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The Economic Impact of Parks and Recreation In Illinois By Dr. Allen V. Sapora
Economic conditions are basic to social structure. As economic conditions change, life styles change, and the quality of life is affected. Illinois is noted for its industrial production, its massive agricultural complex, natural resources such as oil and coal, a transportation system which extends over both land and water, and a quality of life that reflects these resources. Illinois' economic status, despite the present recession, is rather awesome. The following are a few statistics that support this fact: 1. The 1981 Gross Product of the state of Illinois in current dollars was $152.9 million, and $73.8 million in constant dollars. The state ranks thirteenth among all other states in the U.S. in gross national product. 2. Illinois has consistently ranked first or second in agricultural wealth and in export of both agricultural and manufactured products. Illinois houses one of the nation's largest markets for industrial goods and services, and for consumer goods. 3. Per capita income in Illinois in 1978 was $8.903; in 1982 it was $12,162, which ranked eighth in the nation, higher than the per capita income of $11,056 for U.S. in general. 4. The 1980 Census indicates that, despite competition from the sunshine states, Illinois had a population of 11,426,518, a 2.8 percent increase from 1970 to 1980, which includes a net migration loss of 2.1 percent. It still has the second largest city in the U.S. with a population over 3 million, 66 cities with a population between 20,000 and 50,000, a rural population of 14 percent and a technically oriented farm population of 2.7 percent. The State's population is approximately 78 percent white, 14.7 percent black, and 7.3 percent other groups. 5. Illinois is the air and rail hub of the nation. It has the second largest rail system in the U.S. and the busiest commercial airport (O'Hare) in the world. It has over 7.3 million licensed motor vehicles and the third longest local and interstate network of highways in the nation.
The purpose of this article is to raise a basic question that has become more relevant with the changing economy. Considering various expenditures for its products and services, the people employed and the wealth generated, what impact does the functions related to the leisure of people have upon the economy of the State of Illinois? What data do we now have about Illinois that provides some clues to the answer to this question, and what plans are under way to discover new data about the economic impact of leisure resources in the State? Leisure related expenditures have become a commodity and can be, to a certain extent, identified as a significant element of the economy of the State. This fact was abruptly brought to my attention in developing data for my recent book — Leisure Services in Hungary and Illinois: A Comparative Study.* I found I could locate only a limited amount of data in Illinois identifying the economic aspects of leisure products and services compared to the detailed economic statistics about leisure services that were readily available in Hungary. The lack of in-depth economic data about the leisure services system in Illinois is generally recognized by park and recreation lay and professional leaders. The Illinois Association of Park Districts is initiating a study "to document the role of recreation in the State economy and to show that an investment in recreation by local, regional and state governments (and other groups) is truly an investment in life." A task force representing various groups throughout the State has been formulated by Dr. Ted Flickinger, Executive Director of the Illinois Association of Park Districts, to develop an economic study of leisure systems in Illinois. The 1980 Census and other state and local statistics provide up-to-date information previously unavailable to assess the economic impact of leisure services. These data and computer technology make possible new approaches to investigation by the task force. Some estimates of the extent of the economic impact of park and recreation expenditures in the U.S. have been made over the past thirty years. A report prepared by the National Recreation and Park Association, and cited in Parks and Recreation Magazine, indicates that the demand for recreation and leisure opportunities is increasing in spite of the present strained economic conditions. Annual expenditures for leisure time activities in the U.S. have increased from $58 billion in 1965 to $244 billion in 1981, a 47 percent real-dollar increase. It is estimated that one out of every 15 jobs nationwide in 1979 was generated through spending for leisure pursuits. Annual expenditures are estimated to be $12 billion or more in Illinois. It has been, and still remains, a formidable task to assess the economic impact of the expenditures of people in public; voluntary agency, private and commercial units that provide recreation and leisure time products and opportunities for people. *MANAGING EDITORS COMMENT: Dr. Alien Sapora completed his book in 1981. All proceeds from this book have been designated for scholarship funds in the Department of Leisure Studies, U. of I. Copies are available by writing to: Stipes Publishing Co.. 1612 Chester St.. Champaign. IL 61820 Illinois Parks and Recreation 12 September/October 1983 Traditional industries are defined in terms of the amount of an item or commodity produced. Leisure service activities, however, do not easily identify themselves because the consumer may have multiple goals in some activities in which the relationship between work or production and leisure can not always be clearly identified. Thus it is difficult to assess the personal expenditures of informal groups and individuals in their pursuit of many leisure activities. Given the above variables, significant data are now available that give some specific information about the question of the present economic impact of leisure costs and expenditures in Illinois. The data are from a variety of different reports and reflect conditions between 1978 and 1981. Many of the data reflect information reported only in five year cycles. Nevertheless, the information, not all-inclusive or completely current, points out clearly the general scope of the problem and the importance and urgent need for the more comprehensive in-depth study of the economic factors about leisure in Illinois already mentioned. The following preliminary summary of information now available discloses only the tip of the iceberg in the assessment of the impact of leisure and recreation upon the economy of Illinois. PUBLIC TAX FUND EXPENDITURES General information regarding the taxes expended for public park and recreation services are available. However, there remains the need for a more inclusive coordinated summary of these expenditures. Illustration 1 shows a general approach to this procedure which summarizes the major portion of public tax money expended in park and recreation services in Illinois in 1977. The total amount was $365,042.284, with specific expenditures by various agencies indicated. Illustration 2 includes a sample of the specific data obtained from one agency which indicates information about expenditures for recreation by the Illinois Department of Corrections in 1978. If one considers libraries as a leisure behavior expenditure. (certainly part of these expenditures could be so considered) the total tax expenditure in 1977 was $442,042,284. It should be noted at this point this data includes only tax funds expended for operational costs. Fees and charges collected from participants by various public agencies include many additional expenditures. Also, and very important are the dollars expended by participants for travel, personal equipment and for entertainment that are associated
Illinois Parks and Recreation 13 September/October 1983 with public park and recreation agency programs. This additional data has not been assessed but does indeed have a very significant impact upon the economy of Illinois. NOT-FOR-PROFIT VOLUNTARY AGENCIES These groups provide a variety of leisure time, informal education programs and services depending upon the objectives of the agency. Although they are not generally referred to as recreation agencies, many of them conduct various types of recreation programs and provide leadership and facilities for people to participate during their non-work time. Most of them are registered under special corporate laws administered by the Illinois Secretary of State. Many, the exact number is unknown, operate without a legal corporate identification. It is difficult to totally capture the scope of the leisure services of Not-For-Profit registered corporations. A study in 1971 by Illinois legislators revealed there were over 31,000 of them; by 1978 there were 41,690 Not-For-Profit agencies in Illinois, with the number increasing each year. In sampling the several thousand listed in the Chicago area, at least two-fifths (16,676) include the functions of recreation, play, camping, sports and ameliorative services to people. Similarly there are 7,825 Registered Trusts in Illinois and many of them also provide grants of funds to these agencies for leisure facilities and services. No complete data have been generated about the leisure services these agencies provide, but their contribution in Illinois is enormous and reflects the efforts of people to form different organized citizen groups for informal education and social interaction. Illustration 3, top columns, depicts a sample list of some Illinois voluntary agencies. The eight agencies listed involve 20,443 different clubs or groups with 1,467,632 members, which are financed by membership fees, gifts, donations and various sources such as United Way. There has been no detailed comprehensive study that has analyzed the total financial impact of the voluntary agencies in Illinois. The amount allotted annually for operating costs are very extensive. The following are five examples of annual expenditures of these Illinois agencies:
PRIVATE LEISURE ORGANIZATION EXPENDITURES The operating costs and personal expenditures of private recreation groups (see Illustration 3, column 1) such as Illinois' 124 registered country clubs, its over 500 private golf courses, its 54 known extensive industrial recreation operations, various private clubs, 294 private museums, and a variety of private swim, athletic and cultural groups involve extensive outlay by consumers. No specific data have been developed
Illinois Parks and Recreation 14 September/October 1983
regarding the total amount of dollars involved. Nor has there been an attempt to estimate the personal expenditures of individuals as they engage in informal leisure time activities such as hobbies, parties, family recreation, reading, listening to records, watching TV, purchase of video cassettes and electronic games, or volunteering and similar personal activities. COMMERCIAL RECREATION AND AMUSEMENT ENTERPRISES
Commercial enterprise in Illinois is a major provider of leisure services. This is also true of the entire United States in which, as earlier pointed out, leisure services today are a 244 billion dollar business. This is an incredible amount but indicates the extent to which recreation and leisure activities have grown and now are a substantial part of the national as well as the State of Illinois economy. Illustration 3, column 2, shows that in Illinois (1977) there were 28,303 separate commercial establishments that were directly involved in leisure time services to individuals or groups. The total number of leisure related commercial recreation businesses, involving an enormous variety of enterprises, includes 68.221 establishments with 743,722 full-time employees and an annual payroll of over $3.5 billion. It is estimated that they include 60 percent of the total leisure services in Illinois; they far exceed the funds spent for public recreation. It should be noted that these data include only operating costs and expenditures involved, and do not
include the unknown billions of dollars spent by participants who take part in commercial recreation activities. A specific sample list of some of these agencies includes the following operations in Illinois:
Illinois Parks and Recreation 15 September/October 1983
The commercial leisure enterprise programs in the entire State of Illinois have never been thoroughly examined. Illustration 4 indicates a sample of the amounts of money spent by a few of these enterprises. Commercial camps, night clubs and dance halls, theatres, cinemas, festivals, fairs, travel and tourism, TV, radio, horse and auto racing, drinking and eating places and a myriad of leisure enterprises should be studied. Special taxes on the sale of liquor, horse race betting and other recreation and commercial amusements are a significant source of State income. The following are examples of some of the major tax revenues received by the State from six of these enterprises in 1977.
Finally, tourism is a very significant commercial industry. In 1982, 19.9 million tourist visitors spent $6.2 billion in Illinois, which ranks sixth among all states in the U.S. in domestic spending by tourists. Tourism generates 127,000 jobs in Illinois, and is one of its leading industries. Tourism adds dramatically to the economic impact of recreation and amusement throughout Illinois. Illustration 5 lists the major national and local park and forest areas available to the public for recreational and sight-seeing purposes.
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