Cancellation of this year's climbing season at Denali National Park was devastating to outfitters that lead climbs/NPS file

Businesses that cater to outdoor recreation were left "reeling from economic shock" by the coronavirus pandemic, and while there are a few bright spots late this summer, fewer than 25 percent of the industry is reporting year-over-year improvement in sales, officials in the industry reported Thursday.

Climbing guides at Denali National Park were dealt a significant blow when the climbing season in the park was called off, small retailers lost market share on tents, bikes, and camping equipment to large retailers like Amazon, Target, and Wal-Mart, and campgrounds got off to a slow start this spring with many national parks closed; they then were hurt when past employees stayed home with the extra $600 in weekly unemployment benefits provided by Congress.

"2020 has been a pretty tumultuous but important year for the outdoor industry due to Covid-19 impacts," Lindsey Davis, vice president of the Outdoor Recreation Roundtable, said during an hour-long conference call with representatives from the boating, RV, campground, fishing, guiding, and motorcycle sectors. "We were ranked in May by the U.S. Census Bureau as the second-most impacted industry next to food and accommodations, hit 31 percent harder than the national average. Entire supply chains have been disrupted during that time, alongside retail being shuttered.

"At the same time, local, state and federal public lands that serve as the backbone of our industry were also closed," she pointed out. "While the overall impact to the recreation economy is large in scale, we are comprised of thousands of small businesses vital to the health and economic well-being of their communities, many of which are in rural areas. These businesses have gone through unprecedented downturns, and many are still in danger of permanent closure."

Davis added that "small businesses have been reeling from economic shock. Americans' lives and communities have also changed this year. With many of our services closed, Americans are turning to the outdoors."

However, that demand for fresh air has been hindered by limited access to some national parks, along with concessions and guiding operations that might not be fully staffed, and lodging concessions not operating at 100 percent due to health constraints in dealing with the pandemic.

According to an ORR survey of 23 participating national outdoor recreation trade associations, representing more than 25,000 businesses, 65 percent of those businesses in August reported a decrease in sales, with 17 percent enduring a downfall of 50-75 percent or greater, and just 22 percent reporting an increase compared to sales of a year ago.

Seventy percent of outdoor industry trade associations reported a drop in revenue, with 13 percent seeing a decrease of 50-75 percent or greater, according to the ORR survey. Just 9 percent of trade associations reported an increase compared to one year ago, it added.

Aaron Bannon, executive director of America Outdoors, which represents more than 500 guiding and outfitting businesses, said that industry has seen both good and bad from the pandemic.

"For our membership, and similarly for the industry, I think impacts have been pretty varied. Some of our members have done surprisingly well during the season, and I would say the vast majority of outdoor operators are definitely operating at reduced capacity," he said. "Sixty percent of capacity is a pretty common number that I hear. This is due primarily to guidelines they're operating under, implemented by public lands management agencies. It's pretty common for agencies to ask that capacity be reduced by 50 percent, along with other guidelines to meet.

"On one hand, while there is no shortage of demand, there is a shortage of access for guided experiences," said Bannon. "The challenge many folks face is a juxtaposition of constrained operations with a narrow season. Eighty percent of operators have been able to function at some capacity; they're now looking at a long nine months with narrow margins to try to sustain their companies."

In Alaska, for example, Bannon pointed to Denali National Park where the climbing season was canceled.

"Denali Mountaineers in Alaska, once the pandemic hit in March it was only a couple of weeks before Denali (National Park) decided they were just not going to permit mountaineering for the season," he said. "So their season was just completely shut down."

Also hurting recreation businesses, including lodging, in Alaska was the fact that the state was one of the last to lift a two-week quarantine rule for visitors coming in from out of state, said Bannon.

There are bright spots, those on the call noted. Fishing license sales are up, as are purchases of boats and recreational vehicles, which could portend to a long-term lifestyle trend, said Mike Leonard, vice president of the American Sportfishing Association.

Participation in running, cycling, and hiking also is up, noted Lise Aangeenbrug, executive director of the Outdoor Industry Association. Day hiking has seen the greatest increase in participation, up 8.4 percent, she said.

"While our outdoor industry companies took a hit in March and April, we are seeing real signs of recovery," said Aangeenbrug. "The example I would give you, and it almost tracks the pandemic, is when you look at a company like L.L. Bean. It saw a huge spike in March of anything that was considered 'cozy.' In April people started to go outside and started buying hammocks and outdoor furniture. Hammocks were up 150 percent. In May and June consumers started to venture a little bit further outside. Bikes grew by 400 percent, kayaks and boats were up 96 percent, and then in July and August we saw a real increase in active-wear purchases, anything you can do in your backyard."

Monika Geraci, senior manager with the RV Industry Association, said RV sales have exploded.

"The RV industry is doing great," she said. "The RV shipments for July, which is the last month that we have, shipments were up 54 percent over last July. It's the best July in literally four decades. Dealerships across the country have reported setting sales records in May as soon as the states started opening up."

Geraci said first-time buyers comprise about 55 percent of those sales.

"There are a lot of people who hadn't considered RVing previously, who are now looking at RVing," she said. "The fastest growing segment are buyers under 45. This is something we had seen pre-Covid, the industry had already been making significant gains in that younger demographic. But this is something that is growing even faster in the past three months."

Among the most popular RV purchases are "towables" and van campers, said Geraci.

"The van campers, although they make up a small segment of the industry, they were up 92 percent (in July), and 49 percent year-over-year. So, we're optimistic for what we'll see this fall. While this first wave of sales that we've seen over the past four months has been driven by people's desire for freedom to travel, to experience that active outdoor lifestyle, also being able to control their environment, which is so important right now," she said. "RVs really are the ideal way to travel."

Jessica Turner, executive director of ORR, said the organization was hopeful that the current trends lead to a stronger recovery across the industry, and that Congress provides some relief for businesses that operate in the sector.

“It has become widely known that recreation is a huge economic driver and with more smart investments like the recently passed Great American Outdoors Act, such as a Recreation Package, this industry will be a key player in economic recovery and a solution to other issues facing the nation such as unemployment, rural development, equity in outdoor access and mental and physical health,” she said.