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All-terrain vehicle riding in northeastern Minnesota is big business.
An economic impact report on all-terrain vehicle (ATV) trail riding in northeast Minnesota estimates a total economic contribution of more than $36 million in 2023 within a three county area.
“It is an economic driver in northeastern Minnesota,” Paul McDonald, chair of the Northeast Regional ATV Joint Powers Board and a St. Louis County commissioner said. “We looked at ATVs and AT V use because it’s not dependent on mother nature. This is a way for resorts and local businesses in those shoulder seasons to keep the cash registers moving.”
The study finds a direct economic contribution of $23.3 million from ATV trail riding, an indirect contribution of more than $6.2 million and an induced contribution of more than $6.4 million, according to a draft of the University of Minnesota Extension Service report.
ATV employment is 300 in northeastern Minnesota and generates labor income of more than $12.4 million, according to the report.
The report includes trail riding in St. Louis, Koochiching and Lake counties.
Northeastern Minnesota has become an ATV riders dream. Because of the vast amount of public land available for trail development in northeastern Minnesota, the region holds the vast majority of trails in Minnesota. Development of trails has exploded over the last decade or so, allowing ATV riders to travel from community to community on the Iron Range, to the North Shore and to the north, south, and west to other ATV trails in the state.
“It’s been kind of our goal to create a system where people can come and stay a week, like the Hatfield-Mc-Coy system,” Ron Potter, ATV MN president said. “With all the bike trails and lakes we have, I can see people spending a week here.”
According to 2023 trail rider counts, 219,230 ATVs users rode northeast Minnesota ATV trails in 2023 including 180,542 visitors and 38,688 residents, according to the report.
Visitors spent $144.10 per person per day while residents spent $38.50 per person per day, according to the report.
Lodging facilities were a large beneficiary with more than $6.6 million in spending attributable to ATV trails in 2023, according to the report.
Restaurants and bars followed with more than $5.8 million in spending from ATV trail usage; transportation $3.2 million; ATV-related $2.1 million; groceries more than $2 million; shopping $1.8 million; and recreation/ entertainment more than $1.3 million.
Because ATV riders tend to come to northeastern Minnesota for at least two or three days at a time, the economic impact multiplies, Potter said.
“Compared to studies of other areas, people come up here for a longer period of time,” Potter said. “So you would expect the economic impact would be greater.”
Larry Folstad, president of Northern Traxx ATV Club in Chisholm, said he sees more growth ahead for the sport.
“The campgrounds are full, the restaurants are full, the bars are full,” Folstad said. “Everybody during COVID bought machines and now they’re looking for places to ride. I just see it growing.”
As an example, the Chisholm Iron Trail Campground, which Folstad co-manages, is full earlier than normal this spring, Folstad said.
“When you get all these systems in place like we do, the connectivity is what we’ve got going for us,” Folstad said.
Northeastern Minnesota offers visitors a wide variety of experiences, McDonald said.
“People who are recreating spend money,” McDonald said. “And the more we keep them here, the more money they spend. Families want to come up here and fish one day, bike one day and ATV one day.”
The tens of millions that have been invested to construct northeast Minnesota ATV trails, and continue to be made, is not yet included in the draft report.
McDonald said trail construction investments will be added to the report.
“We want to include the construction costs for all the trail building because it’s also an economic driver for the contractors,” McDonald said.
The Northeast Regional ATV Joint Powers Board, with support from the Minnesota Department of Iron Range Resources and Rehabilitation, commissioned the report, McDonald said.
The Northeast Regional ATV Joint Powers Board will provide additional input before the report becomes final, McDonald said.
