Lana Rhoades
The United States Bureau of Economic Analysis (BEA) has released its latest comprehensive report on the U.S. outdoor recreation economy, revealing that in 2024, this vital sector generated a substantial $696.7 billion in current-dollar gross domestic product (GDP). This figure represents 2.4 percent of the nation’s total GDP, underscoring the significant and persistent economic impact of outdoor activities, from hiking and camping to boating and attending outdoor festivals. The data, which provides a granular look at all 50 states and the District of Columbia, also highlights varying levels of outdoor recreation’s contribution to state economies, with Hawaii leading the nation at 6.1 percent of its state GDP, while the District of Columbia registered at 1.0 percent.
A Snapshot of Growth and Shifting Dynamics in 2024
The BEA’s findings for 2024 indicate a continued, albeit moderated, expansion of the outdoor recreation sector. Inflation-adjusted, or "real," GDP for outdoor recreation experienced a 2.7 percent increase. This growth rate, while robust, represents a slight deceleration compared to the 5.3 percent surge observed in 2023, and trails the overall U.S. economy’s 2.8 percent growth in the same period. Despite this slowdown, the sector demonstrated resilience, with real gross output increasing by 2.0 percent.
Further bolstering the picture of a thriving sector, compensation within the outdoor recreation economy saw a significant rise of 5.2 percent. Employment also expanded, with a 1.1 percent increase nationwide. These figures suggest that while the pace of growth may be normalizing after a period of exceptional expansion, the outdoor recreation industry continues to be a net creator of jobs and a source of rising wages for its workforce.
State-Level Performance: A Diverse Economic Landscape
The distribution of outdoor recreation’s economic impact across states reveals a diverse landscape. While Hawaii stands out with outdoor recreation accounting for 6.1 percent of its state GDP, other states also show significant reliance on this sector. The BEA’s interactive tables, accessible via the BEA website, allow for detailed examination of each state’s performance.
Employment trends in outdoor recreation also varied by state in 2024. A majority of states, 36 in total, along with the District of Columbia, saw an increase in outdoor recreation employment. North Dakota emerged as a leader in employment growth, with a 4.3 percent increase. Conversely, Hawaii experienced a decline of 4.0 percent in outdoor recreation employment, indicating localized economic shifts or specific industry challenges within the state. This divergence highlights the localized nature of economic activity and the need for tailored strategies to foster growth within the outdoor recreation sector across different regions.
Deconstructing the Outdoor Recreation Economy: Activities and Industries
The BEA categorizes outdoor recreation activities into three broad groups:
- Conventional Activities: These encompass traditional pursuits such as bicycling, boating, hiking, hunting, fishing, and camping.
- Other Activities: This category includes a wider range of pursuits like gardening, outdoor concerts, birdwatching, and recreational sports.
- Supporting Activities: This crucial segment comprises industries that facilitate outdoor recreation, including construction of recreational facilities, travel and tourism services, transportation, accommodation, food services, and government expenditures on public lands and parks.
In 2024, supporting activities continued to be the largest contributor to the U.S. outdoor recreation value added, accounting for 51.5 percent of the total. This segment, which includes vital components like travel and tourism, saw its share increase slightly from 51.2 percent in 2023. The growth within supporting activities was primarily driven by increased spending on transportation, hotels, and restaurants, reflecting a broader rebound in consumer travel and leisure.
Conventional outdoor recreation activities represented 29.5 percent of value added in 2024, a minor decrease from 30.0 percent in the previous year. "Other outdoor recreation" activities accounted for 19.0 percent of value added, a slight increase from 18.8 percent in 2023. This slight shift suggests a growing emphasis on diverse and perhaps less traditional outdoor pursuits, alongside the enduring appeal of classic outdoor pastimes.
Industry Contributions to the Outdoor Recreation Boom
The BEA report also provides a detailed breakdown of how various industries contribute to the outdoor recreation economy. The arts, entertainment, recreation, accommodation, and food services industry group remained the largest contributor to the nation’s outdoor recreation value added in 2024, generating $174.4 billion, or 25.0 percent of the total. This sector is intrinsically linked to the outdoor experience, providing essential services and amenities that enhance leisure time spent outdoors. At the state level, this industry group was the dominant contributor 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 sector.
The retail trade industry followed closely as the second-largest contributor nationally, accounting for $169.1 billion, or 24.3 percent of outdoor recreation value added. This sector is crucial for providing the gear, apparel, and equipment that enable outdoor activities. Retail trade was the primary contributor to outdoor recreation value added in 24 states, with California ($19.3 billion), Texas ($14.4 billion), and Florida ($13.4 billion) posting the highest figures.
Manufacturing emerged as the third-largest industry group, contributing $91.3 billion, or 13.1 percent of national value added. This sector is responsible for producing a wide array of outdoor recreation equipment, from bicycles and kayaks to tents and sporting goods. Manufacturing was the leading industry for outdoor recreation value added in two states, Indiana and Louisiana. Texas ($13.1 billion), California ($11.6 billion), and Indiana ($9.1 billion) reported the largest contributions from the manufacturing sector to their respective outdoor recreation economies.
Context and Significance of the Annual Update
The release of these statistics is part of the BEA’s ongoing commitment to providing timely and comprehensive data on key sectors of the U.S. economy. The annual update incorporates the latest available data and methodologies, ensuring the accuracy and relevance of the economic indicators. For the 2024 data, estimates for the period of 2020 to 2023 have been revised to reflect the results of the 2025 annual update of the National Economic Accounts, including the National Income and Product Accounts and the Industry Economic Accounts. Newly available and revised source data have been integrated into these calculations, providing a more refined understanding of economic performance during these periods.
Similarly, state-level statistics have been updated to align with these revised national figures and incorporate the 2025 annual update of the Regional Economic Accounts, alongside newly available and revised regional source data. This meticulous process ensures consistency and comparability across different levels of economic analysis. Previously published estimates are accessible through the BEA’s Data Archive, allowing researchers and policymakers to track historical trends and the evolution of the outdoor recreation economy.
Expert Analysis and Potential Implications
The continued growth of the outdoor recreation economy, even with a moderated pace, signals a sustained consumer demand for experiences that connect individuals with nature and promote well-being. This trend is likely to be influenced by several factors, including an increasing awareness of the mental and physical health benefits of outdoor activities, a growing desire for sustainable and eco-conscious leisure options, and the ongoing development of infrastructure and services that support outdoor pursuits.
The significant contribution of supporting activities, particularly travel and tourism, underscores the interconnectedness of the outdoor recreation sector with broader economic trends. As consumer confidence and disposable income fluctuate, spending on travel, accommodation, and dining associated with outdoor activities will likely remain a key indicator of economic health.
The strong performance of retail trade and manufacturing in supporting outdoor recreation highlights the importance of these industries in equipping Americans for their adventures. Investments in innovation and sustainable production within these sectors could further boost the outdoor recreation economy.
From a policy perspective, the BEA data provides crucial insights for federal, state, and local governments. Understanding the economic drivers of outdoor recreation can inform decisions regarding land management, infrastructure development, tourism promotion, and workforce training. For instance, states with a higher percentage of GDP derived from outdoor recreation may prioritize investments in parks, trails, and related amenities to further capitalize on this economic engine. Conversely, states with lower contributions may explore strategies to tap into this growing market.
The BEA’s commitment to providing annual updates ensures that policymakers and industry stakeholders have access to the most current information to make informed decisions. The next release, scheduled for Fall 2026, will cover Outdoor Recreation Economic Statistics for 2025, offering further insights into the evolving landscape of this dynamic and economically significant sector. As the nation continues to prioritize health, wellness, and sustainable practices, the outdoor recreation economy is poised to remain a vital component of American economic prosperity.
