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The Outdoor Industry Association (OIA) has been highlighting the importance of outdoor recreation in state and national economies<\/a>. \u00a0The OIA reports that outdoor recreation in the United States generates:<\/p>\n To put this in context, outdoor recreation is a far larger part of the economy that industries like pharmaceuticals ($348 billion), motor vehicles ($374 billion) and even gasoline and other fuels ($428 billion) that we often think of as huge economic drivers. \u00a0States and even local communities are taking this information to heart and are looking for ways to enhance their economies in this arena. \u00a0There are two approaches that I’ll discuss here.<\/p>\n Last year, for example, \u00a0the State of Colorado created an Outdoor Recreation Industry Office in the state’s Office of Economic Development and Trade. \u00a0The idea is to focus on attracting and supporting the manufacturers and other industry components that directly offer jobs to local residents. \u00a0This leads to competition with other states.<\/p>\n When\u00a0Quality Bicycle Products<\/a> was determining how to better serve their dealers, they were persuaded to relocate a major distribution center from Ogden, Utah, to Denver. \u00a0Another firm was offered $145,ooo to create 29 jobs plus $300,000 to help with marketing. \u00a0The idea behind offers like this is\u00a0that the new business and the wages it pays will lead to tax revenues that more than pay for these incentives in short order.<\/p>\n Utah, has a similar Office of Outdoor Recreation\u00a0intended\u00a0to attract these kinds of businesses. It has been very successful in pulling outdoor recreation firms in from other locations,\u00a0including several ski manufacturers.<\/p>\n With this approach, governments are\u00a0not\u00a0so much into providing recreation opportunities for residents and visitors as they are in serving these businesses. \u00a0Thus, \u00a0if they can get\u00a0a novel service to town, like a wind tunnel<\/a>, it\u00a0can help attract manufacturers that need the service.<\/p>\n This approach has major benefits to local citizens in the form of jobs and enhanced access to the products of these companies. \u00a0There are also some benefits nationwide to the extent that moving these businesses around can improve their efficiency and keep their prices in check while enhancing their innovation. \u00a0Obviously, the economic situation is not so good in the community the company left.<\/p>\n In addition, \u00a0companies that manufacture and distribute goods for outdoor recreation often prefer employees that participate in their segment of the industry. \u00a0Thus, for example, \u00a0the concentration of skiers and skiing opportunities around Ogden, Utah, \u00a0had something to do with attracting the above mentioned ski makers.<\/p>\n In many places, \u00a0the pie is bigger than people think. \u00a0Thus, the first, and least expensive, \u00a0effort is to identify recreation opportunities that already exist in an area and publicize that information as this northern-California\/southern-Oregon website<\/a> does. \u00a0That’s why you’ll see tourism agencies in most communities that focus on publicizing recreation opportunities to draw in tourists. \u00a0 Hopefully, \u00a0some of these tourists will find something they like and decide to stay, bringing their business or business idea with them. \u00a0From an economic development perspective, \u00a0it doesn’t really matter whether their business is related to outdoor recreation.<\/p>\n\n
Get a Bigger Piece of the Pie<\/h1>\n
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Some communities pursue the idea of attracting outdoor recreation related businesses from other areas. \u00a0Thus they offer the same tax breaks and other traditional incentives to outdoor recreation businesses as they would to any other business.<\/p>\nMaking the Pie Bigger<\/h1>\n
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With this approach, communities look to enhance their recreational opportunities and become more attractive to people that are into outdoor recreation and spend their money on it. \u00a0To the extent that these efforts are successful, local people, visitors and new residents will be recreating more in or near the community. \u00a0From an economic development perspective, \u00a0this offers an enlarged market for purveyors of everything from sporting goods to motel rooms. \u00a0Given a market, entrepreneurs will arise to service it.<\/p>\n