Funding for Trail Tourism

Breaking It Down | Action Plan | What’s Next | Case Studies

Securing Resources to Leverage Trails for Economic Progress

When seeking funds to underwrite a trail tourism strategy, the pitch evolves from “we need money for trails” to “we are investing in elements that will drive visitation to our community, build the local outdoor recreation economy and improve quality of life.” Funders in the tourism space often do not pay for infrastructure in traditional ways; they pay for visitor attraction, economic vitality and placemaking.

While understanding individual project costs and identifying potential funding sources are important starting points, a big-picture investment strategy is what aligns infrastructure, programming, marketing and stewardship into a cohesive system that attracts visitors, sustains local economies and delivers lasting community benefits.  

A comprehensive trail tourism strategy identifies the sequencing or “stacking” of investments and coordination of funding needed to get there. This approach helps communities move beyond opportunistic or one-off funding toward a deliberate investment plan that positions trails as core tourism infrastructure. For communities that are still early in the process of building out their trail vision in particular, that likely means bringing an innovative approach to bundle more traditional trail building investments with funding that can deliver the range of development needed to leverage those assets for tourism success.

Breaking It Down

Funding remains one of the most persistent challenges to advancing a trail tourism strategy identified by trail leaders and tourism professionals. While some communities are experienced in pursuing capital for trail construction, not all of them have access to sustained funding for the tourism-facing elements that actually generate visitation and economic return. Marketing, branding, business engagement, programming and visitor services often fall outside of traditional transportation or parks funding streams. 

At the same time, tourism agencies, small business programs and economic development funds are frequently unaware of trails as investable tourism assets. This creates a disconnect: trail organizations are speaking the language of infrastructure and access, while tourism funders are focused on visitor spending, overnight stays, sales tax growth and community vibrancy. 

Trail and community leaders may struggle with articulating a clear “ask,” identifying the right funding sources and demonstrating return on investment (ROI) for trail-related tourism projects. Bridging this gap requires reframing trails as economic engines and aligning funding strategies with tourism, placemaking and local business development goals. It also requires a deeper understanding of the ways funders define infrastructure between hard and soft infrastructure.

Funding for hard infrastructure funding means capital investments that build or improve the trail itself. Funding for soft infrastructure means investments in marketing, branding, events, business engagement, workforce development and visitor services. Trail tourism success depends on both, and on the intentional coordination of funding across these categories.

Making It Actionable 

The following outlines a plan of action for identifying and securing funding to advance your region’s trail tourism strategy.

1. Define Your Funding Needs 

Before seeking funding, move beyond a single line item and think about your trail tourism needs holistically. Funders often want to understand how your specific request fits into a larger strategy for enhancing visitor experience and attracting more tourism. Even if you are only seeking funding for one small project, it helps to be able to show how that project supports your broader trail tourism vision. 

Rather than thinking about funding as a one-off transaction, use the questions below as a lens to help you strengthen your pitch, anticipate future needs and show that your project is part of a thoughtful, long-term effort. 

2. Identify Funders and Funding Types 

Different projects require different funding tools. Before you set out to secure funding, consider: Are you seeking a donation, grant, loan or local budget allocation? Is this best suited to tourism, economic development, transportation, health or recreation funding? Can the project be supported through a public-private partnership, sponsorship or resource sharing? This snapshot of common funding sources is a good starting point.

3. Define Your Trail Tourism “Funding Stack” 

The funding stack is not a checklist of things to pursue all at once. It is a decision-making tool designed to help you focus on the right investment at the right time. 

Many trail tourism efforts stall not because funding sources are unavailable, but because communities pursue the a funding source that might not be the best fit, ask before they’re ready to receive funds, or ask one funder to solve multiple, unrelated problems. The funding stack helps avoid this by clarifying what type of investment is needed at which stage in the process, how it should be framed, and which potential funding source is best aligned. Here is an example of how to package different funding strategies for different funders.

4. Make the Pitch 

How a project is framed can make all the difference in your efforts to secure funding. Rather than leading with the specificity of the project, such as, “we need funding for trail signage,” the funding stack encourages communities to lead with the outcome the funder cares about. For example, “we need to improve visitor readiness so first-time visitors can find and navigate our downtown.” 

Position the project as the solution to the challenge or issue that most interests the funder. This reframing clarifies the purpose of the investment, aligns with the funder’s mission, and makes the request easier to understand and support. Consider that economic development and tourism-oriented funders invest in programs that focus on increased visitation, small business growth, job creation, sales and lodging tax revenue, and community revitalization and quality of life.  

Strong pitches and grant proposals connect directly to how visitors arrive, experience the community and spend money locally. Pair your narrative with basic data, community support letters and a simple budget tied to outcomes. See Learn Tourism’s guidance on crafting a compelling funding proposal and building relationships to advance your pitch. 

A strong pitch clearly answers: 

• Who will visit? 
• What will they spend? 
• How will this benefit local businesses? 
• What happens if the investment is not made? 

Here are sample pitches aligned with common funding goals to get you started.

5. Get Creative 

Not every trail tourism investment needs to start with a major grant. Many communities supplement traditional funding with creative, community-driven fundraising that builds both revenue and local pride. Trail-branded merchandise—such as T-shirts, water bottles, stickers, hats or bike tags—can generate modest but meaningful income while also serving as marketing for your trail. Pop-up sales at events, online storefronts and partnerships with local retailers are all low-barrier ways to test this approach. 

Beyond merchandise, trail leaders across the country are using a range of small-scale, creative fundraising tools to support tourism-facing improvements, including: 

• Adopt-a-Mile or Adopt-a-Feature Programs: Community members or businesses sponsor a mile of trail, a mile marker, bench, bike rack or garden area. 
• Sponsored Amenities: Community members or businesses can fund repair stations, picnic tables, shade structures or public art in exchange for naming or recognition opportunities. 
• Benefit Rides, Walks or Runs: Registration fees support trail improvements while activating new users. 
• Restaurant or Brewery Partnership Nights: A portion of sales during a designated evening benefits the trail. 
• Trail Passports or Challenge Programs: Visitors collect stamps or check-ins at businesses along the trail for prizes or recognition, with a portion of the sales benefiting trail needs. 
• Crowdfunding Campaigns: Short, focused online campaigns for specific, highly visible projects. 
• Seasonal Events and Festivals: Vendor fees, sponsorships and ticket sales offset programming and marketing costs. 
• Employee Giving or Payroll Deduction Programs: Trail organizers partner with a major local employer for recurring micro-donations from staff. 
• Commemorative Sales: Trail organizers sell bricks, pavers or plaques to honor donors, families or milestones.  

What’s Next?  

The following are suggested next steps for funding trail tourism, organized by trail tourism readiness level. Use the “Trail Tourism Readiness Assessment” tool to identify the phase that aligns with your community.

In Development

Conditions: Your trail’s next (or first) source of funding is unknown.

Funding Focus: Begin to build credibility, visibility and early support.

Next Steps:

1. Identify or create a fiscal partner, such as a municipal sponsor or nonprofit, that can legally apply for grants on behalf of the project.
2. Pursue planning and pre-development grants with a focus on feasibility studies, corridor plans and early placemaking pilots.
3. Fund one visible “early win.” Aim for a small, highly visible project (e.g., temporary signage, pop-up event, mural or temporary trailhead).
4. Begin a simple funding road map, identifying two to three likely future funding sources rather than trying to solve everything now.

Local Favorite

Conditions: Long-term funding mechanisms are unclear, and new funding sources are needed.

Funding Focus: Activate the trail and prove its economic value.

Next Steps:

1. Clarify your long-term funding gaps, identifying what is not currently funded (e.g., marketing, amenities, events, maintenance).
2. Apply for your first tourism-focused grant, targeting state tourism, placemaking or downtown revitalization programs.
3. Launch one small activation project. A festival, guided ride, passport program or business partnership night can unlock new funders.
4. Install basic data tools, such as simple trail counters or visitor surveys, which will strengthen every future funding request. Even informal usage counts and event attendance can help build your funding case.

Regional Destination

Conditions: Long-term funding mechanisms are in place, though funding for amenities, wayfinding, marketing or events may be limited or require sustained fundraising efforts.

Funding Focus: Scale what works and stabilize long-term investment.

Next Steps:

1. Audit your funding mix, documenting how operations, maintenance, marketing and events are currently funded—and where vulnerabilities exist.
2. Formalize multiyear funding agreements, pursuing recurring tourism allocations, lodging tax support and multiyear sponsorships.
3. Pilot a creative funding idea. Try a merch pilot, sponsored bench or adopt-a-mile program to build momentum.

National Destination

Conditions: Your trail has established, sustainable funding for operations and upkeep.

Funding Focus: Foster long-term resilience, innovation and leadership at scale.

Next Steps:

1. Invest in professional marketing and data, strengthening regional campaigns and upgrading impact measurement tools.
2. Align local and network marketing, coordinating closely with regional and national trail partners for co-op funding and amplified reach.
3. Build a reserve or capital fund to begin planning for major replacements, expansions and high-impact visitor amenities.

Case Studies

Reframing Your Pitch to Unlock Funding to Increase Visitation, Activate Outdoor Assets and Improve Visitor Experience—The Montana State Parks Foundation  

In the mid-2010s, advocates assessed that financial support for state parks in Montana had stagnated, to the point where it was the second-lowest funded state park system in the Mountain West region. The lack of financial support resulted in millions of dollars in deferred maintenance and repairs, compounded by limited staff to address growing needs. 

In 2015, local champions founded the Montana State Parks Foundation to support state funding gaps and significantly improve visitor experience to Montana’s 56 state parks. Today, the foundation’s cofounders emphasize that reframing their pitch to philanthropic funders is what led to their fundraising success. Instead of focusing on capital needs arising from a lack of government funding, they highlighted the opportunity to unlock economic potential and build community pride..   

The Foundation currently serves as the philanthropic partner to the state park system, supporting additional advocacy as well as historical, cultural and environmental education programming throughout the parks system. 

If your community is struggling to unlock funding to support trail tourism, remember that reframing is sometimes key to accessing funding that has been historically out of reach. However, you don’t necessarily need the resources of a new foundation to help you reach your goals. Often, focusing on each investor’s unique, long-term, aspirational goals and motivations, rather than your short-term, tactical ones, can make all the difference.

Activating a Local Excise Tax to Fund Bikeway Improvements in Colorado Springs 

Communities can come together to establish outdoor recreation tourism as a priority through the passage of local tax policy that provides funding to cover costs of visitor experience improvements.  

Colorado Springs enacted a $4 excise tax on new bicycles sold in the city, with revenue dedicated entirely to bikeway improvements. The tax was established in 1988, demonstrating its longevity and stability as a dedicated funding mechanism. Since its enactment, the tax has generated an estimated $2.3 million (as of 2018) for bike infrastructure. The revenue is not part of the city’s general fund; it is accounted for and administered separately, ensuring the funds are used only for their intended purpose.  

The ordinance states the revenue must be spent on projects identified in the city’s bicycle plan, with the first priority being off-street bicycle paths. This structure provides transparency and accountability. This dedicated revenue has been used to acquire federal matching grants, leveraging local funds to secure hundreds of thousands in outside funding. The revenue also can be used for the maintenance, repair and expansion of the city’s bikeway system, including projects like signage, pavement markings and safety improvements.  

As you explore financial resources to support your trail tourism work, consider activating an innovative, dedicated local funding source that ensures continuous revenue for maintenance and improvement.  

Getting Creative With Community Partners in Powell, Wyo. 

Identifying public, private and nonprofit organizations that may be open to establishing a grassroots, community-focused funding partnership can build local support and awareness. You then can leverage these efforts for larger fundraising campaigns to show funders that there is community confidence and backing of your project. 

WYOld West Brewing Company in Powell, Wyoming, created a fundraising mechanism to support future development of the local section of the Great American Rail-Trail. In partnership with Powell Economic Partnership, who is leading the trail effort, the brewery advertised its donations of a percentage of sales from a special edition beer.