RECREATION AND SPENDING

* Users of parks and conservation land generate a surprising level of economic activity.

Smith, Van. Summer 1991. "Protecting Rivers, Trails, and Greenways Reap Economic Returns." Exchange.

"People are spending increasing amounts of money on recreation. In California in 1988, residents spent an average of 12 percent of their total personal consumption on recreation and leisure, which was the third largest industry in the state that year. Also, many recreational activities that can be pursued in locally protected areas (such as biking, hiking, bird-watching, cross country skiing, and canoeing) entail equipment costs that support local businesses, providing new jobs and tax revenue.

Rivers, Trails and Conservation Assistance Program. 1995. Economic Impacts of Protecting Rivers, Trails, and Greenway Corridors., Department of the Interior. National Park Service, Western Region, San Francisco, California.

An open space project, such as a greenway or park, can encourage residents to purchase recreation-related equipment and services. These expenditures help support the local economy through generation of employment and income. Specifically, local residents who use the greenway, park or other open space may spend money to get to and from the site, on supplies and equipment to pursue their recreation experience, at on-site concessions and events, and on other nearby attractions.

National Park Service. 1995-1996. "The Money Generation Model." Office of Social Science, Socio-Economic Studies Division, Denver, Colorado.

The Park Service has developed the "Money Generation Model" to measure the economic effects of direct and indirect expenditures by visitors in and around park sites.

"Due to the high economic benefit of tourism, the National Park Service developed the Money Generation Model (MGM) to measure the economic effects of direct and indirect expenditures by visitors in and around park sites. The total amount of direct expenditures is compiles through the aggregate sum of individual parks, attendance, duration of stay, and daily expenditure rates. which includes visitor expenditure in local communities on meals and lodging. Indirect or induced expenditures refers to expenditures made by businesses in local communities to service visitors. Direct federal expenditures and salaries are separate from this formula. The Money Generation Model uses locally based factors, such as local employment rates, to estimate taxes and jobs created annually by visitor expenditures."

The MGM calculates sales, tax revenue, and jobs that result directly or indirectly from visitors to National Parks. It does not measure adjustments in real estate value, displacement of land use, change in cultural or recreational opportunities, transformation for the business environment, shifts in population demographics, conversion of demands on infrastructure, or alteration of associated community lifestyles.

"The Money Generation Model (MGM) provides a way to estimate economic benefits of parks on gateway communities and adjacent local areas. The model provides for the following:

...First, a calculation of the economic benefits to the local areas resulting from expenditures by park visitors who live outside the local area (non-local tourists).

...Second, a calculation of the economic benefits to the local area resulting from park-related Federal Government expenditures, for example, NPS expenditures for park employee salaries, supplies, services, construction projects, etc.).

...Third, a calculation of the economic benefits to the local area resulting from park-related expenditures by other non-local parties, (for example, State expenditures for park access roads; or capital expenditures to build concessionaire facilities, such as a new marina.)"

"Toward a Benefits-Driven Field- Positioning Recreation on the Social, Economic and Environmental Agenda's of the 90's: Elements of a Vision Refined and Developed at the 1992 Ontario Recreation Forum."

The mission statement developed by the Ontario's Recreation and Park System:

"Through provision of recreation and parks services, we enhance Ontario's quality of life and nurture the health and well being of our people, our communities, our environments and our economy. ...We are community driven. Together, and often in partnership with related fields and organizations, we...

build and renew local economies- reducing dependencies on health and social services through building a fit and productive work force; stimulating the leisure industries and attracting economic development to communities known for their high quality of life."

(one of 5 bullets in their mission statement)

"Recreation has emerged as a major force or catalyst in Ontario's economic renewal and economic development strategies. Our work is recognized as a wise investment."

Godbey, Geoffrey, Alan Grieve and Stephen W. James. June 1992. The Benefits of Local Recreation and Park Services: A Nationwide Study of the Perception of the American Public.

"Respondents to the telephone survey were asked about benefits received from local parks at an individual, household, and community level. ...the vast majority of respondents perceived benefits at all three levels and the strongest level of perceived benefit was the community level, where over six out of ten respondents said their community as a whole received a great deal of benefit from local park areas."

"At the individual and household levels, personal benefits were mentioned more than any other while at the community level social benefits were the most frequently mentioned. Economic benefits were mentioned less than any other type, with less than five percent of the responses at any benefit level citing them. This would seem to indicate that attempts to convince the public of the economic benefits of local park and recreation services may be misguided, since such a tiny base of the public currently recognizes such benefits. The largest benefit categories are individual and social, relating to people rather than to economic or environmental considerations."

"A surprising 71% of non-users said they received a benefit. ...This reinforces the idea that use and benefit are not necessarily linked."

"When respondents were asked if they thought their own local recreation and park services were worth the amount of money per year which reflects the national average expenditure for such services, $45 per household resident per year (U.S. Bureau of the Census, City Government Finance, 1988-89, 1991), the results were extremely supportive. Over 3/4's of the entire sample thought that local park and recreation services were worth $45 per person per year or more. Only 16.3 percent thought they were worth $25 per year per person or less. Conversely, more than 20 percent thought they were worth from $60 to $150 per person per year."

McAliney, Mike (ed.) December 1993. Arguments for Land Conservation: Documentation and Information Sources for Land Resources Protection. Trust for Public Land, Sacramento, California.

A 1992 survey by the National Recreation and Park Association found that 75 percent of the population uses parks, and 60 percent of those surveyed believed their community had received a great deal of benefit from park facilities. Almost 70 percent of respondents endorsed park and recreation services to the extent that they would support them with both taxes and user fees. "Study Shows American Public Uses, Supports Public Park and Recreation Services", National Recreation and Park Association press release, 1992

In addition to attracting out of state visitors, California's parks, coast, forests, rivers, lakes and mountains allow residents to spend their outdoor recreation dollars in-state, supporting local economies. Also, the money residents save by not traveling out of state to fish, hike, camp, or raft may be spent in their local community. "Jobs and the Environment", Planning and Conservation League, 1992

Visitors to Alcatraz Island, part of the Golden Gate National Recreation Area, spent $5,130,394 on boat tickets, food and beverages, souvenirs, publications and donations during their trips to the island in 1988.

Visitors to Muir Woods National Monument , part of the Golden Gate National Recreation Area, spent $2,539,643 on food and beverages, gifts, souvenirs, books and donations in 1988. "Economic Impact Profile", National Park Service, 1989.

Twelve million bicycles were sold in 1987, more than the number of cars sold that same year. Economic Impacts of Parks and Recreation Resource Book, National Park Service, 1992.

"According to the U.S. Fish and Wildlife Service, 108.7 million people in the United States took part in wildlife related recreation in 1991. Expenditures by these participants was $59 billion. Of these total expenditures, 70 percent was spent on fishing and hunting."

"Sport fishing is one of the most popular outdoor recreation activities in the U.S. A steady increase in fishing has occurred nationwide, from 17.6 percent of the U.S. population in 1955 to nearly 22 percent in 1991. In 1991, just over 35 million U.S. residents spent $24 billion on salt and freshwater fishing. Average expenditures per person for fishing have been estimated at approximately $700 per year (U.S. Fish and Wildlife Service, 1993.) Start up expenditures for fly fishing equipment can range from $500 to $2000."

"The typical birdwatcher spends $13 million per day, with almost half spent on food and beverages, one-fourth on gas and oil, and most of the remainder on lodging. Spending by birdwatchers contributed a total of $27 million in wages and business income in California's economy in 1987. A total of nearly 2,000 California jobs are supported by birdwatchers (Loomis and Unkel, 1989.)"

"Americans purchased approximately 90,000 canoes in 1988 (Ingrassia, 1989). Canoeing by residents and visitors contributes $20.1 million per year to the Arkansas economy. Overall economic impact of outdoor recreation in Arkansas is $1.5 billion per year (Wilson, 1986)."

"All-terrain bicycle use, or mountain bicycling has recently emerged as a very popular form of bicycling. In the United States, mountain bicycle ownership increased dramatically from 200,000 in 1983 (Hecker, 1989) to more than 25 million in 1992, up 20 percent from 1991 (Bicycle Institute of America). The communities of Marin County, California, Moab, Utah, and Durango, Colorado all vie for the title of 'mountain bicycling capital of the U.S.', according to a recent article in the Independent Journal (Western Trail and Bikeway News, 1994)."

"The Hart-Montague Bicycle Trail in Michigan follows along 20 miles of the eastern coast of Lake Michigan. In 1992, six months of bicycle use along the trail increased business for several owners by 25 to 30 percent. Trail passes brought in revenues of approximately $40,000, up 33 percent from revenues in 1991 (Aardema, 1992)."

Kirby, Kevin J. 1993. "Wetlands NOT Wastelands." Scenic America: Technical Information Series v. 1 (5).

"A study was conducted to measure the recreation value of 3.25 million acres of wetlands in Louisiana associated with on-site, current recreational uses of a coastal wetlands area. Through a study of users, it was found that aggregate expenditures were estimated at approximately $118 million and aggregate consumers' surplus was estimated at approximately $27 million (1989 dollars).

See original study: Bergstrom, J., Stoll, J., Titre, J., and Wright, V. 1990. "Economic Value of Wetlands-Based Recreation", Ecological Economics, 2: 129-147.

Outdoor Recreation Coalition of America's 1993 State of the Industry Report attachment: Fenton Communications. 1994. News Advisory on the National Summit on Outdoor Recreation, 1994.

"From rock climbing to biking to backpacking, the outdoor recreation industry -- worth at least $132 billion annually to the U.S. economy-- is growing by leaps and bounds. The biggest and most noticeable effect has been on public lands: Visits to parks and other spaces increased by well over 100 million in the last decade just as funding dwindled."

Outdoor Recreation Coalition of America's 1993 State of the Industry Report.

"Growth in demand for outdoor recreation is projected to result in an additional 400 million recreation trips per yearContributions to local economies associated with this increased demand would likely exceed $8 billion per year. It is important to consider this type of sustainable industry when making funding and land-use decisions relative to the many possible uses of public lands. The economic benefits which will provide a stable, lasting income for the local community should logically be given preference."

"The value of outdoor recreation each year has been estimated between $122 and $132 billion. A significant portion of that is spent on human powered outdoor recreation.

There are several components of outdoor recreation's economic value, both direct and indirect. Direct components include equipment, clothing, and footwear purchases, and user fees. Indirect components include food, transportation, lodging, and miscellaneous items such as souvenirs." In U.S. National Forests, economic benefits "equate to an estimated $2.92 billion, plus almost $190 million in jobs for nearby communities."

"The value of commercial river rafting in Colorado was estimated at over $69 million for 1991. This includes expenditures for rafting, food, lodging, souvenirs, etc."

"In Wisconsin, the Elroy-Sparta Park Trail winds though five communities. In 1988, an estimated 50,000 people used the trail-- 49% from out-of-state-- and an estimated $1.25 million was received in trail-related revenues."

PKF Consulting, Analysis of the Economic Impacts of the Northern Central Rail Trail, June 1994, Maryland Greenways Commission, Maryland Department of Natural Resources, Annapolis Maryland.

"Perhaps the most significant economic finding of this study is that while the 1993 budget to provide the Trail to the public was $191,893, the direct economic inputs to the State via tax revenue alone were $303,750. Additionally, we estimate the Trail supports 264 jobs statewide. The value of goods purchased because of the NCRT for 1993 is estimated to total in excess of $3,380,000."

"... Trail users who had purchased goods for use on the Trail spent an average of $203 in 1993. Similarly, users who had purchased soft goods (food, etc.) before or after using the Trail spent an average of $6.30 per visit."

" ...the section of the former Northern Central rail corridor that runs from the Maryland/ Pennsylvania state line north toward York, Pennsylvania is also being redeveloped as a trail corridor. As the rail corridor was developed as a greenway a new life has been given to the historic hamlets along its route, and a new generation of businesses are beginning to establish a relationship with the Trail. Even some smaller, local businesses such as bike shops, with sales of just over $1,000,000 per year estimate that one quarter of their business comes from users of the Northern Central."

Spickard, Steven E. May 18, 1993. "The Value of Parks", Testimony before the California Assembly Committee on Water, Parks, & Wildlife.

"Recreation and Parks also generate value to those who use them.

"...people are willing to pay for recreation. A good rule of thumb, substantiated by research, is that recreation of the quality in ... virtually any of California's spectacular state parks is worth at least $10 per person per day. ... In Golden Gate Park, that amounts to over $100 million in consumer value per year."

California Park and Recreation Society. 1995. "Park and Recreation Services are Essential- Economic Statements compiled by CPRS."

"Urban recreational activities such as playing sports, visiting city and regional parks, jogging and bicycle riding are by far the most frequently participated in activities in California. The limited data available on spending for urban recreation indicates that approximately $620 million is spent by these recreationists." John B. Loomis, Economic Activity and Value Associated with public Parks and Outdoor Recreation Areas in California

Brabrec, Elizabeth. 1992. "The Value of Nature and Scenery." Scenic America: Technical Information Series, v. 1 (3).

"Over $1.8 billion was spent by outdoor recreators in Minnesota in 1985. Sixty-eight percent of the expenditures were made on recreation trips and the remainder, 32 percent was spent on equipment. Of the total, 31 percent of the expenditures were made by people from out of state." (Van Pelt, and Kelly, 1988)

"In a study of visitors to three state parks in New York, it was found that $13.2 million in direct expenditures could be attributed to Watkins Glen Park, $2 million to Saratoga Spa State Park, and $3.6 million to Green Lakes State Park" (Connelly et al., 1986)

According to the National Survey of Fishing, Hunting, and Wildlife-Associated Recreation, "Observing, photographing and feeding fish and wildlife provided enjoyment for 134.7 million Americans in 1985. These participants spent over $14.3 billion for their nonconsumptive activities in that year, an average of $221 per spender. The total spending included $4.4 billion for trip-related expenditures, nearly $9.4 billion for nonconsumptive equipment, and $480 million for other expenditures." (USFWS, 1985)

"A study of three National Park Service river recreation sites- the Upper Delaware Scenic and Recreational River, the Delaware Water Gap National Recreation Area, and the New River Gorge National River in West Virginia- indicated that visitor spending stimulated a considerable amount of economic activity and growth in local economies. Economic effects included increases in total gross output ranging from $2.6 to $13.4 million, increases in total income ranging from $1.2 to $5.6 million, and increases in employment ranging from 60 to 292 jobs."

Cordell, K.; Bergstrom, J.; Ashley, G.; and Karish, J., Economic Effects of River Recreation on Local Economies, Water Resources Bulletin, 26 (1):53, Feb. (1990).

Moore, Roger L.; Graefe, Alan R.; Gitelson, Richard J.; and Elizabeth Porter. February 1992. "The Impacts of Rail-Trails: A Study of the Users and Nearby Property Owners From Three Trails." National Park Service, Washington, D.C.

Trail users "spent an average of $9.21, $11.02, and $3.97 per person per day as a result of their trail visits to the Heritage, St. Marks, and Lafayette/Moraga Trails respectively. This resulted in a total economic impact of over $1.2 million in each case. Expenditures on durable goods generated an additional $130 to $250 per user annually depending on the trail."

"The amount of 'new money' brought into the local trail counties by trail visitors from outside the counties was $630,000, $400,000, and $294,000 annually for the Heritage, St. Marks, and Lafayette/ Moraga Trails, respectively."

National Parks and Conservation Association. December 16, 1996. "Report Details Losses Near National Parks on Anniversary of Federal Government Shutdown- Closure Cost Communities and Businesses Millions of Dollars." NPCA Press Release.

NPCA surveyed residents living near nine national parks. "NPCA'a survey found devastating effects at the local level. In Mariposa County, California, 25 percent of adults were thrown out of work as a result of the closure of Yosemite National Park. The sudden loss of park visitors led to an overall estimated loss of up to $8.9 million in direct sales in and around the park, as well as a loss of up to $10,000 a day in county tax revenue. Similarly, businesses and gateway communities in an around Joshua Tree National Park in California lost upwards of $600,000 in direct tourism sales. Losses of $1.4 million were felt near Everglades National Park, and the communities near the Grand Canyon lost $5.6 million. In total, the National Park Service estimates that the shutdowns cost park-dependent communities an estimated $14 million per day in business receipts."

McHugh, Paul. September 19, 1996. "Forest Recreation's Growing Impact." San Francisco Chronicle.

"'There's been a perception American Forests are only good for servicing American woodlots,' said U.S. Undersecretary of Agriculture Jim Lyons before a recent conference of outdoor industry executives. 'But our business is really broader than that. There's a huge rise in recreation demand on natural resources. It's getting harder to provide the quality recreation experience Americans enjoy and expect. Despite our efforts, demand is clearly outstripping supply.'"

The draft Resources Planning Act of 1995 states that "$130.7 billion in gross domestic product will be created by National Forests in the year 2000. Of that, $97.8 billion derives from recreation, plus $12.9 billion from fish and wildlife benefits. Only $3.5 billion will be generated by timber harvest."

McWilliams, Bruce and George Goldman. 1994 "Commercial and Recreational Fishing in California: Their Impact on the State Economy." University of California, Berkley.

"In 1985, $2.2 billion was spent on recreational fishing, making California the second ranking state in recreational fishing expenditures in the United States."

"Recreational fishing contributes 88 percent of the income, value added, and employment in the fishing sector, with commercial fishing contributing 12 percent. This reflects the importance of recreational activities in the life and economy of California."

"The economic impact of recreational fishing ($5 billion in personal income and 153, 849 jobs) is much greater than that of the commercial industries ($700 million in personal income and 20,820 jobs). This reflects the effect on the economy that anglers have when they spend on goods and services related to their fishing trips. The most important category in terms of economic impact is the purchase of fishing equipment and clothing. The next biggest categories are the purchase of recreational vehicles and groceries"

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