FAQ: 2020 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

November 20, 2020

How is the Bureau of Economic Analysis (BEA) study different from the OIA economic study?
The featured BEA measures include gross output, a measure of outdoor recreation goods and services produced by domestic industries; and value added, a measure of the contribution of outdoor recreation industries to gross domestic product (the primary measure of economic activity in the nation). OIA’s study measures consumer spending on all gear-related expenses and associated travel for outdoor recreation, including spending on imported products.

How does the $842B nominal gross output ($788B real 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 output 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.

* Current-dollar estimates are valued in the prices of the period when the transactions occurred—that is, at “market value.” Also referred to as “nominal estimates” or as “current-price estimates.” Chained-dollar (Real) estimates are calculated by taking the current-dollar level of a series in the base period and multiplying it by the change in the chained-type quantity index number for the series since the base period. Chained dollar estimates correctly show growth rates for a series but are not additive in periods other than the base period.

What is the methodology of the OIA Outdoor Recreation Economy Report?
BEA’s analysis for the time period 2012-2019 was just released on November 10. 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 focused on measuring gross output and value added.

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 production in manufacturing and other industries 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 value added (or GDP)?
Gross output (GO) is the measure of total economic activity in the production of goods and services. It is a much broader measure of the economy than gross domestic product (GDP), which measures final output (finished goods and services).

OIA Policy Alert: LWCF Delay at the Department of the Interior

Washington, D.C. – Today, OIA Executive Director Lise Aangeenbrug made the following statement after the Department of the Interior (DOI) failed to provide a list to Congress detailing which Land and Water Conservation Fund (LWCF) projects should be funded under the Great American Outdoors Act (GAOA):

“We are deeply concerned by the agency’s failure to meet this straightforward statutory requirement. This delay stifles new outdoor projects from getting off the ground and keeps LWCF funding from flowing to communities that desperately need this money. When the Great American Outdoors Act was enacted earlier this year, it was met with great fanfare from the outdoor industry, members of Congress from both parties and the administration. For agency officials to drag their feet on implementing the most significant conservation law in a generation is not only perplexing, it demands an explanation.”
 
GAOA provides $900 million in permanent annual funding for the Land and Water Conservation Fund and addresses the nearly $20 billion deferred maintenance backlog on federal public lands. 
 

Audio Outdoorist: Climate Klatch — Episode 1

Welcome to the first in a new Audio Outdoorist series we’re calling the Climate Klatch. A klatch is an informal gathering, usually involving conversations and coffee. In this series, we’ll deliver monthly conversations about climate action. Our goal is to keep you in the know on what’s happening in the outdoor industry and the broader world around the ever-evolving topic. These are meant to be high-level, bite-size insights and updates. Listen while you sip your morning jo, on your commute to work — if you’re still doing that these days — or while you’re getting ready in the morning or taking a short break midday.

In this first episode, Amy Horton, OIA senior director of sustainable business innovation, and Deborah Williams, OIA director of marketing, communications and storytelling, discuss the most impactful strategies for reducing and reversing global warming by the year 2050 and how the OIA Climate Policy Agenda aims to drive those strategies through a combination of responsible business and federal, state and local legislation.

 

 

More Resources:

 

Climate Interactive

Policy Alert: Outdoor Industry Applauds Introduction of the ‘Ocean Based Climate Solutions Act’

BOULDER, Colo. – Outdoor Industry Association (OIA) commends Congressman Raul Grijalva (D-Ariz.) for introducing the “Ocean Based Climate Solutions Act” today. The bill would authorize federal funding for the National Oceanic and Atmospheric Administration to invest in ocean-based solutions to greenhouse gas emissions and conservation of coastal communities, as well as outline a national policy to protect 30 percent of the ocean by 2030.

“This landmark proposal leverages the power of conservation to combat climate change and positions our coastal communities to be an integral part of the solution,” said Executive Director of OIA, Lise Aangeenbrug. “Further, it focuses on establishing social and economic criteria to ensure our public lands and waters remain accessible, where appropriate, to all Americans and the businesses that rely on them. It is essential to have the right balance between conservation and providing Americans the access they need to thrive outside and participate in our robust outdoor recreation economy. We are pleased to see Rep. Grijalva’s legislation achieves this important balance.”

OIA’s 2020 Policy Platform, released in October 2020, supports the swift scale-up of natural climate solutions as a strategy for both climate mitigation and climate resilience across a variety of lands, waters, and habitat types – including the forests, rivers, lakes, streams, oceans, and coastal areas.

The bill awaits consideration by the House Committee on Natural Resources.

2020 Membership Dues Deferral

We recognize that the Coronavirus pandemic has put many companies, small and large, in a very difficult financial position. Our priority is supporting you through this challenging time. That is why we created the COVID-19 Resource Hub and why we have decided to defer OIA membership payments.

Current OIA members will have 120 days (expanded from the usual 30-day grace period) to pay their renewal invoice. You will continue to retain your full membership status and all of your OIA membership benefits for up to 4 months after your anniversary date.

In addition, we are waiving all initiation fees for new and renewing members.

If you have questions or would like more information, please reach out to our membership team at membership@outdoorindustry.org.

We are here for you. Together We Are A Force.