Washington Aviation Economic Impact Study Executive Summary Connecting people and goods. Enhancing prosperity. July 2020 “Innovative leadership in state aeronautics” Executive Summary July 2020 Washington’s System of Airports Washington’s Airports Support the LEGEND MAJOR WHATCOM NORTH REGIONAL SAN ECONOMIC VITALITY COMMUNITY JUAN CENTRAL LOCAL NORTHWEST GENERAL USE OKANOGAN PEND of our State Please see the OREILLE WASP at SKAGIT wsdot.wa.gov for FERRY full denitions STEVENS CLALLAM SNOHOMISH STATEWIDE BENEFITS OF AVIATION EASTERN OLYMPIC CHELAN Statewide, Washington’s 134 public-use airports annually JEFFERSON DOUGLAS support 407,042 jobs and generate $26.8 billion in labor income and $107.0 billion in business revenues (economic impact). This STATEWIDE IMPACTS KITSAP KING LINCOLN SPOKANE money is generated by the millions of domestic and international GRAYS MASON HARBOR visitors who travel to our state each year as well as the diverse Jobs: 407,042 economic activities occurring directly on airport property— Labor Income: THURSTON GRANT including much of the state’s thriving aerospace industry. $26.8 billion PIERCE WHITMAN KITTITAS ADAMS As the link that connects people and businesses with Business Revenues: $107.0 billion destinations around the globe, Washington’s airports are a PACIFIC LEWIS GARFIELD keystone of the state’s economic prosperity and continue to FRANKLIN support sustained economic growth across our communities. SOUTHWEST YAKIMA COLUMBIA COWLITZ WALLA ASOTIN WAHKIAKUM SOUTH CENTRAL WALLA SKAMANIA Washington has been a hub of aviation innovation for well year valued at over $46.7 billion. Airports also support BENTON Source: Washington State Department of Transportation, Aviation Division over a century. The state witnessed its first airplane flight numerous other activities including agricultural spraying, CLARK in 1910 during an exhibition at of the newly-established emergency medical transport, pilot training, aerial wildland KLICKITAT South Central University of Washington. The Boeing Company was firefighting, and search and rescue operations. • Tri-Cities incorporated in 1917 and soon began building floatplanes • Walla Walla Regional To understand the economic contribution of Washington’s • Yakima Air Terminal on the shores of Lake Union for U.S. wartime efforts. Today, Eastern Northwest (McAllister Field) airport system, the Washington State Department of • Spokane International North Central • Bellingham International • Auburn Municipal • Friday Harbor SPB • Bowers Field over 90 percent of domestically produced commercial (Geiger Field) • Boeing Field/King • First Air Field • Kenmore Air Harbor • Richland Transportation (WSDOT) Aviation Division conducted • Deer Park Municipal • Grant County County International • Lopez Island • Kenmore Air SPB aircraft are manufactured in Washington. International • Martin Field the statewide Aviation Economic Impact Study (AEIS). • Felts Field • Seattle-Tacoma • Lynden Municipal • Point Roberts Airpark • Prosser • Pullman/Moscow • Pangborn Memorial International Airport - Jansen Field • Roche Harbor SPB The 134 public-use airports in the Washington aviation Completed in early 2020, this study measured the • Ephrata Municipal • Cle Elum Municipal Regional • Snohomish County • Mears Field • Rosario SPB • De Vere Field system support a host of commercial service and general annual economic impact that airports provide to local • Colville Municipal • Anderson Field (Paine Field) • Norman Grier Field • Seattle Seaplanes SPB • Cashmere-Dryden • Sunnyside Municipal aviation (GA) activities that enhance the state’s economic communities, geographic regions, and statewide. The AEIS • Davenport Municipal • Arlington Municipal (Crest Airpark) • Skykomish State • Easton State • Mead Flying Service • Dorothy Scott • Friday Harbor • Orcas Island • Skyline SPB • Lake Chelan • Lester State vitality, mobility, access, and overall quality of life. The looks not only at the aviation-related landscape today, • Port of Whitman • Harvey Field • Camano Island Airfield • Will Rogers Wiley • Lower Monumental State Business Air Center • Moses Lake Municipal • Renton Municipal • Darrington Municipal Post SPB Seattle-Tacoma International Airport (SEA) is one of busiest but ahead to the cutting-edge emerging technologies that • Okanogan Legion • Page • Wilbur Municipal • Skagit Regional • Whidbey Airpark • Rogersburg State airports in the U.S., offering passengers direct connections promise to shape the world of tomorrow. • Ferry County • Tonasket Municipal • A J Eisenberg • Bandera State • Twisp Municipal • Tieton State to over 90 domestic and 20 international destinations. GA • Ione Municipal • Anacortes • Floathaven SPB The Washington AEIS offers a comprehensive look into how • Lind Municipal • Desert Aire Southwest airports including a network of seaplane bases provide • Odessa Municipal • Grand Coulee Dam • Chehalis-Centralia airports contribute to our state and provides a useful tool • Pru Field • Mansfield Olympic • Pearson Field connectivity, emergency access, and mobility across the • Bowerman Field • Forks Municipal • Rosalia Municipal • Methow Valley State • Columbia Gorge Regional/The Dalles Municipal for airports and WSDOT Aviation Division in communicating • Bremerton National • Ocean Shores Municipal state and islands off our western coastline. Washington • Chewelah Municipal • Omak Municipal • Grove Field • Olympia Regional • Quillayute the immense value they bring to our world. • Willard Field • Othello Municipal • South Lewis County (Ed Carlson Memorial Field) airports handle over 556,000 metric tons of air cargo each • Pierce County - Thun Field • Ranger Creek State • Avey Field • Quincy Municipal • Southwest Washington Regional • Sanderson Field • Sekiu • Cross Winds • Warden • Woodland State • Tacoma Narrows • Swanson Field The data used in this study is based on 2018 information. Since the start of the study, many notable changes took place • Little Goose Lock • Waterville • Goldendale Municipal • William R. Fairchild • Westport and Dam State • Wilson Creek • Packwood within the aviation system including the highly-successful start of scheduled commercial passenger service at Snohomish International • American Lake SPB • Lower Granite State • Lake Wenatchee State • Port of Ilwaco • Apex Airpark • Copalis State County Airport (Paine Field) in Everett. Additionally, the world is responding to COVID-19 as this study heads to • Sullivan Lake State • Lost River • Strom Field • Elma Municipal • Hoskins Field • Stehekin State • Willapa Harbor publication. The lasting impacts of COVID-19 are difficult to determine at this point. It is safe to assume that aviation will • Jefferson County • Port of Poulsbo Marina SPB • Cedars North Airpark International • R & K Skyranch continue to be an important contributor to the state’s economy and the transportation system as we address and recover • Fly For Fun • Sequim Valley • Vashon Municipal from the virus during this unprecedented time in our history. • Goheen Field 2 3 Executive Summary July 2020 Study Approach Impacts by Type Economic impact is quantified by first calculating the direct effects of on-airport activity and visitor spending, then Data Sources and Validation On-Airport Activity The AEIS used numerous sources to analyzing how these effects continue to generate money as they flow through the economy. Direct on-airport impacts The economic contribution of airport administration, gather data and employed multiple are comprised of on-airport employment, business activities conducted by airport tenants, and capital improvement business tenants, and capital expenditures generate on- quality control techniques to ensure the expenditures. As gateways into Washington, airports also generate significant economic impacts associated with direct airport economic impacts. Washington’s airports function as centers data modeled in the AEIS was accurate visitor spending in industries such as lodging, restaurants, retail, and entertainment. for on-airport employment by providing services to airlines, airline and comprehensive. Primary sources passengers, and GA pilots and their aircraft. Additionally, many Supplier sales and the re-spending of worker income (indirect and induced impacts, respectively) are two streams often included airport manager and business airports host aviation and non-aviation tenants that rely on the referred to as the multiplier effects. Supplier sales occur when on-airport businesses purchase goods and services from tenant surveys to obtain key information facility’s infrastructure to conduct business operations. Airport capital other Washington businesses. The re-spending of worker income occurs when on-airport employees spend their wages about various airport metrics. Secondary expenditures support safe and efficient operations and, in some cases, in the state. Multiplier impacts are calculated both on a regional level, which reflects supplier sales and re-spending of sources included the Federal Aviation expanded operational capacity. income within a region, as well as the impacts that are generated at the statewide level from these same sales and re- Administration, U.S. Census Bureau, spending throughout the state. U.S. Bureau of Economic Analysis, and Visitor Spending U.S. Bureau of Labor Statistics. Supplier Total economic impacts are the sum of direct, supplier sales, and the re-spending of worker income, which are then Out of state and international visitors often rely on sales and the re-spending of worker