Economic Impact of Trails

This article is from “Carolina Thread Trail“
Little Sugar Creek Greenway A number of economic impact studies based on data and reasonable forecasting techniques indicate that connected bicycle/pedestrian facilities (like trails and greenways) offer a significant return on investment through property value increases, tourism, business investment, alternative transportation benefits and health benefits.

A 2011 cost/benefit study by Alta Planning and Design evaluated the completion of a multipurpose trail linking the City of Davidson and Cabarrus County (from the Cabarrus County line to downtown Charlotte). The study resulted in an internal return on investment of 16.21%, not including the quantification of recreational benefits. A 2007 study by Econsult, Inc. and Greenways, Inc. forecasting the economic benefit of the Carolina Thread Trail indicated that
increased tourism from a completed regional network would generate an estimated $3-$6 million in incremental state and local tax revenue per year.

Multiple studies indicate that property values for homes and businesses near trails are greater – with increases ranging from between 4% and 20% – when compared to properties not along trails. This is not surprising in light of the outcome of a recent survey by the National Association of Realtors that cited walking and biking trails as the #1 amenity desired by homebuyers.

While these studies are compelling, sometimes the most convincing evidence of the economic impact of an infrastructure investment can be accessed from talking to representatives from businesses that are directly
benefitting.

Furman University recently released an in-depth study of the health and economic impacts of the Greenville Hospital System Swamp Rabbit Tram Trail. The study provides a baseline for the impact of the 17.5 mile multi-use trail connecting Greenville to Travelers Rest, SC. For a segment of the study, interviews were conducted with nine managers or owners of retail businesses abutting or within 250 yards of the trail. Data from that study includes the following:

Most of the businesses reported increases in sales/revenue ranging from 30% to as high as 85% since the trail was completed.
One business decided to open as a result of the trail being built.
One business reported changing locations to a site on the trail and observed a 30% increase in sales.
One business reported that 75% of Saturday business and 40% of business during the week related to trail use.
These findings, when combined with general observations about how economic activity has been enhanced along stretches of the Carolina Thread Trail– like the Metropolitan stretch of Little Sugar Creek Greenway in Charlotte and the Peidmont Medical Center Trail in Rock Hill – are indications of how a connected regional trail network would generate large near-term economic returns. The case becomes even more compelling when hospitals, business centers, schools, retail and residential hubs are connected via multi use trails.

Along The Thread, we see and hear the momentum and excitement from local governments and community residents about trails opening in their neighborhoods and communities. We know all trails will help our communities be better places to live and work, while creating new economic activity for our communities for years to come.