Oregon’s outdoor industry is a smaller part of the economy than in other western states

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Oregon’s mountains, lakes, rivers, beaches and trails are major draws for the state’s residents and for travelers from all over the world. They’re also a big part of Oregon’s economy, generating several billion dollars in activity each year.

Outdoor activities represent 2.7% of the state’s gross domestic product, a measure of economic productivity, according to federal data. That’s roughly the same share outdoor activities contribute to the national economy.

Oregon’s top activities, in dollar terms, include RVing, boating and fishing, hunting, skiing, camping and climbing.

And yet compared to most other western states, outdoor recreation represents a smaller share of Oregon’s economy. The outdoors contribute much more, relatively speaking, to the economies of Montana, Wyoming, Colorado, Utah, Idaho and Nevada.

There are a couple reasons for that. One is that Oregon’s industrial economy is larger than in some of those other states, mostly because of the state’s highly productive semiconductor manufacturers.

“In states with larger and more diverse economies, outdoor recreation naturally represents a smaller share of total economic output,” said Damon Runberg, economist with Business Oregon, the state’s economic development agency.

Another factor: While Oregon has many compelling outdoor activities, it doesn’t have marquee attractions that other western states offer.

“Oregon has only one national park (Crater Lake), and its ski industry is comparatively small,” Runberg said. He said snow sports account for about 0.05% of Oregon’s economy, half the share of Idaho, Montana and Wyoming — all of which have high-end destination resorts that generate more economic activity.

“We don’t have the big ski resorts. We don’t have the big boating resorts,” said Bend environmental economist Mark Buckley, a longtime ECONorthwest project director who now has his own research firm.

There are upsides to that. Oregon’s outdoors tend to be more accessible than in destination communities like Jackson Hole, Wyoming and Sun Valley, Idaho. And Buckley said Oregon’s wide range of activities means its outdoor economy is less vulnerable if there’s a bad ski year in the winter or if summer wildfires disrupt camping.



“It’s a bit of a hodgepodge,” he said. “That can make us more resilient to any one industry going down.”

Still, Buckley said Oregon trails some of its western peers because it hasn’t done more to capitalize on its scenic wonders.

“Oregon starts out with an incredible natural capital endowment,” Buckley said. He said Utah, Wyoming and Idaho, among others, have been more diligent about using their own natural endowments to attract private investment.

The Legislature created a state Office of Outdoor Recreation in 2017, but the director’s job has been vacant for more than three years. The Oregon Parks and Recreation Department, which oversees the Outdoor Recreation office, said it is re-evaluating its direction.

The department “has been working with other agencies and external partners to determine the office’s purpose, structure and funding,” said Parks spokesperson Lauren Wirtis.

In other states, Buckley said that public investment in transportation to remote destinations has triggered private investments in developing new attractions.

“A lot of people would not want to hear that,” he said, because development in natural areas runs counter to what many people enjoy about the outdoors. The flip side is that when more people visit natural places, they value them more.

“The best way to protect them,” Buckley said, “is to get people to care about them.”

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