One of the boats that runs between Waterton Townsite and Goat Haunt is the International. Built in 1927, the International has carried thousands of visitors across the border during its lifetime.
Passengers can disembark for a brief sightseeing opportunity, while others take the boat to start multi-day backpacking trips. (Photo by Glacier National Park / NPS)
Eleven days before the opening day of ski season, the Spruce parking lot at Whitefish Mountain Resort was overflowing with cars as Flathead Valley residents flocked to the local ski hill to take advantage of a foot of fresh powder and the resort’s generous uphill access policy. Throughout Sunday morning and afternoon, a steady line of skiers and snowboarders skinned and hiked their way to the summit for some early season turns.
These uphill enthusiasts, who pay $145 for uphill-only access during the winter or are resort season passholders, are a visible sliver of a booming snow sports industry in Montana — one that grew by 15% in 2023 to add more than $83 million to the state’s economy.
That’s according to a U.S. Bureau of Economic Analysis report released last week that shows Montana’s outdoor recreation industry is a pillar of the state’s economy, beyond just snow sports. The report, which detailed the economic impact of the industry in 2023, showed outdoor recreation-adjacent business accounted for 4.6% of Montana’s gross domestic product (GDP) last year, the third highest percentage of any state, tied with Alaska and behind only Hawaii at 6.3% and Vermont at 4.8%.
The report isolates the economic activity association with outdoor recreation spending and production throughout the economy. That includes supporting activities, such as construction, government investment and manufacturing; core activities such as gardening or outdoor concerts; and the more conventional recreational activities — biking, RVing, hunting, fishing, and skiing.
New data in the report going back to 2012 shows significant growth in many of Montana’s industries, especially in snow sports. Since 2012, the value added to the state economy from winter recreation has climbed a whopping 161%.
“It’s impressive, but not surprising, to see that snow sports contribute increasing value to our state’s economy,” Whitefish Mountain Resort President Nick Polumbus said. “These numbers mirror what we’ve experienced in Whitefish, with more Montanans and guests from other states seeking great winter vacations … And folks who come here to ski don’t just stay on the mountain; they also spend time in town supporting local restaurants, shops, bars, cafés and other small businesses.”
Snow sports account for just a fraction of Montana’s $3.4 billion outdoor recreation industry, which grew 17% from 2022.
Conventional recreational activities accounted for $1.2 billion in value added, while supporting recreation, which includes the state’s record-high tourism industry, brings in another $1.7 billion.
Montana ranks third in the nation for the percentage of statewide employment tied to the outdoor sector, 5.8%, accounting for 30,915 jobs, and making up 4.4% of the state’s total compensation. Hawaii leads both categories with 7.0% of the workforce in the sector and 5.4% of total compensation, followed by Alaska with 6.0% and 4.7% respectively. Montana added 1,140 outdoor recreation jobs in 2023.
“Montana’s been top three in these categories for more than a decade,” said Megan Lawson, an economist with Headwaters Economics. “That speaks to the size and stability of the outdoor recreation economy in Montana. This isn’t a flash in the pan due to the pandemic. This has been a sizable and important part of the state’s economic landscape for a long time.”
Following the COVID-19 pandemic, which slammed the brakes on the nation’s economy in 2020 and hit the outdoor recreation sector particularly hard, according to BEA, Montana saw a surge in recreation visitation in 2021, which translated to a record economic impact that year. That trend has continued and been reflected throughout the U.S.
Nationally, the $639.5 billion outdoor recreation industry accounted for 2.3% of the nation’s economy and grew by 3.6% in 2023, outpacing overall U.S. GDP growth by more than half of a percent. The report also shows that national outdoor recreation compensation increased 9%, compared with just more than 5% for the overall economy, and employment growth in the sector doubled that of the larger economy. Five million jobs, or 3.1% of all U.S. employees, are part of the outdoor recreation sector.
The economic impact findings track with an overall trend of increased outdoor recreation by Americans in recent years. The Outdoor Industry Association, a nonprofit that promotes outdoor access in the U.S., reported earlier this year that the number of outdoor participants grew for a ninth consecutive year to a record 175.8 million in 2023 — 57.3% of all Americans over the age of six.
The Bureau of Economic Analysis began tracking outdoor recreation as a separate industry in 2016, following the Outdoor Recreation Jobs and Economic Impact Act, signed by President Barack Obama, which broadened the federal government’s analysis.
The overall outdoor recreation industry, a cross-section of the economic landscape, tells a broader story than individuals enjoying the outdoors.
“I think a lot of times when we read about the outdoor recreation economy, we focus on tourism and hospitality,” Lawson said. “The greatest growth we saw in Montana’s data came from information, research, construction and manufacturing. That’s not what we think of as being synonymous with tourism. It really highlights the diversity of activities that contribute to this economy. It’s not just hunting and fishing, it’s not just skiing. It needs to be thought of as all of the above.”
The scope of the “all of the above” outdoor recreation sector can be hard to conceptualize, but nationally it represents a larger chunk of consumer spending than pharmaceuticals or motor vehicles. In Montana, the value-added contribution to state GDP from outdoor recreation is larger than from motor vehicle manufacturing, air transportation, performing arts and the oil, gas and coal industries combined.
“There’s been a shift from the hardcore physical extraction industries to this more experiential extraction scenario,” said Rachel Schmidt, former director of Montana’s Office of Outdoor Recreation. “It’s super important to both our residents and the residential experience as it is to our visitors. Normally you can’t put a price on experiences, but this is a way of doing that.”
Across recreational activities the following metrics stood out in 2023:
Boating and fishing moved up to become the largest conventional activity in the U.S. at $36.8 billion in current-dollar value added, and was the largest conventional activity in 34 states and D.C. It was Montana’s second largest conventional activity with $149 million added to the state, but saw a $4 million increase from the previous year.
RVing was Montana’s top activity at $221.8 million added, a 13% year-over-year decrease from 2022. It was the largest conventional activity in 11 states with Indiana as the largest contributor.
Hunting/shooting/trapping remained the third-largest conventional activity in Montana, with its $108.7million contribution to the sector a 20% jump.
Bicycling in Montana reached a record high, bringing in $11.6 million.
Festivals/sporting events/concerts jumped 63% from 2022.
Guided tours and outfitted travel, which includes boarding and fishing charters, contributed $145.6 million, twice as much as in 2019.