The big business of outdoor recreation

Image: Destination Vancouver & Kindred & Scout

A new analysis shows adventure tourism and outdoor recreation worth more than $4.8-billion to BC

It was the bikes on cars that convinced Eric Vanderkruk that outdoor recreation was vital to his business. He opened an A&W restaurant in Invermere in 1997, and early on he had a hunch skiers, hikers and golfers were an important part of his clientele, but he could never be sure.

“You can’t tell a hiker by looking at their car,” he says. “But there’s no mistaking a mountain biker in the parking lot.”

Loaded bike racks showed him that mountain bikers were making up an increasing percentage of his business, particularly in the quieter shoulder seasons. It made sense for Vanderkruk to support the Columbia Valley Cycling Society, the mountain bike club that was building and maintaining the trails that were attracting all those riders. He donated burgers to their events and free Teen burger coupons to their members. 

By looking at his customers, Vanderkruk, like many small business-owners in B.C., understood that outdoor recreation was good business. Now there is provincial data to reinforce what he was seeing. This week, the government released the results of a study that shows that the outdoor recreation sector directly contributed $4.8-billion to the B.C. economy in 2023. 

“We’ve long known outdoor recreation supports healthy people and strong communities. Now we know it also drives at least $4.8-billion in economic value, about 1.5% of B.C.’s GDP, with major benefits for rural regions,” said Louise Pedersen, executive director of the Outdoor Recreation Council of BC. “This study makes it clear: investing in outdoor recreation is a smart, sustainable strategy for economic diversification.

The BC Ministry of Environment and Parks, Destination BC, and the Ministry of Tourism, Arts, Culture and Sport jointly conducted a study to better understand the economic impact of, and participation in, outdoor recreation and adventure tourism in B.C. Market research firm Leger carried out surveys in the summer and winter of 2022 and 2023, and in partnership with BC Stats estimates of the economic-impact of the sector have been generated. The full reports and data are now available at https://www2.gov.bc.ca/gov/content/sports-culture/recreation/outdoor-recreation-data.

“This data confirms outdoor recreation is much more diverse and economically powerful than people often realize,” said Pedersen. “But even these figures are only part of the story. Because the study is limited in scope, we know the real economic impact is even greater.”

The results only include money spent directly on outdoor recreation and adventure tourism by B.C. residents and visitors from Alberta. It left out other national and international travellers and the significant indirect economic contributions, including the money outdoor recreation employees spend in the economy, or what a construction company made when it built a new adventure tourism lodge, and spin-offs like gear manufacturing. Regardless, the analysis shows that outdoor recreation and adventure tourism make up at least 1.5 percent of provincial GDP. 

Leger defined outdoor recreation as activities that engage with nature and the outdoors, including visiting parks, hiking, wildlife viewing, water sports, motorized recreation, skiing and RV camping. Adventure tourism was defined as travelling 40 kilometres or more to do these same activities, whether it was guided or not. 

The analysis found money spent directly on these activities accounts for 40 percent of the total money spent. The other 60 percent went to things like transportation, accommodation, shopping, and food, including a post-ride stop at Invermere’s A&W. 

In total, the outdoor recreation and adventure tourism businesses earned $17-billion in revenue in 2023, according to the Leger analysis. The sectors employed thousands of people, spent $3.2-billion in wages and salaries, and contributed nearly $2-billion in provincial and municipal taxes. 

“Outdoor recreation is a vital part of life for many people in B.C. and is deeply rooted in our communities and culture,” said Tamara Davidson, Minister of Environment and Parks. “We’ve heard this sector is growing – both in participation and economic value. The new data confirms outdoor recreation is more than just leisure; it’s an opportunity to diversify our economy in a way that is both sustainable and inclusive.”

The provincial government says future analysis will be more robust and could include indirect spending and the inputs of the growing outdoor gear manufacturing industry. Hundreds of B.C. companies make fishing lures and skis, bike parts and apparel. They rely on outdoor recreation infrastructure for inspiration and development, but their contribution to the economy was not included in the analysis. 

The survey portion of the Leger study included more subjective values of outdoor recreation. Here it was evident that British Columbians consider outdoor recreation essential to their way of life.

Surveying in 2022 found 79 percent of B.C. residents participated in outdoor recreation during the summer and 69 percent participated in the winter. Parks, hikes and beaches were their favourite destination. Even more telling, up to 61 percent said being close to outdoor recreation heavily influenced where they live.

Vanderkruk is now part of that stat. In 2019, he sold the restaurant and retired, but still lives in Invermere because of the access to recreation, particularly the mountain bike trails. He is now the volunteer chair of the board for the Outdoor Recreation Council of B.C., but still grounds his value for outdoor recreation in his experiences as a small business owner.

“Though we built a loyal local customer base,” he says, “our recreational visitors contributed significantly to our success, particularly during the quieter periods of the year.”

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About the Outdoor Recreation Council of BC

The Outdoor Recreation Council of BC (ORCBC) is a registered charity representing more than 100 provincial and regional organizations, and over 200,000 British Columbians, who care about the future of outdoor recreation. ORCBC advocates for the protection of outdoor spaces and the promotion of responsible recreation across the province.