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The Economic Impact of General Aviation in Texas

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The Economic Impact of General Aviation in Texas THE ECONOMIC IMPACT OF GENERAL AVIATION IN TEXAS Prepared for: The Texas Department of Transportation June 2003 Prepared by: WILBUR SMITH ASSOCIATES, INC. 6600 Clough Pike Cincinnati, Ohio 45244 513.233.3700 www.wilbursmith.com With: HICKS & COMPANY Austin, TX Table of Contents TABLE OF CONTENTS List of Tables .................................................................................................................................. ii List of Exhibits............................................................................................................................... iii Introduction......................................................................................................................................1 Texas Population, Gross State Product, and Employment ..............................................................3 Methodology....................................................................................................................................4 The Economic Impact of General Aviation in Texas ....................................................................16 The Economic Impact of Commercial Air Service in Texas.........................................................23 The Qualitative Benefits of General Aviation ...............................................................................24 The Business Use of Texas Airports..............................................................................................25 Conclusions....................................................................................................................................30 Appendix A Individual Airport Detail Tables Appendix B Economic Impact of September 11, 2001 i Table of Contents LIST OF TABLES 1 Texas Employment by Occupation and Industry......................................................................3 2 2001 General Aviation Operations .........................................................................................14 3 Estimated General Aviation Visitor Expenditures..................................................................14 4 Total Weighted Average Impact Multipliers ..........................................................................16 5 On-Airport Tenant Employment.............................................................................................18 6 Visitor Employment................................................................................................................19 7 Total Employment ..................................................................................................................19 8 On-Airport Tenant Payroll......................................................................................................20 9 Visitor Payroll.........................................................................................................................20 10 Total Payroll...........................................................................................................................21 11 On-Airport Tenant Output .....................................................................................................21 12 Visitor Output ........................................................................................................................22 13 Total Output...........................................................................................................................22 14 2001 Commercial Service Passengers ...................................................................................23 15 Commercial Air Service Impacts...........................................................................................24 16 2001 Summary of Total General Aviation Impacts...............................................................30 17 2001 Summary of Total Aviation Impacts.............................................................................31 ii Table of Contents LIST OF EXHIBITS 1 The Texas System of Airports ................................................................................................2 2 The Multiplier Effect ..............................................................................................................7 3 Other Airports .........................................................................................................................9 B-1 Monthly General Aviation Itinerant Operations (National)................................................B-2 B-2 Decline in Revenue Passenger Enplanements (National)...................................................B-3 iii The Economic Impact of General Aviation in Texas June 2003 INTRODUCTION The Texas system of public-use airports is an integral component of the State’s overall transportation system, and is also an important stimulus for economic growth and development in Texas. These airports are significant generators of revenue, jobs, and wages, as general aviation alone creates thousands of jobs and produces billions of dollars of economic impact throughout Texas each year. The State airport system provides a safe and efficient method for the movement of people and goods, improving the quality of life of Texans. Additionally, the numerous visitors that arrive in Texas via air travel each year support a variety of business activities such as lodging, dining, retail, and entertainment. Texas airports also serve as the base of operation for numerous businesses, including airlines, air cargo companies, fixed base operators, flight schools, government entities, restaurants, and many others. To better understand the relationship between general aviation in Texas and the statewide economy, The Texas Department of Transportation (TxDOT) has undertaken this economic impact analysis. Many employers that contribute to building the State’s economy rely on the Texas system of airports to support their business operations. As the findings of this analysis demonstrate, many people beyond the immediate vicinity of each airport benefit from the daily aviation activity supported by the system, including commercial and industrial employers that use the airports as a means of shipping and receiving goods; businesses that base corporate aircraft at system airports; and hotels, restaurants, and other tourist-related establishments whose patrons use these airports to visit Texas. The primary focus of this study was to identify and quantify the economic impacts to the State and local economies resulting from the daily operation of the Texas airport system. These impacts were determined by using a method that has been approved by the Federal Aviation Administration (FAA), and has been applied to airport systems throughout the United States. Surveys, telephone interviews, airport visits, and modeling procedures were used to quantify the impacts associated with on-airport tenants, general aviation visitors, and non-aviation businesses that rely on these airports. This process produced estimates of expenditures, payroll, and employment attributable to the Texas airport system. The detailed estimates for each airport appear in Appendix A of this report. A general overview of the impacts associated with commercial airline service is also presented in the study. An additional objective of the analysis was to assess those benefits that are not as easily quantified, such as health, safety, education, recreation, and overall community support. Such activities as emergency medical transport, police and fire support, traffic reporting, and search-and-rescue operations benefit Texas residents on a regular basis. A brief overview of the impact of the tragic events of September 11, 2001 on the aviation industry is included as Appendix B. Exhibit 1 displays the location of each airport in the Texas system. 1 The Economic Impact of General Aviation in Texas June 2003 Exhibit 1 THE TEXAS SYSTEM OF AIRPORTS Commercial Service Airport General Aviation Airport The findings of this study were based on estimates of airport activity and spending levels for the 2001 calendar year. It is likely that the economic relationship between the Texas system of airports and the State’s economy will strengthen as the number of visitors, aircraft operations, and based aircraft at Texas airports increases. 2 The Economic Impact of General Aviation in Texas June 2003 TEXAS POPULATION, GROSS STATE PRODUCT, AND EMPLOYMENT According to the U.S. Census Bureau, the total population of Texas in 1990 consisted of 16,986,510 persons. By the year 2000, the population had grown to 20,851,820, representing an average annual growth rate of approximately 2.1 percent and making Texas the second most populated state in the nation. The Texas Gross State Product in 2000 was more than $742 billion, ranking third in the United States behind California and New York (ranked first and second, respectively). Historically, the dominating sectors of the Texas economy have been manufacturing and wholesale trade; however, the retail trade and service industries have increased their employment and production in recent years, consistent with the national trend. In 2000, the civilian workforce in Texas totaled more than 9.2 million workers. More than 3 million of these workers, or 33 percent of the workforce, were employed in management, professional, and related occupations, and over 2.5 million workers, or 27 percent of the workforce, were employed in sales and office occupations. Table 1 categorizes occupation and employment in Texas for the year 2000. Table 1 TEXAS EMPLOYMENT*
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