Economic Contribution of Off-Highway Vehicle Recreation in Colorado
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1 Colordo Off-Highwy Vehicle Colition Economic Contribution of Off-Highwy Vehicle Recretion in Colordo Executive Summry July THE Louis Berger Group, INC W. Byud Ave. Suite 201 Lkewood, CO
2 Executive Summry Introduction Colordo offers unique opportunities for motorized recretion throughout much of the stte. This is minly due to the vst mount of pproprite terrin for off-highwy motorized recretion. As such, the sport nd industry of motorized recretion hs enjoyed n increse in populrity in the stte by both residents nd non-residents. The purpose of this study ws to evlute the economic contribution of motorized recretion throughout Colordo. Much of the nlysis ws bsed on previous study completed by Hzen nd Swyer in 2001 titled Economic Contribution of Off-Highwy Vehicle Use in Colordo. The previous study included household survey tht collected vluble informtion on where nd when motorized recretion enthusists utilize their vehicles for recretion, verge expenditures ssocited with recretionl trips, nd nnul expenditures ssocited with operting nd mintining vehicles. The dt nd informtion on expenditures collected in the previous study ws djusted for infltion nd used in combintion with current dt on the number of households tht prticipte in motorized recretion in Colordo to estimte the totl economic contribution of the sport to the Stte of Colordo. A summry of the nlysis is provided here. Households tht Prticipte in Motorized Recretion in Colordo The number of households tht prticipte in motorized recretion hs stedily incresed since The most significnt increse hs occurred for dirt bikes nd ll-terrin vehicles (ATVs). The Colordo Division of Prks nd Outdoor Recretion (DPOR) requires nnul registrtion of off-highwy vehicles (OHVs) which it defines s twowheel, three-wheel nd four-wheel vehicles. These vehicles typiclly re not licensed, nd re primrily used on trils, routes, nd forest rods. Registrtions for OHVs hve incresed by 145 percent between the seson 1 nd the seson. DPOR lso requires nnul registrtion of snowmobiles nd reported n increse of eight percent between the nd sesons for this vehicle type. 1 Annul registrtions re vlid from April 1 st through Mrch 31 st. ES-1
3 ES 1. Annul Resident ATV nd Dirt Bike Registrtions in Colordo 140, ,000 Annul OHV Registrtions 100,000 80,000 60,000 40,000 20, Yer ES-2. Annul Resident Snowmobile Registrtions in Colordo 35,000 34,000 Annul Snowmobile Registrtions 33,000 32,000 31,000 30,000 29, Yer The number of registrtions ws used in prt to estimte the number of resident nd nonresident households tht likely prticipted in motorized recretion in Colordo during the seson. The nlysis showed tht over 180,000 resident households likely prticipted in some sort of motorized recretion in the seson in Colordo nd nerly 30,000 non-resident households trveled to Colordo to prticipte in motorized recretion. ES-2
4 ES-3. Estimted Number of Households tht Prticipted in Motorized Recretion in Colordo During the Seson Snowmobiles ATVs Dul Purpose 4-Wheel Totl or Dirt Bikes Drives Households Colordo Residents 16,059 75,913 40,591 51, ,049 Out-of-Stte Residents 1,297 16,381 8, ,937 Expenditures Mde by OHV Enthusists Motorized recretion enthusists contribute to the Stte s economy by purchsing vehicles, mking expenditures while on recretionl ctivity trips (dy nd overnight), spending money to operte nd mintin vehicles, purchsing other ccessories needed while riding (clothes, sfety equipment), nd mking other expenditures for items tht support their ctivities (food nd fuel, etc.). The nlysis showed tht in the seson, motorized recretion enthusists spent $784 million relted to this ctivity in Colordo. Direct Lbor, Income, nd Tx Contributions The economic contribution mde by motorized recretion enthusists support businesses throughout the Stte. Tourism nd recretion is significnt industry in Colordo in terms of the number of jobs creted by businesses tht support these ctivities nd the income erned by those employed in these businesses. These businesses rnge from smll mom nd pop opertions in rurl res to medium nd lrge firms locted both within nd outside the Stte. The $784 million in gross sles resulting from motorized recretion generted over 10,000 direct jobs nd $294 million in lbor income during the seson. Other components of gross sles re other property type income (e.g. rents on property) nd indirect business txes (e.g. excise txes, property txes, fees, licensing, sles txes pid by businesses) which were $76 million nd $91 million, respectively. ES-4. Direct Economic Impct of Motorized Recretion in Colordo during the Seson Totl Direct Gross Sles $783,867,205 Components of Gross Sles Jobs 10,009 Lbor Income $294,626,608 Other Property Type Income $75,603,037 Indirect Business Txes $90,913,882 Note: Figures for lbor income, other property type income, nd indirect business txes re components of gross sles nd thus cnnot be dded together. Adding ll dollr figures in this tble would constitute double counting of economic contribution. ES-3
5 Additionl Economic Activity The direct expenditures mde by motorized recretion enthusists hve n dditionl effect by generting indirect nd induced (downstrem) economic ctivity (often known s multiplier effects). The downstrem economic effects of motorized recretion tht come from the initil expenditures mde by motorized recretion enthusists, which re bsiclly the spending of indirect businesses (those tht support the direct businesses, e.g. lundry services for hotels) nd households (employees tht ern their living either in the direct or indirect businesses) resulted in $243 million in downstrem gross sles, 2,039 dditionl jobs, nd $76 million in dditionl lbor income. Also, over $54 million in other property type income nd $17 million in indirect business txes were generted. ES-5. Additionl Economic Activity Results from Motorized Recretion in Colordo during Indirect nd Induced (Downstrem) Gross Sles $243,447,823 Components of Gross Sles Jobs 2,039 Lbor Income $75,952,710 Other Property Type Income $53,969,538 Indirect Business Txes $16,659,682 Note: Figures for lbor income, other property type income, nd indirect business txes re components of gross sles nd thus cnnot be dded together. Adding ll dollr figures in this tble would constitute double counting of economic contribution. Totl Economic Contribution The totl economic contribution of motorized recretion for the seson cn be described s follows. Motorized recretion enthusists were estimted to hve generted over $784 million in totl direct gross sles for motorized recretion throughout the yer. This direct spending generted n dditionl $243 million in downstrem gross sles due to dditionl economic ctivity, or $1,027 million in totl gross sles. The economic contribution cn be further described by evluting the components of totl gross sles. For instnce, motorized recretion in Colordo is directly or indirectly responsible for over 12,000 jobs nd $370 million in lbor income. Totl gross sles lso include $129 million on Other Property Type Income nd $107 million in Indirect Business Txes. The economic contribution ws broken down by OHVs (ll-terrin vehicles [ATVs], Dul Sport/dirt bikes, four-wheel drive vehicles [4-WDs]) nd Snowmobiles. According to gross sles, OHVs contribute 89 percent of economic contribution while snowmobiles contribute 11 percent. ES-4
6 ES.6 Totl Economic Contribution of Motorized Recretion in Colordo during the Seson (Direct, Indirect, nd Induced) Economic Contribution Totl Economic OHVs Snowmobiles Ctegory Contribution Totl Gross Sles $914,310,440 $113,004,662 $1,027,315,108 Components of Gross Sles Jobs 10,838 1,210 12,048 Lbor Income $329,386,161 $41,193,157 $370,579,318 Other Property Type Income $116,431,479 $13,141,096 $129,572,575 Indirect Business Txes $93,981,967 $11,894,459 $107,573,564 Note: Figures for lbor income, other property type income, nd indirect business txes re components of gross sles nd thus cnnot be dded together. Adding ll dollr figures in this tble would constitute double counting of economic contribution. Regionl Anlysis An dditionl nlysis ws completed s prt of this study which exmined the economic contribution of motorized recretion in different regions of the Stte. This included one of six regions s summrized below. The percentge of households tht indicted they recreted in ech region ws pplied to the estimted number of dy nd overnight trips tken throughout the Stte. Tble ES.7 Regions in Colordo Used to Estimte Motorized Recretionl Use Region Northwest Southwest South-Centrl Centrl North-Centrl Estern Colordo Counties Grfield, Mofft, Rio Blnco, nd Routt Mes, Montezum, Montrose, L Plt, Oury, Sn Jun, nd Sn Miguel Hinsdle, Sguche, Custer, Fremont, Huerfno, Costill, Minerl, Almos, Conejos, nd Archulet Egle, Summit, Prk, Gunnison, Lke Pitkin, Chfee, nd Teller Gilpin, Cler, Grnd, nd Jckson Adms, Arphoe, Bent, Boulder, Crowley, Denver, Dougls, El Pso, Elbert, Jefferson, Kiow, Kit, Lrimer, Ls Anims, Lincoln, Logn, Morgn, Otero, Prowers, Pueblo, Sedgwick, Wshington, Weld, nd Yum The economic contribution of motorized recretion for ech region is summrized below. The region receiving the lrgest economic contribution from motorized recretion during the seson ws centrl Colordo. This region ws followed in importnce by Centrl nd Southwest regions. ES-5
7 Tble ES. 8 Estimted Economic Contribution of Motorized Recretion by Region in Colordo for the Seson Contribution Region Direct Impct NW CO SW CO SC CO CTRL CO NC CO EAST CO Totl Direct Sles $38,810,143 $102,241,835 $106,446,201 $166,351,176 $64,915,703 $13,168,439 $491,933,497 Number of Jobs 514 1,633 1,893 2,251 1, ,521 Lbor Income $15,726,777 $40,726,942 $41,735,574 $68,455,305 $26,333,285 $5,356,344 $198,334,227 Other Property Type Income $5,046,453 $13,111,387 $13,418,481 $22,151,341 $8,773,845 $1,548,574 $64,050,081 Indirect Business Txes $4,911,339 $12,917,639 $13,345,299 $21,416,795 $8,221,015 $1,646,630 $62,458,717 Other Economic Activity Indirect nd Induced Sles $17,260,416 $56,622,012 $44,934,282 $66,465,472 $19,147,200 $8,620,352 $213,049,734 Number of Jobs ,817 Lbor Income $5,409,525 $17,694,877 $13,687,619 $22,054,622 $5,501,753 $2,907,955 $67,256,351 Other Property Type Income $3,829,771 $11,383,096 $9,581,338 $14,775,035 $4,845,064 $1,629,877 $46,044,181 Indirect Business Txes $1,117,435 $3,231,585 $2,661,491 $5,795,603 $1,386,959 $474,223 $14,667,296 Note: Figures for lbor income, other property type income, nd indirect business txes re components of gross sles nd thus cnnot be dded together. Adding ll dollr figures in this tble would constitute double counting of economic contribution. ES-6
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