COVID-19

2019 was a good year for the outdoor economy. What about 2020?

Samantha Fields Nov 13, 2020
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Kayakers paddle their way along Barton Creek in Austin, Texas, in May. The outdoor economy made up just over 2% of GDP in 2019. Tom Pennington/Getty Images
COVID-19

2019 was a good year for the outdoor economy. What about 2020?

Samantha Fields Nov 13, 2020
Heard on:
Kayakers paddle their way along Barton Creek in Austin, Texas, in May. The outdoor economy made up just over 2% of GDP in 2019. Tom Pennington/Getty Images
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Dale Davis has never seen as many people riding bicycles as he has during the pandemic. 

“The trails are packed,” said Davis, who lives in Farmington, New Mexico. “I’ve never seen so many people out on the trails. I’ve never seen so many people riding down the street.”

A lot of them are riding bikes they bought at his shop, 505 Cycles. As soon as COVID-19 hit, overnight, sales went through the roof. 

“It was one of the craziest things I’ve ever seen,” he said. “When it happened, I thought it would be short lived, but it wasn’t. It just hasn’t stopped.”

Everyone wanted a bike — and not just in Farmington. Across the country, businesses that sell all kinds of outdoor gear, from bikes to kayaks to paddleboards to hiking gear, have been doing well during the pandemic. 

“The demand for getting outside, whether it is in a neighborhood park or a national park, has been huge,” said Lise Aangeenbrug, executive director of the Outdoor Industry Association. “It’s one of the few things you can do socially distanced.”

The 505 Cycles crew in Angel Fire, New Mexico.
Demand for bikes “just hasn’t stopped,” says Dale Davis of 505 Cycles in New Mexico. Above, the 505 Cycles crew in Angel Fire. (Photo courtesy Davis)

The outdoor recreation economy — which includes hiking and biking, hunting, RVs, outdoor festivals and more — is sizable in the United States. In 2019, it made up just over 2% of the country’s gross domestic product, according to the Bureau of Economic Analysis

“That puts it about at the same size as the broadcasting and telecommunications sector,” said Dirk van Duym, a research economist at BEA. “And it’s significantly bigger than mining.”

It’s also grown every year since 2017, when the BEA first started to track its impact on the economy. 

But even though the pandemic has pushed many people outside in search of safe, socially distanced adventure, the outdoor recreation economy has been hit hard, particularly those businesses that rely on bringing groups of people together. 

In New Mexico, where the outdoor recreation economy has been growing particularly fast, more than 90% of businesses have lost revenue during the pandemic, according to Axie Navas, director of the state’s Outdoor Recreation Division. 

“Fly fishing outfitters, hunting outfitters, guides, people who are getting people up into the most beautiful areas of New Mexico, working as they are in a segment of the outdoor industry that is hospitality focused, it’s been really hard for them,” she said. 

Navas is optimistic, though, that the outdoor economy will not only bounce back but continue to grow in the coming months and years. 

“We know that the outdoor industry is a powerful force in the state,” she said. “And it has the potential to continue to help us diversify the economy.” 

While 2020 may not end up being another year of growth for the outdoor recreation economy, Aangeenbrug of the Outdoor Industry Association expects that ultimately, there will be an unexpected silver lining to the pandemic. 

“Because more people are getting outside, I think they’re recognizing the health and wellness benefits, particularly for your mental health,” she said. 

Long term, she expects that will end up bringing more business to the outdoor economy.

COVID-19 Economy FAQs

Can businesses deny you entry if you don’t have a vaccine passport?

As more Americans get vaccinated against COVID-19 and the economy begins reopening, some businesses are requiring proof of vaccination to enter their premises. The concept of a vaccine passport has raised ethical questions about data privacy and potential discrimination against the unvaccinated. However, legal experts say businesses have the right to deny entrance to those who can’t show proof.

Give me a snapshot of the labor market in the U.S.

U.S. job openings in February increased more than expected, according to the Labor Department. Also, the economy added over 900,000 jobs in March. For all of the good jobs news recently, there are still nearly 10 million people who are out of work, and more than 4 million of them have been unemployed for six months or longer. “So we still have a very long way to go until we get a full recovery,” said Elise Gould with the Economic Policy Institute. She said the industries that have the furthest to go are the ones you’d expect: “leisure and hospitality, accommodations, food services, restaurants” and the public sector, especially in education.

What do I need to know about tax season this year?

Glad you asked! We have a whole separate FAQ section on that. Some quick hits: The deadline has been extended from April 15 to May 17 for individuals. Also, millions of people received unemployment benefits in 2020 — up to $10,200 of which will now be tax-free for those with an adjusted gross income of less than $150,000. And, for those who filed before the American Rescue Plan passed, simply put, you do not need to file an amended return at the moment. Find answers to the rest of your questions here.

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