California's outdoor economy is thriving

The state's surf, snow and scenery aren't just breathtaking. They mean big bucks for tourism and other enterprises selling the great outdoors.

By Hugo MartÃ*n, Los Angeles Times
May 15, 2011

On a towering cliff overlooking the sun-sparkled shores of Carlsbad, Calif., Dawn Santos watched a squadron of pelicans fly past the campsite where she and her family were staying for four days of campfires, bike rides and splashing in the surf.

"It's gorgeous," the Rancho Cucamonga mother of three marveled as the afternoon sky turned bright pink.

Here at South Carlsbad State Beach in San Diego County, the Santos family took a break from work and school by renting a 26-foot trailer to enjoy one of California's most valuable economic assets — its outdoor riches.

The state's beaches, mountains and deserts offer more than just aesthetic beauty. They represent a vital economic engine that employs thousands of public workers, creates millions of private-sector jobs and generates billions of tax dollars. And now those outdoor resources may help pull the state out of a financial bind.

"California has had a reputation of having some of the most incredible parks and beaches," said John Severini, president of the California Travel Industry Assn., a trade group. "It's one of the very elements that attract a lot of people to our state."

California's vast outdoor assets are at the center of its $95-billion tourism industry, the state's fifth-largest job creator. Those resources produce more than just hotel receipts and restaurant tabs. They generate revenue from surfing schools, sporting goods stores, ski resorts, whale watching tours, white-water rafting outfitters and golf courses.

California's economy is rooted in aerospace, entertainment, technology, construction and international trade. But it thrives on bright sunshine, big waves, fresh powder and biting trout.

"Outdoor recreation opportunities are one part of the attraction of living and working in California, so they support a positive climate for investment and talent," said Stephen Levy, director of the Center for Continuing Study of the California Economy.

Nearly 40% of all domestic visitors to the state last year took part in at least one type of outdoor activity, according to statistics released this month by the California Travel and Tourism Commission. That adds up to 75.6 million visits to the state and $44 billion in direct spending in 2010, according to the commission.

The importance of the outdoor economy has been especially apparent as the state looks to emerge from the economic downturn.

With the state budget crisis worsening and unemployment topping 12%, California officials hope to seize on its balmy climate, 840 miles of coastline and more than 9 million acres of state and national parks to generate more revenue for the state and create jobs.

"If there is a silver lining to a poor economy, it is that more people are spending more time in the outdoors," said Rob Southwick, president of Southwick Associates and author of an economic analysis of the state's outdoor activities.

There may be no better spot to witness the outdoor economy at work than in California's state parks, where snack bars, campgrounds, hotels, bicycle stands and other enterprises cater to outdoor-loving vacationers and generate fees for government coffers.

The state collected more than $88 million from 54 such concession operators in the fiscal year that ended in June 2010, an increase of about $450,000 over the previous year, according to a state report. Concession operators pay the state as much as 15% of their gross revenue to operate at state parks and beaches.

The state takes a share, for example, from concession operators who give horseback tours to visitors at Andrew Molera State Park near Big Sur. It also collects fees from an overnight surf camp operated at Manresa State Beach south of Santa Cruz and gets a cut of the gross receipts from an operation that teaches hang gliding at Mt. Tamalpais State Park, north of San Francisco.

Even umbrella rentals at the beach at San Buenaventura State Beach in Ventura County generate money for the state.

"Part of the state's ingenuity is to make use of these resources," said Elizabeth Goldstein, president of the nonprofit California State Parks Foundation. "Clearly this is driven by financial necessity, and I don't see it changing any time soon."

On Friday, Gov. Jerry Brown announced that budget woes might force the state to close 70 of its 278 parks, but state park officials said they would try to keep open those parks that generate the most revenue through entrance fees and concession operations.

The national parks in California also help boost the state economy.

For example, Yosemite National Park drew 3.7 million visitors in 2009, generating $352 million in spending at hotels, restaurants, souvenir shops, sporting goods retailers and gas stations within 60 miles of the park, according to a study released this year by the National Park Service.

Yosemite leads the nation in overnight visitors, with 1.7 million in 2009, and ranks behind only the Great Smoky Mountains, Grand Canyon and Grand Teton national parks in total visitor spending, the National Park Service study concluded.

Yosemite employs more than 900 federal workers, and spending by visitors helps pay the salaries of nearly 4,500 more workers in and around the park, even businesses far from Yosemite.

At Miner's Inn Restaurant and Lounge, a Gold Rush-era-themed eatery about 44 miles from an entrance to Yosemite in the town of Mariposa, restaurant owner Dave Helzer estimates that at least half of his business comes from park visitors.

That became painfully clear to Helzer in spring 2006, when a rock slide closed the main road to Yosemite, cutting his regular dinner crowd of about 100 customers per night to about 50. "We lost all of the tour buses that come this way," he said.

Because of the state's staggering budget woes, California officials are considering more creative ways to squeeze money from state parks. Starting this summer, for example, several state parks will charge a floating parking rate that increases during peak periods such as weekends and holidays and declines on slower weekdays.

"We are continuing to look at new concession opportunities," said Jim Luscutoff, the state's chief of park concessions, reservation and fees.

One way state officials hope to boost revenue from parks and beaches is by taking advantage of the growing trend of park visitors camping in trailers instead of tents. In the last two years, a dozen contracts to allow concession operators to rent and park camper trailers at state parks and beaches have been approved.

"We've seen that it does appeal to our guests and has been successful on our campgrounds," Luscutoff said.

The trailer rentals contracts alone generated nearly $13 million for the state in the fiscal year that ended in June 2010. That was the second-highest total, behind only fees generated by restaurant and catering operations at state parks.

Jason Kimbrell, owner of Vacation Trailers 2 U, began his trailer rental business in 2009 and has already paid the state nearly $70,000 in fees to operate in four state parks along the Central Coast. He says his operation is still new, but he expects trailer rentals to be big business in the future.

"It's for people who are looking for a luxury camp experience," he said. "It makes sense for a lot of people."

It made sense to Mike Cadle, a patio furniture salesman from Rancho Cucamonga who rented a 23-foot trailer recently for four days for $480, which included the cost to deliver it to his reserved campsite at South Carlsbad State Beach. He shared the trailer with his wife and two children. It included a bathroom, a small kitchen, a television and a couch.

Cadle said renting the trailer made much more sense than buying an RV or renting a beach-side hotel room for his family.

"We did the math," he said as he sipped a beer, admiring the Pacific Ocean while his wife Tracey prepared dinner in the camper.

Along the same cliff, a few yards away, Santos said her decision to rent a trailer was based on convenience and saving money. A hotel for the entire family would have been too expensive, she said, and tents don't offer the comforts of a heated trailer.

"It was easy to put my kids to bed last night," she added. "There is a TV in there."

hugo.martin@latimes.com

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