Outdoor Recreation Economy Shows Resilience in 2023 Despite Economic Headwinds

National Contribution and Growth Trends

The U.S. Bureau of Economic Analysis reported that the outdoor recreation economy generated value added of $639.5 billion in 2023, equivalent to 2.3 percent of current-dollar gross domestic product. This figure reflects the sector's measurable impact on the broader economy through goods and services tied to outdoor activities.

Real, inflation-adjusted GDP for outdoor recreation rose 3.6 percent during the year. That pace exceeded the 2.9 percent increase recorded for the overall U.S. economy. The outdoor recreation expansion nevertheless represented a deceleration from the 10.2 percent real gain posted in 2022. Gross output in real terms advanced 3.2 percent, while compensation climbed 9.0 percent and employment increased 3.3 percent.

State-Level Variation in Economic Importance

At the state level, the outdoor recreation economy's share of GDP ranged from a high of 6.3 percent in Hawaii to a low of 1.6 percent in Delaware, Connecticut, and New York. The District of Columbia recorded a share of 0.8 percent. These differences illustrate how geography, natural assets, and industry composition shape the sector's relative weight across regions.

Employment in outdoor recreation expanded in 49 states and the District of Columbia. The largest increase occurred in Alaska at 7.5 percent, while Indiana experienced a decline of 4.8 percent. The District of Columbia saw employment rise 3.8 percent. Such variation underscores the uneven effects of national trends at the local level and the influence of state-specific economic structures.

Breakdown by Activity Categories

Outdoor recreation activities are grouped into conventional pursuits such as bicycling, boating, hiking, and hunting; other activities including gardening and outdoor concerts; and supporting activities that encompass construction, travel and tourism, local trips, and government expenditures. In 2023, conventional activities accounted for 31.4 percent of national outdoor recreation value added, down from 32.7 percent in 2022. Other activities represented 20.1 percent, up slightly from 19.7 percent the prior year. Supporting activities made up the remaining 48.5 percent, an increase from 47.6 percent.

Growth within supporting activities was driven primarily by travel and tourism, which benefited from higher spending on transportation, hotels, and restaurants. Among conventional activities, boating and fishing contributed the largest national value added at $36.8 billion and ranked as the top conventional activity in 34 states plus the District of Columbia. Florida, California, and Texas recorded the biggest absolute contributions in this category. Recreational vehicle use followed at $26.3 billion nationally and led in 11 states, with Indiana, Texas, and California showing the strongest figures.

Industry Contributions and Leading States

From an industry perspective, the arts, entertainment, recreation, accommodation, and food services group contributed the largest share of national outdoor recreation value added, totaling $165.2 billion or 25.8 percent. This industry group led in 20 states and the District of Columbia, with California, Florida, and New York posting the highest dollar amounts. Retail trade ranked second nationally at $156.3 billion, or 24.4 percent of value added, and served as the leading industry group in 26 states. California, Texas, and Florida again dominated in absolute terms within retail.

Manufacturing ranked third nationally, generating $86.7 billion or 13.6 percent of outdoor recreation value added. It led in Indiana and Louisiana. Texas, California, and Indiana registered the largest manufacturing contributions. These industry breakdowns highlight the diverse ways in which outdoor recreation intersects with established economic sectors, from service-oriented businesses to goods production. The data also reflect how manufacturing of recreational equipment can concentrate economic benefits in specific states even when final consumption occurs elsewhere.

Methodological Updates and Measurement Considerations

The 2023 estimates incorporate the 2024 annual update of the National Economic Accounts, including the National Income and Product Accounts and Industry Economic Accounts, along with revised source data. State-level figures similarly reflect updated national and regional accounts. Estimates for earlier years from 2012 to 2016 now include results from the 2023 comprehensive update. These revisions ensure consistency with broader economic statistics but also mean that previously published numbers have been superseded.

Measurement of outdoor recreation occurs by place of production rather than consumer residence. Manufactured goods are attributed to the state where production takes place, while services are assigned to the location of consumption or sale. Trade margins for retailers are included based on the location of sale rather than total sales value. Imported goods themselves are excluded, though retail services associated with them are captured. Such conventions affect how value added is distributed across states and require careful interpretation when comparing regional performance.

Source

U.S. Bureau of Economic Analysis published this record on 2024-11-20. Pennington Financial accessed it on 2026-10-21.