Introduction

The outdoor recreation sector plays a significant role in American lives, and many outdoor activities take place on or near trails. As demonstrated in Exhibit 1, overall nationwide participation rates in outdoor activities steadily increased over the last decade and are expected to continue to increase (BEA n.d.a; BEA n.d.b; Outdoor Foundation 2019; and White, Askew, and Bowker 2023). This activity generates a broad array of economic benefits for communities near trails.

Exhibit 1. Outdoor Recreation Participation Trending, 2008-2018

Economic Benefits of Outdoor Recreation

When discussing economic benefits, it is first important to understand the differences between “direct” and “indirect” spending. Direct spending is a term used to refer to money used to purchase goods and services directly related to a specific subject. Examples of direct spending include purchases of equipment (e.g., a bike, hiking equipment, shoes, etc.) and travel expenses (e.g., fuel, food/beverages, souvenirs, repairs, etc.). Indirect spending is a term used to refer to a purchase that serves as a multiplier for secondary spending. Consider, for example, a trail-side restaurant. The restaurant owner pays employees wages and buys food from local suppliers—this spending is referred to as indirect spending.

Numerous studies have shown that Americans’ outdoor recreation generates significant economic activity. A 2017 Outdoor Foundation study showed that the outdoor recreation sector significantly impacted the U.S. economy by supporting about 7.6 million jobs, contributing $887 billion to the economy, and generating $59.2 billion in state and local tax revenue and $65.3 billion in national tax revenue (Outdoor Foundation 2017).

Economic Impacts of Outdoor Recreation in Michigan

In Michigan, outdoor recreation has been and will continue to be an important and popular activity for both residents and out-of-state visitors. Examples of activities that contribute to Michigan’s outdoor recreation economy include camping, fishing, hunting, off-road vehicle (ORV) driving, snow sports, trail sports (e.g., horseback riding, mountain biking, trail running, etc.), water sports, and wildlife viewing. Nearly two-thirds (63 percent) of Michigan residents participate in outdoor recreation each year,^[1] and eight out of ten residents feel that outdoor recreation is either important or moderately important to their household (DNR 2018; Outdoor Foundation 2017). Each year, outdoor recreation generates about $26.6 billion in consumer spending in the state, resulting in 232,000 direct jobs, $7.5 billion in wages and salaries, and $2.1 billion in state and local tax revenue (Achtenberg 2019).

As part of its ongoing five-year review of trends in outdoor recreation, the Michigan DNR determined in its 2018 Statewide Comprehensive Outdoor Recreation Plan (SCORP) that participation days spent on non-motorized trails significantly outpaces all other outdoor recreation activities (Exhibit 2).

Exhibit 2. Participation Days in Outdoor Recreational Activities in Michigan, 2018

Economic Benefits of Trails

Trail-based activities like running, bicycling, and hiking account for three out of the five most popular outdoor recreation activities in the United States (Outdoor Foundation 2019). There are many well-demonstrated positive economic benefits of trails, such as (American Trails 2020; ECONorthwest 2019; McDonald and Brown 2015):

• Trails bring people to regions who spend money they otherwise wouldn’t, which boosts spending at local businesses.
• Trails can increase the value of nearby properties.
• The presence of trails can reduce medical costs by encouraging exercise and healthier lifestyles.
• Trails can provide alternative transportation options, which can reduce fuel expenses.
• Trails can provide low- or no-cost recreation opportunities to the public.
• Trails can help local park and recreation departments meet recreation needs of the community by providing relatively low-cost recreation infrastructure for the community in lieu of more expensive alternatives.

Economic Benefits of Trails in Michigan

At the state level, the economic benefits of trails are often measured by the general level of expenditure associated with a particular activity (e.g., spending for equipment, storage, repair and maintenance, etc.). While no comprehensive study of the economic significance of trails has been prepared for Michigan, multiple studies that look at individual uses demonstrate the importance of trails. For example, equestrian recreation (which generally takes place on trails) provides more than $539 million per year to Michigan’s economy (American Horse Council Foundation 2017) and ORV users spend more than $212 million annually on ORV equipment and related services (Nelson et al, 2010).

Benefits of Trails on Local Communities

In addition to national and state-level economic impacts, there are also demonstrated benefits of trails on local communities, such as:

• Increased property values
• Increased healthcare savings
• Increased tourist activity
• Business creation and expansion
• Support of community and workforce development goals

Property Values

Various studies have shown that trail development increases property values. For example, in a 2008 Michigan State University (MSU) Land Policy Institute study, researchers compared properties with and without walkable and bikeable infrastructure (i.e., sidewalks, bike lanes, trails, park paths, and safety paths) in Oakland County, Michigan. Most houses near those infrastructure opportunities were found to have a higher property value than those houses more distant to those infrastructure assets (Exhibit 3). Studies conducted in other regions of the country have yielded similar results (Webel 2018).

Healthcare Savings

We also know that trails can help increase physical activity, which in turn has a demonstrated effect on increasing healthcare savings. Trails provide a safe and inexpensive venue for regular physical activity. More studies are beginning to explore the link between trail use and healthcare savings. Several studies have found that a one-dollar investment in trails leads to approximately three dollars in medical savings per person (American Heart Association 2016; Miami-Dade County 2011; Wang et al 2004).

Tourism Activity

Trails can also increase tourism activity, as trail systems can attract a variety of tourists, including event-oriented trail users and more casual day users of trails. Many regional trail systems are being utilized to support trail events such as organized runs, walks, cycling, and equestrian activities. Long distance destination trails draw recreationists seeking multi-day experiences. Many casual day users are often attracted to trails that have a particular cultural or historical significance or have popular restaurants and hotels located nearby.

Business Creation and Expansion

Trails support business creation and expansion of existing businesses. The enhanced level of tourism and local use from trail development can drive business creation as increased trail usage specifically supports the hospitality sector, including lodging facilities, restaurants, bars, and retail shops. A direct spin off from increased trail activity benefits trail-related retail businesses, such as bike shops, canoe and kayak liveries, horse rental stables, and outfitters. There are a wide range of businesses that have seen significant retail dollar increases from trails and trail-related activities in the community.

Community and Workforce Development Goals

Trails can also have an impact on attracting key talent and skilled workers for workforce development. Trails have been recognized as an important factor in the overall quality of life of a region and can make a difference in a person’s interest in taking a job in that community. It is not unusual for people living in places like Traverse City, Kalamazoo, Marquette, and other trail-rich communities to comment about the significant network of trails that allow them to enjoy a higher quality of life.

Trails as Transportation Routes

More and more regions are including trails, and expanded urban pathways in downtown areas, as a way of providing alternative methods of transportation to help reduce fuel costs and decarbonize lifestyles within the community. Several federal governmental programs specifically fund the development of trails as a transportation alternative (e.g., the Transportation Alternatives Program and Recreational Trails Program).

Some key benefits of using trails as transportation routes include:

• Physical activity and related reductions in healthcare costs
• Environmental benefits (less air and water pollution, etc.)
• Increased property values along routes
• Viable transportation routes for residents who do not have access to a car or public transportation

Economic Impact Studies

Several economic impact studies have been completed that help demonstrate the financial support that trails provide to Michigan’s communities.

2013 TART Trails Economic Impact Study

A 2013 TART trails economic impact study on the Vasa pathway in the Traverse City region concluded that the non-motorized pathway is a key economic driver for the region. The study found that the pathway is visited more than 55,000 times by at least 6,200 users each year. Those trail users each spend an average of about $3,700 per year on equipment, lodging, clothing, and other goods and services and provide more than $23.5 million in direct spending in the region annually (Smith and Tisdale 2014).

2016 Huron River Water Trail Economic Impact Assessment

A 2016 Huron River Water Trail economic impact assessment found that the Huron River (which is designated as a National Water Trail) “supports recreation, tourism, and business activities that generates substantial income for the local economy” (Isely et al 2017). Key findings in the study include that the river and the water trail generates about $53.5 million in annual economic activity, adds about 641 local jobs to the region and $628 million in increased property values of nearby properties, and draws about 2.6 million visitor days per year.

2018 Kent County Park System Economic Impact Study

Another economic impact study was conducted in 2018 by the Kent County Park system. In this study of forty-two parks and trails in Kent County, a key finding is that trails and parks play an important role in stimulating business and contributing to the West Michigan regional economy. The study also found that the approximately 1.4 million visitors (both local and non-local) who visit Kent County’s parks and trails spur about $33 million in economic activity per year and help support more than 317 jobs (Glupker et al 2019).

2019 Public Sector Consultants Study

In 2019, Public Sector Consultants (PSC) evaluated the user patterns and economic significance of trail systems in six communities in the country with to assess whether they were “best in class” trail systems and what lessons could be learned from these communities. These trail systems are located in Erie County, Pennsylvania, Midland County, Michigan, Fayette County, Pennsylvania, Northwest Arkansas, Grand Traverse County, Michigan, and Wright County, Minnesota. These trails all have well-developed systems and were selected for the study based on relevant criteria such as demographics, economics, and land use characteristics. The purpose of the study was to inform a development strategy proposed in St. Clair County, Michigan (PSC 2019).

The study included the following key findings:

• The most economically impactful trail systems are designed to cater to both residents and tourists.
• Key factors impacting the economic value of a trail include proximity and connectivity to community assets like business districts, cultural amenities, and unique natural features.
• Developing a brand and consistent wayfinding standards helps to yield significant dividends for trail systems.
• The establishment of a maintenance endowment that is capitalized during initial trail development is a good way of providing sustainable funding to maintain that quality trail system.

Conclusion

As has been mentioned in several points throughout the book, data collection and data analysis are an important and emerging need for trail planning in Michigan. Many economic studies have clearly demonstrated the economic benefits of trails, and further studies will likely continue to demonstrate the positive economic benefits that trails provide for a community (Lukoseviciute, Pereira, and Panagopoulos 2022). The growth of outdoor recreation in Michigan is highlighted by the continued rise and popularity of trails and their benefits for communities. Trails help increase property values, drive healthcare savings, enhance tourism activity, and spur community workforce development goals. A continued investment and focus on economic analyses is an important step that should be taken to continue to observe and evaluate these trends to provide trail managers and trail advocates with important and up-to-date information.

References

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