2015 Economic Study – Full Report

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2015 Economic Study – Full Report FINAL REPORT JULY 2015 PREPARED FOR THE MARYLAND AVIATION ADMINISTRATION LANDRUM & BROWN, INCORPORATED | MARTIN ASSOCIATES THE ECONOMIC IMPACTS OF PUBLIC USE AIRPORTS IN MARYLAND PREPARED FOR THE: July 2015 MARTIN ASSOCIATES with LANDRUM & BROWN Contract MAA-AE-14-006, Task 9 THIS PAGE INTENTIONALLY LEFT BLANK MARYLAND AVIATION ADMINISTRATION ECONOMIC IMPACT OF AIRPORTS FINAL TABLE OF CONTENTS Page EXECUTIVE SUMMARY ................................................................. ES-1 SECTION 1: INTRODUCTION, OVERVIEW AND SUMMARY OF RESULTS ................................................................... 1 1. IMPACT STRUCTURE .............................................................................. 2 1.1 Revenue Impact ............................................................................... 3 1.2 Employment Impact .......................................................................... 3 1.3 Income Impact ................................................................................. 3 1.4 Tax Impact ...................................................................................... 3 2. ECONOMIC IMPACT SECTORS METHODOLOGY .......................................... 4 2.1 Direct Impacts ................................................................................. 4 2.1.1 Direct Employment Impacts ...................................................... 4 2.1.2 Direct Income Impacts ............................................................. 4 2.1.3 Direct Revenue Impact ............................................................. 5 2.2 Induced Impacts .............................................................................. 5 2.3 Indirect Impacts ............................................................................... 5 2.4 Tax Impacts..................................................................................... 6 3. DATA COLLECTION ................................................................................ 6 4. SUMMARY OF FINDINGS ........................................................................ 7 SECTION 2: ON-SITE IMPACTS CREATED BY PUBLIC USE GA AIRPORT ACTIVITY ................................................ 11 SECTION 3: VISITOR INDUSTRY IMPACTS CREATED BY PUBLIC USE GA PASSENGER ACTIVITY ................... 15 SECTION 4: COMPARISON WITH 2012 ON-SITE IMPACTS CREATED BY PUBLIC USE GA AIRPORTS ................. 19 APPENDIX A: SUMMARY OF GA AIRPORT ECONOMIC IMPACTS BY AIRPORT ........................................................... 23 Martin Associates with Landrum & Brown Table of Contents July 2015 Page i MARYLAND AVIATION ADMINISTRATION ECONOMIC IMPACT OF AIRPORTS FINAL THIS PAGE INTENTIONALLY LEFT BLANK Martin Associates with Landrum & Brown Table of Contents July 2015 Page ii MARYLAND AVIATION ADMINISTRATION ECONOMIC IMPACT OF AIRPORTS FINAL EXECUTIVE SUMMARY The Maryland Aviation Administration conducted a study to estimate the economic impacts of the Maryland airport system. The study analyzed the Baltimore/Washington International Thurgood Marshall Airport (BWI) and Martin State Airport (MTN) as well as the entire statewide aviation system, which consists of 35 general aviation airports (including MTN). The purpose of the study is to quantify the economic impacts generated by passenger and air cargo activity at BWI and to quantify the economic impacts generated by the 35 general aviation and scheduled commercial service airports. The impacts are quantified in terms of: Jobs Employee earnings Business revenue State and local taxes Federal airport-specific taxes The impacts are estimated for passenger and air cargo activity for calendar year 2014. In addition to the baseline impacts, an economic impact model has been developed for BWI as well as for the 35 general aviation/scheduled commercial service airports, which can be used to estimate the impacts associated with capital construction and expansion projects. Furthermore, since a baseline exists, the model can be used for future annual updates of the impacts as well as to test the sensitivity of impacts to changes in: Passenger levels Domestic versus international passengers Passenger trip purpose Peak hour flight levels and mix of aircraft Labor productivity and work rules Freight level General aviation operations This analysis is an update to a study that was conducted in 2012 to measure the economic impacts generated by passenger and air cargo activity at BWI and the general aviation airports. The same methodology has been used to quantify the 2014 impacts so that direct comparisons can be made between the current impacts and those generated by passenger and air cargo activity in the previous period. Martin Associates with Landrum & Brown Executive Summary July 2015 Page ES-1 MARYLAND AVIATION ADMINISTRATION ECONOMIC IMPACT OF AIRPORTS FINAL Table ES-1 shows the economic impact of the state-wide aviation activity in calendar year 2014. In 2014, it is estimated that aviation activity in the State of Maryland created approximately: 107,105 direct, induced, and indirect jobs $4.3 billion of personal wages and salaries $7.8 billion of business revenue $0.6 billion of state and local taxes $1.8 billion of local purchases for supplies and services Activity at BWI created the majority of the economic impacts. In calendar year 2014, 22.3 million passengers used BWI, and 231.9 million pounds of air cargo moved via the Airport. This activity resulted in approximately: 23,419 direct, induced and indirect jobs were generated for residents of the Baltimore area. Of the 23,419 jobs, 12,347 were direct jobs, while 7,305 jobs were induced throughout the region to support the purchase of goods and services by the 12,347 directly dependent employees. An additional 3,768 indirect jobs were generated in the local economy due to $378.5 million of local purchases by firms directly dependent on Airport activity. $1.6 billion of direct, indirect and induced personal income and consumption expenditures were generated in the Baltimore area as a result of the Airport activity in 2014. $3.2 billion of business sales were generated by Airport activity. The Federal Government received $260 million in Airport-specific taxes from activity at BWI. State and local governments received $165.3 million in tax revenues from airport activity. In addition to these direct, induced, and indirect impacts, it is estimated that nearly 74,318 direct, induced, and indirect jobs were generated in the Baltimore area visitor industry due to expenditures by 5.3 million visitors to the region who arrived via BWI. The impacts of the visitors are estimated from the results of BWI’s quarterly passenger survey (1,400+ in-terminal intercept surveys) conducted by WBA Research as part of this study. These visitors, who include both domestic as well as international travelers, spent about $3.7 billion on area hotels, restaurants, retail stores, and entertainment establishments, which in turn generated the jobs in the Baltimore area visitor industry. As a result of visitors arriving via the Airport, $370.4 million of state and local tax revenues were generated. Martin Associates with Landrum & Brown Executive Summary July 2015 Page ES-2 MARYLAND AVIATION ADMINISTRATION ECONOMIC IMPACT OF AIRPORTS FINAL Table ES-1 ECONOMIC IMPACT OF THE MARYLAND STATEWIDE AVIATION INDUSTRY, 2014 BWI General Aviation Airport Visitor On-Site Visitor Total Category Generated Generated Generated Generated Statewide Jobs Direct Jobs 12,347 42,324 3,047 1,737 59,456 Induced Jobs 7,305 15,916 1,523 621 25,365 Indirect Jobs 3,768 16,077 1,747 693 22,285 Total Jobs 23,419 74,318 6,317 3,051 107,105 Personal Income ($1,000) Direct $730,344 $887,473 $157,698 $39,725 $1,815,240 Induced $653,146 $761,496 $141,029 $34,086 $1,589,757 Indirect $175,896 $577,786 $91,385 $24,550 $869,617 Total $1,559,386 $2,226,755 $390,112 $98,361 $4,274,614 Business Revenue ($1,000) $3,242,671 $3,711,456 $704,328 $161,006 $7,819,461 Local Purchases ($1,000) $378,526 $1,184,716 $189,026 $50,339 $1,802,607 State & Local Taxes ($1,000) $165,295 $370,439 $41,352 $10,426 $587,512 Federal Aviation Taxes ($1,000) $259,567 NA NA NA $259,567 Martin Associates with Landrum & Brown Executive Summary July 2015 Page ES-3 MARYLAND AVIATION ADMINISTRATION ECONOMIC IMPACT OF AIRPORTS FINAL THIS PAGE INTENTIONALLY LEFT BLANK Martin Associates with Landrum & Brown Executive Summary July 2015 Page ES-4 MARYLAND AVIATION ADMINISTRATION ECONOMIC IMPACT OF AIRPORTS FINAL SECTION 1 INTRODUCTION, OVERVIEW AND SUMMARY OF RESULTS The Maryland Aviation Administration (MAA) retained the services of Martin Associates with Landrum & Brown to measure the economic impact of airport activity generated by the 36 public-use landing facilities located throughout the state of Maryland. As part of this analysis, the economic impacts of the MAA-operated facilities, which include Baltimore-Washington International Thurgood Marshall Airport (BWI Marshall) and Martin State Airport (MTN), were also completed; these results are presented under a separate cover. The base year for the balance of general aviation and scheduled commercial service airports covered in this report is 2014. For the purposes of comparison to previous study periods, the MTN results have been included herein as well. The economic impacts created by the airport and the state-wide system are measured in terms of jobs, personal income, state and local taxes, and revenue generated directly by airport activity. The state of Maryland’s Aviation System consists
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