New Study Estimates the Tennessee RiverLine May Generate up to $104 Million in Annual Spending Across the Region
The Tennessee RiverLine Releases Economic Impact Report in Partnership with the University of Tennessee, Knoxville, and The University of Alabama
The Tennessee RiverLine, North America’s next great regional trail system, has published an official report detailing the key findings of an economic impact study conducted by the Howard H. Baker Jr. Center for Public Policy at the University of Tennessee, Knoxville, and The University of Alabama Center for Economic Development. The study estimates the economic impacts and associated health benefits of the Tennessee RiverLine water trail for communities along the Tennessee River in Alabama, Kentucky, Mississippi and Tennessee, including approximately $104 million in new annual spending across the four states.
“There are so many ways that the Tennessee RiverLine catalyzes economic development, inspires entrepreneurship and enhances overall quality of life in Tennessee River communities and across our region,” said Brad Collett, Tennessee RiverLine director and associate professor in the University of Tennessee, Knoxville’s, Herbert College of Agriculture and College of Architecture and Design. “This study begins to quantify these potential benefits and helps us communicate the Tennessee RiverLine’s potential economic impact to community partners and other stakeholders. It also provides a roadmap for collaborative, purpose-driven effort and investment that positions all partners to grow river utilization and maximize economic impacts while upholding our shared commitment to safe river use and stewarding the health of our region’s most valuable natural and cultural resource: the Tennessee River.”
According to the report, an anticipated increase of an additional 808,000 resident and visiting paddlers to the Tennessee RiverLine each year and their associated expenditures is estimated to generate up to $104 million in annual impact to GDP, create almost 2,000 new jobs, increase personal income by $65.5 million and increase local and state sales tax revenue by $2.6 million in Alabama, Kentucky, Mississippi and Tennessee. In turn, the health-related cost savings due to flatwater paddling on the Tennessee River are estimated to be nearly $24 million per year, to be accompanied by a reduction in both workers’ compensation costs and lost productivity costs.
The study was performed by a team of researchers from the Howard H. Baker Jr. Center for Public Policy at the University of Tennessee, Knoxville, and The University of Alabama Center for Economic Development led by Charles Sims, UT Energy & Environmental Policy Program director and associate professor in the Department of Economics, and Brian Rushing, Director of Economic Development Initiatives at UA. The study relies on fifteen existing analyses of comparable water trails in the United States to estimate the number of annual visitors to the Tennessee RiverLine trail, associated visitor spending, and related economic benefits to the Tennessee River Valley region.
“Currently, approximately 284,550 paddlers visit the Tennessee River each year. Our study estimates that the Tennessee RiverLine will attract an additional 807,936 paddlers annually,” said Sims. “Whether paddlers are experiencing the river for just one day or for an extended period of time, they will spend money at various paddling destinations along the trail, including outdoor shops, restaurants, gas stations, and hotels. These invested resources will enrich and create job opportunities, increase salaries and wages for residents, increase the region’s GDP and resident’s incomes, and generate tax revenues for municipalities and states.”
In addition to examining the economic potential of the Tennessee RiverLine, researchers at UT Knoxville and The University of Alabama also sought to determine the health-related cost savings due to flatwater paddling on the Tennessee River. Research shows that the physical activity from paddle sports reduces the risk of medical conditions caused or exacerbated by lack of physical activity, such as cardiovascular disease, diabetes, depression and obesity, and it can lower the medical costs paid by local residents. In addition, outdoor recreation contributes to the health of the region’s workforce, which in turn leads to avoided medical costs, workers’ compensation and lost productivity costs.
Ultimately, these anticipated outcomes and additional economic impacts identified but not quantified in this study will enhance the overall quality of life for residents of river communities and across the Tennessee River Valley, positioning river communities to attract and retain skilled workers and businesses.
“We have always had reason to assume that the impacts of the Tennessee River to health and wellness were numerous, but this study has helped us quantify the true magnitude of influence and the far-reaching impact engagement can have on the holistic wellness of our communities,” said Sims. “Every aspect of our communities is impacted, leading to far-reaching repercussions for the longevity and success of our residents, businesses and healthcare systems.”
Made possible through the generous support of Tennessee RiverLine’s principal partners, Tennessee Valley Authority (TVA) and UT Knoxville, the report also identifies 10 key components of water trail success. Together, these components will help guide the effort and investments of the Tennessee RiverLine and Tennessee River communities as they work toward realizing the full economic potential of the Tennessee RiverLine in the years to come.
“The Tennessee RiverLine is a testament to what can be achieved when we bring together communities and partners that share both their resources and their leadership with a shared mission of making life and lives better for the people of the Tennessee River Valley,” said Donde Plowman, Chancellor of the University of Tennessee, Knoxville. “We are proud to put our land grant mission to work and collaborate with partners across the Valley, like TVA, to help make this transformational vision and the benefits it promises our region a reality.”
“Much of our work at TVA revolves around economic development and the environment. This impressive, estimated economic impact study from the Tennessee RiverLine is what TVA had envisioned when we became a supporter in 2017,” said Allen Clare, Vice President of River and Resources Stewardship at Tennessee Valley Authority. “Additionally, this project will positively affect the health of Valley residents, as well as the environmental health of the river itself, making life better for the people of the Tennessee Valley.”
To read the full economic impact report and review the study’s key findings, click the links below.
About the Tennessee RiverLine
The Tennessee RiverLine is North America’s next great regional trail system, a historic multi-generational initiative that offers economic development, public health, resource stewardship and equitable access benefits to 2.4 million people in diverse Tennessee River communities in four states. The Tennessee RiverLine is led by the UT School of Landscape Architecture, which is a partnership of the UT College of Architecture and Design and the Herbert College of Agriculture, and principal partners, UT Knoxville and TVA, in collaboration with the Tennessee RiverLine Partnership, a diverse consortium of organizations committed to realizing the vision for the Tennessee RiverLine.
Contact: info@tnriverline.org