Recreation facilities may add direct economic value or indirect benefits to a community. This post will focus on the latter realizing that city leaders may be focused on their direct economic value.
The term “recreation facilities” may include sports fields, gymnasiums or indoor facilities, parks, or open space. Recreation facilities may impact a community in the following ways:
• Recreation facilities can serve as a gathering spot for locals of all ages. This in turn will increase pride in the area and make the community more cohesive.
• They can be a tool for economic development that helps with the retention and attraction of businesses and talented individuals.
• Parks and facilities may serve as a tourist attraction. The ski areas in Colorado are a prime example. The impact of visitors to these facilities could be measured by their spending at hotels, restaurants, gasoline stations, and retail stores.
• Tournaments, special activities, or ongoing programs may attract visitors from outside the local area.
• A strong recreation facility may benefit local retailers who sell sporting goods equipment.
• Recreation facilities may also drive the formation of spinoff recreation businesses that complement programs at the facility.
• Special events or activities may draw media coverage for the facility and the community. For example, Farmington, New Mexico claims to be the amateur baseball capital because it has hosted Connie Mack and Babe Ruth tournaments since 1965.
• Recreation facilities with active programs increase the health of the local community. Boulder, Colorado is considered a recreation Mecca and one of the healthiest cities in the country.
• Some recreation facilities have staff who publish periodic health and fitness press releases in the local media to promote a healthy and active community.
• Studies have shown that quality recreation facilities increase the value of neighboring property. For example, homes surrounding a golf course may have greater property value than those several blocks away.
• Strong recreation facilities and programs keep residents in the area who might otherwise travel outside the community for goods and services. In turn, this reduces sales leakage to neighboring communities.
• Direct facility use, which includes providing activities for adolescents, will keep them active and may reduce the chances of them getting in trouble.
• Facilities that are part of a complex that includes parks and/or open space may mitigate air pollution. Some complexes are designed to assist with storm water retention or to address other environmental issues.
• Public recreation facilities often provide reasonably priced access to recreation facilities because they are supported by tax dollars.
Quite often these factors are more important to community leaders than the profit or loss of operating a recreation facility.
Many of the above factors were identified in the reports, The Economic Benefits of Denver’s Park and Recreation System by the Trust for Public Land and Measuring the Economic Impact of Park and Recreation Services, by John L. Crompton.
