Lana Rhoades
The U.S. Bureau of Economic Analysis (BEA) has unveiled its latest comprehensive report on the nation’s outdoor recreation economy, revealing a significant economic powerhouse that contributed $696.7 billion to the current-dollar Gross Domestic Product (GDP) in 2024. This substantial figure represents 2.4 percent of the total U.S. GDP, underscoring the sector’s robust and expanding influence on national economic health. The data, released today, also provide a granular look at the performance of outdoor recreation across all 50 states and the District of Columbia, highlighting considerable regional variations in its economic impact.
National Economic Impact and Growth Trends
The BEA’s findings indicate that the value added by the outdoor recreation economy saw a 2.7 percent increase in real (inflation-adjusted) terms in 2024. While this growth rate slightly trailed the overall U.S. economy’s 2.8 percent expansion, it signifies continued momentum. This follows a more substantial surge of 5.3 percent in outdoor recreation GDP observed in 2023, suggesting a period of robust recovery and sustained consumer interest in outdoor pursuits.
Further analysis of the national data reveals other key economic indicators. Real gross output for the outdoor recreation sector grew by 2.0 percent. Compensation within the industry experienced a notable increase of 5.2 percent, demonstrating a healthy rise in wages and earnings for those employed in this dynamic field. Employment in outdoor recreation also saw positive growth, increasing by 1.1 percent nationwide. This indicates that despite shifts in economic conditions, the outdoor recreation sector continues to be a source of job creation.
State-Level Performance: A Diverse Economic Landscape
The report’s state-level data paint a compelling picture of how the outdoor recreation economy’s influence varies significantly from one region to another. Hawaii emerged as the state with the highest economic dependence on outdoor recreation, with its value added from the sector accounting for an impressive 6.1 percent of its total state GDP. This underscores the critical role that natural landscapes and tourist attractions play in Hawaii’s economic framework.
In stark contrast, the District of Columbia recorded the lowest share of its GDP derived from outdoor recreation, at 1.0 percent. This difference highlights the varied economic structures and dominant industries across the nation, with some states leveraging their natural resources more extensively for economic output than others.
Employment Trends Across the States
The growth in outdoor recreation employment was not uniform across the country. In 2024, 36 states and the District of Columbia experienced an increase in outdoor recreation jobs. North Dakota led the nation in employment growth for the sector, with a remarkable 4.3 percent increase. This surge in North Dakota suggests a burgeoning outdoor recreation scene, potentially driven by increased domestic tourism or the development of new recreational facilities and activities.
Conversely, Hawaii experienced a decline in outdoor recreation employment, with a decrease of 4.0 percent. This contraction in employment, despite the state’s high share of GDP from the sector, could be attributed to various factors, including shifts in tourism patterns, labor market dynamics, or changes in the types of outdoor activities popular among visitors and residents.
Understanding the Components of Outdoor Recreation
The BEA categorizes outdoor recreation activities into three broad segments:
- Conventional Activities: These encompass traditional pursuits such as bicycling, boating, hiking, hunting, fishing, camping, and wildlife viewing. In 2024, this segment accounted for 29.5 percent of the total U.S. outdoor recreation value added, a slight decrease from 30.0 percent in 2023.
- Other Outdoor Activities: This category includes activities like gardening, outdoor concerts, sporting events, and other forms of leisure that take place outdoors but may not be as physically demanding or traditional. This segment saw a modest increase, representing 19.0 percent of value added in 2024, up from 18.8 percent in 2023.
- Supporting Activities: This crucial segment forms the backbone of the outdoor recreation economy and includes industries that facilitate outdoor experiences. These include construction of outdoor recreation infrastructure, travel and tourism services (transportation, lodging, food services), local trips, and government expenditures on public lands and facilities. Supporting activities accounted for the largest share of value added, at 51.5 percent in 2024, an increase from 51.2 percent in 2023. The growth within this segment was particularly driven by travel and tourism, reflecting increased consumer spending on transportation, accommodation, and dining.
Industry Contributions to the Outdoor Recreation Economy
The BEA’s industry-specific data highlight which sectors are most instrumental in driving the outdoor recreation economy.
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Arts, Entertainment, Recreation, Accommodation, and Food Services: This broad industry group emerged as the largest contributor to the U.S. outdoor recreation value added in 2024, generating $174.4 billion, or 25.0 percent of the total. At the state level, this sector was the leading contributor to outdoor recreation value added in 23 states and the District of Columbia. California ($24.1 billion), Florida ($22.7 billion), and New York ($11.8 billion) led the nation in value added from this industry group within the outdoor recreation context. These states are renowned for their tourism infrastructure, entertainment offerings, and hospitality sectors that cater heavily to outdoor enthusiasts.
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Retail Trade: This sector ranked as the second-largest contributor nationally, accounting for $169.1 billion, or 24.3 percent of value added. Retail trade was the dominant industry group for outdoor recreation in 24 states. California ($19.3 billion), Texas ($14.4 billion), and Florida ($13.4 billion) posted the highest contributions from retail trade, likely reflecting sales of outdoor gear, apparel, and equipment.
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Manufacturing: The manufacturing sector played a significant role, contributing $91.3 billion, or 13.1 percent of value added. It was the largest industry group for outdoor recreation in two states: Indiana and Louisiana. Texas ($13.1 billion), California ($11.6 billion), and Indiana ($9.1 billion) reported the highest value added from manufacturing related to outdoor recreation, suggesting production of recreational vehicles, sporting goods, and other outdoor-related products.
Annual Updates and Data Refinements
The release of these statistics includes crucial updates to estimates from 2020 to 2023. These revisions incorporate the latest findings from the BEA’s annual updates to the National Economic Accounts, which include the National Income and Product Accounts and the Industry Economic Accounts. The integration of newly available and revised source data ensures the highest degree of accuracy and timeliness in these economic measurements.
Similarly, the state-level statistics have been updated to reflect these national data enhancements, along with the 2025 annual update of the Regional Economic Accounts and newly available regional source data. This iterative process of data collection and refinement is essential for providing policymakers, businesses, and researchers with the most accurate understanding of the outdoor recreation economy’s performance and trajectory.
Implications and Future Outlook
The continued growth and substantial contribution of the outdoor recreation economy to the U.S. GDP highlight its increasing importance as a driver of economic prosperity. The sector’s resilience, even amidst broader economic fluctuations, suggests a sustained and growing consumer demand for experiences that connect people with nature.
The detailed breakdown by activity and industry provides valuable insights for businesses and policymakers. For instance, the strong performance of supporting activities, particularly travel and tourism, indicates that investments in infrastructure, transportation, and hospitality services related to outdoor recreation are likely to yield significant economic returns. Furthermore, the varied performance across states underscores the need for tailored strategies that leverage unique regional assets and opportunities within the outdoor recreation sector.
The BEA’s commitment to annual updates of these statistics ensures that stakeholders have access to timely and reliable data. This allows for informed decision-making, strategic planning, and targeted investments aimed at further developing and sustaining this vital economic sector. As consumer preferences continue to evolve and the appreciation for the benefits of outdoor activity grows, the outdoor recreation economy is poised for continued expansion, offering opportunities for job creation, business growth, and enhanced quality of life across the nation. The next release of Outdoor Recreation Economic Statistics for the U.S. and States, covering 2025 data, is anticipated in the Fall of 2026, promising further insights into this dynamic economic landscape.
