Industry Association Direct Economic Spending Contributions ($ million) $ 7,548.5 $ 10,895.8 $ 3,089.3 $ 5,928.1 85,836.1 135,249.4 $ 1,982.9 $ 3,636.9 $ 480.6 $ 922.6 $ 493.6 $ 906.3 Outdoor Recreation Case Study: Lake Martin Recreational Activity on Lake Martin, AL Pleasure boating No specific activity Fishing from boat Swimming, beach use Water skiing, tubing, other towing Fishing from shore Tent or vehicle camping Jet skiing Other Total 26.2% 20.2% 20.2% 15.1% 6.8% 3.5% 2.8% 1.5% 3.7% 100.0% Annual Recreation Spending at Lake Martin, AL Trip-related spending Transportation Food & beverages Trip-related gear and services Lodging Miscellaneous Sub-total Equipment and accessories $ 4,448,013 Boats & trailers $ 3,593,558 Boat accessories & repairs $ 4,331,428 $ 461,592 Fishing equipment $ 858,862 $ 632,323 Sub-total $ 27,881,720 $ 33,072,010 $ 623,182 $ 9,758,667 Total Recreation Spending: $ 42,830,677 Economic Contributions of Outdoor Recreation at Lake Martin, AL Output Direct Spending $ 42,830,677 Multiplier Effect $ 10,213,280 Total $ 50,667,180 Income $ 6,801,174 $ 3,048,858 $ 9,850,032 212 85 297 Employment Federal Taxes $ 1,975,430 State & Local Taxes $ 2,058,056 Outdoor Recreation 85,800 direct Alabama jobs $2.0 Billion of income 2.1% of state private GDP Almost 3x more jobs than auto mfg and as much income Nearly 2x income of paper industry Federal Funding for Conservation Budget Authority as % of 1.4% 1.2% Conservation and land mgmt Recreational resources 1.0% 0.8% 0.6% 0.4% 0.2% 0.0% 1976 1981 1986 1991 1996 2001 2006 2011 2016 New Information! Economic information is a communication tool! Questions? Tom Allen Tom@southwickassociates.com