Economic Contribution and Impacts of Arizona's State Parks

Report
Authors
Ashley Bickel
Publication Date: 2021

This study presents an analysis of the importance of Arizona State Parks to the state’s economy and to the 13 county economies where state parks are located. The study measures two types of economic effects: county economic impacts and state economic contributions. Both measures are rooted in visitor spending. State parks attract visitors, often from outside the local area, that spend money on such things as lodging, meals, and incidental expenditures. This spending is important to local economies, supporting businesses and jobs, and creating additional rounds of spending in the local economy, known as economic multiplier effects.  

Spending by non-local visitors, attracted to state parks from outside the local area, represents net new money circulating in the local economy, and therefore is considered as an economic impact. This study presents county-level economic impact estimates for all counties in Arizona with state parks. We also consider all (local and non-local) visitor spending in and around state parks in estimating the economic contribution of state parks to Arizona’s economy.  

An economic contribution analysis presents a snapshot of existing economic activity surrounding a particular industry or attraction; however, it does not differentiate where spending is coming from. In other words, spending by local residents is simply money being recirculated within the local economy and does not generate net new economic activity within the region’s economy.  

Finally, we present a brief analysis of the effect of the COVID-19 pandemic on visits to Arizona State Parks to provide context on the level of visits observed during fiscal year 2020.

 

Findings

  • Through visitor spending in local economies, Arizona's state parks contributed an estimated $449 million in sales to the state’s economy, $272 million to Arizona's Gross State Product (the state equivalent of Gross Domestic Product), and supported an estimated 4,200 jobs statewide.
  • Since the 2014 economic impact study, total expenditures by non-local visitors to Arizona State Parks are estimated to have increased by over 20%. While non-local expenditures per visit actually decreased between 2014 and 2020 (by 6%), visits to Arizona State Parks grew by nearly 30%, leading to higher overall spending in the state.
  • At the county-level, the study considered the economic impacts of non-local visitors to state parks making expenditures in and around the parks (results next page). The largest county-level economic impact was in Mohave County with roughly $83 million in sales, including multiplier effects, and an estimated 945 jobs. State parks are located in 13 of Arizona’s 15 counties, excluding Greenlee and Maricopa Counties.
Statewide Economic Contribution, Including Multiplier Effects—All Visitor Spending
AreaParksSalesGross State ProductJobs
Arizona34$449 million$272 million4,173
County Economic Impacts, Including Multiplier Effects—Non-Local Visitor Spending
AreaParksSalesValue AddedJobs
Apache County1$3.3 million$2.0 million44
Cochise County2$17.2 million$10.2 million198
Coconino County2$45.1 million$26.8 million463
Gila County1$6.3 million$3.4 million73
Graham County2$3.7 million$2.2 million46
La Paz County3$14.7 million$9.2 million181
Mohave County3$83.0 million$47.8 million945
Navajo County2$15.0 million$8.7 million176
Pima County1$12.3 million$7.3 million140
Pinal County4$24.3 million$14.7 million301
Santa Cruz County4$9.8 million$5.7 million117
Yavapai County7$47.1 million$27.9 million506
Yuma County2$6.8 million$3.9 million74

COVID-19 impacts

The COVID-19 pandemic led to a decrease in Arizona State Park visits in calendar year 2020 compared with visits in calendar year 2019, with overall visits down by 7.6%. Excluding historic state parks and Kartchner Caverns which were closed temporarily for safety precautions, however, visits to all other parks were in fact 1% higher than in 2019. Visits to historic state parks and Kartchner Caverns were 50% lower than in 2019.

Methods

This study relies on a survey of visitors to Arizona State Parks between July 2019 and September 2020 which col- lected information on visitor spending and origin. Average visitor spending patterns were developed for each park to estimate both non-local and total visitor spending occurring in and with- in 50 miles of each state park. Visitors are considered local when they reside within the same county as the park or if they reside in zip codes that fall within a 50-mile radius of the park. Total spending for each park is esti- mated using annual state park visita- tion statistics and average visitor spending patterns, accounting for the fact that not all visitors report spend- ing in every category. Regional and state economic multiplier effects were estimated using the IMPLAN 3.1 model and data.