Opportunities for Economic Development Airports and the Economy April 3, 2013

Idaho Airport System Plan ECONOMIC IMPACT STUDY GOALS Special Study of the Airport System Plan Quantify economic contribution of 75 airports Use FAA approved methodology Provide airport promotional materials Educate State/Community Stakeholders

Idaho Airport System Plan ECONOMIC IMPACT IS MEASURED: Employment Payroll and benefits Output (value of goods and services produced)

Idaho Airport System Plan ECONOMIC IMPACT COMPONENTS Direct Impacts: On-airport businesses/government Indirect Impacts: Visitors using the airport Induced Impacts: Multiplier impacts from spending in the local area Non-quantitative benefits : Related to health, welfare, and safety

Idaho Airport System Plan STUDY PROCESS Collect Airport Information –Site visit, telephone, mail survey 50 out of 75 airports visited –Gather information on airport Employment Payroll Output, including history of capital projects –Get list of on-airport business/government tenants

Idaho Airport System Plan Collect Airport Tenant Data –Site visit, telephone, mail survey Employment Payroll Output, including history of capital projects –For non-responding tenants Employment estimated –Airport manager –Business databases –On-site inspection Extrapolated impacts –Idaho airport tenant data –Data from other states STUDY PROCESS

Idaho Airport System Plan STUDY PROCESS Gather Visitor Spending Data –Number of visitors –Expenditures by category Lodging Food & beverage Ground transportation Retail & entertainment Other –Length of stay

Idaho Airport System Plan Visitors Using Airlines –Passengers at all 7 commercial service airports surveyed Visitors Using General Aviation –FBOs distributed surveys to transient pilots STUDY PROCESS

Idaho Airport System Plan TOTAL ECONOMIC IMPACTS + Induced Impacts = Multiplier Effect Direct Impacts: Tenants Gov. agencies Indirect Impacts: Airline visitors GA Visitors Direct and Indirect Impacts Total Impacts STUDY PROCESS

Idaho Airport System Plan Non-Quantitative Benefits Difficult to Measure –Air ambulance flights –Firefighting flights –Law enforcement flights –Search and rescue flights –Businesses that depend upon aviation but are not at the airport STUDY PROCESS

Idaho Airport System Plan ESTIMATED IMPACTS Total Jobs – 23,000 Total Payroll – $718 million Total Output – $2.0 billion

Idaho Airport System Plan ESTIMATED IMPACTS

Idaho Airport System Plan Aerial Applicator Benefits Commercial agriculture benefits from aerial applicators –Application of fungicides, herbicides, and insecticides Aerial applicators deliver chemicals: –More quickly than ground-based systems –Without damaging existing crops like vehicle-based systems

Idaho Airport System Plan Aerial Applicator Benefits During a Typical Year Aerial applicators spray 841,000 to 1.3 million acres Total crop values are $1.1 billion to $2.6 billion Aerial applicators protect $42.7 to $276 million Aerial application added value of 4% to 10% –Range of values due to variance in crop yields, pestilence outbreaks, commodity prices, need for aerial application, and effectiveness of chemical applied

Idaho Airport System Plan Tax Impacts Airports/Aviation Activity Generates Taxes for Idaho –On-airport businesses pay sales taxes –Employees of on-airport businesses pay sales taxes –Visitors using the airport pay numerous taxes State sales tax Local option sales tax Travel and convention tax (lodging) Rental car tax –Visitor-supported employees pay sales tax –Aviation-related employees pay state income tax –Aircraft owners/operators pay state aviation fuel tax

Idaho Airport System Plan Tax Impacts Airport/Aviation Activity Generate $87.7 million –On-airport tenants paid $33 million (38% of total) –Visitors paid $33 million (38% of total) –Employee sales, income, and aviation fuel tax collected $21.7 million (24% of total)

Idaho Airport System Plan Qualitative Aviation Benefits Air Ambulance flights Firefighting flights Law Enforcement flights Search and Rescue flights Personal and Recreational flights

Idaho Airport System Plan Qualitative Business Benefits Businesses - not based on an airport Derive Value from the use of an Airport Survey of 1,000 Idaho Businesses found: –91% use commercial airline service. –78% of respondents use air cargo/package express on a regular basis –71% have customers or suppliers who travel, by scheduled airline service, to visit the surveyed company. –58% average one trip per month on a commercial airline. –23% own, lease, charter, or have fractional ownership of a general aviation aircraft.

Idaho Airport System Plan QUALITATIVE BENEFITS Business Location Factors 1.Highway access 2.Trained workforce 3.Tax incentives 4.Commercial service airport 5.Proximity of suppliers 6.Universities and R&D centers 7.Raw materials 8.Urban business district 9.General aviation airport 10.Historic location of business 11.Rail transportation facilities 12.Water transportation facilities

Idaho Airport System Plan Total Economic Impact Summary Total Jobs – 23,000 Total Payroll – $717 million Total Output – $2 billion Aerial Applicator – $42.7 to $276 million Tax Impacts – $87.7 million Qualitative Benefits –Life-saving flights- Business Owner Access –Firefighting flights- Business Customer Access –Search and Rescue- Cargo/Package Express –Recreational flights- Premiere Business Location

Idaho Airport System Plan Use’s of Economic Impact Data Educate Owners on Value and Potential Educate Tax Payers on Potential and Benefits Educate Businesses on Uses and Development Potential Available Encourage State/Local Economic Development Agencies of Opportunities at an Airport Show Airport Tenants potential for growth and business expansion Show public funding agencies justifiable design modifications for projects

Idaho Airport System Plan Target Audience Airport Owners – Idaho Cities and Counties Community Businesses and Customers Aviation Tenant/User Businesses –Flight InstructionCFI –Aircraft Sales Aircraft Repair –OxygenAircraft Rental –Aircraft Storage Avionics Repair –Air Taxis to Backcountry Airports

Idaho Airport System Plan Target Audience Non-Based Aviation Uses –Air Cargo –Aerial Photography –Fire Fighting Support –Environmental Patrols, Fish & Game –Law Enforcement –Non Commercial Visitors –Emergency Medical Services –Real Estate Tours –Regional/World Wide Buyers –Developers and Entrepreneurs –State/Local Business Development Groups

Idaho Airport System Plan How To Implement - Examples Maintain Eligibility and Justification for Public Financed Infrastructure Projects but include Economic Development Enhancements Runway maintenance – add lighting or navigational aids to support Business aircraft Apron repair – add space and ground access for freight and visitor transfer Airport Planning – include a section discussing Economic Development opportunities and goals Secure funding from State/Local Economic Development agency for on-airport business development, while ensuring that infrastructure complies with design requirements Include Local Business’/Developers on Airport Boards, and during planning, design review, and zoning implementation

Idaho Airport System Plan Take-Away from Airport Economic Study IF YOU DON’T KNOW THE ECONOMIC IMPACT AND VALUE OF YOUR RESOURCE, HOW CAN YOU HOPE TO; Convince Owners to Support it Convince the Tax Payers of its Value Convince Business’ that it has great potential Secure Funding approval to modify projects to include elements for Economic Development Secure design/budget approval for enhancements

Idaho Airport System Plan THAT’S JUST THE BEGINNING Idaho Airport System Plan is available on the Aeronautics Web Page at: The Economic Impact Analysis is Appendix B of the Idaho Airport System Plan and is available at: I can be reached at: