FAQ: Final Bureau of Economic Analysis Report On Outdoor Recreation Released
Outdoor Recreation Is an Economic Force; Accounts for Over 2 Percent of U.S. Gross Domestic Product
September 20, 2018
How is the Bureau of Economic Analysis (BEA) study different from the OIA economic study?
The BEA measures “gross domestic product outputs” on the total value of domestic goods and services produced by an industry. OIA’s study measures consumer spending on all gear-related expenses and associated travel for outdoor recreation. The BEA does not recognize the value of imported products.
How does the $734B gross output contribution line up with the OIA’s $887 billion consumer spending on outdoor recreation?
Both are true, they just measure different economic contributors. The BEA satellite account measures gross domestic product outputs while OIA’s study measures consumer spending on all gear-related expenses and associated travel for outdoor recreation.
It is important to note; the BEA estimate only includes the wholesale and retail mark-ups applied to imported products while the OIA’s figures report all consumer spending.
What is the methodology of the OIA Outdoor Recreation Economy Report?
BEA’s analysis for the time period 2012-2018 was just released on September 20. We have not had an opportunity to review the methodology at this point, but what we do know is that our economic report is based on consumer spending, while the BEA’s numbers are built by measuring gross outputs to the GDP.
Essentially, our economic report – which is basic economic input-output modeling – starts with the consumer and works down to the manufacturing/imports point. The BEA goes the opposite direction, starting with manufacturing and imports and works up to the consumer. This approach uses different data sets and methods which accounts for differences, too.
What is the difference between gross output and GDP?
Gross output (GO) is the measure of total economic activity in the production of new goods and services. It is a much broader measure of the economy than gross domestic product (GDP), which is limited mainly to final output (finished goods and services).