The multibillion-dollar outdoor recreation industry of New Mexico experienced hardships last year in the wake of the pandemic but is now recovering as businesses opened again and visitors increased, officials claimed.
Around two percent of New Mexico’s gross domestic product is from the outdoor rec sector, a report said.
A study conducted by the Bureau of Economic Analysis ranked New Mexico as 27th in the United States for outdoor recreation’s contribution to the state’s gross domestic product last year.
The state’s outdoor recreation activities added $2.07 billion to its total GDP of around $95 billion, according to records. The state supported 26,000 jobs and $1.04 billion in wages.
Tourism, which includes food and hospitality, was the largest source of jobs in 2020 with 10,000 followed by 8,000 in retail trade.
However, the figures don’t include the state’s efforts to connect local communities with their recreation sources, said Axie Navas, director of the state’s Outdoor Recreation Division within the state Economic Development Department.
Navas said that despite the pandemic affecting travel, shipping, and supply chains across New Mexico’s economy, the division collaborated with local communities to improve the availability and promotion of outdoor recreation for all communities across the state.
“2020 was an anomalous year because of the economic crisis caused by COVID-19. We saw some economic dips in the outdoor recreation industry,” Navas said. “Because of those main disruptions, we saw some declines in the outdoor recreation industry. I think it was an anomalous year because we were already seeing some bright spots.”
This included an increase of 30 percent in fishing, boating, and RVing, along with an increase of 10 percent in biking and similar increases in other outdoor activities across New Mexico, she added.
Navas stated that trailheads frequented by hikers had more people this year. Additionally, retail outlets associated with outdoor recreation and restaurants were booming within New Mexico after the pandemic. She said this rebound was because of the availability of vaccines and the restrictions being eased.
“That really speaks to this industry’s ability to rebound. It already is rebounding and has great potential moving forward,” Navas said. “I think we’re going to see that borne out by the next tranche of data. I am very much bullish on the fact that there has been forward progress.”
The increase in recreational activities will lead to the economy’s growth, she added, and could lead to the state climbing in the rankings.
This means cooperating with local communities and business owners to create a robust outdoor recreation industry in the long run, Navas said.
With its Outdoor Equity fund, the division awarded the sum of $898,000 in grant funds to 57 people across the state to be used to create programs Navas said could help get more than 20,000 children outdoors and involved in outdoor activities.
An additional $2 million in funding was also granted from the federal Economic Development Administration to aid in the process of outdoor rec’s recovery. The division is seeking a $10-million special allocation of the state Legislature in next year’s session for additional assistance.
“While we see some bright spots, we have to acknowledge that a lot of our outdoor rec business were hit hard by the pandemic,” Navas said. “We have to continue to invest in them.
“I think the BEA data shows us the outdoor recreation industry is hugely impactful in New Mexico. We should think about all the ways it benefits us in New Mexico and continue to invest in it. The economic gains will follow.”
A boost in federal support could be in the works as U.S. Senator Martin Heinrich, D-New Mexico, has introduced his Simplifying Outdoor Access for Recreation Act in the Senate Energy and Natural Resources Committee.
If it is passed, the bill would change the procedure of granting permits for outdoor recreation, reduce cost, lessen processing time, and enable permittees to participate in activities “substantially similar” to what they were allowed to do.
The goal was to enhance the accessibility to outdoor recreation, Heinrich said, and allow more Americans to benefit from recreation opportunities.