Is Colorado losing some of its outdoor industry magic?
Coloradans flocked to outdoor recreation sites during the COVID-19 pandemic — many in the Boulder Valley and Northern Colorado, such as the Chautauqua Park in Boulder or Rocky Mountain National Park in Larimer County. And while the Centennial State is still known globally as an outdoor- and adventure-sports mecca, there are headwinds that suggest that reputation might be on the wane slightly.
“Colorado benefits significantly from the outdoor recreation industry, contributing $11.6 billion to its annual GDP and supporting over 125,000 direct jobs in 2021. Within this economic contribution, 31.6% stems from the Leisure and Hospitality sector,” according to the University of Colorado Boulder’s 2024 Colorado Business Economic Outlook report. “However, while the outdoor recreation industry is vital to Colorado’s economy, it is essential to consider that, as a percentage of GDP, other Rocky Mountain states have a higher proportion of their economy tied to outdoor recreation. In terms of employment growth, Colorado experienced a respectable 13.4% increase in outdoor recreation employment, although this growth rate was lower than all of its neighboring Rocky Mountain states.”
Colorado experienced a respectable 13.4% increase in outdoor recreation employment, although this growth rate was lower than all of its neighboring Rocky Mountain states.”
University of Colorado Boulder 2024 Business Economic Outlook Report
In recent years, upon reaching a certain size, a slew of pioneering outdoor industry brands have left the Boulder Valley and Northern Colorado regions for other parts of the state and country, according to a recent Colorado Sun report, including Boulder’s Backcountry Access, which relocated operations to the Seattle area, and Niner Bikes, which moved its headquarters from Fort Collins to Ohio.
Boycott threats from some of the biggest brands in the outdoor industry weren’t enough to keep Outdoor Retailer, the industry’s biggest trade show, from leaving Colorado for Utah in 2022.
OR, which had previously been held in Salt Lake City, moved to Denver in 2017 after organizers with New York-based events company Emerald Expositions LLC decided that continuing to partner with Utah, which weakened protections for public lands, was optically undesirable for an industry that outwardly champions environmental conservation.
Still, the regions are home to some major industry players, including Vail Corp. (NYSE: MTN), which this year expanded its global resort portfolio to include the Swiss Crans-Montana Mountain Resort.
Outdoor recreation remains one of the main reasons why tourists visit Colorado. A study from Longwoods International cited by University of Colorado economists in the 2024 Colorado Business Economic Outlook report found that “68% of visitors enjoyed outdoor activities during their trip compared to the U.S. norm of 48%.”
A similar concept applies to Colorado’s workforce. Despite increases in cost of living, outdoor recreation opportunities are among the inputs that are “still driving net in-migration, particularly among millennials employed in (professional business service jobs) coming from more populated areas around the country,” the CU report noted. “These newcomers are disproportionately bringing the (professional business service) skills required for the knowledge-based workforce of the future. Colorado companies remain ideally positioned to take advantage of the rapid growth of business professionals, scientists, technologists, and engineers in the state.”