WALTON FAMILY FOUNDATION
PEOPLEFORBIKES
To better understand the economic and health benefits of bicycling in Northwest Arkansas, the Walton Family Foundation, in collaboration with PeopleForBikes, commissioned BBC Research & Consulting (BBC) to conduct a study of bicycling behavior and assess the economic and health benefits of bicycling in the region.
Study Objectives
The ability to measure the economic and health benefits of recent investments in bicycle infrastructure in Northwest Arkansas is critical. The data generated by this study can inform policymakers, funders, and stakeholders about the overall value of their investments in bicycle infrastructure, as well as informing how to best dedicate current and future resources for bicycling. More specifically, study objectives include:
- Quantifying the economic, health, social, and business benefits associated with bicycling
- Examining the return-on-investment (ROI) of bicycle infrastructure investments
- Create and share best practices and methods for measuring the benefits of bicycling
Below BBC presents results from the analyses conducted to meet each of the study objectives.
Implications and Context
Since the late 1990s, considerable resources have been invested in planning and building a worldclass trail system to enhance the economic vitality of Northwest Arkansas. The centerpiece of this trail system is the $38-million Razorback Regional Greenway, a 36-mile shared-use paved trail that links the major cities in the region. Razorback Greenway planning and construction were supported by grants from the Walton Family Foundation and the U.S. Department of Transportation in addition to local and state funding.
Key results from the study include:
- Bicycling in Northwest Arkansas provides $137 million in benefits to the economy annually.
- Bike tourism is a significant economic driver with tourists spending $27 million at local businesses each year.
- Investment in soft-surface mountain bike trails is a key driver of tourism with at least 55% of mountain bikers traveling to Northwest Arkansas from outside the region.
- Bicycling in Northwest Arkansas generates $85 million annually in health related benefits.
- Residents of Northwest Arkansas spend more than $20 million on bicycling annually.
- Houses within .25 miles of the Razorback Greenway sell for an average of nearly $15,000 more than those two miles from the trail.
It is helpful to provide context to these results given other results from economic benefits analyses throughout North America, although there are often substantial differences in the methodology employed to calculate the role of bicycling in an economy. BBC recently conducted a study using very similar methodology for the state of Colorado. On a per-capita basis, results for Northwest Arkansas are very similar to those found for Colorado. The role of bicycling in the Northwest Arkansas economy is comparable to other areas throughout the country. A 2011 study estimated approximately $17 million in tourist spending from non-local trail users, while a 2007 study for Grand County, Utah estimated an annual impact from mountain biking alone at $22 million annually. In Whistler, British Columbia, mountain bike visitors spend approximately $46 million annually. The share of non-local riders on mountain bike trails in Northwest Arkansas (estimated at 55%) is also comparable to some of the most notable mountain biking destinations such as Bend and Oakridge Oregon (65%), the North Shore in British Columbia (55%), and Squamish, British Columbia (49%). In addition, numerous studies have found positive correlations between property values and bicycle trails or greenways including hedonic studies completed in Indianapolis, Austin, and Muskego, Wisconsin.
Below we provide additional detail on the economic benefits of bicycling in Northwest Arkansas, a summary of bicycling participation for the region and key communities along with a discussion of the methodology used for the analysis.
Summary of Regionwide Economic Benefits
The total economic benefits of bicycling for Northwest Arkansas are approximately $137 million. As shown in Figure 1, approximately $51 million (37%) of total economic benefits are business benefits and approximately $86 million (63%) are health benefits. Each of those estimates is described in greater detail below.
Business benefits. Bicycling benefits business in a variety of ways in Northwest Arkansas. We examine the benefits of in-region household and resident spending on bicycling equipment, goods, and events; bicycle retail sales to out-of-region visitors; the retail sales tax impact of local bicyclists on non-bicycle related businesses; and bicycle tourism. Using data collected from residents, businesses, and other existing data sources (see methodology section for details), BBC calculated the respective economic benefit of each one of these expenditures as shown in Figure 2. Bicycling produces an estimated $51 million business benefit to the Northwest Arkansas economy annually: $21 million in household and resident spending on bicycles, bicycle goods, equipment, and events (42%); $3 million in bicycle retail sales and retail sales taxes paid by local customers (6%); and approximately $27 million in tourism spending by out-of-state visitors (52%). Spending by residents and tourists in the region supports jobs in businesses directly related to bicycling (such as bicycle shops) and other businesses such as restaurants, coffee shops, and hotels.
Comprising approximately 52 percent of total bicycle business benefits, bicycle tourism is an important contributor to the local economy. Approximately 90,000 -150,000 bicycle tourists visited the region in the last year to mountain bike.1 According to data collected from Strava, about 55 percent of all mountain bike rides on the region’s natural surface trails were completed by individuals from outside the region. BBC conducted interviews with five local tourism officials and business owners in Northwest Arkansas to understand why they visit and how they influence the local economy. Interviewees reported that they believe bicycle tourism is important to the local economy and that the region’s bicycle facilities attract visitors to the region:
“Bicycle tourism is important to Fayetteville. The things that go along with a cyclingfriendly community are important to non-cyclists [visitors] as well. [Potential visitors] will look and see [that there are] many miles of bike trails in Fayetteville. [They will] bet Fayetteville also has craft beer or a really great place to [get] coffee. [Potential visitors] are interested in those intersections [between amenities and infrastructure].” Regional tourism official
“What you have here [in Northwest Arkansas] is unique. We are seeing a large increase in people [visiting], staying in the Airbnbs, and riding all the different [natural surface] trails. That’s almost on a weekly basis.” Local business owner
……
Other economic benefits. BBC also conducted a variety of additional quantitative and qualitative analyses to understand other economic benefits the region’s bicycle infrastructure provides to the Northwest Arkansas economy. Those benefits are difficult to quantify on an annual basis for a range of reasons: trail impacts on property values are difficult to separate from local trail placement decisions, while other benefits are difficult to disentangle from overall regional characteristics and economic trends (such as social and business benefits). However, those analyses still demonstrate the importance of the region’s bicycle infrastructure to the following aspects of the regional economy:
- Property values
- Business development
- Residential development
- Social and business benefits
Download full version (PDF): Economic and Health Benefits of Bicycling in Northwest Arkansas
About The Walton Family Foundation
www.waltonfamilyfoundation.org
The Walton Family Foundation continues a philanthropic vision begun by Walmart founders Sam and Helen Walton. The foundation is dedicated to making a positive difference in K-12 education, freshwater and marine conservation, and quality of life initiatives in our home region.
About PeopleForBikes
peopleforbikes.org
PeopleForBikes is the movement to make riding better for everyone. By collaborating with millions of individual riders, businesses, community leaders, and elected officials, we’re uniting people to create a powerful, united voice for bicycling and its benefits…Our goal is to make every bike ride better, whether that ride takes you on trails, down to the grocery store, or all the way across town. Why? Because when people ride bikes, great things happen for our bodies and our minds, and our local and global communities.
Tags: Arkansas, Northwest Arkansas, PeopleForBikes, Walton Family Foundation
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