REGIONAL— Outdoor recreation is a huge economic driver in Minnesota, contributing $13.5 billion in gross domestic product, $23.5 billion in economic output, and supporting over 96,000 jobs.
That’s the top line take-away from a new study just issued by the state’s Outdoor Recreation Industry Partnership, which provided what may well be the most detailed look at the economic impact of outdoor recreation in state history. The report combines both state and federal datasets with custom modeling to provide the estimates highlighted in the report.
Not surprisingly, the study found that Minnesota’s abundant natural resources, particularly its lakes, contribute significantly to the impact of outdoor recreation on the state and local economies. Boating and fishing comprise the biggest economic impact of any of the various categories of outdoor recreation, contributing $1.14 billion to the state’s GDP annually, while supporting 9,600 jobs. Despite its location far from the coasts, Minnesota ranks 10th among the 50 states in terms of the economic impact from boating and fishing.
The sector is remarkably diverse in Minnesota, including the impact of purchases of boating and fishing equipment, travel related to boating and fishing, as well as the manufacturing of boats and fishing tackle. The report notes that Minnesota is home to major boat manufacturers, including Lund, Crestliner, Alumacraft, and is headquarters for Rapala USA, a major tackle manufacturer.
Other types of outdoor recreation are also major economic drivers. Hunting and shooting contribute $555 million annually to the state’s GDP along with 5,200 jobs, while RVing adds $529 million and 4,000 jobs. Motorcycling, ATVs, and small aircraft recreation contribute an estimated $490 million and 3,500 jobs, including jobs at manufacturers like Polaris.
Snow sports, like skiing and snowmobiling, add another $238 million and support 2,100 jobs.
Minnesota’s four distinct seasons are an asset to outdoor recreation, the study finds. “Minnesota’s four-season climate allows the outdoor recreation sector to remain active year-round, contributing to stable employment and consistent business revenues,” the study states. “Activities such as snowmobiling and cross-country skiing in winter, hiking and boating in summer, and fall hunting seasons ensure that demand persists beyond peak tourism periods. This seasonal diversification reduces business volatility, mitigates part-time employment cycles, and helps retain a rural workforce.”

State fares better than most
Minnesota’s many assets have made its outdoor recreation economy a standout in the Upper Midwest. The study found that the sector provided 2.8 percent of the state’s total economic output and accounts for 3.1 percent of all employment, placing it well ahead of neighboring states in terms of value-added per job and jobs per capita. In many rural parts of the state, the sector is a key element in local economies, alongside other traditional rural industries like farming, wood products, and mining.
Some areas benefit more than others
The study confirms what most Minnesotans likely already knew, that some areas attract more outdoor recreation dollars than others. Areas with major lakes and significant amounts of public land do better than other regions. St. Louis County, home to several major lakes, a national park, state parks, a national forest, and a significant portion of the Boundary Waters Canoe Area Wilderness, is a major draw for outdoor enthusiasts and the study concludes that outdoor recreation contributes $886 million in economic output in the county every year, amounting to 3.73 percent of the county’s total economy while supporting 3,729 jobs. St. Louis County ranks sixth among the state’s 87 counties in terms of the economic boost provided by outdoor recreation, trailing only metro-area counties with much larger populations.
Cook County saw a significantly higher impact, with outdoor recreation accounting for nearly eight percent of the county’s total economy and supporting 4.46 percent of all jobs in the county. Meanwhile, outdoor recreation accounts for just under four percent of jobs in adjacent Lake County.
As with St. Louis County, both Lake and Cook counties are home to hundreds of thousands of acres of federal lands within the Superior National Forest. The study highlights the impact of the national forest, the largest and most remote in the eastern half of the U.S.
“The Superior National Forest sustains a remarkably diverse recreation portfolio anchored by water-based travel in the Boundary Waters Canoe Area Wilderness,” notes the report.
“Forest users share several common traits. A majority arrive from outside the immediate region, often from other states, underscoring the BWCAW’s national appeal. Many parties embark on trips lasting several days, bringing advanced backcountry skills and a high level of self-sufficiency. Because most visitors travel well over 50 miles to reach the forest, gateway communities such as Ely, Grand Marais, and Tofte capture substantial lodging, outfitting, and food-service expenditures.”
While the economic boost the forest provides peaks in summer, the report notes that shoulder season demand, particularly fall hunting and fishing, along with winter sports and year-round activities like wildlife watching, provide the basis for a year-round economy.
The national forest supports a total of 711 jobs directly connected to outdoor recreation, about 45 percent of all the jobs tied directly to the forest. About 25 percent of jobs tied to the national forest are in the wood products sector, while about 30 percent are related to other sectors or are directly employed by the U.S. Forest Service.
Voyageurs National Park, which attracts about 220,000 visitors annually, contributes about $25 million in economic output, and just over $20 million in total visitor spending, supporting 279 jobs. Non-local individuals comprise 98.6 percent of all visits to the national park.
Health benefits
Beyond the direct economic effects, the study concludes that outdoor recreation offers a wide range of health benefits. “Participation in outdoor recreation is strongly associated with improved mental and physical health outcomes,” notes the report. “A growing body of research has shown that time spent outdoors can reduce stress, improve mood, lower the risk of depression, and contribute to healthier lifestyles. These outcomes are particularly valuable in the context of rising concerns over screen time, sedentary behavior, and mental health among both youth and adults.” Time spent outdoors has also been shown to contribute to improved cognitive function and lower levels of anxiety, according to the report.