|
NATIONAL
ECONOMIC IMPACT STUDY
In 2004, the American Horse Council (AHC)
commissioned Deloitte Consulting LLP to develop a current economic
impact analysis of the horse industry in the United States. The
study, issued in July 2005, updates and expands upon the original
economic impact study released by Barents Group LLC in 1996 which
established the size of the horse industry and, for the first time,
its impact on the national economy.
Once again, The Jockey Club was among the industry
organizations to provide major funding support for the updated
study. Others include American Association of Equine Practitioners,
American Quarter Horse Association, American Paint Horse
Association, Keeneland Association, National Thoroughbred Racing
Association/Breeders’ Cup Ltd., Thoroughbred Owners and Breeders
Association, U.S. Equestrian Federation and U.S. Trotting
Association.
Copies of the Deloitte study are available for
purchase by contacting the AHC at (202) 296-4031; or by visiting the
AHC web site at http://www.horsecouncil.org.
Impact of the Horse Industry on the US
Economy
|
| Total Impact
on the US Gross Domestic Product (GDP) |
$101.5
billion |
- Including
direct, indirect and induced effects.
|
| Total
Full-Time Equivalent Jobs Generated (FTE) |
1.4 million |
|
|
| Total Taxes
& Fees Paid including |
$1.9
billion |
| |
| Federal |
588
million |
| State |
1,017
million |
| Local |
275
million |
|
| Direct Value
of Horse-Related Goods and Services |
$39
billion |
|
|
|
|
Diversity of the
Horse Industry
By Activity
The service produced
by three activities (racing, showing and recreation) each
contribute over 25 per cent of the total value of goods
and services produced by the industry.
| |
NUMBER OF
HORSES |
NUMBER 0F
PARTICIPANTS |
GDP*
CONTRIBUTION (PERCENT) |
GDP* ECONOMIC
IMPACT (PERCENT) |
FTE
EMPLOYMENT (PERCENT) |
FTE JOBS
GENERATED (PERCENT) |
|
| Racing |
844,531 |
N/A |
10,697 (27.5) |
26,100 (25.7) |
146,625 (32.3) |
383,826 (27.2) |
| Showing |
2,718,954 |
N/A |
10,759 (27.7) |
28,800 (28.4) |
99,051 (21.8) |
380,416 (27.0) |
| Recreation |
3,906,923 |
N/A |
11,886 (30.6) |
32,000
(31.5) |
128,324
(28.3) |
435,082
(30.8) |
| Other |
1,752,439 |
N/A |
5,501
(14.2) |
14,700
(14.5) |
79,612
(17.6) |
212,010
(15.0) |
|
|
Totals |
9,222,847 |
4,659,719 |
38,843 |
101,500 |
453,612 |
1,411,333 |
* Dollars in millions
|
|
By Breed
Although
the Thoroughbred accounts for just 14 percent of the total horse
population in the U.S., the breed generates 33 percent of the horse
industry’s total economic impact
Number of Horses by Breed and Activity
|
BREED |
RACING |
SHOWING |
RECREATION |
OTHER |
TOTAL |
|
| Thoroughbreds |
559,322 |
336,992 |
228,290 |
167,203 |
1,291,807 |
| Quarter Horses |
127,720 |
1,078,639 |
1,353,236 |
728,707 |
3,288,302 |
| Other Horses |
157,489 |
1,303,324 |
2,325,398 |
856,528 |
4,642,739 |
|
|
Total |
844,531 |
2,718,954 |
3,906,923 |
1,752,439 |
9,222,847 |
|
|
Total Effect on GDP by Breed and Activity*
|
BREED |
RACING |
SHOWING |
RECREATION |
OTHER |
TOTAL |
|
| Thoroughbreds |
20,271 |
6,089 |
3,414 |
3,424 |
33,598 |
| Quarter Horses |
1,627 |
10,822 |
10,582 |
4,539 |
27,569 |
| Other Horses |
3,726 |
11,877 |
17,979 |
6,788 |
40,371 |
|
|
Total |
26,124 |
28,788 |
31,975 |
14,651 |
101,538 |
* Dollars in millions
|
|
By
Demographics
The horse industry
includes participants from all socio-economic strata. Ownership
is broad-based among income classes, with 33.9 percent earning under
$50,000 and 24.2 percent over $100,000.
|
Distribution
of Households by Income Class
| 2004 HOUSEHOLD INCOME CLASS |
PERCENT
OF ALL
HORSE-OWNER HOUSEHOLDS |
|
|
Under
$25,000 |
10.7 |
|
$25,000 – 49,999 |
23.2 |
|
$50,000 – 74,999 |
22.3 |
|
$75,000 – 99,999 |
15.7 |
|
$100,000 + |
24.2 |
|
Not Reported |
3.9 |
|
|
Total |
100.0 |
|
By Location
The
horse industry is active in every state of the union, and
contributes to both the urban and rural communities.
|
Distribution of
Households by Location
|
|
AREA |
OWNERS |
PERCENT |
|
|
Urban |
836,133 |
42.8% |
|
Rural |
1,119,694 |
57.2% |
|
|
Total |
1,955,827 |
100% |
Size of the Horse Industry
|
Number of
Horses |
9.2 million
|
|
Number of
Industry Participants |
4.7 million
|
-
Including
owners (1.96 million), non-horse-owning
service providers such as jockeys,
drivers, trainers, veterinarians and horse
transportation providers; race tracks;
shows; employees of these groups; and
family members of owners and other
volunteers involved in the care of horses
without pay excluding spectators.
|
|
Economic
Relationship of Breeding & Racing
|
Number of
Horses in Training |
416,708
|
|
Number of
Horses Involved in Breeding for the Race Track |
427,823
|
|
|
Total |
844,531
|
Economic Impact of
the Racing Sector
|
|
DIRECT
GDP CONTRIBUTION* |
GDP
ECONOMIC IMPACT* |
FTE
JOBS PROVIDED** |
FTE
JOBS GENERATED |
|
| Race Tracks & OTB Operations |
5,382 |
11,653 |
42,257 |
126,190 |
| Horses in Training |
3,068 |
8,507 |
65,792 |
158,350 |
| Breeding |
2,247 |
5,964 |
38,575 |
99,286 |
|
| Total |
10,697 |
26,124 |
146,624 |
383,826 |
|
* Dollars in
millions
** Full-time employment
|
|
|
