U.S. Outdoor Recreation Economy Achieves Milestone Growth in 2023
November 2024 – The U.S. Bureau of Economic Analysis (BEA) has released comprehensive statistics highlighting the strength and resilience of the outdoor recreation economy. This vital sector contributed $639.5 billion in value added to the U.S. economy in 2023, representing 2.3% of the national GDP. The data also provide an in-depth look at state-level contributions, employment trends, and the economic impact of various outdoor activities and industries.
Outdoor Recreation Outpaces Broader U.S. Economy Growth
The outdoor recreation economy demonstrated notable growth in 2023, with its inflation-adjusted GDP increasing by 3.6%, compared to a 2.9% growth rate for the overall U.S. economy. Although this reflects a deceleration from the 10.2% growth seen in 2022, it still underscores the sector’s ongoing expansion and importance.
Additional indicators highlight the sector’s broad economic influence:
- Gross Output: Grew by 3.2%, reflecting strong demand across outdoor activities.
- Employment: Increased by 3.3%, supporting a growing workforce.
- Compensation: Saw a robust rise of 9.0%, showcasing the value of outdoor-related jobs and industries.
State-Level Contributions: A Wide-Spread Economic Driver
The economic footprint of outdoor recreation varies significantly across states. At the high end, outdoor recreation accounted for 6.3% of GDP in Hawaii, underscoring its vital role in the state’s economy, while at the lower end, it contributed 1.6% of GDP in Delaware, Connecticut, and New York.
In the District of Columbia, outdoor recreation made up 0.8% of the region’s GDP. Employment within the sector grew in 49 states and the District of Columbia, with Alaska leading the way with a 7.5% increase, while Indiana experienced a 4.8% decline.
Activity Breakdown: Exploring the Backbone of Outdoor Recreation
Outdoor recreation activities fall into three overarching categories:
- Conventional Activities: Core outdoor pursuits like bicycling, boating, hiking, and hunting.
- Other Outdoor Activities: Less traditional endeavors such as gardening and outdoor concerts.
- Supporting Activities: Infrastructure and services, including construction, travel, tourism, and government expenditures.
Key Findings in 2023 by Activity
- Conventional Activities:
Accounted for 31.4% of total value added, down slightly from 32.7% in 2022. - Other Outdoor Recreation:
Increased its share to 20.1%, up from 19.7% the previous year. - Supporting Activities:
Drove growth with a 48.5% share, compared to 47.6% in 2022, largely fueled by travel and tourism spending on transportation, accommodations, and dining.
Top-Contributing Conventional Activities in 2023
- Boating and Fishing
- National Impact: $36.8 billion in current-dollar value added, making it the largest conventional outdoor activity.
- Leading States:
- Florida: $4.2 billion.
- California: $3.1 billion.
- Texas: $2.8 billion.
- RVing
- National Impact: $26.3 billion, the second-largest activity by value added.
- Leading States:
- Indiana: $4.7 billion.
- Texas: $2.5 billion.
- California: $2.0 billion.
- Hunting, Shooting, and Trapping
- National Impact: $14.0 billion in value added, ranking as the third-largest activity.
- Leading States:
- Texas: $1.7 billion.
- California: $705.3 million.
- Florida: $676.9 million.
- Snow Activities
- National Impact: $7.7 billion, with strong contributions from winter tourism.
- Leading States:
- Colorado: $1.6 billion.
- California: $692.6 million.
- Utah: $643.4 million.
Industry-Level Contributions to Outdoor Recreation
The outdoor recreation economy spans multiple industries, all of which play critical roles in generating economic value, employment, and compensation.
Top Industries by Value Added in 2023
- Arts, Entertainment, Recreation, Accommodation, and Food Services
- Contribution: $165.2 billion (25.8% of the sector’s value added).
- Leading States:
- California: $22.7 billion.
- Florida: $21.2 billion.
- New York: $11.6 billion.
- Retail Trade
- Contribution: $156.3 billion (24.4%).
- Leading States:
- California: $17.6 billion.
- Texas: $13.9 billion.
- Florida: $12.2 billion.
- Manufacturing
- Contribution: $86.7 billion (13.6%).
- Leading States:
- Texas: $12.9 billion.
- California: $11.8 billion.
- Indiana: $8.1 billion.
Annual Data Updates and Methodology Enhancements
The BEA’s 2024 annual update incorporates newly available data and methodological refinements, ensuring accurate and reliable statistics. These updates span the National Income and Product Accounts, Industry Economic Accounts, and Regional Economic Accounts, providing a comprehensive look at the sector’s impact.
Estimates for the years 2012 to 2016 have also been revised as part of the 2023 comprehensive update, offering historical insights into the growth trajectory of the outdoor recreation economy.
A Vital Sector with a Promising Future
The outdoor recreation economy continues to demonstrate its critical role in the U.S. economic landscape, contributing jobs, income, and opportunities across industries and regions. With its contributions to GDP outpacing broader economic growth and its wide-reaching impact on states and industries, outdoor recreation remains a cornerstone of both economic vitality and community enrichment.
For further insights and a detailed breakdown of the data, visit the BEA’s interactive tables and archives.
Next release: Fall 2025
Outdoor Recreation Satellite Account, U.S. and States, 2024
Note: The Outdoor Recreation Satellite Account news release will no longer include a separate “Release Highlights” document as part of the release’s “Related Materials.” Information previously included in Highlights will continue to be available in the news releases and on BEA’s website.
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Source: https://bassanglermag.com/u-s-outdoor-recreation-economy-achieves-milestone-growth-in-2023/
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