i think the term 'huge' is overstating, but surfboard paddling does wonderful things for back development. and surfers, a a rule tend to have very good backs. like swimmers, and often better.
most don't knee paddle anymore, because they aren't luddite longboarders

...
however, i found that when i started weightlifting, after years of surfing (and swimming etc.) that my back was WAY ahead of other bodyparts. 15 bw chinups was not a problem, and I could do a lot on lat pulldowns as well.
while genetics help in ALL muscle development (whether from surfing or lifting), it is a fact that surfing/paddling can do a lot for back development.
although i think the arnold comparison was probably a bit of hyperbole. :l