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The Economics of Protecting Public Lands

December 5, 2011 By Tom Sadler 3 Comments

Yellowstone National Park

The economic importance of outdoor recreation is a common theme of mine. I believe in it personally and benefit from it professionally. I am a strong proponent of the equation: Habitat equals opportunity which translates into economic activity. For many years the challenge had been to validate the equation.

There are an increasing number of reports showing that equation has increasing merit. Last week Headwaters Economics presented another example.

More than 100 economists and academics sent a letter to President Obama, Senate Majority Leader Reid and House Speaker Boehner, highlighting scientific research showing the positive economic impact protected lands such as Wilderness, National Parks, or National Monuments have for local communities.

The rivers, lakes, canyons, and mountains found on public lands serve as a unique and compelling backdrop that has helped to transform the western economy from a dependence on resource extractive industries to growth from in-migration, tourism, and modern economy sectors such as finance, engineering, software development, insurance, and health care.

Underpinning this letter is peer-reviewed literature.

How western communities and counties can benefit from nearby federal lands has been an issue for local leaders, officials, businesses, and others for generations. This document summarizes a variety of scientific research on the economic impact of protected lands such as Wilderness, National Parks, or National Monuments to nearby communities, especially in the West.

There is a large body of peer-reviewed literature that examines the relationship between land conservation, and local and regional economic well-being. Because of the number of different county types in the West, let alone the entire United States, sweeping declarations about the economic performance of all counties in a region should be scrutinized carefully. It is not surprising that the impact of protected lands such as Wilderness or National Parks is measurable in some places (e.g., isolated rural areas and those rural areas more connected to larger markets and population centers via air travel) but not in others (e.g., metro areas; imagine trying to document the effect of the Sierra Estrella Wilderness to Phoenix’s economy).

What the Research Shows:

Protected public lands can and do play an important role in stimulating economic growth — especially when combined with access to markets and an educated workforce — and are associated with some of the fastest growing communities in the West (Rasker 2006).

Wilderness designation enhances nearby private property value (Phillips 2004).

Wilderness is associated with rapid population, income, and employment growth relative to non-Wilderness counties. Services jobs are increasingly mobile, and many entrepreneurs locate their businesses in areas with a high quality of life (Lorah and Southwick 2003).

Conserving lands, which creates a new visibility for them through protective designations, also helps safeguard and highlight the amenities that attract people and businesses (McGranahan 1999).

Public lands conservation is associated with more robust population growth (Lewis, Hunt and Plantinga 2002).

Another study found that while Wilderness recreation benefits to local communities are modest, the presence of Wilderness appears to draw residents and new economic activity, and has a substantial positive impact on local economies (Rudzitis and Johnson 2000).

A study of 250 non-metro counties in the Rocky Mountains found no evidence of job losses associated with Wilderness and no evidence that counties more dependent on logging, mining, and oil and gas suffered job losses as a result of Wilderness designation (DuffyDeno 1998).

Outdoor recreation is important to western economies. In New Mexico, the Outdoor Industry Foundation (OIF) reports that active outdoor recreation contributes $3.8 billion annually to the state’s economy, supporting 43,000 jobs. Nationally, OIF estimates an economic impact of $730 billion from active outdoor recreation (bicycling, camping, fishing, hunting, paddling, snow sports, wildlife viewing, and trail-running, hiking, climbing), supporting 6.5 million jobs (Outdoor Industry Foundation 2006).

For many seniors and soon-to-be retirees, protected public lands and recreation provide important aspects of a high quality of life. Non-labor sources of income already represent more than a third of all personal income in the West and will grow as the Baby Boomer generation retires (Frey 2006).

Protected natural amenities—such as pristine scenery and wildlife—help sustain property values and attract new investment (Deller and Tsai 2001).

These examples are not conjecture. This is peer-reviewed research. Just take a look at the Annotated Bibliography: Economic Value of Public Lands and Protected Public Lands that have Appeared in the Peer-Reviewed Academic Literature.

Headwaters Economic has additional information and resources on their website, Economists Urge President Obama to Protect Federal Public Lands.

Jobs, Public Lands and the Recreation Economy

November 2, 2011 By Tom Sadler 9 Comments

A big job producer!

Yesterday I had the pleasure of being on a panel in Washington, DC briefing congressional staff and the press on the importance of the recreational economy.

I spoke about the Habitat = Opportunity = Economic activity equation and how investment in conservation had been validated by the Wildlife and Sport Fish Restoration Program for more than 50 years.

Here are my remarks:

Just a bit about me. I am a professional fly-fishing guide and instructor specializing in the Japanese inspired style of fly-fishing known as tenkara.

I am also a PR and government relations consultant and former lobbyist.

Most importantly I am part of the $730 billion recreational economy both professionally as a guide and personally as someone who hunts, fishes, hikes and bikes on our public lands.

I also have the privilege to be a board member of the American Fly Fishing Trade Association and pleased to represent them here today.

AFFTA is the sole trade organization for the fly-fishing industry, working to promote the industry’s sustained growth. AFFTA represents more than 300 small businesses in more than 42 states including: Manufacturers, retailers, guides, outfitters and media.

For the fly-fishing industry conservation is a straight-line equation: Habitat = Opportunity = Economic activity.

What that means is healthy fish and wildlife habitat is what creates the recreational venues for our customers. Those venues are where our customers go to fly-fish. Those fly-fishers create jobs for the industry and a lot of collateral business as well.

That is why we are asking the Administration for more public land designations like Ft. Monroe, more protections like the mining withdrawal at the Grand Canyon and for Congress to support funding for conservation programs at levels that doesn’t choke off the economic activity of the recreational sector.

Let’s talk numbers:

From National Fish and Wildlife Foundation/Southwich report The Economics Associated with Outdoor Recreation, Natural Resources Conservation and Historic Preservation in the United States we know outdoor recreation has a significant impact on our economy. Those contributions come from both direct and ripple effects throughout the economy.

In 2006, the Outdoor Foundation put the total economic activity from outdoor recreation at $730 billion a year. Included in that total is $46 billion in gear retail sales, $243 billion in trip related sales and nearly $88 billion in federal and state taxes. That economic activity created 6.4 million jobs.

The $289 billion in sales of gear and trips combined are greater than annual returns from pharmaceutical and medicine manufacturing at $162 billion; legal services at $253 billion; and power generation and supply at $283 billion.

Let’s look at fishing, according to that report;

Number of Participants: 32.9 million

Jobs Supported: 587,000

Gear Related Sales: $6.4 billion

Trip Related Sales: $16.2 billion

Fed and State Taxes generated: $4.1 billion

Total Economic contribution: $61.54 billion

When it comes to fly-fishing, according to the Recreational Boating and Fishing Foundation there were 5.5 million fly-fishers in the U.S. in 2010.

In 2010, fly-fishers took 91 million trips either close to home or overnight. They went fly-fishing 16 times on average. More than 25% go fly-fishing between once a month and once a week. 15% tried the sport for the first time in 2010.

That is obviously good news. New enthusiasts coming into the sport is good for business and also good for conservation.

From Southwick and Associates we have learned that sales of fly-fishing gear continue to grow. 59% of anglers surveyed said they bought fly fishing tackle in 2010. An increase of 4% over 2009.

Trout fishing remains the most targeted fish with 66% of dedicated fly fisherman target trout.

In the past year, nearly 40% of anglers traveled out of state to fish. Of those who traveled out of state; 35% took at least one trip out of state, 24% took two,10% took three and 31% said they traveled out of state to fish four or more times in the past year.

“Many of these trips require the purchase of gas, meals, hotels, guide or charter boat services and tackle, all of which go to strengthen local economies” said Rob Southwick, president of Southwick Associates,

Fishermen pay an excise tax on the gear they purchase. Those funds go into the Sport-Fish Restoration Account also know as the Dingell-Johnson, Wallop-Breaux accounts.

Since 1941, businesses in the sport-fishing industry have paid a federal excise on the products that they manufacture.

In 1950 sportsmen and businesses worked with Congress to redirect these existing excise taxes to the Sport-Fish Restoration Program.

The idea was simple. By investing in improvements to sport-fish habitat and public access, more people would fish and sales of gear that generated the tax would increase.

This has been a enormously successful partnership between the fishing industry, anglers, state and federal fisheries agencies. The funds go to state fish and game departments. They have used those funds to help restore fish populations and to increased fishing opportunities

Today, there are at least 77% more anglers then there were in 1950. Purchases of tax-related items by anglers have increased almost 200% in constant dollars since 1955.

This is a sterling example of how reliable conservation funding has fueled economic growth. At the same time, the nation as a whole enjoys from the collateral benefits of conserving our public lands; such as clean air and water and place to enjoy healthy exercise and spiritual renewal.

Why is all this important? It’s simple.

Without continuing to invest in programs to conserve, maintain and create these recreational venues we put this economic activity and those jobs at risk.

Here are the “take aways”:

Healthy habitat creates recreational venues, much of it is public land

Those venues provides sustainable, long term economic activity

We must protect what we have like the Grand Canyon

We must add more where we can like at Ft. Monroe

Without strong leadership the Habitat = Opportunity = Economic activity equation is doomed to second rate status

Lost venues means lost economic activity

Lost economic activity threatens funding that supports state fish and wildlife programs.

For too long outdoor recreation has been relegated to second class status and seen as nothing more than a bunch of hobbyists.

The facts show a different picture.

Outdoor recreation deserves recognition for the economic contribution it makes to our country.

A contribution built on investing in conservation programs and funding. Conservation and outdoor recreation deserve well-funded support from Congress.

Thank you.

Report Validates Conservation Economics

October 21, 2011 By Tom Sadler 2 Comments

contributing to the economy

The Theodore Roosevelt Conservation Partnership, Field and Stream and Angling Trade are all talking about a recently released report with important information about the positive impact conservation, outdoor recreation, and historic preservation has on the national economy. Take a look at these stories and download the report here.

From TRCP’s Sportsmen-conservationists help provide $1 trillion boost to economy:

“A new study finds that growing the U.S. economy is as easy as fishing your favorite stream or heading out for a hunt. According to the economic study, the great outdoors and historic preservation generate a conservative estimate of more than $1 trillion in total economic activity and support 9.4 million jobs each year.”

From The Conservation blog on Field & Stream, The Theodore Roosevelt Conservation Partnership And The $1 Trillion Question:

“I hope people will take the time to actually read and ponder what is revealed here. So much of it, if we think about it, is common sense– we all know (or are) someone who owns or works in an outdoor store, or as a guide or outfitter, or who has recently bought a boat or upgraded fishing tackle or guns. The money is there, it’s moving through the economy, and it is dependent on having healthy and protected lands and waters to use that tackle or shoot those guns (imagine the miniscule percentage of the economy in France, or China that is generated from hunting and fishing- then look at the US figures in the linked study).”

From Angling Trade, New Study Underscores the Economic Value of Outdoor Resources and Recreation:

“But the truth is that the outdoors is an important economic driver– a uniquely American economic driver that cannot be outsourced to China or India. In a time when the debate revolves around “jobs, jobs, jobs” it’s important to understand that millions of American jobs revolve around wild places, the equipment that people use in the outdoors, the travel they do to experience the outdoors, and the things they read to help them get the most out of that experience. In other words, jobs like yours and mine hang in the balance.”

Creative Lobbying – Don’t Tell Them, Take Them!

October 18, 2011 By Tom Sadler Leave a Comment

As a career choice, lobbyist was not at the top of my list when I graduated from college. I really had planned to do something in the outdoors with smoke jumper and fishing guide topping the list. But fate is what it is and I wound up spending the bulk of my adult life in DC as a hired gun plying my trade in the various Gucci gulches of the U.S. Capitol.

You don’t do something for more than 30 years without becoming something of a student of the game and over the years I have seen, heard or read a number of example of good and bad advocacy techniques.

One of the best lobbyists I know...

The other day I came across an excellent examples of creative lobbying in this post, How to Win Through Chit Chat on the Trucacabra blog. It chronicles the author’s very effective lobbying techniques. I won’t spoil his thunder but will tell you he has hit on one of the best ways to engage our elected officials on conservation issues.

I know Washington, DC can be an exciting place to visit and all the hoopla of fly-in days and receptions can be quite alluring. My experience tells me the place to effectively engage our elected officials in where we live, work and play. Don’t tell them how important woods, water, wetlands or fields are. Take them there!