Talk about Pure Michigan: Outdoor pursuits generate $10B, report says

Manistee canoes

Canoeing and kayaking are two of the faster growing outdoor recreation industries nationwide. Here are stacked canoes at the Shel-Haven livery on the Manistee River just west of Grayling. (Bridge photo by Mike Wilkinson.

Outdoor recreation contributes $10 billion annually to Michigan’s economy, according to new data that confirm the importance of the industry that is spurring growing jobs, talent and spending from Monroe to Marquette.

The data, released Friday from the federal government’s Bureau of Economic Analysis, shows that Michigan’s boating industry is the fifth largest in the nation, while the state ranks seventh in recreational vehicle activity.

All told, 127,000 jobs are tied to the outdoor recreation industry, which  accounts for an estimated 2 percent of the state’s $505 billion economy.

The study is the federal agency’s first on a statewide basis of such spending. Although its estimates are lower than those provided by industry groups, the data could provide a blueprint to state officials trying to grow recreation as an industry.

Nationwide, the outdoor recreation industry grew 3.9 percent in 2017, well above overall growth of 2.4 percent.

“Michigan is well positioned to take advantage of [outdoor recreation],” said Brad Garmon, who was named the first executive director of the Michigan Office of Outdoor Recreation Industry, an office Gov. Gretchen Whitmer created in May.

“I really think it’s a growth opportunity,” Garmon said.

Across the state, government officials and entrepreneurs have come to the same conclusion. Volunteers and governments are working to develop biking and water trails, while employers and chambers of commerce are touting the state’s outdoor pursuits.

 

In Marquette, the UP Health System pursues outdoor enthusiasts, using testimonials from its doctors extolling the virtues of year-round biking, skiing, hunting and fishing.

“We couldn’t keep talent up here,” said Candy Fletcher, a tourism consultant who lives just west of Marquette and worked with the hospital on its talent campaigns. 

Now regional groups are building trails – more than 200 miles, up from 75 miles less than a decade ago – and attracting people not just to visit but to stay.

“I can honestly say it’s what’s driving the economy,” Fletcher said of outdoor recreation.

Marquette is among the younger parts of northern Michigan and not just because it is home to Northern Michigan University. Like Traverse City, which also is promoting its outdoor assets, Marquette has seen residents’ incomes and educational levels climb.

That’s no coincidence – millennials, especially educated ones – are living more active lifestyles, with surveys showing they’re camping in big numbers.

Marina

Even into mid-September, Traverse City marinas are full of pleasure boats. Outdoor recreation, from boating in the summer to skiing in the winter, has helped the city grow and led to new construction throughout the region. (Bridge photo by Mike Wilkinson)

Traverse City is growing too, as is the northwest corner of the Lower Peninsula. Part of the reason: Selling newcomers on the same things that had been used to attract the visitors that have made the region a huge tourist draw; it’s one of the main draws of the local tourism bureau.

Officials are trying to build trails from Traverse City to Charlevoix, as new construction is going up all around the Traverse City. Its median household income, which a decade ago was more than $5,000 below the state’s median income, is now slightly higher than the state’s median income ($53,237 to $52,668).

Officials said outdoor recreation is a big part of the growth –  the city has many cycling, running and fishing shops that promote active lifestyles.

“I think now it’s part of the expectation (of residents),” said Harry Burkholder, chief operating officer of the Traverse City Downtown Development Authority.

The push to take advantage of outdoor recreation comes as many Michigan counties are aging rapidly – the state has the highest number of counties with a median age of 50 or older.

 

The median age is 40 in Traverse City and Marquette, the same as the state, but well below nearby cities and counties. 

Garmon said he was at an outdoor retailer convention in Denver in June and ran into several former Michigan residents who had taken their outdoor recreation business ideas to Colorado. He’s now working with others in state government to work on luring them home.

“I think we can pull them back,” he said.

The BEA examined at the impact of recreational industries, focusing on the manufacture of goods as well as their sale. It’s why Indiana is No. 1 in recreational vehicles –  not because of trips to campgrounds but the huge size of its RV industry in northern Indiana.

 

Overall, Michigan was No. 13 in total impact from outdoor recreation. That’s on par with the size of Michigan’s economy in general: The state is 14th nationwide in total gross domestic product, federal records show.

The federal government’s figure on outdoor recreation is lower than those used by industry groups.

The Outdoor Industry Association, using different methodology, estimates total employment at 232,000 direct jobs, $26.6 billion in direct spending and $2.1 billion in state and local tax revenue.

Nationwide, a number of activities that have big followings in Michigan have seen some of the biggest growth. Though not broken down state-by-state, dollars generated by biking, kayaking, sailing and snowboarding rose more than 20 percent between 2012 and 2017.

Fishing, which is big in the state, was one of the few pursuits that saw tepid growth –  just under 4 percent. 

And though snow activity rose nearly 9 percent, the big growth was in skiing (16.5 percent increase) and snowboarding (20.4 percent) while snowmobiling, traditionally popular in Michigan, was down 2 percent.

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Comments

Jim
Mon, 09/23/2019 - 9:07am

Here is more documentation on the important of recreation for rural areas.
https://www.pewsocialtrends.org/2018/05/22/demographic-and-economic-tren...
The total population of rural counties with recreation-based and government-based economies grew more since 2000 than the populations of other rural county types. One reason recreation-based counties grew was that they had a net gain of new residents who moved from other U.S counties, the only rural county type to have a gain in net domestic migration. An analysis by the Population Reference Bureau found that rural recreation-based counties were especially likely to have growing numbers of residents 65 and older, while rural farming-based counties were losing residents in that age group.

John Mozena
Mon, 09/23/2019 - 9:45am

This story says that Michigan's economy is "$50.5 billion," but that's off by an order of magnitude. According to the Federal Reserve, Michigan's GDP in 2018 was $528 billion. (https://fred.stlouisfed.org/series/MINGSP).

Regardless, I'd argue that the point of this article shouldn't be "Hey, look at how important this industry that makes up slightly less than two percent of the state's economy is" and more "Hey, turns out the outdoor industry was full of crap when it claimed it was two and a half times bigger than it actually is, and that should be taken into account when they want even more taxpayer subsidies to run their Pure Michigan campaigns."

John Q. Public
Tue, 09/24/2019 - 12:39am

Is it true that when you add up all the economic activity figures purported by the PR flacks for every industry and activity in the state, Michigan has an $888 gazillion economy?

MIWaterMan
Tue, 09/24/2019 - 10:00am

Love it! Let's bring back all the young talent to go along with the businesses. I've got buddies that moved to AZ, CO, UT, CA right out of college for more excitement in their work/life balance, driven by outdoor recreation opportunities. Live, work, play right here in MI.

Jim D.
Fri, 10/25/2019 - 1:23pm

From my perspective I bought my property so I could deer hunt. Come to find out, however,the only way to draw deer to my onto my property from the surrounding woods is by baiting. Banning baiting has effectively rendered my property useless for hunting. The baiting ban is essentially, in my view, is like the government (DNR) enforcing "eminent domain" over my property without due process. My property is now greatly devalued to me. Are my property taxes reduced to reflect that devaluation? No. I am considering court action because of this arbitrary removal of my property rights.