R E S E A R C H PAY S O F F

Bikeways to Prosperity
Assessing the Economic Impact
of Bicycle Facilities
J U D S O N J . L A W R I E , T H O M A S P. N O R M A N , M A R Y M E L E T I O U ,
A N D S A R A H W. O ’ B R I E N

S
ince 1987, the North Carolina Department fits of bicycle facilities, however—such as reduced traf-
Lawrie is Senior
of Transportation (DOT) and local govern- fic congestion, increased safety, healthy activity, and
Research Associate,
ments have invested $6.7 million in public improved air quality—are not easily quantified.
Meletiou is Bicycle and
funds to construct an extensive network of An EIA examines the economic benefits from
Pedestrian Program
bicycle facilities that consists of 55 miles of wide tourists who visit for a specific tourist attraction or
Manager, and O’Brien is
paved shoulders and multiuse pathways on the event. The benefits largely result from tourist spending
a Research Associate,
northern Outer Banks. North Carolina DOT com- on food, lodging, and entertainment—which are eas-
Public Transportation
missioned the Institute for Transportation Research ier to quantify. The researchers therefore chose the
Group, Institute for
and Education (ITRE) at North Carolina State Uni- EIA approach.
Transportation Research
versity to determine if the benefits gained from the Three key pieces of information were gathered
and Education, North
bicycle facilities would justify investment in addi- through surveys and through bicycle traffic counts:
Carolina State
tional facilities throughout the state.
University, Raleigh.
 The average amount of money that tourists
Norman is Director of
Problem spend during a visit to the northern Outer Banks,
the Division of Bicycle
ITRE conducted a case study of bicycle tourism in the  The total annual number of tourists, and
and Pedestrian
area. Measuring the benefits of this tourism was a chal-  The proportion of tourists for whom bicycling
Transportation, North
lenge, because tourists visit the northern Outer Banks was an important reason for the visit.
Carolina Department of
for a variety of reasons. Researchers needed a method
Transportation, Raleigh.
to distinguish the tourists who bicycle as an inciden- Bicycle Use and Characteristics
tal part of a vacation from those for whom bicycling is During a three-day period starting July 30, 2003,
a major part of the attraction. researchers developed a profile of area bicyclists by
surveying 173 who were riding on the facilities—143
Solution visitors and 30 residents. In addition, 392 tourists
Two methods were considered for understanding the completed self-administered surveys at three area vis-
benefits—a benefit-cost analysis (BCA) and an eco- itor centers over three months, starting in July 2003,
nomic impact analysis (EIA). to determine the percentage of respondents who
A BCA compares the value of the benefits with the engaged in bicycling on vacation.
cost of the investment and requires converting both the Survey responses revealed spending patterns, trip
costs and the benefits into dollar amounts. Some bene- information, attitudes and perceptions about bicycling
TR NEWS 242 JANUARY–FEBRUARY 2006

and the facilities, investment priorities, and general

demographics. Pneumatic tube counters calibrated for
bicycle detection tallied users at 11 locations on a vari-
ety of bicycle facilities during a one-week period.

Economic Impact Analysis

Information from the Outer Banks Chamber of Com-
merce led researchers to estimate that 4 million
Survey station set up
tourists visit the study area annually. The visitor cen-
along a wide paved ter surveys showed that 17 percent of these tourists do
shoulder section of a some bicycling on their trip. This translates to approx-
32 bicycle facility. imately 680,000 annual visitors who bicycle.
 Three survey questions addressed the degree to Benefits
which these bicycling tourists were drawn to the area The ITRE study found
by bicycling and the bicycle facilities: that visitors who bicycle
in the northern Outer
Wide Paved Shoulders
 “How important was the activity of bicycling in Banks have a significant Wide Paved Shoulder with Side Path Adjacent to Road
your decision to come to this area?” economic impact on the Side Path Adjacent to Road
 “How would you rate the overall quality of area. Moreover, the Multi-use Path
Incidental Improvements
bicycle facilities in the area?” study provides evidence
 “How important will the quality of bicycling be that the expenditure of
in a decision for you to return?” public funds on bicycle
facilities in an area with
The answers to these questions yielded a conserv- a substantial amount of
ative estimate that approximately 40,800 tourists each tourism can be a worth-
year—roughly 1 percent of the 4 million total visitors while investment.
annually—were attracted to the Outer Banks to a sig- The annual eco-
nificant degree by the bicycling activities. Estimated nomic impact of $60
annual expenditures, projected from the spending pat- million and 1,407 jobs
terns and trip duration data collected in the surveys, supported is a reason-
were then evaluated using an economic impact model. able but conservative
Accounting for data specific to the Outer Banks area, estimate of the benefits.
federal and state taxes and contributions, and eco- The estimate compares
nomic multiplier effects, the model estimated an favorably with the $6.7
annual economic impact of $60 million and 1,407 million in public funds
jobs supported from the 40,800 visitors for whom invested in the con-
bicycling was an important reason for choosing to struction of the bicycle
vacation in the area. facilities. That invest-
ment annually yields an
Other Survey Findings economic return approximately nine times the initial Bicycle facilities of the
Of the survey respondents, 12 percent reported stay- expenditure. northern Outer Banks.
ing an extra three to four days to bicycle in the area. The study suggests that public investment in a
The perceived high quality of bicycling in the region network of bicycle facilities in other coastal and
had a positive effect on respondents’ vacation experi- resort areas could return similar benefits, whether
ence and planning—55 percent indicated that the the area attracts tourists primarily for bicycling or for
bicycle facilities helped them feel safer while riding, other reasons. Because of the usefulness of the EIA
and 53 percent reported that bicycling influenced their findings, North Carolina DOT plans to study more
decision to return in the future. bicycle and pedestrian facilities for the economic
According to the survey, 9 out of 10 respondents impact on local economies to allocate direct public
strongly agreed that state and federal tax dollars funding most effectively.
should be used to build bicycle facilities. Nearly two-
thirds of respondents indicated that additional bicycle For more information, contact Judson J. Lawrie, North
facilities should be built. Carolina State University, Institute for Transportation
Research and Education, Centennial Campus Box 8601,
Application Raleigh, NC 27695-8601; telephone 919-513-3482; fax
TR NEWS 242 JANUARY–FEBRUARY 2006

This research demonstrates a straightforward way to 919-515-8898; e-mail jjlawrie@unity. ncsu.edu.

gauge the economic benefits of bicycle facilities. Sim-
ilar research is needed in other regions to determine
the change in economic impact that may result from
different types of tourist attractions, geography, or a
network of bicycle facilities.
The study shows that continued investment in
bicycle facilities could be expected to increase the
favorable economic impact—therefore additional
investment is recommended. Lessons learned from
this research are under consideration in other localities
throughout the state.
EDITOR’S NOTE: Appreciation is expressed to Peter
Shaw and Joseph Morris, Transportation Research
Board, for their efforts in developing this article.
Suggestions for “Research Pays Off” topics are wel-
come. Contact G. P. Jayaprakash, Transportation
Research Board, Keck 488, 500 Fifth Street, NW,
Washington, DC 20001 (telephone 202-334-2952,
e-mail gjayaprakash@nas.edu).
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