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K2 1938: The First American Karakoram Expedition

economics

The Impact of Trade Wars and Tariffs on the Outdoor Recreation Economy 

The words “tariff” and “trade wars” are plastering the newscycle this month. With 25% tariffs in effect and more drama brewing between the U.S. and China, we wanted to unpack what tariffs are, the impact they have on the outdoor recreation economy, and what we can do to support outdoor retailers and the towns impacted by the economic blows during this time.

In short, tariffs are taxes on global imported goods received at the ports of entry. Governments utilize tariffs as a tool to keep American spending within our country to increase the national economy. By raising prices on imported products, retailers then have to sell these items for more money creating an incentive for consumers to purchase lower-cost American goods. 

The current administration has announced that it is committed to “American Protectionism,” which puts American businesses and manufacturing first in order to tax our global competitors. What complicates this notion is our modern day global economy. Many finished products purchased in the U.S. either contain material parts imported from other countries or were assembled in different countries around the world. Applying tariffs aren’t so cut and dry. 

Zooming out a bit, it is important to remember the impact that the outdoor recreation economy has on the greater U.S. economy. According to the Outdoor Industry Association’s (OIA) latest report on The Outdoor Recreation Economy, released in 2017, outdoor recreation raised over $880 billion in consumer spending and generated 7.6 million jobs, and these numbers continue to grow annually. Outdoor recreation is a powerful force in the U.S. economy and outdoor industry leaders need a spot at the table when discussing taxes that impact their industry. 

Currently, there are 25% tariffs on imported steel from select countries and 10% on imported aluminum. As an example of potential tariff impacts on the climbing community, camalots are made from steel (piece on Black Diamond cams here). Meaning it could potentially cost 25% more to manufacture cams abroad, which most companies do, including major players like Black Diamond and Metolius. The total cost of the steel tariff alone is $15.5 billion. While these numbers are jarring, according to research and reporting done by OIA, the hardest part of the ongoing tariff wars aren’t the tariffs themselves, but the “unpredictability of the Trump administration’s trade policies.” 

Companies often release pricing for next years’ product line in advance, so any modifications may present a challenge. Once tariffs are in place, companies are forced to either raise prices significantly for the consumer or to simply absorb the cost internally. Companies are then required to be reactive rather than proactive in their planning, negatively impacting innovation, design, customer service, and internal human resources.

When it comes to getting outdoors, The American Alpine Club doesn’t want to see tariffs creating additional barriers. According to an article recently published by OIA, Patricia Rojas-Ungar, OIA’s Vice President of Government Affairs, stated that all sorts of gear from “jackets to backpacks to hiking boots will see increases in tariffs of up to 30%.” She goes on to warn that due to these dramatic increases, businesses in the outdoor industry will be forced to make “drastic decisions” like hiring fewer employees. Or for smaller businesses, potentially closing their doors all together. She concludes by stating that the trade wars “have to stop, and real trade negotiations need to begin in earnest. . . . [k]nee-jerk reactions have long term devastating impacts on Americans, and we need Congress to stand up for its constituents.”  

OIA has created an Action Alert - tell your representatives that the tariff wars are negatively impacting you and your greater outdoor recreation industry.




Joe Neguse Meets the Climbing Community: Public Lands & Climate Change Focus of Conversation

April 20, 2019. Estes Park, CO.

Leading up to Earth Day, Congressman Joe Neguse made the trek to Estes Park to participate in a stewardship event at the Beaver Meadows Visitor Center in Rocky Mountain National Park (RMNP). Neguse represents Colorado's second congressional district which includes famous climbing destinations like the RMNP, Eldorado Canyon State Park and Boulder Canyon, to name a few. It's no wonder then that the climbing community makes up a significant portion of the Congressman’s constituency. Of the 23,000 Outdoor Alliance members that live in Colorado, 8,000 of them live within the District 2 boundaries alone. Suffice to say, Congressman Neguse, or Joe as he told me to call him, represents a lot of us climbers, paddlers, mountain bikers and skiers here in the Front Range

Neguse is in his freshman year in Congress and he's already introduced 10 pieces of legislation, most of it bipartisan, which is more than any other first year congressman or congresswoman. The Colorado Outdoor Recreation & Economy (CORE) Act in particular is something that the climbing community can get behind. If passed, it would protect 400,000 acres of land throughout Colorado and hundreds of climbing routes, mountaineering objectives and ski descents state wide. So, when Neguse was planning to do a stewardship project and town hall address, the climbing community jumped on the opportunity to catch up with him. A team from the AAC and the Access Fund spent the morning seeding and mulching in the Park and then got time with Neguse afterwards, to speak about the climbing and outdoors community. The human-powered representatives were:

  • Me, Taylor Luneau, Policy Manager, American Alpine Club

  • Jamie Logan, American Alpine Club Board member and first ascensionist

  • Tom Hornbein and his wife, Kathy, First ascent of the West Ridge of Everest

  • Chris Schulte, Pro Climber

  • Quinn Brett, NPS Climbing Ranger and public speaker

  • Hilary Harris, Evo rock climbing gym owner

  • Aaron Clark, Policy Director, International Mountain Bike Association

  • Dustin Dyer, Kent Mountain Adventure Company, Owner

  • Chris Winter, Executive Director, Access Fund

  • Erik Murdock, Policy Director, Access Fund

The conversation focused on public lands, the outdoor recreation economy, recreation access and infrastructure, conservation funding, and climate change. When prompted about the CORE Act, Neguse replied, "we feel like the wind is at our back and we've got a real shot at getting this bill through the House of Representatives and, hopefully, put the pressure on the folks in the upper chamber to get this thing done, and that's exciting." Neguse pointed out how important it was to hear from the climbing community, which gives he and his staff a more complete understanding of the impact of the bill. When asked how the climbing community can advocate for the CORE Act, Neguse pointed to three things:

Keep up the groundswell of grassroots momentum around the CORE Act.
Writing letters to the editor for example, provide the public and their elected leaders salient points on how legislation of this sort is good for the next generation of climbers.

Share your ideas!
There are lots of opportunities that the legislature could pursue and they want to hear from you on which to prioritize. Write or call your elected leaders.

Keep up the activism.
The work of the outdoor community is part of the solution to forestalling attacks to nationally iconic places like our monuments, forests and parks. Keep at it!

I was especially encouraged by Neguse’s willingness to listen; his engagement and openness with the climbing community and his receptivity to our suggestions. Neguse even offered to come climbing with us soon! Neguse pointed out the important role that the outdoor community plays in advocating for environmental legislation and in tackling the major issues of our era such as climate change. Neguse didn’t need to be prompted on the issue stating, “our work on climate change will be the defining work that we do in the coming years.”

Hearing all of this, Tom Hornbein notably stated "you're facing your own Everest right now - so go for it!"

We will Tom.

Taylor Luneau,
AAC Policy Manager


A big thanks is owed to Erik Murdoch of Access Fund for his leadership in pulling together this lunch meeting, engaging the Congressman’s office and getting all of these awesome climbers at the table. Thanks Erik!

The Shutdown is Squeezing Mountain Town Economies

The Shutdown is Squeezing Mountain Town Economies

By Phil Powers and Mark Butler - American Alpine Club | January 10, 2019

OPINION: Recently featured in Adventure Journal

The American Alpine Club was founded in 1902 to advocate for all things climbing. Their mission is simple: “To support our shared passion for climbing and respect for the places we climb.” They provide education, grant funding, policy outreach, help with research projects, you name it. If it benefits climbing, they’re involved. 

Phil Powers, the CEO of AAC, and Mark Butler, the Policy Commission Chair, have grown concerned in recent days over the protracted government shutdown’s effects on climbing. An op-ed from the two is below.

With the federal budget impasse and the partial government shutdown now in its third week, the adverse impacts to America’s public lands are mounting far beyond the thousands of government workers on furlough and the well-publicized public resource degradation of our parks.

For more than a century, the American Alpine Club has been the voice of a community, currently numbering over 23,000, that regularly climbs and adventures in national parks and on public lands across the United States. The direct loss of income for government workers and the mounting resource damage to our most beloved parks is abhorrent, but many more are quietly facing hardship. Suffering in the shadows of this shutdown are tourism-based economies and small businesses that provide guided access and interpretation to our public lands.

Recognizing the livelihood of small businesses that rely on access to public lands is an issue both Republicans and Democrats can undoubtedly support. The National Park System sees an estimated half a million visitors per day in winter months. According to the Senate Appropriations Committee Minority Staff, these visitors spend approximately $19 million daily at nearby restaurants, shops, lodges, and local outfitters. What Washington may consider the off-season for our parks is in actuality economic lifeblood for thousands of non-governmental workers. For small guide services, climbing schools, and others that provide guided experiences, the economic impact of the shutdown is an unexpected loss of revenue that won’t be reimbursed when this shutdown ends.

It is estimated by The Access Fund that 60 percent of all climbing areas exist on public land. Without predictable access to those lands, visitors and students are canceling reservations. Professional climbing instruction and guiding is a labor of love with slim margins and meager profits; a situation that makes guides especially vulnerable when our politicians are attempting to score political points.

Despite Washington’s impasse, the climbing community has stepped up our volunteerism to do what we can. The Friends of Joshua Tree (a local climbing organization) for example, has been stocking bathrooms with toilet paper, emptying trash bins, reminding visitors of fire bans and other park rules. Yosemite Facelift, a joint project of Yosemite National Park and the Yosemite Climbing Association, is loaning out litter sticks and other supplies to anyone who would like to clean during the shutdown and has already hosted two informal cleanups. Yosemite Facelift writes, “We don’t feel this is a political issue, but more of a human one… Even a small group of folks cleaning up trash sends a strong message to visitors and may be more effective.”

Being a climber means many things, but it is our love for America’s wild landscapes that unites us as a community. We want our public lands to remain healthy, culturally significant, biologically diverse, and open and accessible for recreation and enjoyment. For the sake of hundreds of small businesses and the broader outdoor recreation economy that are dependent on access to and conservation of America’s public lands, we need our elected officials to pass a budget which adequately funds our public land management agencies, and ends this shutdown as soon as possible.

Phil Powers is the Chief Executive Officer at the American Alpine Club. He is also the co-owner of Jackson Hole Mountain Guides.

Mark Butler is the American Alpine Club Policy Committee Chair. He is a 38-year veteran of the National Park Service.

Advocating for Climbers with the Economics of Outdoor Recreation

AAC Director and Policy Committee Member Peter Metcalf, incoming Director John Bird, and professional athlete and AAC member Caroline Gleich met with Congressman John Curtis to discuss the AAC’s opposition to his bill on Bears Ears.

When we think about why we love climbing, we think about the sheer joy of being outdoors, the boost to our souls, the tremendous health benefits, the strengthening of character, and the awe we feel about the land and mountains we climb. But at a time when public lands and climbing are threatened by monument reductions, increased energy development, and a changing climate, we need every tool in the toolbox and every argument we can make to protect climbing and the places we love.

You may remember back in November 2016 we saw a great win for climbing and outdoor recreation with passage of the Outdoor REC Act. The REC Act directed the Bureau of Economic Analysis to measure the economic impacts of the outdoor recreation industry, just as it does for agriculture, pharmaceuticals, mining, and other industries. Quantifying the economic importance of outdoor recreation gives concrete data to better inform decisions impacting the pursuits we love and our country’s natural resources.

Last week, the Bureau came out with its first preliminary numbers for the outdoor recreation economy, putting its contribution to the total US GDP at $373.7 billion, or 2% of the US economy. For comparison, mining, oil, and gas comprise 1.4% of GDP, and agriculture (which includes farming, fishing, forestry) is 1%. The Bureau’s report also found that the outdoor recreation economy is growing at 3.8%, faster than the overall economy’s rate of 2.8%.

This data came in handy last week when the AAC Policy Team was in Washington, D.C., meeting with Congressional staff alongside our partners at Outdoor Alliance. In our discussions with Republican and Democratic staff alike on national monuments, the Recreation Not Red-Tape Act, the Land and Water Conservation Fund, and other issues relevant to climbers, it was critically helpful to point to the power of outdoor recreation to our GDP, and make the economic case for climbing and our public lands.

In addition, AAC advocates recently met with Congressman John Curtis (R-UT) at his office in Provo, Utah. AAC Director and Policy Committee Member Peter Metcalf, incoming Director John Bird, and professional athlete and AAC member Caroline Gleich sat down with the Congressman to discuss the AAC’s opposition to his bill on Bears Ears. It was a productive and open conversation, and while the AAC remains opposed to the Congressman’s bill as it stands, we are building relationships on both sides of the aisle to best advocate for climbers and the places we love to climb.

If you’re interested in becoming an AAC policy advocate and meeting with your members of Congress, please reach out to Policy Director Maria Povec, [email protected] and Policy Coordinator Anna Kramer, [email protected].