The outdoor industry’s GDP was strongly affected in 2020 by the pandemic, a recent report found.
The Bureau of Economic Analysis (BEA) reported the industry’s GDP shrunk 19% from 2019 to 2020, and compensation decreased by 12.5%. The U.S. overall economy decreased by 3.4%, and compensation increased in the U.S. general economy by almost 5% according to the Bureau of Labor Statistics.
The BEA categorizes outdoor activity in three groupings: conventional outdoor recreation, such as boating, bicycling and hunting; core activities, such as gardening and outdoor concerts; and supporting activities, such as construction, travel and tourism.
In 2019 and 2020, the largest share of these three categories fell under supporting outdoor recreation, although the percentage dropped from 49.7% to 45.8% in 2020.
Conventional recreation had the biggest growth from 2019 to 2020, accounting for 37.4% of all outdoor recreation value added, growing nearly 7%. The BEA attributed it to higher spending on boating and fishing activities and RVing. As previously reported, RVing remained the second-largest conventional outdoor activity at $19.1 billion. Boating/fishing is the largest activity at $30.8 billion.
RVing was the largest conventional activity in five states — Indiana and Texas leading the way with a combined $5.1 billion impact. Indiana is also one of the largest contributors to outdoor recreation manufacturing, with a $5.3 billion economic impact. Wisconsin, the next biggest manufacturing state, has a reported $1.9 billion footprint.
The BEA found recreation employment decreased in all states from 2019 to 2020, with the largest decrease reflected in Hawaii, with employment down 27.2%.
Much of the BEA’s findings were impacted by the spread of COVID-19. The agency reported that stay-at-home orders led to cancelations, restrictions or redirection of spending for many consumers.
“The full economic effects of the COVID-19 pandemic cannot be quantified in the outdoor recreation estimates because the impacts are generally embedded in source data and cannot be separately identified,” the BEA report said.
