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The Economic Impact of Airports in Maine

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The Economic Impact of Airports in Maine THE ECONOMIC IMPACT OF AIRPORTSIN MAINE Preparedfor: MaineDepartmentofTransportation OfficeofPassengerTransportation Novem er2006 Prepared y: WILB(RSMITH ASSOCIATES,INC. With assistancef rom SOLANA,INC. The Economic Impact of Airports in Maine TABLE OF CONTENTS FINDINGS SUMMARY ECONOMIC IMPACT OF AIRPORTS IN MAINE ...................................................................i METHODOLOGY.................................................................................................................i COMMERCIAL SERVICE AIRPORTS..................................................................................ii GENERAL AVIATION AIRPORTS........................................................................................ii BUSINESS DEPENDENCE ...............................................................................................iii INTRODUCTION ................................................................................................................ 1 ECONOMIC OVERVIEW .................................................................................................... 3 MainePop lationandEmployment... ...................................................................... 3 MaineEmploymentSectors.. ................................................................................... 5 MaineTopEmployers.. ............................................................................................. 6 PerCapitaPersonalIncome.. ................................................................................... 7 GrossStateProd ct.................................................................................................. 7 S mmary................................................................................................................... , METHODOLOGY............................................................................................................... , TheEconomicModelin.Process ............................................................................. 9 DataRe0 iredfortheModelin.Process ..............................................................10 DataCollection.....................................................................................................12 AirportTenants..................................................................................................12 CommercialServiceVisitors.............................................................................13 GeneralAviationVisitors...................................................................................15 Non-AviationB sinesses..................................................................................16 ImpactM ltipliers.. .................................................................................................17 STATEWIDE ECONOMIC IMPACT OF AVIATION ............................................................1, EmploymentImpacts.. ............................................................................................1, TenantEmployment... ..........................................................................................19 CommercialServiceVisitorEmployment............................................................19 GeneralAviationVisitorEmployment.. ...............................................................20 TotalEmployment................................................................................................21 PayrollImpacts.. ......................................................................................................21 TenantPayroll.......................................................................................................21 CommercialServiceVisitorRelatedPayroll.. .....................................................22 GeneralAviationVisitorRelatedPayroll.. ...........................................................22 TotalAnn alPayroll.............................................................................................23 O tp tImpacts... .....................................................................................................23 TenantO tp t......................................................................................................23 CommercialServiceVisitorRelatedO tp t... ....................................................25 GeneralAviationVisitorRelatedO tp t... ..........................................................25 TotalAnn alO tp t.............................................................................................25 7UALITATIVE AIRPORT BENEFITS .................................................................................25 BUSINESS USE OF MAINE AIRPORT S ..........................................................................30 ECONOMIC IMPACTS BYAIRPORT ...............................................................................33 APPENDICIES Wilbur Smith Associates I The Economic Impact of Airports in Maine LIST OF E8HIBITS E8HIBIT 1 – MaineSystemAirportLocations............................................................... 2 E8HIBIT 2 – MainePop lationPercenta.ebyCo nty................................................. 5 LIST OF TABLES TABLE 1 – Pop lationTrendsbyCo nty1990-2005 and2010Projection.. ............. 3 TABLE 2 – MaineEmploymentSectors– 2005 ........................................................... 5 TABLE 3 – MaineTopEmployers................................................................................... 7 TABLE 4 – MaineandU.S. PerCapitaPersonalIncomeTrends1990-2005 and 2010Projection.. .......................................................................................... 7 TABLE 5 – MaineGSPandU.S. GOP1990-2005 and2010Projection..................... , TABLE 6 – 2005 GeneralAviationOperations............................................................16 TABLE 7 – 2005 EstimatedGeneralAviationVisitorExpendit res...........................16 TABLE 8 – IMPLAN M ltipliers.. ...................................................................................17 TABLE 9 – On-AirportTenantEmployment... ...............................................................19 TABLE 10– CommercialServiceVisitorEmployment................................................20 TABLE 11 – GeneralAviationVisitorEmployment... ...................................................20 TABLE 12 – TotalEmployment... ..................................................................................21 TABLE 13 – On-AirportTenantPayroll.........................................................................21 TABLE 14 – Ann alCommercialServiceVisitorPayroll.............................................22 TABLE 15 – Ann alGeneralAviationVisitorPayroll...................................................22 TABLE 16 – TotalPayroll..............................................................................................23 TABLE 17 – On-AirportTenantO tp t.........................................................................23 TABLE 18 – CommercialServiceVisitorO tp t.........................................................25 TABLE 19 – GeneralAviationVisitorO tp t...............................................................25 TABLE 20– TotalAnn alO tp t.................................................................................25 TABLE 21 – TotalAnn alEmploymentandPayroll.. ..................................................25 TABLE 22 – 7 alitativeActivityandBenefitsofMaineAirport... ...............................27 TABLE 23 – AirportSponsoredComm nityEvents....................................................30 TABLE 24 – EconomicImpactbyMaineAirport.........................................................35 Wilbur Smith Associates II The Economic Impact of Airports in Maine FINDINGS SUMMARY ECONOMICIMPACT OF AIRPORTS IN MAINE Airports inMaine provide the State’s residents andb sinesses withadirect, efficientlinktothe world.F rther, Maine’s 36 p blic- se airports generate over,1.. billioninann aleconomicactivity ands pporttho sands of1 alit02obs.Maine residents increasingl0dependonaviationtos pport theirhealth, welfare andsafet0.3henallfactors are combined, Maine’s 36 p blicl0owned, p blic- se airports: S pportmore than20,7002obs Acco ntfornearl0,887.6 millioninpa0roll Generate ,1.. billionineconomicactivit0 Serve as vitalb siness links s pportcriticalservices s chas medicalcare, lawenforcement, recreation, andemergency access Maine’s 36 p blic- se airports are ama2orcatal0sttothe State’s growingeconom0.In200., the economicval e ofaviationinthe State was estimatedat,1.. billion.This incl des expendit res by on-airportb sinesses andtho sands ofvisitors singaviationtoreachMaine, as wellas the m ltipliereffectassociatedwiththese expendit res. Intotal, more than20,7002obs, withan ann alpa0rollofnearl0,887.6 million, are attrib table toaviationinMaine.Otherst d0findings incl de4 Totaleconomicimpactforthe airports comprises 3.3 percentofMaine’s estimatedGross State Prod ct. More than20,700Maine residents owe their2obs, directl0orindirectl0, toaviation;This represents 8.2 percentofall2obs inthe State. In200., Maine’s s0stem ofp blic- se airports incl dedsixcommercialservice and30general aviationairports.The Maine DepartmentofTransportationOffice ofPassengerServices provides technicalexpertise andf ndingtop blic- se airports thro gho tthe State. METHODOLOGY There are severalwa0s airports create economicimpact.On-airportb sinesses andgovernment agencies incl dingairlines, flightschools, fixedbase operators, airportsponsors, andthe Federal AviationAdministrationare responsible
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