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Serving Northern St. Louis County, Minnesota

Study finds growing economic impact from off-road riders

David Colburn
Posted 1/16/25

REGIONAL— Riders of off-road vehicles are bringing millions of dollars in economic impact to northeastern Minnesota. That’s the key finding in a newly released study conducted by the …

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Study finds growing economic impact from off-road riders

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REGIONAL— Riders of off-road vehicles are bringing millions of dollars in economic impact to northeastern Minnesota. That’s the key finding in a newly released study conducted by the University of Minnesota Extension, in partnership with the Northeastern Minnesota ATV Joint Powers Board.
The study looked at the impact of riders of ATVs and so-called side-by-sides, who are now taking advantage of a growing trail system throughout the region. It concludes that those riders generated an estimated $36.1 million in economic activity in 2023. This includes direct spending on lodging, dining, fuel, equipment, and other related expenses, as well as indirect benefits such as job creation and wages.
“The study underscores the vital role that ATV riders play in the economy of northeastern Minnesota,” said Brigid Tuck, lead researcher from the U of M Minnesota Extension. “The influx of visitors who ride and explore the region’s ATV trails is helping sustain small businesses and creating jobs, which strengthens the economic fabric of this rural area.”
Representatives from the joint powers board, the extension service, ATV Minnesota, and area legislators and county officials gathered in Duluth on Jan. 7 for a press conference to elaborate on the study’s findings.
The study details the growing role of off-road vehicle tourism in driving local economic activity, creating jobs, and supporting businesses in St. Louis, Lake, and Koochiching counties.
Tuck said the study, assisted by counters placed on numerous regional trails by clubs, determined the region experienced over 219,000 trail visits in 2023, with 80 percent of those coming from riders living outside of the area.
“It’s bringing people to the region that maybe would not otherwise come to northeastern Minnesota,” she said.
The study’s findings may help to build an economic argument for increased motorized recreation in the region. While off-road vehicles are popular with many, that view is not universal and local groups have faced pockets of opposition during trail system planning.
Business benefits
According to the study, out-of-town off-road vehicle riders, defined as those traveling more than 50 miles to the area or staying overnight, spent an average of $144.10 per day and typically stayed for 4.5 days. Those numbers are based on self-reported spending by off-road vehicle users.
Their spending primarily benefited lodging, restaurants, and bars, with local businesses such as fueling stations and equipment shops also seeing increased revenue. By comparison, local riders, who averaged six people per party, spent approximately $38.50 per day, mostly on food and drinks.
Ron Potter, president of ATV Minnesota, highlighted why so many riders are coming to the region’s trails.
“We’re starting to market this expansive trail system that we have, and I think that’s what’s bringing people up,” he said. “Generally, it takes a mountain or something to attract people, but we’ve got endless woods and lakes and streams that other parts of the country just don’t have.”
The region’s trail network spans more than 1,000 miles and includes popular routes such as the Voyageurs Trail, which connects Ely to Crane Lake, and the Prospectors Trail, linking Ely, Tower, Soudan, Babbitt, and Embarrass. Survey data from nearly 1,000 riders revealed that 85 percent of visitors cited ATV trails as the primary reason for their trip.
“When we asked survey respondents ‘how did you hear about it?’ the most common response was via word of mouth,” Tuck said. “There is a positive reputation out there that is bringing people to this area.”
State Sen. Grant Hauschild, DFL-Hermantown, said that the trails highlight the region’s natural beauty.
“When you look at that $36 million number, what you’re seeing is like the magic that people are experiencing, and they’re just opening up their wallets to live this experience that they don’t get in the Twin Cities. They don’t get it where they come from,” Hauschild said.
Between 2019 and 2024, local governments, ATV clubs, and other organizations have invested $11.7 million in trail development and maintenance. The study found that the projects supported by this funding generated $16.8 million in economic activity, including $6 million in labor income and 100 jobs. The trail network’s continued expansion into Koochiching County, including plans to connect to the Blue Ox Trail and International Falls, is expected to further enhance the region’s appeal.
“Once we get connected to International Falls, then we can connect to the Blue Ox Trail, which will connect us all the way over to Bemidji,” Potter said. “So, the trail system and where it’s going to pull from is not only going to be a state draw or a regional draw. It’s going to be nationwide.”
Jobs and communities
The economic impact extends beyond tourism dollars. The study found that ATV-related activities supported hundreds of jobs in industries ranging from hospitality and retail to trail maintenance and construction.
“This is about economic development. This is about jobs. This is about recreation—all things Minnesota holds near and dear,” said Mike Jugovich, vice chair of the St. Louis County Board. “We now have the data to back up and support the funding and continued funding of trails, maintenance, and trail development throughout northeast Minnesota.”
Both Hauschild and state Rep. Roger Skraba, R-Ely, said that the study provides key data for policymakers advocating for continued investment in the trail system. Hauschild noted that proceeds from ATV registrations feed into a statewide fund dedicated to trail development. “Because of organized efforts, such as those being led by the regional ATV Joint Powers Board, northeastern Minnesota is punching above our weight and getting more than our fair share of that ATV-dedicated account,” he said. “We need to make the case to other legislators from the Twin Cities, from Mankato, from other places that, look, your people own these licenses, they own these ATVs, and they’re coming to our region to utilize our outdoors and our land for their benefit.”
Skraba reiterated a position he’s stated before that he believes businesses in the region would benefit even more if riders could use highway right-of-way to access businesses near to trail crossings, rather than having to wait for expensive, lengthy alternatives to be built. He said he would advocate for the change this legislative session as a member of the House Transportation committee.
Potter noted that ATVs have faced criticism in the past for their environmental impact and safety concerns, but that the increasing number of organized ATV clubs has changed public perception.
“Ten years ago, there were no clubs,” he said. “Now there are 70 in Minnesota, and they’re stepping up. They’re maintaining the trails. They’re doing environmental reviews before the trails are built. We’re partnering with equestrian clubs, snowmobile clubs. So, I think acceptance of that activity has gone up because riders have stepped up and done their part to be responsible.”
The complete study is available online at https://www.sehinc.com/hubfs/Website/Online/northeastern-regional-atv-joint-powersboard/Economic-contribution-of-ATV-trails-in-NE-MN-FINAL.pdf.