The Katy Trail: An Economic Engine for Missouri

Last summer, I took a road trip through central Missouri. This impactful trip took me through many quaint little communities and America’s first American Viticultural Area. However, one aspect that many of the communities had in common was the existence of the Katy Trail State Park.

Many of the towns along the trail recognized the importance of this corridor as an economic engine for their community. Former train stations along the route have been transformed into welcome centers or local museums. Parks have been developed on the corridor to provide riders with a place to rest and take in the scenery. Businesses have also sprung up next to the trail to take advantage of the many trail users passing by.

A Ribbon through the Heart of Rural Missouri

The Katy Trail is a nearly 240-mile rails-to-trails that winds through central Missouri like a ribbon, providing recreational access and economic development across the state. The trail was built on the former rail corridor of the Missouri-Kansas-Texas Railroad (known as the “KATY”). The nickname originated from the railroad company’s abbreviation, “K-T”, which was based on the company’s initials and its stock exchange symbol. Over time, this abbreviation was spoken and written as “the Katy”.

The Katy Trail is the longest rails-to-trail in America, stretching from Clinton to Machens. It passes through farmland, alongside rivers, hugs the edges of limestone bluffs, and connects historic towns along the way. The scenery along the trail is beautiful, and it is an easy trail to ride. Due to the slope restrictions for railroads, the route is relatively flat, making it perfect for even novice bike riders.

Why It Matters to Rural Economic Development

As discussed in the earlier NC State Economic Data for Trail Grant Applications post, trails have been shown to have an economic impact on communities. But it goes far beyond direct purchases. The impact of the Katy Trail is widespread, touching local communities in a number of ways:

1. Visitors = New Dollars in Small Towns

• One of the earlier economic analyses of the trail computed that approximately $18.5 million per year (based on numbers from a 2012 study). This same analysis states that the Katy Trail supports 367 jobs, with a total payroll of $5.1 million. At the local level, the communities along the trail benefited from $8.2 million in visitor spending. 
• From an investment basis, the Missouri State Parks analysis calculated that for every dollar spent by Missouri State Parks to operate Katy Trail State Park, Missouri’s economy saw an $18 return. That’s quite a significant ratio. (Missouri State Parks, 2012)
• According to a study, about 400,000 people use the Katy Trail annually. They spend, on average, about $45 per person per day/night on trip-related expenses. They also spend about $56.82 per person on trail-related goods. (Missouri Bicycle and Pedestrian Foundation, 2015)
• More recent numbers suggest the impact has grown. It has since been estimated in 2022 that the statewide impact was $29.2 million. A growth of nearly $11 million in a decade. Numbers that are sure to increase through the years.

This means that the economic impact of the trail is viable. A cyclist stops in a historic depot town for lunch. A couple stays overnight at a B&B, rather than just passing through. Businesses along the trail have an audience that wouldn’t exist without the trail.

2. Birth of Trail-Oriented Businesses

The economic benefits aren’t just in existing businesses seeing upticks in traffic. Whole new ventures are emerging to serve the trail users.

• One example, Katy Bike Rental in Defiance, MO, has expanded significantly, thanks to the trail traffic. According to the Pathway to Prosperity report by Rails to Trails, from the time he bought the company in 2002 to 2015, owner Todd White witnessed a sixteenfold growth in sales.
• And long-term studies show that many businesses serving trail users have opened because of the trail.

For towns that once relied on railroads, manufacturing, or resource extraction, this new-economy niche helps rewrite their story.

3. Revitalizing Downtowns & Main Streets

When a trail brings people into a town, it can re-activate neglected spaces. Stoic train depots, historic downtowns, and riverfront lands that have gone quiet can start to draw attention once again. Many of the towns along the Katy Trail have witnessed this firsthand. Reinvestment is taking place at trailheads or along the trail corridors in the form of new infrastructure, signage, or other welcoming amenities.

As most downtowns originally developed along the railroad corridor, these same downtowns are witnessing a resurgence in activity. Profit margins, once mainly dependent on local patronage, are padded by visitors from the trail. Existing commerce has more stability, and new shops and restaurants are sprouting up along the trail’s path on a regular basis.

4. Connecting to Natural & Cultural Assets

The Katy Trail doesn’t just traverse farmland and small towns, it also follows the Missouri River, skirts historic landscapes, and links to wineries and heritage sites. This layering of recreation, community, and place gives trail users more reasons to stay longer, spend more, and tell others about it.

Communities need to recognize these assets and encourage their integration into the town’s overall offering to visitors.

5. Spreading the Benefits

Importantly, the trail’s economic benefit is not just for one or two towns. It stretches across dozens of rural communities. This means regional investment, jobs, and the sustaining of local economies in places that might otherwise struggle.

There’s potential for more communities to benefit as well. Regional trail connections to the Katy can result in more communities benefiting from the economic impact of the Katy.

What It Takes to Make the Trail Work for Rural Renewal

Just like any revitalization story, the Katy Trail’s success hasn’t been automatic. Here’s what many of the towns and stakeholders are doing (or need to do) to capture the benefits that can be derived from the trail:

• Good trail connectivity and amenities – invest in trailheads, signage, safe parking, and welcoming rest stops.
• Local business readiness – support and encourage trail-friendly lodging, food service, gear rental, and repair shops.
• Marketing and welcoming culture – making it easy for a rider to stop, stand, and spend.
• Heritage and place story – leveraging the historic railroad, river corridor, small-town charm.
• Partnerships and investment – public/private cooperation, infrastructure support from state/federal programs.

Future Potential

Communities across central Missouri are starting to understand the importance of connecting to the Katy Trail. Connections like the MKT Nature and Fitness trail in Columbia and the Monarch Levy Trail in Weldon Spring have been made as both trail and economic development advocates understand the potential impact of connecting to the Katy.

As more segments are completed, as connections improve (like the Rock Island Trail State Park), the potential for greater economic development grows. The key will be sustaining that momentum across all towns, not just the ones closest to the metro areas or the riverfront.

In Closing

The Katy Trail doesn’t just follow an old railroad line, it follows a path through resilient rural communities. Communities that have struggled through decline after the loss of the railroad now have renewed economic vibrancy. As I’ve said in the past, viable economic development cannot lean entirely on tourism for stable, sustainable growth. But some communities along the Katy have used it effectively to transform their community. They are thankful that the trail has “put them back on the map”.