MN ATV Economic Impact Study

[Dave]

March 22, 2006

University research describes ATV users, economic activity

All-terrain vehicle (ATV) riders have similar interests as other outdoor recreationists, according to new research conducted by the University of Minnesota Tourism Center and the Minnesota Department of Employment and Economic Development. ATV users contribute about $642 million in retails sales directly to Minnesota’s economy.

Minnesota has direct involvement in ATV riding, from both a consumer and manufacturing perspective. Department of Natural Resources ATV registration projections suggest a 251 percent increase from 2004-2014, compared to a 42 percent national increase. Two of the four major ATV manufacturers in the world are headquartered in Minnesota: Arctic Cat in Thief River Falls and Polaris Industries in Medina. Like ATV riders in other states, those in Minnesota are typically white, non-Hispanic males who participate with family and friends to “get away, be with others and enjoy nature.” The majority of ATV travel is to the northern tier of Minnesota.

Mid-range estimates of the economic contributions of ATVs include 14,449 jobs, $429 million in wages and salaries, and $86 million in state and local taxes. For direct resident expenditures, the average household spent about $172 per riding experience, or $43 per person per day.

One important segment of the ATV industry is the manufacture of ATVs, parts and accessories in Minnesota. This activity resulted in an estimated: 4,216 jobs; wages and salaries of $165.6 million; $349.2

million in gross state product (economic) contributions and $30.4 million in state and local tax revenues.

This is the first statewide assessment of ATV riders in Minnesota. The All Terrain Vehicle Association of Minnesota (ATVAM) sponsored the study. Two surveys and secondary data were used to ascertain ATV economic activity and impact among consumers, retailers, and manufacturers. David

Hendricks, president of Minnesota’s All-terrain Vehicle Association, , says “the results demonstrate the

diverse use of ATVs in Minnesota and their wide-spread contributions to the ecomony of our state.” Such research is typical of the research done with and by the Center. The University’s Tourism Center serves as a source for tourism research and education in the state and beyond. Expected outcomes from this work include sustainable growth, development and return on investment (ROI) for tourism – a

leading industry in Minnesota and the world. A copy of the

complete study can be found at http://www.tourism.umn.edu/

The Tourism Center (www.tourism.umn.edu) is a partnership between the University of Minnesota Extension Service and College of Natural Resources.