2013 Economic Impact Study for Colorado Airports
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TECHNICAL REPORT TECHNICAL REPORT This Page Left Blank Intentionally TABLE OF CONTENTS 1. Summary of Study Findings ............................................................................................ 1 1.1 Methodology ............................................................................................................................... 1 1.2 Overall Findings .......................................................................................................................... 3 1.3 Summary of Aviation Benefits in Colorado................................................................................ 8 2. Report Overview ...............................................................................................................9 3. Study Methodology and Statewide Impacts ................................................................. 11 3.1 Statewide Economic Impacts from Airport-Related Activities................................................. 13 3.2 Statewide Economic Impacts from Airport Administration, Operation, and Maintenance ..... 14 3.3 Statewide Economic Impacts from Airport Tenants/Businesses .............................................. 17 3.4 Statewide Economic Impacts from Capital Investment Related Activities .............................. 21 3.5 Summary of Statewide Economic Impacts from Airport Related Activities (Administration, Tenants, and Capital Investment) .............................................................................................. 24 3.6 Statewide Economic Impacts from Visitor Spending ............................................................... 30 4. Economic Impacts for Denver International ................................................................. 41 4.1 Economic Impacts for Airport Administration, Operations, and Maintenance ........................ 41 4.2 Denver International Economic Impacts Related to Airport Tenants/Businesses .................... 42 4.3 Denver International Economic Impacts Related to Average Annual Capital Investment ...... 43 4.4 Summary of Denver International’s Airport Related Economic Impacts ................................. 44 4.5 Denver International’s Visitor Related Economic Impacts ...................................................... 45 4.6 Denver International’s Off-Airport Air Cargo Economic Impacts ........................................... 47 4.7 Total Annual Economic Impact for Denver International Airport ............................................ 50 5. Summary of Statewide Economic Impacts ................................................................... 53 6. Benefits to Businesses Using Aviation ........................................................................ 55 6.1 Business Outreach ..................................................................................................................... 55 6.2 Outreach Results ....................................................................................................................... 55 6.3 Jobs Benefiting From Aviation ................................................................................................. 58 i 7. Statewide Aviation Tax Revenue Analysis ................................................................... 61 7.1 Taxable Aviation Activity ......................................................................................................... 61 7.2 Relevant Taxes .......................................................................................................................... 62 7.3 State and Federal Income Tax ................................................................................................... 68 7.4 Aviation Tax Impacts ................................................................................................................ 69 7.5 Conclusions ............................................................................................................................... 73 Appendix A: Airport Specific Impacts .................................................................................. 75 Appendix B: Estimates of Tax Revenues by Airport ........................................................... 87 Appendix C: Economic Impacts by Colorado Legislative District ................................... 105 ii 1. SUMMARY OF STUDY FINDINGS ince 1998, the Colorado Department of Transportation, Division of Aeronautics, has been conducting research to measure the economic impact of Colorado’s public-use commercial and general aviation airports. S This study represents the fourth iteration of the statewide economic impact study for airports in Colorado. All statewide economic studies completed for airports in Colorado reflect a “snapshot” of conditions that existed specifically at the time each study was completed. This economic impact study provides an economic photograph of conditions that characterized Colorado and each of the study airports in 2013 when data was collected to support study analysis. To establish a context for this economic impact update, it is important to consider some of the factors that provide a backdrop for the analysis. Statewide employment in Colorado has decreased since the last economic impact study was completed. Companies are outsourcing jobs and doing more with less in terms of the number of employees they have. Economic conditions in the U.S. have resulted in belt tightening for both business and leisure travelers. Air travelers have shortened their stays and have reduced their spending per trip. As supported by air traffic control records at the largest general aviation airports in the Denver metropolitan area, general aviation operations in Colorado are lower now than they were at the time of the last economic impact study. For some airports, contraction in the general aviation industry translated into fewer airport employees and fewer tenants providing aviation related services. 1.1 METHODOLOGY While the methodologies used to complete both the 2008 and the current statewide economic impact studies are similar, they are not the same. Therefore, results from the 2008 study are not directly comparable and should not be compared to the current results. Two different input/output models were used to support the 2008 and the 2013 studies. In 2008, the RIMS model was used; and for the 2013 study, the IMPLAN model was selected. The IMPLAN model was selected primarily because it provides a more convenient means for estimating “multiplier” effects on a regional basis, in addition to a statewide basis. The 2008 study used only statewide multipliers from the RIMS model and applied the same multipliers for various economic impact categories to all airports, regardless of their “economic setting” in Colorado. The IMPLAN model was also selected as a result of the fact that socio-economic and demographic databases upon which the IMPLAN model is built are more current than the databases used to support the RIMS model. The multiplier impact is a reflection of the additional times an initial economic impact re-circulates in the economy being studied. In more highly developed areas, initial impacts multiply a greater number of times than they do in less developed economies. To provide better estimates of economic impacts for all study airports, regional multipliers were used in this update to estimate each airport’s individual economic impacts. 1 Similar to prior versions of Colorado’s economic impact studies, this update examined airport related economic impacts in two categories. One of these categories relates to activities that take place primarily on the airports themselves; there are three contributors to economic impacts in this category. Most every commercial and general aviation airport in Colorado has employment that supports the administration, operation, and maintenance of the airport. In most instances, these employees are located at the airport. Throughout the state and for airports of varying size, however, some airport administrative functions related to accounting, human resources, or legal services, as examples, may actually not be located at the airport. For this analysis, all full-time and part-time employment related to operating, maintaining, and administering Colorado’s public-use airports was considered, regardless if these employees were located on- or off-airport. Also in the airport category are those activities associated with tenants or businesses at each airport. The economic impacts of tenants engaged in the provision of aviation related services or the support of airport customers are estimated in this study. Not all airports included in the study have on-airport tenants or businesses. The third contributor to on-airport economic impacts relates to investment for improvements at study airports. Investment in capital improvement projects, while the projects are being planned, designed, and implemented, also helps to support airport related economic impacts. For this study, average annual capital investment at each study airport, over a multi-year period, was considered in order to estimate average annual economic impacts associated with capital investment. In this analysis, the type of capital investment at each airport was also considered. Economic impacts associated with a taxiway widening and lengthening project result in more local economic impacts than the purchase of de-icing equipment. This update considered varying degrees of economic impacts associated with specific types of capital investment. The 2008 study considered the