Off-Road Vehicles (ORVs)

A Survey and Economic Assessment of Off-Road Vehicle Use in Wyoming

 Executive Summary

 The State of Wyoming instituted a mandatory off-road vehicle (ORV) permit program in 2002. The proceeds from permit sales along with a portion of the state’s gasoline tax revenue help fund the Wyoming Department of State Parks and Cultural Resources, Division of State Parks and Historic Sites, State Trails Program (WSTP). The WSTP uses the permit money collected to establish and maintain trail systems, print maps and safety materials, and in working with interest groups and public land managers to coordinate its activities on behalf of trail users. In order to better serve trail users, the WSTP provided funding to the University of Wyoming, Department of Agricultural and Applied Economics to conduct a broad-based economic assessment of ORV use in Wyoming. This report is the product of that study.

 A mail survey was sent to 1,000 resident and 1,000 non-resident purchasers of a 2004 Wyoming ORV permit. The project received a 39.8 percent response using a modification of the Dillman method. Of these, 28.3 percent were usable for analysis. Resident and non-resident surveys were analyzed separately. The researchers estimate the error rate to be ±6 percent.

 In addition to the mail survey, the project contracted with the Wyoming Survey and Analysis Center (WYSAC) to do a random-digit-dial survey in the state of Wyoming to estimate the percentage of Wyoming households participating in ORV recreation (not just those who purchased an ORV permit). Six hundred thirty-five Wyoming households were contacted. Questions on snowmobile use were also asked in the same survey to conserve funding resources.  WYSAC attaches a ±5.6 percent error estimate to this survey.

 The results of both surveys were analyzed and used to estimate the extent of ORV recreational participation in Wyoming households and the economic impact of ORV use on Wyoming’s economy. Although other regional studies have included Wyoming, they have all focused on participation and rider satisfaction. This is the first broad-based study focused solely on ORV use in Wyoming, collecting in-depth socio-economic data.

 The project estimates that over 37 percent of Wyoming households rode ORVs during the last twelve months, and within these households, there is an average of 2.4 riders per household. This represents approximately 180,000 residents who are ORV riders in over 75,000 Wyoming households. Approximately 35.5 percent of the state’s 506,000 residents used an ORV for recreational purposes in the last 12 months resulting in over 3.6 million household-use days of ORV recreation.

 The telephone survey suggests that there are approximately 150,000 ORVs owned by state residents. Residents reported spending about $1,261 on each ORV they own in the last twelve months, much of this on the purchase of new or used ORVs. Based on the projected number of ORVs in the state, residents spent over $189 million on ORVs and related expenses in the last twelve months.

 Based on the number of ORVs registered by state residents (permits purchased), total resident user-days are estimated to be over one million for the twelve month survey period. If this number is expanded out to cover the estimated number of ORVs in the state found by the telephone survey, the number of user-days would be over 5.5 million by residents alone. Residents reported spending an average of $27.04 per day, per person on ORV trips. Multiplied by the estimated number of user-days, the result is approximately $27.9 million spent by registered resident users and an estimated $149.1 million in total trip spending by both registered and non-registered resident ORV users.

 Non-residents reported spending an average of $31.70 per person per day on trips to Wyoming and $243.03 annually in the state of Wyoming (in addition to trip expenses). Registered non-residents spent a total estimated $8.4 million in the state in the twelve month period. Non-residents reported almost 180,000 user-days in Wyoming based on the 11,071 non-resident permits sold in 2004.

 The economic impact of ORV use was calculated using IMPLAN 2003 software. Only non-resident data was used in the analysis since only non-resident expenditures add new dollars to the local economy (resident dollars are already present in the local economy and would flow to some other use or leak out of the region). The results show that an estimated 127 new jobs and an additional $3.3 million in earnings are contributed to the Wyoming economy by registered non-resident ORV users. If the same ratio of resident registered users to total users as found in the telephone survey is applied to non-residents, then the jobs and earnings estimate would increase to 679 jobs and over $17.6 million in earnings.

 State and local government also benefit from ORV expenditures. Resident permit holders contribute over $2.6 million per year in sales tax, $335,000 in gasoline tax, $24,000 in lodging tax, and $422,000 in permit fees for a total of over $3.4 million. If ORV numbers are expanded to the level estimated by the telephone survey, the total contribution increases to over $16.4 million.

 Non-resident’s contribution to state and local government is less than for residents because there are less out-of-state ORV users than in-state users, but they spend more per person per day and represent new dollars to the states economy, so they are important from an economic development perspective. Non-resident permit holders are estimated to contribute about $532,000 to the states economy. This total includes $302,000 in sales tax, $49,000 in gasoline tax, $14,600 in lodging tax, and $166,000 in permit fees. Using the ratio estimate obtained from the telephone survey the total contribution of non-resident ORV users to state and local government increases to about $2.1 million.

 ORV use in Wyoming is wide spread. The multi-purpose nature of ORVs means that they are ridden virtually throughout the year. Non-residents tend to come to Wyoming to recreate on ORVs just one or two months out of the year, concentrated in late summer and fall. Residents have an earlier peak in August, which is really part of a broad plateau of summer and fall use.

 The multi-use nature of ORVs also lends them to participation in other activities. Recreationists’ primary activity is not necessarily riding ORVs, but involves the use of an ORV for hunting, fishing, and other recreation activities. Should there be some kind of restriction on ORV use in Wyoming residents indicated that they would shift activities, yet still pursue outdoor recreation in the state. Non-residents, however, indicated that they would go to another state to pursue ORV recreation opportunities. This represents a potential loss of tourists and tourism related dollars to the state’s economy.

Residents tend to be more spread out in their geographic use of the state. This is primarily the result of place of residence. Residents tend not to travel more than two hours and about 150 miles from home to recreate. Non-residents tend to travel 250 miles or more and showed a distinct preference for the Snowy Range, followed by the Big Horn Mountains and to some extent, Southwestern Wyoming. However, both residents and non-residents showed a preference for U.S. Forest Service lands. Only about 64 percent of residents spent at least one night away from home, compared to almost 92 percent of non-residents who spent at least one night away from home.

Click on the ORV button to view and download the complete 85 page report.

 A Survey and Economic Assessment of Off-Road Vehicle Use in Wyoming (2006)

 

Link to Wyoming State Trails Program website: WSTP

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