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The Development of a Web-Based Small Airport Economic Impact Model

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The Development of a Web-Based Small Airport Economic Impact Model TTI: 0-7066 The Development of a Web-Based Small Airport Economic Impact Model Technical Report 0-7066-R1 Cooperative Research Program TEXAS A&M TRANSPORTATION INSTITUTE COLLEGE STATION, TEXAS in cooperation with the Federal Highway Administration and the Texas Department of Transportation http://tti.tamu.edu/documents/0-7066-R1.pdf Technical Report Documentation Page 1. Report No. 2. Government Accession No. 3. Recipient's Catalog No. FHWA/TX-21/0-7066-R1 4. Title and Subtitle 5. Report Date THE DEVELOPMENT OF A WEB-BASED SMALL AIRPORT Published: November 2020 ECONOMIC IMPACT MODEL 6. Performing Organization Code 7. Author(s) 8. Performing Organization Report No. Jeffrey D. Borowiec, Brianne Glover, Jacqueline Kuzio, Tengxi Wang, Report 0-7066-R1 Maxwell Steadman, Chris Bratlien, and Bill Prieto 9. Performing Organization Name and Address 10. Work Unit No. (TRAIS) Texas A&M Transportation Institute The Texas A&M University System 11. Contract or Grant No. College Station, Texas 77843-3135 Project 0-7066 12. Sponsoring Agency Name and Address 13. Type of Report and Period Covered Texas Department of Transportation Technical Report: Research and Technology Implementation Office November 2019–October 2020 125 E. 11th Street 14. Sponsoring Agency Code Austin, Texas 78701-2483 15. Supplementary Notes Project performed in cooperation with the Texas Department of Transportation and the Federal Highway Administration. Project Title: Developing a Small Airport Economic Impact Estimator URL: http://tti.tamu.edu/documents/0-7066-R1.pdf 16. Abstract Knowing the current economic impact of an airport is critical to both airport sponsors and the Texas Department of Transportation (TxDOT). While TxDOT periodically commissions a statewide economic impact study, the ability to provide updated or more precise economic impact values to airport sponsors and other stakeholders is needed. Having updated and current numbers is important because many local officials use the airport’s economic impact values to justify airport investment. Researchers built the input/output model using IMPLAN multipliers, visitor spending data from the Texas Governor’s Office, Terminal Area Forecast data from the Federal Aviation Administration, and the latest available data from the recently completed statewide economic impact study of Texas airports. The web tool, called the Small Airport Economic Impact Estimator, takes the model and provides an interface for users to calculate the economic impact of the airport of their choice. The user has the option to calculate using the default data or provide new inputs based on his or her knowledge of current conditions. The Small Airport Economic Impact Estimator Tool provides a resource for airport managers, planners, and local officials. As economic conditions change and the airport develops, the Estimator provides up-to- date economic impact numbers that can support grant applications and local funding matches, as well as attract new development. In addition, the Estimator can estimate economic impacts that may be realized if certain improvements are made that increase airport activity. 17. Key Words 18. Distribution Statement Airports, General Aviation, Economic Impacts, No restrictions. This document is available to the Economic Benefits, IMPLAN public through NTIS: National Technical Information Service Alexandria, Virginia http://www.ntis.gov 19. Security Classif. (of this report) 20. Security Classif. (of this page) 21. No. of Pages 22. Price Unclassified Unclassified 82 Form DOT F 1700.7 (8-72) Reproduction of completed page authorized THE DEVELOPMENT OF A WEB-BASED SMALL AIRPORT ECONOMIC IMPACT MODEL by Jeffrey D. Borowiec Senior Research Scientist, Texas A&M Transportation Institute Brianne Glover Associate Research Scientist, Texas A&M Transportation Institute Jacqueline Kuzio Associate Transportation Researcher, Texas A&M Transportation Institute Tengxi Wang Assistant Transportation Researcher, Texas A&M Transportation Institute Maxwell Steadman Assistant Research Scientist, Texas A&M Transportation Institute Chris Bratlien Software Applications Developer III, Texas A&M Transportation Institute and Bill Prieto Assistant Transportation Researcher, Texas A&M Transportation Institute Report 0-7066-R1 Project 0-7066 Project Title: Developing a Small Airport Economic Impact Estimator Performed in cooperation with the Texas Department of Transportation and the Federal Highway Administration Published: November 2020 TEXAS A&M TRANSPORTATION INSTITUTE College Station, Texas 77843-3135 DISCLAIMER This research was performed in cooperation with the Texas Department of Transportation (TxDOT) and the Federal Highway Administration (FHWA). The contents of this report reflect the views of the authors, who are responsible for the facts and the accuracy of the data presented herein. The contents do not necessarily reflect the official view or policies of FHWA or TxDOT. This report does not constitute a standard, specification, or regulation. The United States Government and the State of Texas do not endorse products or manufacturers. Trade or manufacturers’ names appear herein solely because they are considered essential to the object of this report. v ACKNOWLEDGMENTS This project was conducted in cooperation with TxDOT and FHWA. The authors thank Joanne Steele, James Halley, Kari Campbell, and Kaity Cromwell for their valued contributions to this research project. vi TABLE OF CONTENTS Page List of Figures ............................................................................................................................... ix List of Tables ................................................................................................................................. x Chapter 1: Introduction and Purpose ......................................................................................... 1 Chapter 2: Background and Literature Review ........................................................................ 3 Economic Impact of Small Airports ........................................................................................... 3 Approaches to Economic Impact Studies ................................................................................... 3 Data Requirements and Sources ................................................................................................. 7 Web-Based Economic Impact Models for Airports ................................................................... 7 Importance of Economic Impact Studies .................................................................................... 8 Chapter 3: Development and Testing of Small Airport Economic Impact Estimator Tool ........................................................................................................................................ 11 Model Development ................................................................................................................. 13 Economic Analysis of Activities .......................................................................................... 13 IMPLAN Region Multipliers ................................................................................................ 14 Lookup Airports .................................................................................................................... 14 Visitor Spending ................................................................................................................... 16 Airport Activity ..................................................................................................................... 17 Tenant Activity ..................................................................................................................... 18 Tenant Data ........................................................................................................................... 18 Capital Expenses ................................................................................................................... 18 Model Testing and Validation .................................................................................................. 18 Airport Activity ..................................................................................................................... 20 Visitor Spending ................................................................................................................... 21 Capital Expenses ................................................................................................................... 21 Summary of Model Testing and Validation ............................................................................. 22 Review of TxDOT-Selected Airports ....................................................................................... 25 Comparison of Inputs ............................................................................................................ 26 Results of Comparison .......................................................................................................... 27 Summary of Model Comparisons ............................................................................................. 29 Chapter 4: Design and Testing of Small Airport Economic Impact Estimator Tool Website .................................................................................................................................. 31 Technical Information ..............................................................................................................
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