PREPARED BY THE STAFF OF THE AGRICULTURAL POLICY INSTITUTE. N. C. STATE RALEIGH. N. C.

Recreation and Economic

Development

Americans have always valued the outdoors both for itsbeauty and as a place to hunt, fish, swim, tour or engage ina multitude of other leisure activities. Unless we take the

proper steps, however, our children will lack the outdoor facili-ities we take for granted. All of us—puhlic officials, com—

munity leaders, or citizens—should cOnsider what action needsto be taken to provide facilities for outdoor activities and to

preserve our country’s heritage of natural beauty.Increasing population and rising levels of

income pose both a challenge and an oppor-tunity for many communities. The challengearises because continued economic grthhand prosperity make it harder to find facili-ties for outdoor sports, places to enjoynatural scenery, or just to “get away fromit all.” The opportunity is the other side ofthis coin: as outdoor facilities become scarce,many communities find that catering to tour-ists or sportsmen can be a profitable sourceof local income and employment.

This dual challenge-opportunity becomesapparent when one examines statisticson outdoor recreation. An estimated4,377,000,000 outdoor recreation visits weremade during the summer of 1960. In 1961recreation expenditures amounted to $43billion. In North Carolina alone an estimated

$888 million are spent by tourists each year.This is topped by several states. In 1957 NewYork, Florida, New Jersey, and Pennsyl-vania each took in more than a billion dollars.When one adds to these figures the expendi-tures on boats, fishing gear, Emping equip-ment, and clothes, etc., it is obvious that rec—reation is big business.Such expenditures can have a substantial

impact on local communities. Around theGreat Smoky Mountains National Park, forexample, some 2.5 million visitors spent about$28 million in 1956; in 1958, nearly 3.2 mil-lion visitors spent about $35 million. A largeshare of the money spent on recreation 're-mains in the local area which makes recrea-tion especially attractive to those concernedwith local growth.

The demand for recreation is growing. Thereport of the President’s Outdoor RecreationResources Review Commission (ORRRC) ,Outdoor Recreation for Americans, whichcontains the figures quoted above, estimatesthat by the year 2000 summer recreationparticipation will increase over two and one-half times to 12,449,000,000 visits. This isillustrated in Figure 1, which also shows thatdriving, swimming, walking, and similar“uncomplicated” activities are the most pop-ular. Figure 2 reinforces the latter point byshowing the number of days that the “aver-age” person spent on each major activity in1960-61. The “average man” spent 20.73 daysdriving for pleasure as compared to 1.76 dayshorseback riding, to give just two illustra-tions.

Until recently Americans took for grantedthat land, water, and open space would al-ways be available. However, the growth of“Megopolis” or the “supercity” that stretchesfrom Boston to Richmond shows that we canno longer assume that one can find all theoutdoors he wants by driving past the citylimits. Today, cities and towns need spaceto provide their citizens with natural beautyand outdoor recreation. At the same time,they need to consider the possibility of pro-viding recreation opportunities for othersand thereby increasing local income and em-ployment.

Recreation development nevertheless is nota Royal Road to Prosperity. Not only is itusually costly and difficult, but it will notsolve all the problems faced by underdevel-oped areas. For example, it will not solvethe problem of low farm incomes. Some haveinvisioned turning farms into game preservesor other tourists attractions. The investmentneeded and the optimal size of recreationenterprises means that, however rosy thefuture for recreation, not all the resourcesnow underemployed in agriculture can beshifted to raising game or running camps.Most localities have thought of economic

growth in terms of attracting industry andhave seen good recreation facilities as a lure.While it is undoubtedly true that executivesdesire amenities for their families and theiremployees, transportation facilities, trainedlabor, and raw materials are the primary de-terminants of location. It is not easy to at-tract industry to small towns. For manyareas recreation development may be a su-

Driving for pleasure

Playing outdoor games . _ ,. ‘1 ‘ . \ _. § ,or sports . J

concerts, drama, etc.

Figure 1. Number of Occasions of Participationin Outdoor Summer Recreation (1960compared with 1976 and 2000 bymillions)

0 500 1000 1500

SwimmingWalking for pleasure

Sightseeing .

PicnickingFishing

BicyclingAttending outdoor

sports events f

Boating other than > .. .,sailing or canoeing >6?»

Nature walks 1

Hunting

CampingHorseback riding

196°Water skiing ,4 2000

Hiking All activities

Attending outdoor 2000 12,449

Source: Outdoor Recreation Resources Review Commission, OutdoorRecreation for America (Washington: Government PrintingOffice, 1962), p. 34.

perior method of increasing income. This isparticularly true for many rural areas whichhave. a pool of labor skilled in the use oftractors, saws, other farm equipment, andlabor familiar with the techniques of soil andmoisture conservation required forwildlifemanagement, park maintenance, and recrea-tion management. If the other necessaryconditions are present it may be easier toutilize the labor force in recreation than totry to attract some industry requiring adifferent type of training. In short, whilerecreation is no cure-all, no area can affordto overlook its possibilities.

Goals

A sound recreation program must have aclear statement of its purpose. Two basicchoices are open. The first is to pursue a“preservationist” policy and develop facili-ties with strict limitation on use in order tomaintain the natural characteristics of thearea. The second is to concentrate on “de-veloped” or “mass” recreation facilities. Un-like the former type, developed recreationimplies intensive use of each unit of land orwater. This usually means an extensive modi-fication of the natural characteristics of theareas. To give two extreme examples: thewilderness zones in national forests and parkswhere roads are forbidden, motor boating isnot allowed, and similar restrictions are im-posed illustrates the first type of facility.Coney Island illustrates the second. A com-munity may wish to have some of both typesof facilities. The resulting “mix,” however,should be subjected to close scrutiny becauseit will not only determine which natural re-sources will be developed but the types andamounts of costs and benefits to the com-munity.

The basic decision to be made in decidingrecreational goals can be rephrased: Forwhom are the recreational facilities to be de-veloped? For the local citizens? For tourists?For those who wish to see nature as un-disturbed as possible? For those who liketheir recreation complete with hot and coldrunning water and night-time amusement?For people who will come and spend a two-week vacation? For people who wish to spenda few hours? The answers will have a signi-ficant effect on the aesthetic characteristicsof the area and on its contribution to econo-mic growth. In general, the direct economicbenefits from a preservationist type of recre-ation are much lower than from a highlydeveloped type of recreation. Of course, theremay be indirect benefits from the formerwhich outweigh the latter. For example, acommunity which pursues a preservationistpolicy may be a charming town which thusfinds it easy to attract citizens and industry.There are also social costs and benefits fromeach type of development. None of us wouldwant to see Mount Vernon devoted to com-mercial development.

Figure 2. Number of Activity Days Per Person, 12Years and Over June 1, l960-May 30,1961

o 5 10 15 2oDriving for pleasure "

Walking for pleasurePlaying outdoor .

games or sports “‘Swimming

SightseeingBicyclingFishing

Attendingsports events

Picnicking "3"-Nature walks =4

Boating (not canoeor sail)Hunting

Horseback ridingCamping

Ice skatingSledding ortobogganing

HikingWater skiing

Attending outdoordrama, concerts, etc.

CanoeingSailing

Mountain climbingSnow skiing

Source: ORRRC, op. cit., p. 46.

On the other hand, few of us want to lock-up resources. There is little value in havingoutdoors areas which no one can enjoy.

The point is that each community must de-cide whether its basic goal is to maintain thebeauty of its natural surroundings—subjectto some recreational use—or whether its goalis to get the most recreational use out of itsresources.

Goals

A sound recreation program must have aclear statement of its purpose. Two basicchoices are open. The first is to pursue a“preservationist” policy and develop facili-ties with strict limitation on use in order tomaintain the natural characteristics of thearea. The second is to concentrate on “de-veloped” or “mass” recreation facilities. Un-like the former type, developed recreationimplies intensive use of each unit of land orwater. This usually means an extensive modi-fication of the natural characteristics of theareas. To give two extreme examples: thewilderness zones in national forests and parkswhere roads are forbidden, motor boating isnot allowed, and similar restrictions are im-posed illustrates the first type of facility.

Coney Island illustrates the second. A com-munity may wish to have some of both typesof facilities. The resulting “mix,” however,should be subjected to close scrutiny becauseit will not only determine which natural re-sources will be developed but the types andamounts of costs and benefits to the com-munity.

The basic decision to be made in decidingrecreational goals can be rephrased: Forwhom are the recreational facilities to be de-veloped? For the local citizens? For tourists?For those who wish to see nature as un-disturbed as possible? For those who liketheir recreation complete with hot and coldrunning water and night-time amusement?For people who will come and spend a two-week vacation? For people who wish to spenda few hours? The answers will have a signi-ficant effect on the aesthetic characteristicsof the area and on its contribution to econo-mic growth. In general, the direct economicbenefits from a preservationist type of recre-ation are much lower than from a highlydeveloped type of recreation. Of course, theremay be indirect benefits from the formerwhich outweigh the latter. For example, acommunity which pursues a preservationistpolicy may be a charming town which thusfinds it easy to attract citizens and industry.There are also social costs and benefits fromeach type of development. None of us wouldwant to see Mount Vernon devoted to com-mercial development.

Figure 2. Number of Activity Days Per Person, 12Years and Over June 1, l960-May 30,1961

0 5 10 15 20Driving for pleasure _:’

Walking for pleasure T-Playing outdoor

games or sportsSwimming

SightseeingBicycling iFishing ::

Attendingsports events

Picnicking 1'Nature walks :

Boating (not canoe 1or soil) iHunting »

Horseback ridingCamping

Ice skatingSledding ortobogganing

HikingWater skiing

Attending outdoordrama, concerts, etc.

CanoeingSailing

Mountain climbingSnow skiing f’

Source: ORRRC, op. cit., p. .46.

On the other hand, few of us want to lock-up resources. There is little value in havingoutdoors areas which no one can enjoy.

The point is that each community must de-cide whether its basic goal is to maintain thebeauty of its natural surroundings—subjectto some recreational use—or whether its goalis to get the most recreational use out of itsresources.

Discuss and DecideThe first step in developing a recreation

program, assuming goals have been chosen,is to assess its feasibility. Most localitieshave some areas—reservoirs, small forestgroves, etc—that could be developed. A pro-gram designed for local residents may requireonly modest facilities. But if the developmentis for the purpose of attracting people fromoutside the immediate area then resources,location, and investment in facilities mustappeal to recreationists.The first point to determine is what scenic

and recreation resources the community hasto offer. Water is especially important. Acheck of the most popular outdoor activities(shown in Figure 2) indicates that most re-quire water. And activities such as hikingwhich do not require water usually seem morepleasant if there is a lake or stream nearby.Even if the resources are available recrea-

tion development may still not be feasible be-cause of location. There is no national short—age of most types of recreation facilities.However, most of the presently availablesites are in the West and most of our popu-lation is in the East. This geographic in-balance is brought out by Figures 3 and 4which compare population and availability ofrecreation sites. The South is in a relativelyadvantageous position as it has many poten-tial recreation areas; increasing leisure,higher personal income, and better roadsmean that more residents of Northern cities

are able to come South for their recreation.Assuming that the community has selected

its goals, has the necessary resources, and isnear enough to metropolitan population con-centrations to make a development programfeasible, the next choice is the kinds of facili—ties to be developed and who will provide thenecessary investment. The ORRRC reportlists six types of facilities each communityshould consider.

Class I—High-Density RecreationAreas. These are facilities designed formass use. Examples are lakes or reservoirsdeveloped for boating and. swimming withdocks, bathhouses, beaches, restaurants, andsimilar accommodations. This class of devel-opment has the most direct economic impactupon a region of any type of recreation. AConey Island or even a fishing pier can pro-vide substantial employment and sales po-tential. On the other hand, there may besignificant social and economic costs. Thenatural characteristics of the area may be-come less attractive, and this may causemuch resentment from local residents. Forexample, Massachusetts citizens successfullyprotested a project to convert Thoreau’s Wal-den Pond into a swimming area._A1so, Class Idevelopment may require a substantial in-crease in community services; more policeand fire protection is usually necessary, ex-tensive investment in roads and sanitaryfacilities is likely. Any locality desiring tomaximize the economic growth potential of

Figure 3. Total Land and Water Area, Number and Acreage of nonurban Public Des-ignated Recreation Areas, and Population, by Census Region, United States,1960.

Total land Recreationand water area areas 1 Population

1,000 Percent of 1,000 Percent of MillionsArea acres U. S. Total 2 No. acres U. S. Total 2 of people Percent

Northeast 108,386 4.7 2,569 9,288 3.3 44.7 25.0North Central 489,939 21.1 10,969 29,064 10.3 51.6 28.9South 575,841 24.9 5,554 26,495 9.4 55.0 30.8West 760,162 32.8 4,956 169,153 59.8 27.2 15.3Alaska 375,296 16.3 90 47,140 16.7 .2 —Hawaii 4,1 1 1 .2 153 1,499 .5 .6 —Total of50 States 2,313,735 100.0 24,291 282,639 100.0 179.3 100.0

1 “Nonurban public designated recreation areas” means publicly owned and managed land and water areas upon which recrea-tion is a recognized use. Hunting and fishing take place on some areas. The areas include the entire acreage of national,State, county, and local parks, monuments, historic sites, memorials, geologic areas, archeological areas. forests, recreationareas, public hunting and shooting grounds, water access areaS. fish hatcheries, and wildlife refugees where the public is 1197'-mitted to engage in recreation activities. Also included are about 15,000 small areas; about 11,000 are highway wayside andpicnic areas, with a total of about 21,000 acres, and the other 4,000 are access areas, State, county, and other local forests,and recreation areas totaling close to 200,000 acres. Acreage is net; inholdings are excluded.2 Including Alaska and Hawaii.Source: Total acreage figures from Statistical Abstract of the United States, 1961, p. 161. Recreation area data fromstaff inventory studies, Public Outdoor Recreation Areas-Acreage, Use, Potential, ORRRC Study Report 1.

Figure 4. Regional Distribution of Population, Area and Recreation Acreage

, Percentage ofpopulation

- Percentage of landand water areaPercentage ofrecreation acreage

recreation should give primary attention torecreation of this class. However, it shouldalso examine all the costs as well as thebenefits.

Who should undertake development of thistype? Private firms and local governmentsare obvious candidates due to the economicattractiveness of such projects. If privatefirms are utilized, the locality may have toundertake public investment in roads, waterand sewage systems, etc., before privatecapital will be interested. Also localities mayhave to extend to recreational entrepreneursthe same types of benefits and incentivesoffered manufacturing firms. If the munici-pality decides to develop the resources itself,consideration should be given to using privateconcessionaires to lessen the administrativeburden. States and Federal Government agen—cies traditionally have stressed forms ofrecreation other than the Class I type.Class lI—General Outdoor Recrea-

tion Areas. Examples are camps in nationalforests, and most state parks. Such areasare managed for extensive use with someman-made facilities but, unlike Class I, aneffort is made to limit use to provide more“natural” and uncrowded recreational oppor-tunities.

Class II developments may provide sub-stantial and direct economic impacts, butthey will be less than Class I developmentsdue to the limitation on number of peopleusing each unit of land or water. On the other

North Central

Source: ORRRC. op. cit., p. 56.

hand, the “aesthetic” and “amenity” aspectsof this type of facility are usually higher.Because of the constraint on mass use such

development is not usually attractive toprivate capital. Local governments may findit desirable to undertake developments of thistype particularly if local citizens wish a placeto camp, picnic, or engage in other activities.Boy Scout Troops, church organizations, andsimilar groups need such areas. Most facili-ties of this type, however, are under state orfederal management. Because of the need forskilled land and water management and theconstraint on mass use, local governmentsusually prefer to put their efforts into de-veloping other types of recreation.Class III —Natural Environment

Areas. In such areas manmade facilities areheld to a minimum, but other uses may bemade of the area besides recreation—lumber-ing, grazing, and mining are common uses.Scenic roadside zones in national forests areillustrations of this type of area.Such developments provide less direct

economic impacts than either of the previ-ously discussed classes, but there may beextensive social benefits from maintainingattractive scenery and open spaces and pre-serving the beauty of a region. Many areashave found it beneficial to set aside “naturepreserves,” small areas (40 to 60 acres) to bemaintained untouched for use by high schooland college science students, nature enthus—iasts, and others who wish to observe natureundisturbed by human “improvements.”

Much of the Class 111 type of developmentcan be undertaken through zoning, negotia—tion of scenic easements, local governmentpurchase of small land areas, or encouragingprivate owners to deed land or easements tothe public. The investment required is usuallylow—just a few picnic tables, fences, etc.,but policing, maintenance, and sanitary andpollution control are required. To cite onepotential often overlooked, the areas in high-way “cloverleaves” not used for the road areseldom developed but could, with minimuminvestment, provide scenic areas.

The states and Federal Government areimportant agencies for Class III development.While local governments and private groupscan contribute significantly, the nationalforests, and state highway and park systemswill provide the major part of the facilitiesin this class.

Class IV — Unique Natural Areas.Such areas are of special scenic or scientificinterest, for example, the Grand Canyon orOld Faithful. The primary use is educationalor to provide an experience obtainable at few,if any, other locations. Most such areas arein national parks or monuments or undersome. other form of special management,usually by the Federal Government.

Class V — Primitive Areas. These arewild lands intended to allow the participant toenjoy a “wilderness experience.” The usercan get away from civilization and be alonewith nature. Because they must be large mostwilderness areas are in the western nationalforests or national parks. The essence of thistype of recreation is that a few people use alarge amount of resources. Thus, there willbe less direct economic impact than for anyof the other classes discussed. Guides, sport—ing goods stores, and similar businesses willbe stimulated, but most areas will not findsuch development a strong impetus to econo-mic growth. Because the motive for primitiveareas is to preserve examples of what Ameri-ca looked like when it was a frontier, theirmaintenance is almost always undertaken bythe Federal Government.

Class VI — Historic and CulturalSites. Examples such as Mount Vernonand Kitty Hawk come instantly to mind. Themotive for this type of facility is to preservefor future generations visible examples of

our historical or cultural achievements. Rec-reation use, in the ordinary sense, is second—ary though many sites, such as the Gettys—burg battlefield, are important tourist attrac-tions. Such areas are more analogous tomuseums than to campgrounds or other massrecreational facilities.

Localities with sites of historic or culturalinterest should undertake to preserve them,although unless the area is of unusual signi-ficance there will probably be few directeconomic benefits. Few towns have a Monti-cello, however, the social advantage of main-taining visible links with our history is obvi-ous. Items with strong national interest—such as Independence Hall—are usually man-aged by the Federal Government. Items withmore local interest are usually managed bystate agencies, local governments, or privategroups.

The first two and possibly the third classesof recreation facilities provide the recreationdesired by people as consumers. Thus, theyrepresent investment opportunities similar toother opportunities to produce wanted goodsand services. The primary function of thefacilities in the last three classes (and possi-bly Class III) is non-economic. Like museumsthey set aside things which are regarded asintrinsically valuable from a. cultural stand-point regardless of their economic return.Further, like a museum such areas will yieldsome recreation, in the common sense of theword. Just as the worth of a museum is notmeasured by the number of visitors or ad-mission fees, however, the worth of preserv-ing Grand Canyon cannot be measured bythe amount spent on hot dogs by the visitors.Maximizing the income from tourists wouldbe inappropriate for many types of facilities.Any recreation at an area such as MountVernon should be in keeping with the goalswhich lead to its preservation.

Any community drawing up a recreationprogram must give close attention to whichclasses of facilities it will devote its effortsand funds. Such a choice will depend partlyupon location and resources and partly uponthe goals of the development. Communitieswith a preservationist’s goal will stressClasses IV, V, and VI. Communities in-terested in recreation for economic develop-ment will concentrate on the first threeclasses.

What Now?

When a consensus about the issues dis-cussed above has been reached, the firstaction item is a survey of the region forpossible development sites. Then a decisionmust be made as to who should develop them;private firms, local governments, state gov-ernments, or federal agencies. Many organi—zations stand ready to assist both with thisstage of planning and with the deve10pmentand promotional work which will follow. Atthe federal level, the Bureau of Outdoor Rec~reation, U. S. Department of the Interior, canassist. Other agencies which may be able toprovide assistance are: Forest Service, U. S.Department of Agriculture; National ParkService, U. S. Department of the Interior;and Area Redevelopment Administration,U. S. Department of Commerce. On the statelevel, your department of conservation andeconomic development, or recreation com-mission stand ready, as do the state univer-sities. Private organizations which can beparticularly helpful with Class III develop-ments are the National Audubon Society,1130 Fifth Avenue, New York 28, N. Y.; andNature Conservancy, 2039 K Street, N.W.,Washington 6, D. C. The ORRRC report dis-cussed above can be obtained from the Super-intendent of Documents, U. S. GovernmentPrinting Office, Washington 25, D. C., for$2.00.

The most important step, however, is toget state and local authorities concerned withrecreation. Municipal and county govern-ments need to give recreation demands toppriority in local planning. Zoning regulations,for example, should help achieve develop-ment and preservation goals. When publicinvestment is undertaken, recreation shouldbe considered. For instance, many dams usedfor municipal water developments can beused for recreation purposes without affect-ing the quality or quantity of local watersupplies.

Most state and local governments need toundertake programs of land acquisition andpublic investment for development. This canbe carried out in several ways—through emi-nent domain proceedings, by negotiated pur-chases, or by obtaining easements. The latter

may be particularly useful because somerights—say, access to a lake—can be ob-tained without the expense of securing allthe ownership rights. This method, as do allthe others, has limitations as well as advan-tages and careful thought should be given tohow to go about obtaining the land and rightsneeded.

State and local governments should exerttheir regulatory power to enforce pollutioncontrol and assure public safety and sanita-tion at recreation areas. A little litter alonga highway can destroy millions of dollarsworth of scenery. Finally, private individualand group recreation development of a typeconsistent with over—all goals should be Vig-orously encouraged.

CONCLUSION

The issues discussed here are problemswhich only rich nations face. Few countries inhistory—and America only recently—have hadto consider how leisure time should be spent.Because this is a new problem there is adanger that we will neglect the chance to pro-vide open space and recreation opportunitiesfor both present and future citizens. At pres-ent, it is relatively cheap and easy to ensurethat the outdoors remains a part of the Ameri-can heritage. If we neglect present opportuni-ties we may find it very difficult, if not impos-sible, to preserve the beauty of our naturalresources and to deve10p outdoor recreationfacilities. Every citizen should make it hisduty to ensure that the proper action is takennow so we will continue to enjoy our outdoors.

EVERY CITIZEN SHOULD MAKE IT HIS DUTY TO INSURE THAT THE PROPERACTION IS TAKEN NOW 50 WE WILL CONTINUE TO ENJOY OUR OUTDOORS.

Prepared by:George R. HallProfesor of EconomicsUniversity of Virginia

____________________——————————This leaflet is one of a series 05 six designed for use by informal discussion groups The subject matter is concernedwith economic develOpment‘ The first five leaflets were published by the North Carolina Agricultural ExtensionService and include the following: No. i. Why North Carolina Must Grow. No. 24 Manpower and Growth No. 3.Education and Growth. No 4, Industry and Growth. No. 5. Agriculture and Growth. The lost leaflet in the seriesentitled Recreation and Economic Development, was published by the Agricultural Policy Institute.___________________.___—_——