ATVs revved the Minnesota economy in 2005 to the full-throttle tune of $641.9 million in direct expenditures. So says the University of Minnesota Tourism Center, which published the results of work done by Ingrid Schneider, Ph.D. and Tony Schoenecker, a graduate research assistant, in an executive summary titled “All-Terrain Vehicles in Minnesota: Economic Impact and Consumer Profile.”

The 2005 Schneider/Schoenecker report was published in March 2006 and is the basis for all data listed in this article. Two mail surveys - one to retailers and manufacturers and one to consumers - were conducted and the researchers also worked with the Minnesota Department of Natural Resources and the ATV Association of Minnesota (ATVAM) to compile the data. The seven-page consumer survey attracted a 40.2-percent response and the manufacturing and retail survey saw a 39.2-percent response. The surveys say ATV-related expenditures equaled $641.9 million in the Land of 10,000 Lakes.

Schneider tells ATV-Industry magazine, “Economically, I wasn't sure what the results were going to be. I anticipated that Minnesota riders would be comparable to riders in other states, but I was very curious about the rides themselves in terms of length and [riders'] motivation for riding.” The study's economic component is for one year, 2005, according to Schneider. The rider profiles, however, reflect previous, current and projected riding experiences.

The residential user spent $572.1 million on ATV-related travel expenditures: $311.8 million at home and en route, plus $260.3 million at their destinations. An additional $69.8 million went to storage, equipment and insurance.

The report says those residents' ATV expenditures added up to 8,756 jobs with $224.6 million in payroll, pumping $491.2 million into Minnesota's gross state product (GSP) and added $48.9 million to state tax coffers under the general “tourism” heading.

Manufacturing added another 30.4 million to tax ledgers and accounted for 4,216 jobs with $165.6 million in payroll. All-tallied, manufacturing contributed $349.2 million to the GSP. (Minnesota is home to Arctic Cat and Polaris.)

The report tallied ATV-related retail activities and said they accounted for 1,477 jobs with $39.2 million in payroll, contributing $79.3 million to the state's GSP and $6.9 million to state tax coffers.

The total state and local tax revenue for ATV-related tourism is $48.9 million, the report says. The report - the first on ATV consumers and economics in Minnesota - expects ATV sales and sport participation to increase significantly through 2014.

The report also investigated who's riding Minnesota's 1,708 miles of ATV trails managed by the Department of Natural Resources and Explore Minnesota Tourism, both official state agencies.

The typical Minnesota rider mirrors national demographics, according to the report: white male, mid-40s, some college or tech schooling. His family size is 2.8 and he makes more than $50,000 per year.

The report cites National Travel Monitor, Chon & Singh and Cato & Knustler when it says, “this 'boomer' has specific desires for novelty, family accommodations and flexible opportunities that include educational, cultural and sports experiences.” Only 10 percent of ATV owners are club members, the report states.

“Being with friends and family” was the most important when survey respondents were asked for their ATV-riding motivations. Next came a 3-way tie of “being in a natural area,” “relaxation” and “getting away from it all.” But the report notes these responses are typical of many outdoor activities. Answers like “intensive-use areas with variety of terrain” and “the ability to ride the ATV to the destination” were unique to the ATV demographic. The average rider used his ATV 26 times over the course of the season.

Riders spent about $43 per day on day trips, with most of that money going to groceries. The survey found more than half of all ATV experiences occurred within 30 miles of home. Consumers who engaged in both day and overnight adventures, however, typically spent overall 17 percent more ($307.9 million) than those who only took day trips ($264.2 million).

“The spending pattern was interesting,” says Bob Isaacson, director, Analysis and Evaluation, Minnesota Department of Employment and Economic Development, who also worked on the report. “Especially the degree to which ATV'ers spent money at home/en route and nontravel vs. at the destination.”

Isaacson says he was surprised at first by the large numbers ATVs were posting economically compared to snowmobiling: “However, upon reflection we recognized the key differences between the sports - length of season being a key one - we understood why the ATV was so much larger. We were also surprised at the general consistency of numbers among states - not exact, but generally in the same ballpark.”

Isaacson says a request from ATVAM based on research his department had done with snowmobilers led to the ATV study. (Details of the snowmobile report are at www.tourism.umn.edu/research/snowmobile2.pdf.) The typical rider overnights with his ATV 3.1 times per year and stays an average of 2.1 nights per trip, according to the data.

More than half the respondents said they would support increased fees to pay for trail improvements: $21 on average, but the median increase was less than $10. The report settled on suggesting an increase of $10 as “perhaps the most acceptable price to pay.” (Minnesota currently charges $30 plus fees of less than $10 for 3-year ATV tags.)

Most Minnesotans ride in the northern reaches of the state, according to the report. Only 10 percent said they ride in Wisconsin, but an on-site Wisconsin DOT survey found 24 percent of the riders in Wisconsin's northwest corner were Minnesotans. It was perhaps no surprise. The report says 33 percent of respondents were willing to travel more than 100 miles for their ATV experience.

“Substantial interest in the findings was expressed by a variety of sources: elected officials, governmental units, and the riders themselves,” says Isaacson. “As you might expect, those in the ATV community are very excited about the economic impact and can relate to the consumer profile results. ATVAM's enthusiasm was apparent. Mixed reaction was expressed by government.”

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