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Policy & Law

Rural Towns Are Betting on Outdoor Recreation as Economic Development Strategy

Communities from Utah to Colorado are investing in trails, climbing gyms, and river access as manufacturing and mining jobs decline.

⚡ The Bottom Line

Rural communities betting on outdoor recreation represent a significant policy experiment in economic development, with implications for how the federal government approaches support for struggling rural areas. What happens next will likely depend on whether early adopters can demonstrate sustained job creation and wage growth. Congress is currently considering reauthorization of the Great Amer...

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Rural communities across the United States are increasingly turning to outdoor recreation as a cornerstone of their economic development strategies, betting that trails, climbing gyms, and river access can replace jobs lost in traditional industries like manufacturing and mining.

The trend has gained momentum in states with significant public lands, including Utah, Colorado, Wyoming, and Montana, where local officials say outdoor tourism can provide sustainable employment for residents who might otherwise leave for larger cities. The approach represents a broader shift in how rural America approaches economic diversification.

What the Left Is Saying

Progressive economists and Democratic elected officials have largely embraced outdoor recreation as a tool for rural economic development, arguing that public lands access is essential to the strategy's success.

Senator John Hickenlooper of Colorado said at a recent Senate hearing on rural economics that 'outdoor recreation represents one of the fastest-growing sectors in the American economy, and it's uniquely suited to rural communities that have the natural assets but need investment in infrastructure.'

Environmental organizations including Backbone Campaign and Outdoor Afro have argued that maintaining public lands access is essential to these economic strategies. They point to Bureau of Economic Analysis data showing outdoor recreation contributed $862 billion to the U.S. economy in 2022, accounting for approximately 2.2% of gross domestic product.

Progressive policy advocates have also noted that outdoor recreation economies tend to create jobs accessible to workers without college degrees, providing pathways to middle-class livelihoods in communities where such opportunities have dwindled.

What the Right Is Saying

Conservative economists and Republican legislators have offered more cautious support for outdoor recreation development, emphasizing private-sector solutions and local control over federal intervention.

Senator Mike Lee of Utah has argued that while outdoor recreation can be part of rural economic strategy, policies should prioritize reducing regulatory barriers for small businesses rather than government-led tourism campaigns. 'The best thing Washington can do is get out of the way and let entrepreneurs like those featured in these communities build their own futures,' Lee said during a 2025 policy speech.

Some conservative commentators have raised concerns that over-reliance on outdoor recreation could create economic fragility, noting that weather, wildfire seasons, and changing consumer preferences could undermine communities that put all their economic eggs in one basket. The American Legislative Exchange Council has published model legislation encouraging rural diversification beyond single sectors.

Property rights advocates associated with the National Cattlemen's Beef Association and similar groups have also emphasized that outdoor recreation development must respect private landowners and not expand federal land holdings at the expense of local control.

What the Numbers Show

The Bureau of Economic Analysis began tracking outdoor recreation as a distinct sector in 2019, providing data on its economic contribution. In 2022, outdoor recreation industries directly employed approximately 5 million Americans with average compensation of $48,000 annually.

Rural counties with significant public lands access have seen population stabilization or growth over the past decade, according to U.S. Census Bureau data analyzed by Headwaters Economics. Counties within 50 miles of national parks grew an average of 7.3% between 2010 and 2020, compared to 2.1% for rural counties overall.

Utah's Carbon County, where Amber Toler built her climbing gym career after initially studying accounting at Utah State University Eastern in Price, illustrates the demographic shift many communities are targeting. The county lost significant coal mining employment over the past two decades but has seen modest growth in hospitality and recreation service jobs.

The outdoor recreation economy includes not just direct services like guiding and equipment rental, but also construction for trail infrastructure, manufacturing of recreational gear, and supporting retail sectors. The Outdoor Industry Association estimates that outdoor recreation generates $65.3 billion in federal, state, and local tax revenue annually.

The Bottom Line

Rural communities betting on outdoor recreation represent a significant policy experiment in economic development, with implications for how the federal government approaches support for struggling rural areas.

What happens next will likely depend on whether early adopters can demonstrate sustained job creation and wage growth. Congress is currently considering reauthorization of the Great American Outdoors Act, which has provided funding for maintenance backlog reduction on public lands used for recreation purposes.

State governments in Utah, Colorado, and Montana have established outdoor recreation offices specifically to support rural communities seeking to develop their natural assets. Officials from those offices say they are tracking employment data closely to measure whether the strategy delivers on its promises.

Rural economic development experts note that successful outdoor recreation economies require more than natural beauty — they need infrastructure investment, workforce training, and housing for seasonal workers. Communities that can address those challenges may provide a template; those that cannot may find themselves competing for a limited pool of recreation dollars.

Sources