Economic Value Analysis for Arkansas River Outfitters (2 of 3)
This report is the second in a series of three economic studies commissioned by the Arkansas River Conservation Cooperative (ARCC). The first study, published in early 2022 (available online at paceyecon.com), quantified the economic and fiscal value the Arkansas River commercial outfitter industry provided to their communities in 2020 – totaling $50 million of value to the state of Colorado.
It also noted its relative contributions to various county industry sectors, including amusement and outdoor recreation, lodging, and food, among others. The first report included a section describing the background and basic characteristics of the Arkansas River commercial outfitters and reflected on many of the qualitative benefits attributable, in part, to their presence in the community, with the last section of the report noting further research to be addressed in this series of studies.
With the availability of both the 2021 and 2022 data, this second report provides a trend for the past three years and a more thorough analysis of the economic and fiscal contributions driven by the Arkansas River commercial outfitters. Data provided by the Arkansas Headwaters Recreation Area (AHRA) allowed for estimates of the economic value associated with private boaters, plus insights into the value provided to outfitters, visitors, and the community when water flow on the Arkansas River is augmented for recreation. This follow-up study continues to utilize IMPLAN, an input-output model widely accepted and highly regarded in both the private and public sectors.
Download the Arkansas River Economic Value Analysis Full Report.
This report, the second in a series of three studies for ARCC, continues to identify, measure, and address:
△ the direct spending from visitors choosing a commercial whitewater rafting, kayaking, or fishing trip on the Arkansas River where these expenditures include the purchase of a river trip, lodging, food, gas, on-site retail, and photography
△ how visitor spending impacts employment, labor income, value-added, economic output, and tax receipts to and for their communities
△ the specific economic and fiscal benefits to Chaffee and Fremont counties plus the benefits to surrounding counties in the Pikes Peak Wonders region and the state of Colorado
△ a preliminary review of the additional value associated with private boat activity in the Pikes Peak Wonders region
△ the potential benefits to visitors, outfitters, and the community from a water flow program providing an economically efficient and exciting experience for river recreation
△ the many qualitative benefits generally associated with having a vibrant and healthy natural resource in one’s community and its role in attracting other special events or positive attributes to the area
The economic value from other potentially quantifiable benefits derived from other outfitter adventures and/ or backpacking, camping activities, groceries, etc. in addition to other local attractions such as the Royal Gorge, scenic train, zip lining, etc. are not measured in this report.
Importantly, an economic value analysis (or visitor spending effect) is not quite the same as an economic impact study, as the former measures the economic benefits associated with all visitor spending while an economic impact study measures only non-local and/or out-of-state spending. However, this report does identify the percentage of in- and out-of-state visitors, finding the majority (approximately 75%) of visitors are from out- of-state. Most in-state visitors (nearly 90%) travel from the Front Range cities.
The Executive Summary below illuminates our key findings and is followed by:
△ an explanation of the methodology and the “multiplier” effect
△ a three-year history of the direct visitor expenditures and the resulting economic and fiscal benefits to the Arkansas River communities and surrounding counties
△ an ongoing overview of the outdoor recreation industry and key descriptive statistics
of Chaffee and Fremont counties
△ the addition of information on private boating usage on the relevant portions of the Arkansas River in the Pikes Peak Wonders region and its potential economic value
△ the relationship between water flow and river usage and its potential value to visitors, outfitters, and communities
△ a continued discussion of some of the qualitative benefits likely derived from the Arkansas River
The Arkansas River Valley offers beautiful landscapes, clean air and water, quiet small-town atmospheres, fantastic recreational opportunities, etc. where visitors can find a retreat and recharge, from often hectic or burdensome responsibilities, and enjoy a bit of peace and tranquility. Medical professionals are in full agreement that outdoor leisure activities help people manage their mental and physical health and enhance their overall wellbeing. Such outdoor activities, leading to improved health, can also lead to lower health care costs in the long run, for that individual, and society.
