BREAKING DOWN ARIZONA’s OUTDOOR RECREATION INDUSTRY

Unveiling Arizona's Thriving Outdoor Recreation Industry:
Our State’s Local Businesses and Public Lands Offer a Clear Pathway to Economic Prosperity

Arizona's picturesque landscapes, spanning from the awe-inspiring Grand Canyon to the serene Sonoran Desert, are not just natural wonders but are a thriving hub for outdoor enthusiasts. Behind this natural beauty lies a robust outdoor recreation industry that significantly bolsters the state's economy. So what’s behind the booming industry? A whole lot of small, local businesses.

Let’s dive in:

WHAT SECTORS ACTUALLY MAKE UP ARIZONA’S OUTDOOR RECREATION INDUSTRY?

Arizona’s outdoor recreation industry is made up of a variety of activities, as you can see in the graphic. Based on the latest Bureau of Economic Analysis, the top 5 outdoor recreation sectors (based on economic impact) in Arizona are:

  • RVing

  • Boating/Fishing

  • Hunting/Shooting/Trapping

  • Motorcycling/ATVing

  • Equestrian


However, that’s not all. You’ll see the GO AZ member list is made up of businesses that are both in the categories above and outside of them. That’s because Arizona’s outdoor recreation directly contributes to several important complementary industries in Arizona, amplifying its impact and bolstering other industries. Examples of those complimentary industries include:

1. Hospitality and Tourism

  • Economic Contribution: Accommodation providers, restaurants, and tour operators thrive due to the influx of outdoor enthusiasts. Outdoor recreation contributes significantly to Arizona's $28.1 billion tourism sector. (Arizona Office of Tourism)

2. Retail and Gear Manufacturing

  • Economic Significance: The demand for outdoor gear and equipment helps support Arizona’s robust retail and manufacturing industries, contributing around $5.7 billion annually to Arizona's economy.

3. Transportation

Economic Impact: Airlines, rental car companies, and transportation services benefit from visitors traveling to and within the state to access outdoor destinations. This contributes over $4.2 billion to Arizona's economy. (Arizona Office of Tourism)

Want to dig into the data or see how various pieces break down? Check out these interactive charts:

View the value added to GDP by outdoor recreation economic activity, with the default set to look at Arizona for the most recent available data (2022), broken down by category of recreation activity including: Conventional Outdoor Recreation (biking fishing, camping, etc.), Other Outdoor Recreation (sporting events, festivals, beachgoing, etc.), or Supporting Outdoor Recreation (lodging, shopping, transportation, etc.).

View the outdoor recreation value added to GDP, employment, and total compensation to those employees, with the default set to look at Arizona for the most recent available data (2022), broken down by industry:

View the selected metric of outdoor recreation economic activity across time for the selected activities and states. Compare states to themselves over time for a given metric-activity combination, compare activities within the same state, and compare states to other states for the same activity. Metrics include value added in dollars and value added as a share of state GDP. Arizona outdoor recreation business owners can use these data to better understand the economic size of the activities they support as well as their own market share. 

View the chart below for the metric of outdoor recreation economic activity across time for selected industries and states. Compare Arizona to other states for a variety of value added, employment, and compensation metrics.

For example; the metric of the average compensation relative to the average of all jobs in the state indicates whether an outdoor recreation job in a given industry pays more or less than the average of all jobs in that given state. Values over 100% indicate that the outdoor recreation jobs in that industry tend to pay more than the state average.

Investing in Arizona's public lands isn't merely a matter of preserving natural beauty; it's an investment in economic growth:

  • Boosting Tourism: Improved public lands attract more visitors, leading to extended stays and increased spending in local communities.

  • Sustainable Employment: Protecting these lands ensures continuity in jobs related to outdoor recreation, retail, hospitality, and more.

  • Economic Diversification: The outdoor recreation industry adds resilience to the state's economy by diversifying revenue streams beyond traditional sectors.

Arizona's public lands are not just the playgrounds of nature enthusiasts; they are economic engines driving job creation, revenue generation, and a higher quality of life for residents. Investing in these lands secures a prosperous future for Arizona, ensuring its natural treasures continue to contribute significantly to the state's economic fabric.

Investing in Arizona's public lands not only preserves the state's natural beauty but also drives economic growth and stability, fostering job creation and revenue generation across various sectors.