Montana’s outdoor recreation sector is booming, with a $3.4 billion contribution to the state’s economy in 2023. From skiing in the winter to fishing in the summer, the industry is a significant driver of economic growth, benefiting businesses and communities across the state.
A Thriving Sector with Expanding Impact
The U.S. Bureau of Economic Analysis recently highlighted the outdoor recreation industry’s continued growth in Montana, revealing a 17% increase from 2022 to 2023. Snow sports alone added $83 million to the state’s economy, and overall, outdoor recreation accounted for 4.6% of Montana’s gross domestic product (GDP), placing it third in the nation for outdoor activity’s economic footprint.
This growth isn’t just about tourism; it spans a variety of industries tied to outdoor recreation. While skiing, biking, and fishing are top contributors, the ripple effect on sectors like construction, manufacturing, and retail cannot be ignored. For instance, the construction of new recreation centers, gear manufacturing, and increased demand for local goods and services all play a role in boosting the economy.
Montana is no stranger to the economic power of the outdoors. Since 2012, winter recreation alone has seen a 161% increase in its economic contribution. “It’s impressive, but not surprising,” said Nick Polumbus, president of Whitefish Mountain Resort. “As more people flock to Montana for winter vacations, they spend money not just on the slopes but also in local shops, restaurants, and hotels.”
Snow Sports Lead the Way in Economic Growth
While snow sports account for just a fraction of the $3.4 billion outdoor recreation pie, their rapid growth is impossible to overlook. In 2023, winter activities like skiing and snowboarding contributed significantly to the state’s economy, especially as more visitors from both in-state and out-of-state make their way to Montana for the winter season.
Whitefish Mountain Resort, located in Flathead Valley, exemplifies the expanding snow sports sector. Just days before the official ski season kicked off, the resort’s parking lot was filled to capacity with cars and trucks from eager skiers taking advantage of early-season snowfall. The resort’s $145 uphill-only access pass allows enthusiasts to enjoy fresh powder, and many locals opt for this option, reinforcing the area’s reputation as a prime winter destination.
The growth of snow sports in Montana doesn’t just benefit resort owners. Local businesses are also thriving. Visitors who come for skiing often extend their stay to enjoy Montana’s food scene, local stores, and outdoor markets. The winter tourism industry in Montana has proven to be an essential part of its economy, generating millions each year.
Outdoor Recreation Jobs on the Rise
In 2023, Montana added 1,140 jobs in the outdoor recreation sector, contributing to the overall growth in employment. The outdoor industry now accounts for 5.8% of the state’s workforce—an impressive figure placing Montana in third place nationally for outdoor recreation employment. That’s nearly 31,000 people working in various outdoor-related roles, from ski instructors to wildlife tour guides and bike shop employees.
With this growing workforce, Montana is seeing an increase in the state’s total compensation as well. The outdoor recreation sector represents 4.4% of the state’s total compensation. The stability and growth of this sector are a testament to its long-term significance for Montana’s economy. As Megan Lawson, an economist with Headwaters Economics, put it: “This isn’t a flash in the pan. Montana’s outdoor recreation economy has been a cornerstone of the state’s economic landscape for over a decade.”
A National Trend: Outdoor Recreation’s Economic Power
Montana’s growth mirrors broader national trends. According to the BEA report, the U.S. outdoor recreation industry as a whole grew by 3.6% in 2023, contributing a total of $639.5 billion to the national economy. Outdoor recreation now accounts for 2.3% of the U.S. GDP, a notable increase from previous years.
The sector is also driving job creation across the country. Nationally, outdoor recreation supports 5 million jobs, or 3.1% of the U.S. workforce. Job growth in the outdoor sector has outpaced the broader economy, signaling the increasing importance of outdoor activities to both local and national economies.
In Montana, the sector’s impact is especially significant. The $3.4 billion contributed to the state’s economy in 2023 is a record high, and this is expected to continue growing. Whether it’s hiking in the summer or skiing in the winter, outdoor recreation in Montana is becoming a more substantial part of the state’s economic fabric every year.
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