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 figure represents a substantial 2.4 percent of the total U.S. GDP, underscoring the sector’s critical role in national economic prosperity. The newly released data, which spans all 50 states and the District of Columbia, offers an in-depth look at the economic impact of activities ranging from hiking and boating to outdoor concerts and gardening, as well as the supporting industries that facilitate these pursuits.
This annual update from the BEA provides essential insights into the dynamic nature of the outdoor recreation sector, offering a vital benchmark for policymakers, businesses, and enthusiasts alike. The statistics reflect a period of ongoing growth and adaptation within the industry, even as it navigates evolving economic conditions and consumer preferences. The detailed breakdown by state and activity allows for a granular understanding of regional economic drivers and the diverse ways Americans engage with the outdoors.
National Economic Performance of the Outdoor Recreation Sector
In 2024, the inflation-adjusted (real) GDP for the outdoor recreation economy saw an increase of 2.7 percent. While this represents a robust expansion, it marks a slight deceleration compared to the preceding year’s impressive 5.3 percent growth in 2023. This moderating pace is in line with, and slightly below, the overall U.S. economy’s real GDP increase of 2.8 percent in the same year. This comparison highlights the outdoor recreation sector’s continued strength, though it mirrors broader economic trends of normalization following periods of heightened activity.
The real gross output for the outdoor recreation economy experienced a 2.0 percent increase, indicating a sustained demand for goods and services within the sector. Compensation for those employed in outdoor recreation also saw a healthy rise of 5.2 percent, signaling a positive trend in wages and earnings for workers in this field. Employment within the sector grew by 1.1 percent, demonstrating continued job creation, albeit at a more measured pace than in previous periods.
State-Level Variations in Outdoor Recreation’s Economic Footprint
The impact of outdoor recreation on state economies varies considerably, with Hawaii leading the nation. In 2024, value added from outdoor recreation constituted a remarkable 6.1 percent of Hawaii’s state GDP. This elevated share reflects the state’s unique natural landscapes and its strong reliance on tourism and outdoor activities as key economic drivers.
Conversely, the District of Columbia recorded the lowest share, with outdoor recreation accounting for 1.0 percent of its GDP. This difference underscores the diverse economic structures across the United States and the varying degrees to which different regions can leverage their natural assets for economic gain. The BEA’s data allows for a detailed examination of these disparities, offering valuable information for targeted economic development strategies.
Employment in outdoor recreation also showed significant variation across states. In 2024, 36 states and the District of Columbia experienced an increase in outdoor recreation employment. North Dakota led this growth with a 4.3 percent increase in outdoor recreation jobs. However, Hawaii, despite its high overall contribution to GDP, saw a decline of 4.0 percent in outdoor recreation employment. This nuanced picture suggests that while some states are expanding their outdoor recreation workforce, others may be experiencing shifts in employment patterns, potentially influenced by factors such as seasonal fluctuations, labor market dynamics, or changes in specific recreational activities.
Breakdown of Outdoor Recreation Activities
The BEA categorizes outdoor recreation activities into three broad segments: conventional activities, other activities, and supporting activities.
Conventional activities encompass traditional pursuits such as bicycling, boating, hiking, and hunting. In 2024, this category accounted for 29.5 percent of the total value added by the U.S. outdoor recreation economy, a slight decrease from 30.0 percent in 2023.
Other outdoor activities include pursuits like gardening and attending outdoor concerts. This segment represented 19.0 percent of the value added in 2024, a marginal increase from 18.8 percent in 2023.
Supporting activities form the largest segment, accounting for 51.5 percent of the value added in 2024, up from 51.2 percent in 2023. This category is crucial as it encompasses the infrastructure and services that enable outdoor recreation, including construction, travel and tourism, local trips, and government expenditures. The growth in supporting activities was particularly driven by travel and tourism, which saw increased spending on transportation, hotels, and restaurants. This suggests that while direct engagement in outdoor activities remains vital, the economic ecosystem that supports them is expanding significantly.
The BEA’s detailed data further breaks down value added by specific conventional outdoor recreation activities, providing a clearer picture of consumer spending patterns. While specific figures for individual activities were not detailed in the provided text, the overall trend indicates a dynamic interplay between these categories, with supporting activities playing an increasingly dominant role in the sector’s economic contribution.
Industry Contributions to the Outdoor Recreation Economy
The BEA also meticulously tracks the contributions of various industries to the outdoor recreation economy. This analysis reveals which sectors are most intertwined with and benefit from outdoor pursuits.
The arts, entertainment, recreation, accommodation, and food services industry group emerged as the leading contributor to U.S. outdoor recreation value added in 2024. This sector generated an impressive $174.4 billion, or 25.0 percent of the total. At the state level, this industry group was the largest contributor in 23 states and the District of Columbia. California, Florida, and New York were the top states in this category, with contributions of $24.1 billion, $22.7 billion, and $11.8 billion, respectively. This highlights the integral role of hospitality and leisure services in supporting and capitalizing on outdoor recreation demand.
Retail trade secured the second position nationally, contributing $169.1 billion, or 24.3 percent of the value added. This sector was the largest industry contributor to outdoor recreation in 24 states. California, Texas, and Florida led in this segment, with contributions of $19.3 billion, $14.4 billion, and $13.4 billion, respectively. This underscores the significant role of retail in providing equipment, apparel, and gear for outdoor enthusiasts.
Manufacturing ranked third, contributing $91.3 billion, or 13.1 percent of the value added. This sector was the largest industry group in two states, Indiana and Louisiana. Texas, California, and Indiana recorded the highest contributions from manufacturing, with $13.1 billion, $11.6 billion, and $9.1 billion, respectively. This indicates the importance of domestic manufacturing in producing goods essential for various outdoor activities.
The Significance of Annual Updates
The BEA’s annual release of outdoor recreation economic statistics is a crucial event for understanding the sector’s trajectory. The 2024 data incorporates updates to estimates from 2020 to 2023, reflecting the incorporation of the 2025 annual update of the National Economic Accounts. This includes revised data from the National Income and Product Accounts and the Industry Economic Accounts, as well as newly available and revised source data. Similarly, state-level statistics have been updated to reflect these national revisions and the 2025 annual update of the Regional Economic Accounts, alongside updated regional source data.
These regular updates ensure that the statistics remain current and accurately reflect the economic realities of the outdoor recreation sector. They provide a consistent and reliable basis for economic analysis, policy formulation, and business planning. The historical data, available through BEA’s Data Archive, allows for long-term trend analysis and a deeper understanding of the sector’s evolution over time.
Broader Implications and Future Outlook
The consistent and significant contribution of the outdoor recreation economy to the U.S. GDP underscores its importance as a driver of economic growth, job creation, and consumer spending. As identified by the BEA, the sector’s resilience and expansion, even amidst slight moderations, signal a sustained public interest in outdoor activities. This trend is likely to be influenced by several factors in the coming years.
Firstly, increasing awareness of health and wellness benefits associated with outdoor activities may continue to fuel demand. Secondly, demographic shifts, including the growing influence of younger generations who often prioritize experiences and sustainable lifestyles, could further bolster the sector. Finally, ongoing investments in public lands, parks, and outdoor infrastructure, coupled with private sector innovation in gear, technology, and services, are expected to sustain the industry’s momentum.
The BEA’s detailed reporting provides invaluable data for policymakers seeking to leverage the outdoor recreation economy for regional development. Understanding the specific contributions of different activities and industries can inform targeted investments in infrastructure, marketing, and workforce development. For businesses operating within or serving the outdoor recreation sector, these statistics offer critical market intelligence for strategic planning, product development, and market expansion.
The BEA has indicated that the next release of Outdoor Recreation Economic Statistics for the U.S. and States will cover the 2025 data and is anticipated in the Fall of 2026. This ongoing commitment to tracking and reporting on this vital economic sector ensures that stakeholders have the most up-to-date information to navigate and capitalize on the opportunities presented by the ever-evolving landscape of outdoor recreation. The continuous refinement of these statistics by the BEA highlights the agency’s dedication to providing comprehensive and accurate economic data, essential for informed decision-making across all levels of government and the private sector.
