Montana’s Outdoor Recreation Sector Grew 18% in 2021

The importance of Montana’s outdoor recreation industry received black-and-white validation as a cornerstone of the state’s economy in 2021, according to an impact report released by the U.S. Bureau of Economic Analysis (BEA) last week. Outdoor recreation accounted for 4.4% of Montana’s gross domestic product (GDP) last year, up .1% from 2020 and the second highest percentage of any state, behind only Hawaii at 4.8%.

Montana is also among the states with the highest percentage of workers employed in the industry, 5.4%, accounting for 27,584 jobs. Hawaii again led that category with 7.1% of the workforce in the sector, followed by Alaska with 5.6%. Montana and Wyoming tied for fourth. Montana added 1,584 outdoor recreation jobs in 2021.

Given the outsized impact of the multi-year pandemic on the outdoor industry — the U.S. Census Bureau ranked it as the second most affected industry behind the food and accommodations sector — the 2021 BEA report shows a remarkable rebound from the year before, even as the pandemic continued to affect business operations and public land use. 

Montana’s $2.6 billion outdoor recreation industry exceeded its 2019 figure, while the national figure of $453.9 billion was just $6 billion shy of 2019 and signaled an 18.9% increase from 2020.

This was the fifth release of the BEA’s impact study of the outdoor recreation industry following the Outdoor Recreation Jobs and Economic Impact Act, signed into law by President Barack Obama in 2016, which broadened the federal government’s analysis.

“This data has been a powerful advocacy tool at both the state and national levels, making it easier for policymakers to understand the economic impact of the outdoor recreation industry across the nation and in their own districts and state,” Hannah Wintucky, a Government Affairs Policy Fellow with the Outdoor Industry Association, said in a press release. “These numbers help us communicate our compelling and credible economic story.”

The Outdoor Industry Association, a nonprofit that promotesoutdoor access in the U.S., reports that the number of outdoor participants has increased 26% since the beginning of the pandemic in 2020.

Within the recreation industry, the report classifies activities under three general categories: conventional activities (including activities such as bicycling, boating, hiking and hunting); other core activities (such as gardening and outdoor concerts); and supporting activities (such as construction, travel and tourism, local trips and government expenditures).  

Across conventional activities the following metrics stood out in 2021:

Boating/fishing remained the largest conventional activity for the nation at $27.3 billion in current-dollar value added and was the largest conventional activity in 27 states and the District of Columbia. Montana saw a decrease in boating and fishing of more than 10%, but the activity still leads the state with $163.1 million.

RVing was the second largest conventional activity nationally at $25.1 billion in current-dollar value added, and claimed the same ranking in Montana, where it contributed $160.4 million, a 14.5% year-over-year increase. This was the largest conventional activity in 15 states.

Hunting/shooting/trapping was the third-largest conventional activity for the nation at $10.8 billion in current-dollar value added, and in Montana where its $85 million contribution to the sector was a 17.3% increase from 2020.

Snow activities for Montana brought in $54.7 million, ranking the state 19th in the nation for overall value added. The largest contributors were Colorado ($1.3 billion), Utah ($519.4 million) and California ($505.7 million).