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Off-Highway Vehicle economic impacts in New Hampshire

From "The Impact Of Spending By ATV/Trailbike Travel Parties On New Hampshire's Economy During July 2002 To June 2003." Download the full document (pdf 100 kb)

The Institute for New Hampshire Studies, Plymouth State University

Introduction
For the twelve month period between July 1, 2002 and June 30, 2003, all-terrain vehicle (ATV) and trailbiking travel parties had direct spending within New Hampshire of about $124 million, and direct and indirect spending of approximately $176 million. The total impact on the state's economy (direct, indirect and in-duced impacts) of this traveler spending was approximately $318 million. Total direct spending by ATV/ trailbiking travel parties was over 0.29 percent of the gross state product and was more than 2.3 percent of all traveler spending in the state.

The average spending per visitor day by ATV/ trailbiking travel parties was $60.12 for in-state travel parties and $46.40 for out-of-state travel parties. This average of these figures is lower than the $70.32 spent during this same time period by all travel parties in the state. In addition to this spending during their trips, each in-state ATV/trailbike owner spent $3,101 annually, and each out-of-state ATV/trailbike owner spent $2,667 annually, within New Hampshire, to purchase equipment, clothing, insurance, club memberships and state license fees.

When the daily rates of spending were multiplied by the number of visitor days, then New Hampshire households spent an estimated $71.9 million and non-resident households spent an estimated $14.8 million in New Hampshire while on their trips. This was a total estimated trip spending of $86.8 million. This trip spending is equal to about 2.3 percent of all visitor spending during this same twelve month period.

The $123.8 million in total ATV and/or trailbiking traveler spending for the July 2002 to June 2003 period supported 1,995 direct full and part-time jobs on an annual basis, with payrolls and other earnings of $45.5 million. The $51.7 million in indirect spending by traveler-supported businesses sustained an additional 384 full and part-time jobs on an annual basis, with a total payroll and earnings of an additional $15.2 million. These 2,379 direct and indirect jobs were about 0.35 percent of all employment in the state on an annualized basis. The direct and indirect payroll was 0.21 percent of the total state-wide payroll on an annual basis. Payroll and earnings for employees directly supported by ATV and/or trailbiking traveler spending was 36.8 percent of total sales. This was higher than the 33.2 percent found for all travelers during state fiscal year 2002.

Conclusions

Spending by ATV and/or trailbiking travel parties is an important source of revenues for State government, in terms of the percent of total spending by these travelers that end up in the State treasury. However, on a proportional spending basis, the impact on local government is not as great as for other travelers One reason for this is, compared with other forms of vacation travel within New Hampshire, the state's residents account for a much greater proportion-- approximately 82 percent-- of total spending by ATV and/or trailbiking travel parties.

Non-residents account for only 18 percent of ATV and/or trailbiking travel party spending, as compared to 86 percent of overall traveler spending in the state. An increase in the number of out-of-state ATV and/ or trailbiking travel parties would increase the number of overnight trips. This would lead to an increase in total visitor spending and an increase in revenues that the State would obtain from the rooms and meals taxes, the largest source of State government revenues from the typical traveler in the state. Therefore, our findings indicate that the overall economic impact from ATV and/or trailbiking travel parties within the state would be enhanced considerably by attracting substantially more out-of-state ATV and trailbiking travel parties to New Hampshire.

From "The Impact Of Spending By ATV/Trailbike Travel Parties On New Hampshire's Economy During July 2002 To June 2003." Download the full document (pdf 100 kb).

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