Toronto –An independent economic impact study completed by Smith Gunther Associates Ltd., reported that in 2015, Canadians spent $6.9 billion on activities directly involving All-Terrain Vehicles (ATVs) and Recreational Off- Highway Vehicles (ROVs) also known as side-by-sides.
“The purpose of the study was to comprehensively determine the economic impact of not only the purchase of ATVs and ROVs but also related economic activities for Canada and each of its provinces and territories,” stated Bob Ramsay, President of the Canadian Off-Highway Vehicle Distributors Council (COHV). “The study encompassed ATV and ROV activities that included riding gear, clothing, insurance and travel related to ATV and ROV use. Together these purchases and activities constitute the direct and indirect expenditures involving ATV and ROV participation.” added Ramsay.
Excluding imports, Gross Domestic Product (GDP) is a better measure of economic activity. National estimates of total direct and indirect GDP is calculated at $4.5 to $5.7 billion, which includes labour force income of $2.7 to $3.4 billion with related employment measured as 47,929 to 61,213 full time equivalents (FTEs) total including those employed directly, indirectly and in induced activities. This activity generates revenues of $1.5 to $1.9 billion to all levels of government combined in the form of various direct and indirect taxes on goods and services. The higher results reflect an attrition rate suggested by nearly 3,000 respondent owners to a questionnaire and the lower estimates a higher attrition rate consistent with those on personal water craft and snowmobiles.
In 2015, annual investments in the economy, such as new purchases of equipment and machinery, including ATVs, ROVs and related enhancements to vehicles reached $1.2 billion before depreciation. Further, annual operating expenditures amounted to an additional $6.7 billion bringing 2015 direct investment and operating expenditures to $7.9 billion.
Through data retrieved from Statistics Canada and the COHV’s current and historical data on sales of ATVs and OHVs in each province and territory, it has been identified that economic multiplier effects are strongest in provinces which are net beneficiaries of interprovincial trade and where industrial linkages within the province are the strongest.
Ontario has the strongest overall multipliers at 2.51 followed by British Columbia at 2.36. Alberta benefits from strong value shipped and GDP multipliers and Quebec has above national employment and labour force income multipliers as well as strong market shares due mostly to its high participation rates in off-road riding and excellent trails.
“Managing the responsible use of ATVs and ROVs is a subject of current interest for many governments. It is also of great interest to the COHV and the not-for-profit rider federations that have developed across the country,” stated Bob Ramsay. “This report confirms the scope and scale of the contribution that ATV and ROV use makes to provincial economies. Especially in rural and northern areas, which the industry points out, is an important aspect that needs to be recognized and considered when discussion is focused on the responsible management of off-highway vehicle (OHV) activity across Canada.
The Canadian Off-Highway Vehicle Distributors Council (COHV), originally founded in 1984, is a national, non-profit, trade association that represents the responsible interests of the major ATV and ROV distributors, as well as the manufacturers, distributors and retail outlets of OHV related products and services.
The member companies of the COHV account for over 90 percent of all the new ATVs and ROVs sold in Canada.
More information related to the COHV is available at http://www.cohv.ca.
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