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 by Kevin Jack, Deputy Director
“There’s nothing quite like the feeling of stepping outside and breaking free from the modern world.”
Baratunde Thurston, “America Outdoors,” PBS
Outdoor recreation is big business in New York State. Getting outside has become an increasingly important part of our social and economic fabric in recent years, especially during and after the COVID-19 pandemic.
New York is home to thousands of outdoor recreation sites where one can hike, camp, bike, picnic, rollerblade, attend outdoor festivals, fish, snowmobile and much more. The state is home to both the Adirondack Park — which at about 6 million acres is the largest publicly protected area in the lower 48 states — and the Catskill Park, which encompasses over 700,000 acres of wilderness. With more than 2,000 miles of hiking and biking trails, New York State is a nature lover’s paradise.
As a result, people spend billions of dollars each year to enjoy the state’s outdoor venues. This spending makes an important contribution to New York State’s broader travel and tourism economy, whose total economic impact in 2022 was $123 billion, per Empire State Development data. In addition, attendance at state-operated parks, historic sites, campgrounds and trails grew to a record 79.5 million visits in 2022, an increase of more than one million over the prior year. In this article, we examine the various dimensions of outdoor recreation and its overall economic contribution to New York State.
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Statewide Economic Impact
The U.S. Bureau of Economic Analysis (BEA) uses a statistical protocol called the “Outdoor Recreation Satellite Account” (ORSA) to measure both the economic activity generated by outdoor recreational activities and the link between outdoor recreation and the broader economy. The ORSA allows BEA to separately identify economic activity associated with outdoor recreation. It offers a detailed view of outdoor recreation activities and industries that you cannot derive from traditional economic statistics.
The outdoor recreation economy generated just under $454 billion in economic activity in the nation in 2021, or 1.9% of U.S. gross domestic product (GDP). The comparable figure for New York State was nearly $25.5 billion, which was the 4th largest in the nation, trailing only California, Florida and Texas. The value of New York’s outdoor recreation economy increased by 23.4% between 2020 and 2021.
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New York’s outdoor recreation economy accounted for 1.3% of state GDP in 2021, which tied with Connecticut for the smallest percentage share of any state in the nation. In contrast, the three states where outdoor recreation accounted for the greatest share of state GDP were Hawaii (4.8%), Montana (4.4%) and Vermont (4.1%). The sheer size of New York’s outdoor recreation economy, however, suggests that its relatively low share of state GDP is more related to the immense size and diversity of the state’s overall economy than to the outdoor recreation economy being small.
Spending on Outdoor Recreation
BEA analysts divide up spending on outdoor recreation activities into several broad categories. In the $7.6 billion “conventional activities” category we find some of the largest outdoor pursuits. Their contribution to New York’s state GDP in 2021 includes boating/fishing ($1.1 billion), RVing ($663 million) and snow activities ($147 million).
The $5.0 billion “other” category covers activities that fall outside of the “conventional” definition. Activities in this category include festivals/sporting events/concerts ($1.6 billion), game areas like tennis and golf ($879 million) and amusement parks/water parks ($291 million).
The $11.3 billion “support” category largely reflects money spent on trips and travel in New York that involved outdoor recreation. For example, spending on items like gasoline and lodging to go cross-country skiing would be counted in this category. This is the largest single spending category in the entire state outdoor rec economy.
The final category used to calculate outdoor recreation’s contribution to state GDP is government expenditures on national and state parks. In 2021, spending in this category totaled $1.5 billion in New York State.
Outdoor Recreation Jobs
BEA statistics show that in 2021 more than 248,400 jobs in our state were directly related to outdoor recreation, a jump of 11% over 2020 levels. A statistical analysis found that the size of a state’s overall economy and its number of outdoor recreation jobs were very closely tied together.
Of the more than 248,400 outdoor recreation jobs in New York in 2021, around 93% were private sector positions. The three industries with the most employment due to outdoor recreation were retail trade (85,900), accommodation and food services (52,100) and arts, entertainment, and recreation (42,000). The BEA data indicate that workers in New York State’s outdoor rec sector received almost $14.4 billion in total wages in 2021. Private sector employers paid 83% of this money.
Local Economic Impact
Outdoor recreation activities can have significant impacts on local economies. One good example is the Tug Hill region in northern New York, which receives snowfall totals averaging more than 200 inches per year. It is home to an extensive set of snowmobile trails that attract thousands of snowmobilers to the area annually.
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The Center for Community Studies at Jefferson Community College and Saratoga-based consulting firm Camoin Associates conducted an economic impact study of snowmobiling in the area. Released in 2021, the study found that more than 34,000 unique snowmobilers used the Tug Hill’s trails each year, including 17,800 from outside the area, who spent a combined total of more than 347,000 days in the region and an average of $192 per day.
The consultants also determined spending by snowmobilers in the Tug Hill region supported a total of 866 jobs, nearly $29 million in wages and more than $81 million in sales across the region. In addition, snowmobilers generated more than $2.2 million in annual total tax revenue for the four counties — Jefferson, Lewis, Oneida and Oswego — that comprise the Tug Hill region.
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Depending on the time of the year, certain outdoor recreation activities, such as birding, occur in both very urban and very rural areas. For example, the Audubon Society’s “New York Birding Hotspots” lists two sites — Central Park and Jamaica Bay Wildlife Refuge — in New York City as well as a number of locations upstate, such as Niagara Falls, Montezuma National Wildlife Refuge, Derby Hill Bird Observatory and Adirondack Park. The State Department of Environmental Conservation helped boost the industry when it established the New York State Birding Trail, which is a network of more than 320 locations across the state that provide high-quality birding opportunities. With a wide array of habitats and birds, New York State has plenty to offer.
Birders spend money on their hobby. A study from the National Institutes of Health (NIH) concluded the growth and popularity of birding provided a new revenue source to rural communities near birding destinations. The NIH researchers also found spending related to wildlife viewing in the U.S. increased 29% between 2011 and 2018, with 45 million birders in the U.S. spending $39 billion on travel and equipment to observe birds in 2016.
Summing Up
New York State has a lot to offer when it comes to outdoor recreation. Moreover, outdoor recreation is an important economic engine that generated more than $25 billion in GDP in New York in 2021 and supported a quarter million jobs in communities across the Empire State. So, the next time you decide to go enjoy the great outdoors, remember that the air is free but everything else has a price tag. You are part of a large and growing economic phenomenon.
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  by Kurt Meichtry, Economist, Finger Lakes Region
“The craft beverage cluster in the Finger Lakes has enjoyed strong job growth in recent years."
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The Finger Lakes’ regional labor market continues to rebound from the negative effects of 2020’s global COVID-19 pandemic. From 2021 to 2022, the region’s annual average private sector job count grew by over 15,000, or 3.3%, to 479,300, per data from the Current Employment Statistics survey. This marked the region’s largest year-over-year employment gain on records dating back to 1990.
Among the many factors driving the economic recovery in the Finger Lakes region has been the recent emergence of “craft beverage industries,” which includes wineries, breweries and distilleries. These producers, in turn, comprise the broader craft beverage cluster (CBC), which is a geographic concentration of inter-connected industries. Industries in the CBC are connected through both “backward linkages” (the production and supply of raw materials such as grapes, barley, and hops) and “forward linkages” (distribution and sale of finished products). The key aspect of industry clusters is that they are export oriented, selling their services and products to customers from outside their home market and generating economic growth and jobs in the regional economy.
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Economic Driver
In 2017-22, combined employment at craft beverage producers plus vineyards in the region grew by over 500, or 22%, per figures from Lightcast, a data analytics firm. Notably, the number of breweries in the Finger Lakes nearly doubled, increasing from 27 to 50 over this timeframe. The region’s CBC contributed over $108 million in wages in 2022. On average, distilleries and breweries offer wages of about $48,000 annually, while wineries and vineyards, which employ many seasonal workers, provide around $28,000 annually.
The region’s concentration of craft beverage jobs was about 3.7 times higher than the U.S. average, which indicates that the Finger Lakes’ CBC is export oriented. In addition, an industry cluster with an above-average employment concentration suggests that it has a competitive advantage and is well positioned to compete with other regions.
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Employment growth in the CBC also has considerable ripple effects that spread throughout the labor market. Lightcast data show that the region’s CBC has an employment multiplier of 2.9. In other words, for every 100 direct jobs added in the cluster, an additional 190 spin-off jobs are created in industries across the region. Further highlighting the CBC’s importance to the region, these industries are, as part of the broader agribusiness sector, recognized as priority industries by the Finger Lakes Regional Economic Development Council.
Craft Beverages + Tourism
One key aspect of the rapid growth in craft beverage production is its synergy with the region’s tourism sector, which received $2.1 billion in visitor spending and supported almost 29,400 jobs in 2022. Each year, thousands of tourists flock to the Finger Lakes to visit the region’s craft beverage producers. In addition to directly boosting the regional economy through expenditures on direct purchases and tastings, these visitors patronize local eateries, shops and lodgings.
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According to the Finger Lakes Wine Alliance, the local grape and wine industries produce an impressive 54,600 tons of grapes annually, with the region's 11,000 acres of wineries and vineyards accounting for 90% of the state's wine production. The deep lakes, including Canandaigua and Seneca, provide a unique microclimate conducive to grape cultivation, particularly for the cool-climate grape, Riesling. These elements cement the region’s position as the largest and most celebrated winemaking area in the Eastern U.S. To underscore this point, the Finger Lakes region was recently ranked as the nation’s fourth-best wine region in a readers’ survey conducted by USA Today.
The Finger Lakes region is also home to Canandaigua-based Constellation Brands, the third largest wine company in the world. Constellation sells more than 75 million cases of wine each year. Moreover, Constellation markets and distributes many of the leading imported and craft beers in the U.S., including Modelo Especial, which became the top-selling beer on a dollar basis in the U.S. earlier this year.
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Looking Ahead
The craft beverage cluster in the Finger Lakes has enjoyed strong job growth in recent years. This trend is expected to continue as Lightcast's projections anticipate more than 300 new jobs at the region’s wineries, breweries and distilleries between 2022 and 2027. This translates into a growth rate of over 13%, outpacing the region’s expected 7.6% overall rate of job growth.
Adding to this momentum, a new partnership announced in July 2023 allows New York wines to be sold in Puerto Rico. This initiative, involving the state’s Office of Trade and Tourism, Puerto Rico-based distributor Serrallés Imports and Hammondsport-based Dr. Konstantin Frank Winery, marks the first entry of New York wines into Puerto Rico.
Growth in the region’s craft beverage industries fosters a positive feedback loop of job creation and economic expansion. Beyond direct employment, they play a dynamic role in agribusiness and tourism. With initiatives like the Finger Lakes Community College’s Viticulture and Wine Technology Facility, the region’s commitment to these industries is clear. Going forward, these industries will continue to play an important role in driving prosperity and will help ensure a robust and sustainable economic future for the Finger Lakes region.
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 At a Glance
In July 2023, New York State’s seasonally adjusted private sector job count increased over the month by 6,300, or 0.1%, to 8,247,200. In addition, the state’s seasonally adjusted unemployment rate held steady at 3.9% in July, while New York’s seasonally adjusted labor force participation rate rose from 61.2% to 61.4%.
Capital
Over the past year, the private sector job count in the Capital Region rose by 7,500, or 1.7%, to 447,300 in July 2023. Job gains were largest in education and health services (+5,300), leisure and hospitality (+3,200) and professional and business services (+800). Losses were greatest in trade, transportation and utilities (-800), natural resources, mining and construction (-500) and manufacturing (-300).
Central NY
The number of private sector jobs in the Syracuse metro area increased over the past year by 3,500, or 1.4%, to 260,500 in July 2023. Employment gains were greatest in professional and business services (+2,600), leisure and hospitality (+1,400) and other services (+300). Job losses were focused in manufacturing (-600), education and health services (-200) and information (-200).
Finger Lakes
From July 2022 to July 2023, the private sector job count in the Rochester metro area rose by 3,300, or 0.7%, to 452,200. Gains were largest in education and health services (+4,700), trade, transportation and utilities (+1,000), other services (+700) and manufacturing (+500). The largest losses were in professional and business services (-2,000), information (-500), leisure and hospitality (-500) and natural resources, mining and construction (-500).
Hudson Valley
Over the past year, the number of private sector jobs in the Hudson Valley grew by 7,300, or 0.9%, to 816,100 in July 2023. The largest gains were in education and health services (+9,200), leisure and hospitality (+4,700) and other services (+2,500). The greatest losses occurred in professional and business services (-5,900), financial activities (-1,400), information (-600) and manufacturing (-600).
Long Island
For the year ending July 2023, private sector jobs on Long Island increased by 2,700, or 0.2%, to 1,162,100. Gains were largest in professional and business services (+4,800), leisure and hospitality (+3,800), other services (+2,000) and manufacturing (+1,400). Losses were centered in trade, transportation and utilities (-6,500), natural resources, mining and construction (-2,300) and financial activities (-700).
Mohawk Valley
For the 12-month period ending July 2023, the number of private sector jobs in the Mohawk Valley region fell by 1,100, or 0.8%, to 141,800. Over-the-year employment gains occurred in education and health services (+200) and leisure and hospitality (+200). Job losses were greatest in trade, transportation and utilities (-500), professional and business services (-400) and manufacturing (-300).
New York City
The private sector job count in New York City rose over the past year by 128,300, or 3.2%, to 4,103,800 in July 2023. Gains were greatest in education and health services (+98,300), leisure and hospitality (+33,400), natural resources, mining and construction (+13,400), professional and business services (+6,300) and financial activities (+5,800). Job losses were greatest in information (-23,600) and trade, transportation and utilities (-8,700).
North Country
From July 2022 to July 2023, the number of private sector jobs in the North Country region declined by 900, or 0.8%, to 110,100. Over-the-year employment losses were largest in trade, transportation and utilities (-400), financial activities (-200) and other services (-200).
Southern Tier
For the 12-month period ending July 2023, the private sector job count in the Southern Tier region rose by 2,000, or 0.9%, to 217,400. Gains occurred in education and health services (+2,600), leisure and hospitality (+1,200) and other services (+200). Losses were largest in natural resources, mining and construction (-500), professional and business services (-500) and manufacturing (-400).
Western NY
The 12 month private sector job count in the Buffalo-Niagara Falls metro area rose by 12,600, or 2.7%, to 471,200 in July 2023. Job gains occurred in leisure and hospitality (+6,500), professional and business services (+3,900), education and health services (+3,100), manufacturing (+1,500) and other services (+1,200). Losses were greatest in trade, transportation and utilities (-1,900), financial activities (-800) and natural resources, mining and construction (-600).
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