Economic Value of Outdoor Recreation Activities in Iowa
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Economic Value of Outdoor Recreation Activities in Iowa Daniel Otto, Kristin Tylka, and Susan Erickson Department of Economics Iowa State University Extension and Outreach Center for Agricultural and Rural Development College of Agriculture and Life Sciences Iowa State University Commissioned by the Nature Conservancy with support from the Doris Duke Charitable Foundation http://www.ddcf.org/ i Acknowledgements Daniel Otto is a professor in the Department of Economics at Iowa State University, Kristin Tylka is an undergraduate research assistant in the Department of Economics at Iowa State University and Susan Erickson is a program coordinator at Iowa State University. Numerous individuals assisted in the preparation of this report. The authors particularly appreciate the assistance received from Dennis Parker, Tom Hazelton and Mark Langgin, who in turn leveraged the support of many others for acquiring information in a timely manner. The authors also appreciate the professional editorial and production assistance from Sandra Oberbroeckling who helped make this document presentable. If you have questions or comments regarding this report, please contact: Daniel Otto E-mail: [email protected] Telephone: 515-294-6147 ii Table of Contents Executive Summary ....................................................................................................................1 Introduction ..................................................................................................................................3 How Iowa Compares with the US on Natural Resources and Outdoor Amenities .........................................................................3 Economic Impacts of Natural Resources and Outdoor Amenities in Iowa .............................4 State Parks ........................................................................................................................6 County Parks ...................................................................................................................8 City Parks ..........................................................................................................................9 Trails ...............................................................................................................................10 Lakes ...............................................................................................................................12 Rivers and Streams .......................................................................................................13 Soil Erosion Control Improvement Investments .......................................................................................................15 Health Benefits of Parks and other Green Spaces ..................................................................16 Potential Sales Tax Revenues to Support Natural Resources and Outdoor Recreation Trust Fund ........................................................19 Conclusion ..................................................................................................................................20 Appendix Tables .........................................................................................................................21 iii Executive Summary increased and applications for funds from the Iowa DNR’s Resource Enhancement and Protection While Iowa’s natural resource base is closely identified (REAP) program to assist local recreation projects with it’s highly productive agricultural base, outdoor continue to exceed funds available. Another examle recreation opportunities are also becoming a major is the recently completed 25-mile High Trestle part of the rural economy. With nearly 90% of Iowa’s Trail from Ankeny to Woodward is attracting more land base in privately owned farmland, much of Iowa’s than 91,000 users annually and is stimulating new outdoor recreation takes place alongside agricultural business formation. activities. Similar to agriculture production, utilizing the natural resource base for recreational purposes generates • Outdoor recreation spending is a big business in jobs and income benefits for the Iowa economy. Iowa. Spending estimates were made for recreation in state parks, county parks, lakes, rivers and As Iowa’s demographics become more urbanized, the streams, and multi-use trails. Expenditures on market for recreation opportunities in rural areas will travel to recreation sites and participation in grow. To meet this demand, there is a significant need recreation activities has resulted in more than $3 for additional public funding and support to improve billion of spending, which in turn helps support and expand outdoor recreational resources and facilities. approximately 31,000 jobs and $717 million of Although these enhancements will require additional income in the state. capital, they will also lead to more highly valued recreation activities, increased economic activity, and • Considerable attention is being paid and substantial improved quality of life for residents. effort has gone into improving water quality in the state. Iowans demonstrated their support for Accessing outdoor recreation opportunities and protecting Iowa waterways by a 63% vote in favor of improving the quality of the natural areas that support the Water and Land Legacy Amendment. However, recreation are important to Iowans. This report long-term monitoring at Iowa Water Quality Index documents continued increases in the utilization of sites has not shown significant improvement. In Iowa’s outdoor recreational resources since a benchmark FY 2011 Iowa Land Improvement Contractors study in 2007. Along with the increased use of recreation Association spent $8 million on projects, but more venues is a greater economic impact as Iowans spend capital is needed for wider gains. A 3/8-cent sales on equipment, travel, and supplies to enjoy Iowa’s parks, tax would generate an estimated $123.4 million in lakes, rivers, and trails. The growth in outdoor recreation revenue for the constitutionally protected Natural participation occurs alongside production agriculture Resources and Outdoor Recreation Trust Fund in many parts of Iowa. The co-existence of these two dedicated to supporting a range of natural resource major resource-based industries presents a challenge for enhancing projects including additional water successfully encouraging the growth of both industries quality improvement measures. in Iowa, while maintaining environmental integrity. • Studies have shown that recreational amenities The goal of this study is to develop a comprehensive and quality of life opportunities are important to profile of Iowa’s outdoor recreational resources, the attracting businesses and entrepreneurs. Expanding current levels of participation, and the economic impact and improving outdoor recreation opportunities is a associated with those outdoor recreation activities. win-win proposition for Iowa as increased access to In examining the magnitude and growth of outdoor recreation opportunities enhances residents’ quality recreation activities in Iowa, this report underscores of life and health, as well as furthers Iowa’s economic several major points: development goals. • Outdoor recreation opportunities are increasingly • Increased access to outdoor parks and recreation important to Iowans. Visitation rates at Iowa amenities can contribute to lower health care costs outdoor recreation facilities and parks have for Iowans by increasing participation in outdoor 1 physical activities. The cost of physical inactivity can be substantial. An East Carolina University study suggests that in Iowa, physical inactivity is costing the state about $4.6 billion annually in lost worker productivity, $866.3 million in higher health care costs and $10.6 million in higher workers compensation costs. Research has shown that expanding and improving parks, which will encourage increased outdoor recreational park- based physical activity, can reduce these health care costs. Prairie Bridges Park Camping Area, Ackley, Iowa 2 Introduction • Estimate the economic impacts in terms of jobs and income associated with spending on outdoor While Iowa’s natural resource base is closely identified recreation in Iowa, with its highly productive agricultural base, outdoor recreation opportunities are also becoming a major • Estimate economic impacts associated with part of the rural economy. With nearly 90% of Iowa’s expenditures in Iowa on soil erosion control and land base in privately owned farmland, much of Iowa’s water quality improvement measures, outdoor recreation takes place alongside agricultural • Estimate the potential health benefits of increasing activities. Similar to agriculture production, utilizing the physical activity through increased access to natural resource base for recreational purposes generates outdoor recreation in Iowa, and jobs and income benefits for the Iowa economy. A 2007 study of outdoor recreation in Iowa estimated $2.63 • Estimate the potential sales tax revenues for a billon of spending supporting 27,400 jobs and $580 dedicated fund for natural resource improvements 1 million of personal income. per county that would be generated by a 3/8-cent sales tax. As Iowa’s demographics become more urbanized, the market for recreation opportunities in rural areas will grow. To meet this demand, the state will need to How Iowa Compares with the US on improve and expand outdoor recreational resources and Natural Resources and Outdoor Amenities facilities.