The outdoor economy employs 4,712 workers in the 10 counties of northwest Lower Michigan and contributes $1.15 billion to the gross regional product, or nearly 10 percent of local GRP in 2022. The industry, which has grown by nine percent in the last two decades, has experienced skyrocketing demand since the pandemic and could grow even further in the coming years – particularly if it avoids dependency on winter weather sports and pursues opportunities like shoulder season growth, trail and infrastructure expansion, and diverse visitor outreach.

Those are just some of the findings in a new Outdoor Recreation Economic Impact study released by Networks Northwest. The study was developed in partnership with the Alliance for Economic Success, the Manistee Area Chamber of Commerce, the Northern Lakes Economic Alliance, and Traverse Connect. It was prepared by national community and economic developing consulting firm Fourth Economy and covers 10 counties: Antrim, Benzie, Charlevoix, Emmet, Grand Traverse, Kalkaska, Leelanau, Manistee, Missaukee, and Wexford.

According to the report, regional economic data trends “indicate a good foundation for the outdoor economy.” Northern Michigan avoided population decline during the pandemic and is expected to keep increasing through 2027, “largely driven by growth in retirement-aged individuals,” according to the report. The region has “almost double the concentration of agriculture, forestry, fishing, and hunting employment than national averages for regions of similar size, as well as higher-than-average concentrations in manufacturing, construction, retail, arts, entertainment, and recreation,” the report states.

Survey responses from over 200 outdoor industry businesses showed that the majority are growing, with 96 percent reporting stable or increasing sales and 72 percent planning on hiring more people in the next three years. “By far, the biggest challenge experienced by these businesses is the lack of available talent and/or well-trained workforce,” the report notes, with “lack of affordable workforce housing” representing a related challenge. Salaries are also slightly lower when compared to the national average: $44,627 on average regionally for outdoor economy jobs compared to $50,627 nationally. Food service provides the highest number of outdoor jobs locally but lowest wages, while manufacturing and transportation provide the fewest jobs but highest wages. Overall, outdoor jobs grew by 1,500 from 2001 to 2022, or nine percent.

Northern Michigan is 32 percent above the national average for spending on boats, trailers, campers, and RVs, the report found. The region’s “abundant access to water resources (is) arguably the biggest driver of outdoor recreation activity,” with Lake Michigan and numerous rivers, streams, inland lakes, and dams attracting everyone from boaters to kayakers to fishermen. “Since the pandemic there has been a high demand for services as people have flocked to the outdoors as a form of recreation, from fishing guides, to harbor and marina services, to private campgrounds and equipment rentals,” according to the report. Trails are another big draw, ranging from paved biking paths to backwoods hiking trails. When the U.S. Forest Service changed the designation of Forest Service roads in the Huron-Manistee National Forests to allow off-highway vehicles (OHVs), an “explosion” in OHV/ORV users occurred, the report notes. With the climate warming and less snow reliability in northern Michigan, Fourth Economy said OHV/ORV use could eventually replace some snowmobile use.

Skiing is also vulnerable to climate change but remains a regional draw for now – as do outdoor events like races, food and wine festivals, and resort events. “It should be noted that popular winter festivals are on the decline because of unpredictable winter weather,” the report observes. Overall, “as the region experiences the effects of climate change, the growth of shoulder seasons should be expected and planned for, as warmer-season outdoor recreational opportunities will start earlier and end later.” Campgrounds, for example, could open earlier in the spring and stay open later in the fall. Winter weather-dependent businesses should be on the lookout for ways to expand their business to include shoulder season or non-weather-dependent activities, such as “repurposing ski resort land for hiking and mountain biking, golf, and special events,” the report states.

Inland resort areas and cities along Lake Michigan – such as Traverse City and Charlevoix – tend to experience some of the strongest visitor spending, Fourth Economy found. Spending on entertainment and recreation grew across the 10 counties in 2022 and remained high in 2023. The report also highlights areas where outdoor spending trailed national averages that could represent opportunities for more growth, including camping, exercise gear, bicycles, and sports equipment retail/repair. There’s also a need for more outfitters, guides, and transportation services to keep up with growing recreational demand.

The report highlights additional growth opportunities, as well as some words of caution. Connecting businesses to financial and technical resources through the state – which many owners may not know exist – and launching a statewide networking or industry group for outdoor companies are two opportunities. More trail expansions and connections should be encouraged – along with developing small businesses to support trail users – with additional growth availability in marine services, e-bikes, ORV/SXS (side-by-side) rentals, and e-boating. Marketing that includes “explicit strategies to welcome racially and ethnically diverse visitors to the area” is also needed, as is promoting responsible, Leave No Trace tourism, the report states.

Fourth Economy emphasizes the need to protect the same environment that attracts millions of visitors to northern Michigan. “As visitorship has rapidly increased during the COVID-19 pandemic, more well-known areas feel the impacts of this, and in most cases, infrastructure has not kept up with the increase in visitors,” the report notes. “Additional studies to understand the impacts of increased usage on natural resource areas would help state and regional agencies identify strategies to prevent degradation and preserve natural resources for future use. This is also important because of the number of businesses that depend on these natural resources for their success.” While events are an “important part of exposing people to the outdoors,” they should be planned carefully to avoid “tipping points” that can negatively impact natural areas. Promoting more rural, underutilized areas – and encouraging amenities like cafes, trail connections, and gear shops to attract visitors to those spaces – could spread tourism burdens and benefits out more evenly across the region.

Fourth Economy ends by noting that northern Michigan is “ripe for the expansion of its outdoor economy” but “must be diligent as it prepares for growth in this sector, putting measures in place to ensure any negative impacts of visitation...are minimized.” The report concludes that “by capitalizing on existing strengths, including its water resources, trail systems, regional events that draw in visitors, and promoting off-the-beaten-path destinations, the region can see more diversification of users, business offerings, and spending.”