Economic Impact Analysis: Fiscal Year 2013

Prepared by
L. William Seidman Research Institute
W.P. Carey School of Business
Arizona State University

September 2013

Contents
EXECUTIVE SUMMARY ..................................................................................... 1

1. METHODOLOGY AND OVERVIEW…………...………,………………….4

2. ON-AIRPORT IMPACTS ……………………………….……………………8

3. AIR VISITOR IMPACTS…………………………………..……………...…13

4. A DAY AT GATEWAY AIRPORT…...…………………… ………...……..23

5. ECONOMIC IMPACT GROWTH ………………………………………....24

EXECUTIVE SUMMARY
This report presents an analysis of the
economic impacts of Phoenix-Mesa
Gateway Airport (Gateway Airport) based
on activity during FY 2013 (see table
below).
Gateway Airport serves as a portal that
welcomes commerce and visitors into the
East Valley and Greater Phoenix region.
Commercial airline travelers arriving at
Gateway Airport can visit friends and
relatives, conduct business, or continue on to
other destinations in Arizona.
General
aviation flyers can stop for fuel or stay over
in the region for business meetings or
sporting events. Cargo flights can avoid
more congested airports and readily serve
the technology-oriented firms of the area.

Outward bound residents have options to
diverse points in the nation from Gateway
Airport via commercial air service. These
options have increased significantly in
recent years with the expansion of Allegiant
Air service and the presence of Spirit
Airlines during the FY 2013 period.
Following FAA methodology, this study
views Gateway Airport as a source of
significant economic output (the production
of aviation services) that creates revenues
for firms, and employment and earnings for
workers on and off the airport. Business
spending on the airport injects revenues into
the community when firms buy products
from local and regional suppliers and again
when employees of the airport spend for
goods and services in their communities.

Summary of Economic Impacts FY 2013
Gateway Airport
Revenues

Payrolls

Employment

On-Airport Activity

$373,152,000

$118,276,000

2,042

Air Visitor Spending

393,974,000

106,306,000

4,383

Direct Impacts

767,126,000

224,582,000

6,425

Secondary Impacts

544,106,000

167,454,000

4,045

1,311,232,000

392,036,000

10,470

Total Impacts

Note: On-Airport activity includes private firms, public agencies and capital improvement projects; air visitor
spending includes commercial airline passengers and general aviation, air taxi and military travelers.
Secondary impacts computed from IMPLAN input-output model with Maricopa County coefficients

1

In addition, spending by air visitors
produces revenues for firms in the
hospitality sector as well as employment and
earnings for workers in tourism-related
industries.

The direct economic impact (not
including multiplier effects) of
combined on-airport activity and offairport visitor spending summed to
$767.1million in FY 2013

To measure the economic impact of the
airport, information on revenues and
employment was obtained from suppliers
and users of aviation services including
private sector firms on the airport,
government agencies, and Airport Authority
staff. Surveys and phone contacts with
employers and visitors were used to obtain
estimates
of
direct
spending
and
employment. Visitor survey results were
obtained through the cooperation of the
Mesa Convention and Visitors Bureau and
the Behavior Research Center, Inc.

On-airport economic activity
generated revenues of $373.1 million,
creating employment for 2,042 onairport workers, with payrolls of
$118.3 million

To measure the secondary impacts of direct
spending that recirculates within the region,
airport impact studies rely on multiplier
factors
from
input-output
models.
Secondary spending contributes to regional
output, earnings and employment in the
form of indirect (supplier) and induced
(consumer) impacts.
The indirect and induced spending
coefficients used for this study were from
the IMPLAN input-output model based on
data from the Arizona Department of
Administration and the U. S. Bureau of
Economic Analysis.
The highlights of the FY 2013 economic
impact analysis are set out below.
The total economic impact (including
all multiplier effects) of Gateway
Airport summed to $1.3 billion in FY
2013, supporting a total of 10,470 jobs
in the regional economy

On-airport businesses purchased
$182.4 million of intermediate goods
and services from suppliers in the
region in FY2013
Air visitors arriving at Gateway
Airport spent $394 million, creating
4,383 jobs in the regional economy in
FY 2013
A typical departing airliner carried 86
visitors, who collectively spent $80,066
during their stay in the area
Gateway airport has experienced significant
growth since the previous impact study was
completed in FY 2010 (see table on next
page).
Compared to FY 2010, on-airport
employment rose by more than 75
percent in FY 2013
Regional spending created by air
visitors rose by more than 400 percent
The total revenue impact, including
multiplier effects, rose by 79 percent
(in 2013 dollars), while total regional
employment supported by Gateway
Airport increased by 150 percent
compared to FY 2010

2

Comparison of Economic Impacts: FY 2013 vs. FY 2010
Gateway Airport
On-Airport Activity
FY 2010 (in 2013$)
FY 2013
Percent Change
Air Visitor Spending*
FY 2010(in 2013$)
FY 2013

Revenues

Payrolls

Employment

$331,624,000

$72,980,000

1,145

373,152,000

118,276,000

2,042

13%

62%

78%

Revenues

Payrolls

Employment

73,871,000

26,014,000

1,024

393,974,000

106,306,000

4,383

Percent Change
Direct Impacts

433%

309%

328%

Revenues

Payrolls

Employment

FY 2010 (in 2013$)

405,495,000

98,994,000

2,169

FY 2013

767,126,000

224,582,000

6,425

Percent Change

89%

127%

196%

Total Economic Impacts

Revenues

Payrolls

Employment

FY 2010 (in 2013$)

733,885,000

201,134,000

4,191

1,311,232,000

392,036,000

10,470

79%

95%

150%

Total Number

Enplanements

FY 2013
Percent Change
*Airline Passengers

Visitors

FY 2010

682,771

342,047

211,915

FY 2013

1,455,778

728,155

436,893

113%

106%

Percent Change

113%

Note: All figures expressed in 2013 dollars.

3

SECTION 1: METHODOLOGY AND OVERVIEW
The presence of an airport creates multiple
impacts for a community. Measurement of
these impacts is often complex, as the
influence of the airport on the pace of
economic development and quality of life is
complicated to quantify.
Airports bring essential services, including
enhanced medical care (such as air
ambulance service), support for law
enforcement and other government services
and agencies (such as the U.S. Forest
Service), as well as courier delivery of mail
and high value parcels. These services raise
the quality of life for residents and maintain
a competitive environment for economic
development.
Increasingly, metropolitan airports are also
prime locations for activity not directly
related to aviation, including high
technology firms. As a leader in this national
trend, Gateway Airport is developing into a
major employment locus for the East Valley
region.
1.1 Quantitative Impact Measures
Although qualitative advantages created by
an airport are important, they are also
challenging to measure. In studying airport
impacts, regional analysts have emphasized
indicators of economic activity for airports
that can be quantified, such as dollar value
of output, number of jobs created, and
wages and salaries received by workers.
Economic impact studies differ from costbenefit analyses, which are often used to
support the decision to undertake a proposed
project. Study of economic impact is related
to measurement of economic contribution of
an industry, an activity, or a particular
component of the economy.
The

methodology as applied to airport impacts
was standardized in the publication by the
Federal Aviation Administration, Estimating
the Regional Economic Significance of
Airports, Washington, D.C., 1992.
Following FAA methodology, this study
views Gateway Airport as a source of
measurable economic output (the production
of goods and services) that creates revenues
for firms, and employment and earnings for
workers on and off the airport.
Business spending on the airport injects
revenues into the community when firms
buy products from suppliers and again when
employees of the airport spend for
household goods and services. In addition,
spending by air visitors produces revenues
for firms in the hospitality sector as well as
employment and earnings for workers.
The quantitative measures of economic
impacts of the Gateway Airport are each
described below.
Revenue is the value in dollars of the output
of goods and services produced by
businesses. For government units, the
budget is used as the value of output.
Revenue is equivalent to purchases,
spending, or sales. From the perspective of
the business that is the supplier of goods and
services, the dollar value of output is equal
to the revenues received by that producer.
From the viewpoint of the consumer, the
dollar value of the output is equal to the
amount that the consumer spent to purchase
those goods and services from the business.
Payrolls are a second impact measure, made
up of employee compensation (the dollar
value of payments received by workers as
wages and benefits).
4

Employment is the third impact measure,
the number of jobs supported by the
revenues created by the airport.
The Airport Authority staff at Gateway
Airport was very helpful in providing data in
support of this study.
Data collected
included current and historical information
on airport operations and activity, as well as
information on types of airport businesses
and number of employees.
Telephone
surveys were conducted to follow up with
individual on-airport employers.
1.2 Economic Impact Components
The components of economic impacts
include both on-airport and off-airport
economic activity.
These impacts
encompass the revenues of firms, budgets of
government agencies, their employment, and
the payroll outlays to workers.
1.2.1 Direct Impacts
The on-airport and off-airport activity
creates direct impacts which measure the
initial revenues, employment, and earnings
associated with the presence of the airport.
The on-airport direct impacts occur when
businesses and agencies on the airport
generate sales and revenues, hire workers,
and make payments to employees.
Offairport direct impacts result when visitors
that arrive by air spend for goods and
services in the region such as lodging,
restaurants, auto rental, or retail items.
These expenditures create revenues for
businesses and jobs and income for workers.
1.2. 2 Secondary Impacts
In addition to the initial benefits from direct
impacts, secondary impacts (involving
multiplier effects) are created when the

initial spending by airport employers or
visitors circulates and recycles through the
regional economy. The secondary impacts
measure the magnitude of successive rounds
of this re-spending process.
1.2.2.1 Indirect Impacts
There are two components that make up
secondary impacts. One of these is known
as the indirect impact of spending. This is a
measure of the intermediate goods required
to produce a volume of output.
Indirect
impacts measure the purchase of goods and
services from suppliers and vendors by
airport businesses, along with their
employment and compensation paid to
workers by suppliers.
1.2.2.2 Induced Impacts
An additional secondary impact is known as
the induced impact.
Induced impacts
measure the consumer spending of workers
who produced both the direct impact and the
indirect impact. For example, when an
aircraft technician’s salary is spent for
consumer goods, this contributes to
additional employment and income for those
businesses and workers in the general
economy providing goods and services.
Airport impact studies rely on multiplier
factors from input-output models to estimate
the impact of secondary spending on output,
earnings and employment to determine
indirect and induced impacts.
The indirect and induced spending
coefficients used for this study were from
the IMPLAN input-output model based on
data from the Arizona Department of
Administration and the U. S. Bureau of
Economic Analysis.
This model is
frequently used for studying the economic
contribution of airports across the nation.

5

1.2.3 Total Economic Impacts

• $767.1 Million Revenues

Total economic impacts are the combined
sum of direct and secondary impacts created
both on and off the airport.

• $224.6 Million Payrolls

1.3 Economic Impacts FY 2013

1.3.4 Indirect Impacts

The economic impacts created by Gateway
Airport for FY 2013 are shown in Table 1.1.

The initial direct revenue stream of $767.1
million created by the presence of Gateway
Airport was estimated to stimulate
additional (indirect) activity by suppliers of
intermediate goods and services of:

1.3.1 On-Airport Direct Impacts
Gateway Airport employers include private
and public organizations and construction
firms. All on-airport economic units
contributed direct impacts of:

• 6,425 Jobs

• $234.8 Million Revenues
• $73.9 Million Payrolls

• $373.1 Million Revenues

• 1,684 Jobs

• $118.3 Million Payrolls

1.3.5 Induced Impacts

• 2,042 On-Airport Jobs

When employees of airport businesses and
agencies, regional hospitality firms, and
suppliers spend their paychecks as
consumers, this creates induced impacts of:

1.3.2 Air Visitor Direct Impacts
When air travelers make off-airport
expenditures, these outlays create revenues
(sales) for firms that supply goods and
services to visitors. Visitor spending created
annual direct impacts of:
• $394.0 Million Revenues
• $106.3 Million Payrolls
• 4,383 Off-Airport Jobs
1.3.3 Combined Direct Impacts
The combined direct impacts represent the
sum of on-airport and off-airport (visitor)
revenues, earnings, and employment due to
the presence of the airport. The direct
impacts were:

• $309.3 Million Revenues
• $93.5 Million Payrolls
• 2,361 Jobs
1.3.6 Combined Secondary Impacts
The combined secondary impacts are the
sum of supplier activity (indirect impacts)
and the spending by employees as
consumers (induced impacts):
• $544.1 Million Revenues
• $167.4 Million Payrolls
• 4,045 Jobs

6

The indirect and induced secondary impacts
represent revenues, payrolls and jobs created
in the general economy, other than aviation
and
visitor
services,
including
manufacturing, finance, health care, and
other industries.

presence of Gateway Airport are the sum of
direct impacts and secondary impacts, and in
FY 2013 were:

1.3.7 Total Economic Impacts

• 10,470 Jobs

• $1.3 Billion Revenues
• $392.0 Million Payrolls

The total economic impacts created by the

TABLE 1.1
Economic Impact Measures: FY 2013
Gateway Airport
ECONOMIC IMPACT MEASURES
Source
On-Airport Private Firms,
Government Agencies &
Capital Improvement Projects

Revenues

Payrolls

Employment

$373,152,000

$118,276,000

2,042

393,974,000

106,306,000

4,383

767,126,000

224,582,000

6,425

Indirect Spending by
Suppliers & Vendors

234,763,000

73,945,000

1,684

Induced Spending by Workers
& Proprietors of Businesses

309,343,000

93,509,000

2,361

544,106,000

167,454,000

4,045

1,311,232,000

392,036,000

10,470

Air Visitors
Direct Impacts:
Sum of On-Airport &
Air Visitor Activity

Secondary Impacts
(Multiplier Effects)

TOTAL IMPACTS

7

SECTION 2: ON-AIRPORT IMPACTS
This section provides details on the
economic impacts associated with activity
on site at Gateway Airport.
Table 2.1 illustrates the annualized
employment, payrolls and value of output
(revenues) produced by airport tenants in FY
2013. Only firms and public agencies within
the airport property boundaries are included.
Values shown for revenues, employment,
and earnings are the direct impacts and do
not include multiplier effects of secondary
impacts.

The airport attracts many aviation customers
and clients from the region and nation
seeking
high-level
technical
and
maintenance support available from major
firms such as Cessna, Embraer, Lockheed
Martin and Able Engineering and
Component Services.
The airport has become a locus for advanced
aviation related research. Aviation education
opportunities are available on the airport,
extending from applied courses in
aeronautics to formal flight training and
advanced study.

2.1 On-Airport Revenues
On-airport economic activity created annual
revenue flows of $373.1 million (including
$16.4 million for capital improvement
projects). The value of output (revenues) for
private companies on the airport was $330.4
million. Operating budgets reported by
governmental units were $26.3 million.
Businesses at Gateway Airport offer
passenger services
including airline
transport and other travel services, such as
auto rental.
Expansion of service by
Allegiant, now serving 34 destinations, and
the presence of Spirit Airlines in the market
resulted in an increased passenger count in
FY 2013 to 1.4 million, an all-time high
figure for Gateway Airport.
Full support services available for the
aviation community include aircraft
maintenance, avionics, aircraft storage, and
fueling for various categories of aircraft
including piston, turboprop, jet, and rotary.

Government agencies include the Gateway
Airport Authority staff, police and fire, the
Transportation Security Administration
(TSA) and the airport contract tower. In
addition, the airport houses U.S. Customs
and Border Protection, U.S. Immigration &
Customs Enforcement and the U.S.
Interagency Fire Center.
2.2 Employment and Payrolls
There are 51 private employers on the
airport and 8 public, administrative, or
government units. Surveys and interviews
with on-airport employers provided a tally
of 2,042 jobs (including an average of 130
workers for capital improvement projects).
The ratio of private sector jobs to overall
jobs was 1,749/2,042 or 86 percent of the
total. Airport employers reported annual
payrolls of $118.3 million received by
workers. The average overall wage for
workers on the airport was $57,922,
including full and part time employees.

8

TABLE 2.1
On-Airport Impacts: Revenues, Payrolls and Employment
Gateway Airport
IMPACT MEASURES
Sources of On-Airport Impacts

Revenues

Payrolls

Employment

$330,406,000

93,890,000

1,619

16,421,000

6,900,000

130

26,325,000

17,486,000

293

373,152,000

118,276,000

2,042

On-Airport Private Employers (51)
Commercial Airlines
Auto Rental, Food Service, Retail
Avionics & Maintenance
Major Overhaul & Repairs
Aviation Education & Training
Air Medical Transport
Aircraft Storage & Corporate Aviation
Aviation Simulation & Research
Industrial & Commercial Facilities

Capital Improvement Projects
(5 Year Average Value)

Government Agencies/Services (8)
Gateway Airport Authority
Customs & Border Protection
Interagency Fire Center
Immigration & Customs Enforcement
Transportation Security Administration
Air Traffic Control Tower
City of Mesa Police & Fire Protection

ON-AIRPORT IMPACTS

Source: Survey of Employers and Gateway Airport Authority, FY 2013

9

On-airport employment classified by broad
industry groups is shown in Table 2.2. The
largest category (602 jobs) is related to
aircraft
services,
particularly
major
maintenance, overhaul and refurbishing.
TABLE 2.2
Employment by Industry Group
Gateway Airport
Industry

Employment

Aircraft Parts, Overhaul
& Refurbishing

602

Transport of Passengers
& Cargo

403

Professional, Business
& Technical Services

186

Air Transportation
Support Services

139

Air Passenger Services
(Food, Retail, Auto Rental)

130

Capital Projects, Design
& Construction

130

Education/Training

109

All Other Private Firms

50

Government Services

293

TOTAL

2,042

Source: Survey of Employers and Gateway
Airport Authority, FY 2013

Second in importance is transport of cargo
and passengers (403 jobs). This industry
group includes not only commercial airlines,

but cargo carriers and firms with
government and private contracts for
moving people, goods and equipment by air.
The professional, business and technical
services group (186 jobs) includes
consulting, research and communication
firms that serve on-airport clients as well as
other off-airport markets in the metro area
and nationally.
Air transportation support firms (139 jobs)
primarily serve aircraft and support aircraft
operations, while air passenger service firms
(130 jobs) provide retail goods and services
such as food and auto rental to passengers.
Average annual construction employment
(130 jobs) includes design, remodel, and
new buildings as well as maintenance of
runways, facilities, other structures, fencing,
and drainage. Training activity (109 jobs)
serves beginning and advanced flyers.
All other private firms (50 jobs) include
both aviation and non-aviation businesses,
ranging from fitness and real estate to model
aircraft manufacturing and sales.
The 1,749 private sector jobs (including
construction) plus the 293 government
service jobs combine for the total of 2,042
jobs on the airport in FY 2013.
2.3 Outlays by Private Firms
Revenues received by private firms on the
airport recycle through the regional
economy as illustrated in Table 2.3. Gross
sales by on-airport businesses were $330.4
million in FY 2013. Through analysis of
inputs and outputs for industries on the
airport, estimates can be derived for the
amount paid to suppliers and vendors for
purchase of intermediate goods and services
used during the year.

10

The analysis showed that private businesses
on the airport injected $182.4 million into
the local economy for purchases of goods
and services from suppliers.
TABLE 2.3
On-Airport Private Revenue & Outlays
Gateway Airport
Category
Output (Revenues)

Value
$330,406,000

Paid to Suppliers &
Vendors for Inputs

Paid to Employees

182,402,000
93,890,000

Retained by Proprietors
& Businesses as Income

38,925,000

Received by Governments
For Sales, Excise, and All
Other Taxes & Fees

15,189,000

Source: Derived from analysis of input-output
relationships obtained from IMPLAN model.

The cost of labor for businesses on the
airport was $93.9 million. The remainder
($38.9 million) was retained by business or
paid as taxes ($15.2 million) to state, local
and federal governments.
2.4 Off-Airport Employment
Following original FAA guidelines, airport
economic impact studies do not include
activity such as revenues or employment for
businesses or agencies located outside
airport boundary lines. But in recent years it
has been recognized that airports are an
important catalyst for regional economic
development.
Modern metropolitan airports typically serve

as a magnet for business location. Land
near airports is normally zoned for business,
and airports with linkage to neighboring
industrial parks are a feature of growthoriented communities.
Similarly, educational institutions and public
agencies are often found nearby airports,
which can provide not only instruction and
case studies for students but also part time
jobs and practical training.
The following institutions and organizations
are not located on airport property, and
therefore are not included in the airport
economic impact. However, they bear close
proximity to Gateway Airport and contribute
to the economic footprint of the surrounding
area.
ASU Polytechnic
Chandler-Gilbert Community College
East Valley Institute of Technology
House of Refuge East
SW Veterans Affairs Health Clinic
U.S. Department of the Army.
The combined employment (full and part
time) of these organizations is 2,865
workers. The educational institutions have
16,944 students, with more than 11,000
accounted for by ASU Polytechnic campus.
2.5 Capital Improvement Projects
Capital projects are vital for airports to
maintain safety and meet rigorous aviation
standards. At Gateway Airport, increases in
aviation activity have required continued
improvement of facilities and infrastructure
to provide for growth. Capital spending for
airport improvements, such as the recent
terminal expansion, creates jobs and injects
dollars into the local economy.
This
contribution is especially important at a time
when commercial building is still not fully
11

recovered in the metropolitan area.
The airport spent a total of $25.4 million in
2013 (Table 2.4). Some of the projects
during the year included upgrading a major
maintenance, repair and overall facility to
attract
a
large
employer,
runway
improvements, continued terminal design
and expansion activity, and various building
renovations.
Total airport capital improvement outlays
over the past five years sum to $82.1
million. The average annual expenditure
over the period is $16.4 million. This five

year average was used in the impact analysis
to smooth the effect of year-to-year
fluctuations in capital spending.
Although specific figures are not available,
it should be noted that Gateway Airport has
a strong history of private sector investment
as well. Major private projects in recent
years include hangar and office facilities for
new employers who have contributed
increases in jobs, payrolls and revenues to
the overall economic impact of the airport.

TABLE 2.4
Capital Improvement Projects: Five Year Summary ($ thousands)
Gateway Airport
Source

FY 2009

FY 2010

FY 2011

FY 2012

FY 2013

Total

Average

Airport Authority

$17,645

$13,059

$10,213

$15,808

$25,376

$82,101

$16,420

Source: Gateway Airport Authority

12

SECTION 3: AIR VISITOR IMPACTS
Gateway Airport attracts commercial airline
and general aviation visitors from
throughout the region and the nation who
come to the area for business, recreational,
and personal travel. The combined impact
of airline and general aviation visitors was
$394 million of revenues in FY 2013 (see
Table 3.13), an increase of more than 400
percent over FY 2010. The sections below
provide detail on the direct economic
impacts from commercial and general
aviation air travelers arriving at Gateway
Airport in FY 2013.

that the average party size for travel parties
was 2.07 persons, leading to an estimated
number of visitor travel parties arriving at
Gateway Airport of 210,674 during the FY
2013 study period.
TABLE 3.1
Airline Visitor Travel Patterns
Gateway Airport
Category
Enplanements

3.1 Airline Visitors

Percent Visitors

During FY 2013 there were 728,155 airline
enplanements at Gateway Airport. Through
analysis of passenger origination data from
the U. S. Department of Transportation, it
was found that 60 percent or 436,893
enplaning passengers were visitors to the
area (Table 3.1).
The FY 2013 airline
visitor figures are more than double those
recorded in FY 2010 (211,915) using a
similar methodology.

Number of Visitors

Information on air visitor spending and
travel patterns was based on figures
compiled by the Behavior Research Center,
Inc., from periodic surveys commissioned
by the Mesa Convention and Visitors
Bureau.
More than one half (58%) of visitors stated
that the main purpose of their travel was for
visiting friends and relatives. Nearly four
out of ten visitors (37%) described the
purpose of their trip to Arizona as “pleasure
or vacation.” An additional five percent of
respondents stated they were traveling for
business related reasons.
The surveys of airline passengers revealed

Value
728,155
60%
436,893

Visit Friends & Relatives

58%

Pleasure or Personal

37%

Business

5%

Average Party Size

2.07

Number of Parties

210,674

Spending Per Party

$1,930

Visitor Spending*

$406,600,000

*Includes on-airport auto rental spending
Source: Visitor Survey, Behavior Research
Center, Inc., and Mesa Convention and Visitors
Bureau; figures are rounded for exposition

The average spending per party per trip was
$1,930 (figures are rounded to simplify
tables). Multiplication of $1,930 by 210,674
annual airline travel parties yields total
airline visitor spending of $406.6 million for
FY 2013. (As explained below, this figure
includes on-airport spending for auto rental,
which is netted out in the following tables in

13

order to differentiate on-airport and offairport economic impacts.)
The average length of stay reported in the
most recent survey available from the Mesa
Convention and Visitors Bureau was 5.8
days. Multiplying length of stay by the
number of visitors, there were 2,533,979
visitor days from airline passengers in FY
2013. On a typical day, there were 6,942
airline travelers in the airport service area,
contributing visitor spending revenues
exceeding $1 million each day.
The figures for spending per person per trip
can be used to derive the economic value of
visitor expenditures from a typical passenger
aircraft departing Gateway Airport (Table
3.2).
TABLE 3.2
Economic Value of Departing Airliner
Gateway Airport
Average Visitor Spending Per Aircraft
Air Carrier Departures
Enplaning Passengers
Average Passengers/Aircraft

5,063
728,155
144

Percent Visitors

60%

Average Visitors/Aircraft

86

Trip Expenditures/Person

$931

Value of Departing Airliner

$80,066

Source: Visitor Survey Data

number of visitors per aircraft is 86, who
spent an average $931 per person per trip
while in the area. Total airline visitor
spending of $80,066 has been injected into
the local economy for each departing
airliner, on average. The top 20 airports of
origination for visitors at Gateway Airport
are shown in Table 3.3.
TABLE 3.3
Top Airline Visitor Originations by City
Gateway Airport
Rank
1

Visitors Origination City
21,120 Bellingham, WA

2

19,615

Las Vegas, NV

3

19,275

Fargo, ND

4

18,740

Cedar Rapids, IA

5

18,380

Sioux Falls, SD

6

17,860

Oakland, CA

7

14,900

Bismarck, ND

8

14,805

Dallas/Ft. Worth, TX

9

14,740

Great Falls, MT

10

14,115

Minot, ND

11

14,005

Rockford, IL

12

13,035

Grand Forks, ND

13

12,505

Peoria, IL

14

11,895

Billings, MT

15

11,110

Rapid City, SD

16

11,005

Missoula, MT

17

10,860

Moline, IL

18

9,855

Grand Island, NE

19

9,845

Grand Rapids, MI

20

9,760

Eugene, OR

Source: U. S. Dept. of Transportation,
Origin & Destination Data Base

Based on current characteristics of Gateway
Airport passenger aircraft, the average
14

These top 20 originating airports accounted
for more than two-thirds (68%) of visitors.
In all, visitors originated at 72 airports
across the nation in FY 2013. These figures
were compiled from origination and
destination ticket
information
made
available through the Origin and Destination
Data Base of the U. S. Department of
Transportation. Bellingham, Washington
was the originating airport for the greatest
number of visitors (21,120) followed closely
by Las Vegas and Fargo, North Dakota.
Four North Dakota airports appeared in the
listing of top 20 visitor origination airports,
which contributed to the ranking of North
Dakota as the state with the most originating
visitors to Gateway Airport in FY 2013
(Table 3.4).
With 61,335 visitors, North
Dakota exceeded second-ranked Montana by
more than 30 percent. These top 10 states
accounted for three-fourths of all visitors.
TABLE 3.4
Top Airline Visitor Originations by State
Gateway Airport
Rank
1

Visitors Origination State
61,335 North Dakota

2

46,595

Montana

3

42,810

Illinois

4

29,760

Washington

5

29,490

South Dakota

6

19,615

Nevada

7

18,975

Colorado

8

18,740

Iowa

9

17,970

California

10

15,795

Texas

Source: U. S. Dept. of Transportation,
Origin & Destination Data Base

Spending by category and resulting
economic impacts from all airline visitors
are shown in Table 3.5.
(Note: The ground transportation category
has been adjusted to net out rental car
spending outlays directly on the airport.
Before adjustment, ground transportation
spending by airline visitors from survey
results was calculated as $29.9 million.
However, revenue reports from auto rental
firms indicate that more than one half of this
amount was paid out for on-airport rental
cars and therefore this component of visitor
spending ($15.7 million) has already been
accounted for in the on-airport spending
totals set out in Table 2.1)
After the adjustment for on-airport car
rental, total off-airport spending by airline
passengers was $391.2 million.
The largest spending category was food and
drink ($324 per person per trip), leading to
total revenues for restaurants and bars of
$141.3 million. Food and drink was also the
category with the most jobs created (2,255)
by airline visitor spending within the region.
Retail goods and services was the second
largest spending category with outlays of
$129.3 million, creating 773 jobs.
The visitor surveys consistently show that at
least 60 percent of visitors stay with friends
or relatives rather than in paid lodging. The
spending figures shown in Table 3.5 for
lodging outlays per person per trip ($159)
are based on all respondents, not just those
who stayed at hotels, resorts, or other paid
lodging. It should be noted that all other
values in the per person spending column
also include responses from those who
reported no spending in a specific category.

15

TABLE 3.5
Economic Impacts of Airline Visitors: Revenues, Payrolls and Employment
Gateway Airport
Category

Per Person
Per Trip

Revenues

Payrolls

Jobs

$159

$69,214,000

$21,751,000

574

Food/Drink

324

141,354,000

48,588,000

2,255

Retail Sales

296

129,299,000

15,084,000

773

Entertainment

85

37,365,000

17,593,000

687

Ground Transport

67

13,941,000

2,502,000

64

931

391,173,000

105,518,000

4,353

Lodging

TOTAL

Note: Visitor spending from Behavior Research Center, Inc., and Mesa Convention and Visitors
Bureau surveys. Payrolls and employment figures were derived from the IMPLAN input-output
model based on data from the Arizona Department of Administration and the United States
Bureau of Economic Analysis. Ground Transportation figures do not include on-airport auto
rental spending of $15.7 million included in On-Airport Impacts in Table 2.1.

3.2 General Aviation Visitors
In order to analyze general aviation traffic
patterns at the airport, a database of 5,500
general aviation flight plans involving
Gateway Airport as either destination or
origin for travel was obtained from the FAA.
In this sample, the most frequent source of
itinerant flights arriving at Gateway Airport
was Ryan Field in Tucson. Second in
importance was Tucson International,
followed by Love Field, Sierra Vista, and
Montgomery Field rounding out the top five
(Table 3.6).
Overall, arriving general
aviation aircraft originated at more than 150
airports around the nation.

Excluding activity by commercial and
chartered airliners, there were 66,604
itinerant operations at Gateway Airport in
FY 2013. Most of these (54,292) were
accounted for by private general aviation
aircraft. (Note: in order to calculate
economic impacts, operations by air taxi and
military flights were included in the analysis
below, since each includes passengers or
crews that potentially make expenditures
while they are visiting the region.
Calculations in the following tables for
General Aviation or GA include air taxi and
military visitors also.)

16

An operation is a take-off or a landing.
Local operations typically involve based
aircraft performing take-offs and landings
for training or other local flying activity.
Itinerant operations involve an origination or
destination airport other than Gateway
Airport.
TABLE 3.6
GA Aircraft Origination
Gateway Airport

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.

Rank and Origin

State

Ryan Field
Tucson International
Earnest A. Love Field
Sierra Vista
Montgomery Field
Scottsdale
John Wayne Airport
El Paso International
McCarran International
Nogales
Boise Air Terminal
Wichita Mid Continental
Yuma MCAS
North Las Vegas
Centennial

AZ
AZ
AZ
AZ
CA
AZ
CA
TX
NV
AZ
ID
KS
AZ
NV
CO

Source: FAA Flight Plan Data Base and
Airport IQ Data Base/Flight records.

Both based and non-based aircraft contribute
to itinerant activity on any given day. When
a based aircraft returns to Gateway Airport
from Orange County, California, for
example, that is an itinerant operation.
When an aircraft based at another airport
arrives at Gateway Airport, that aircraft is
classified as a transient itinerant. It is these
transient aircraft that represent outside
spending brought to the airport service area,
and are therefore an important source of

economic impacts.
According to analysis of flight records, there
were 15,787 transient aircraft arrivals at
Gateway Airport in FY 2013. Of these,
2,526 brought overnight visitors and the
remaining 13,261 stayed for one day or less.
Separate analyses were conducted for those
GA visitors with an overnight stay and those
whose visit was one day or less in duration.
To compute a conservative estimate of
economic impacts of GA visitors, one day
aircraft were further partitioned into those
staying less than 4 hours and 4 hours or
more (Table 3.7).
TABLE 3.7
General Aviation Transient Aircraft
Gateway Airport
Item

Annual Value

Itinerant AC Arrivals

33,302

Transient AC Arrivals

15,787

Overnight Transient AC

2,526

One Day Transient AC

13,261

Stayed 4 Hrs. or More

2,842

Source: Derived from FAA Flight Plan Data
Base and Gateway Airport records.
Includes private GA aircraft, air taxi and
military.

Visitor spending estimates were computed
only for those aircraft staying 4 hours or
longer at Gateway Airport, reflecting the
fact that many aircraft stop only for fuel and
travelers do not spend for food, retail
shopping, or ground transportation off the
airport. There were 2,842 general aviation
aircraft that stayed on the ground 4 hours or
more during the year.

17

3.2.1 Overnight GA Visitors
Information on visiting general aviation
aircraft was obtained from a survey of
visiting aircraft owners and pilots. Visitors
were asked about the purpose of their trip,
the size of the travel party, length of stay,
type of lodging, and outlays by spending
category.
TABLE 3.8
General Aviation Overnight Visitors
Gateway Airport
Item
Transient AC Arrivals
Overnight Transient AC
Avg. Party Size
Number of Visitors
Average Stay (days)

Annual
Value
15,787
2,526
2.8
7,073
2.1

Visitor Days

14,853

Spending per Aircraft

$1,073

Total Expenditures

combined total of 14,853 visitor days.
Spending per travel party per aircraft
averaged $1,073. Total spending by all GA
overnight visitors summed to $2.7 million
for the year.
Table 3.9 shows the percentage distribution
of outlays by overnight travel parties at
Gateway Airport. Lodging accounts for 31
percent of visitor spending, averaging $329
per aircraft travel party. Food and drink, at
$299 per overnight aircraft, made up 28
percent.
Retail, at $195 and 18 percent, was next in
importance, followed by ground transport
spending per aircraft at $161, and 15 percent
for the average travel party.
Entertainment was the smallest expenditure
category, at $89 for each visiting overnight
general aviation travel party.
TABLE 3.9
Spending Per Overnight GA Aircraft
Gateway Airport
Category

Spending

Percent

$2,710,000

Source: Derived from FAA Flight Plan Data
Base, Gateway Airport Records and GA
Visitor Survey.

The travel patterns underlying the
calculation of overnight GA visitor
economic impacts are shown in Table 3.8
for the 2,526 transient overnight aircraft
arrivals during the year.
The average party size was 2.8 persons and
the average overnight travel party stayed in
the area for 2.1 days. There were 7,073
overnight visitors for the year with a

$329

31

Food/Drink

299

28

Retail

195

18

Entertainment

89

8

Transportation

161

15

$1,073

100

Lodging

TOTAL

Source: GA Visitor Survey

18

3.2.2 Day GA Visitors
During the year, there were an estimated
13,261 aircraft that stopped at the airport for
one day. Some were only on the ground for
a few minutes while others were parked
several hours when the travel party had their
aircraft serviced, pursued a personal activity,
or conducted business.
The economic impacts from arriving aircraft
travel parties are of two types. Those pilots
or aircraft owners that buy fuel or have their
aircraft serviced on the airport are making
purchases which contribute to the revenue
stream received by aviation businesses on
the airport. That type of spending creates
output, employment, and earning on the
airport. Those economic impacts are shown
in Table 2.1 as on-airport impacts.
TABLE 3.10
General Aviation Day Visitors
Gateway Airport
Item

Annual Value

One Day Transient AC

13,261

Stay >/= 4 Hours

For the purposes of this study, those travel
parties that arrived and departed in less than
four hours were assumed to have not left the
airport and not contributed any significant
spending off the airport, although they may
have purchased goods or service on-site.
Of the 13,261 transient aircraft that stopped
at Gateway Airport for a day during the past
year, there were 2,842 that were parked for
more than four hours but not overnight
(Table 3.10). The average stay in the area
for those travel parties was 7.0 hours,
according to arrival and departure records,
with a range of 4 to 12 hours.
The four hour day trip aircraft brought 6,820
visitors to the airport service area during the
year. The average spending per one-day
aircraft was $135. The total economic
impacts created by off-airport spending by
one-day general aviation visitors tallied to
$384,000 of output (revenues or sales off the
airport).

2,842

Average Stay (Hours)

7.0

Avg. Party Size

2.4

Number of GA Visitors

6,820

Spending per Aircraft

$135

Total Expenditures

However, if the aircraft travel party leaves
the airport to visit a corporate site, conduct a
business meeting, or attend a sporting or
cultural event, these off-airport activities
will generate spending that creates jobs and
earnings in the local community.

$384,000

Source: Derived from FAA Flight Plan Data
Base and GA Visitor Survey.

The largest expenditure category for oneday visiting travel parties was food and
drink, which averaged $72 per aircraft travel
party for the day and accounted for 53
percent of outlays (Table 3.11). Spending
for ground transportation was the second
largest category, at $51 per aircraft.
3. 3 Combined GA Visitor Spending
Table 3.12 shows the economic impacts
resulting from spending in the region by
combined overnight and day general
aviation visitors arriving at Gateway
19

Airport.
To recap, there were 15,787
transient general aviation aircraft that
brought visitors to the airport during the
year.
Of these, 2,526 were arriving
overnight general aviation aircraft and 2,842
were one- day visiting aircraft parked long
enough to make off-airport expenditures.

TABLE 3.11
Spending Per Day Visitor Aircraft
Gateway Airport
Category

Spending

Percent

Lodging

$0

0

Food/Drink

72

53

Retail

7

5

Entertainment

5

4

Transportation

51

38

135

100

TOTAL

Source: GA Visitor Survey

Each overnight travel party spent an average
of $1,073 during their trip to the airport
service area and travelers on each day visitor
aircraft spent a reported $135 per trip.
Multiplying the expenditures for each
category of spending by the number of
aircraft yields the total outlays for lodging,
food and drink, entertainment, retail
spending, and ground transportation due to
GA visitors during the year.
However, since a major portion of auto
rental was accounted for by on-airport rental
firms, total spending by GA visitors was
adjusted to reflect off-airport ground
transport spending only. Therefore, GA
visitor spending, net of on-airport auto

rental, was $2.8 million (on-airport auto
rental is included in Table 2.1).
There were 21,673 visitor days attributable
to general aviation travelers during the year.
Sixty-eight percent of visitor days (14,853)
were due to overnight GA travelers and
thirty- two percent (6,820) were from oneday visitors.
On an average day, there were 59 visitors in
the service area that had arrived by general
aviation aircraft. Average daily spending
by all GA air travelers was $6,900 within
the regional economy.
The average
economic impact of any arriving transient
aircraft (combined overnight and day
visitors staying more than 4 hours) was
$505.
Spending for food and beverages accounted
for 36 percent of GA visitor spending, with
outlays of $959,000 for the year. Spending
by general aviation visitors for lodging was
$831,000 or 31 percent of the total. Taken
together, these two categories accounted for
two-thirds of the economic impacts from
GA visitors to Gateway Airport.
Of total off-airport spending of $2.8 million
created by GA visitors, an average of 30
cents of each dollar was used within the
region by employers as earnings paid out to
workers.
Wages
taken
home
by
tourism/visitor sector workers for spending
in their own community summed to
$824,000 during the year. Payrolls in the
food and drink services industry accounted
for one third of total earnings from GA
visitor spending.
Expenditures by GA
visitors created 31 direct jobs in the tourist
sector in the service area. Food and drink
spending created the greatest number of jobs
(15) followed by lodging (7) and
entertainment (5).

20

TABLE 3.12
Economic Impacts from GA Visitors - Revenues, Payrolls and Employment
Gateway Airport
Spending per AC
Category

Lodging

Overnight

Day

$329

Revenues

Payrolls

Employment

$831,000

$261,000

7

Food/Drink

299

$72

959,000

330,000

15

Retail Sales

195

7

509,000

59,000

3

Entertainment

89

5

239,000

128,000

5

Ground Trans.

161

51

253,000

46,000

1

1,073

135

2,791,000

824,000

31

TOTAL

Note: Payrolls and employment figures were derived from the IMPLAN input-output model based
on data from the Arizona Department of Administration and the United States Bureau of
Economic Analysis. Employment is not necessarily full time equivalents; includes full and some
part time workers, figures rounded to head counts. Ground Transportation figures do not include
on-airport auto rental spending included in On-Airport Impacts in Table 2.1.

3.4 Combined Airline and GA Visitors
Airline and general aviation visitors combined
to spend $394 million in the service area during
the year, creating 4,383 jobs off the airport with
earnings to workers of $106.3 million (see Table
3.13).
There were 2.5 million visitor days attributable
to commercial and general aviation travelers
during the year. Ninety-nine percent of visitor
days were due to commercial air travelers and
one percent of days were from general aviation
transient visitors.

On an average day, there were 7,002 air visitors
in the service area. Average daily spending by
all air travelers was $1.1 million.
Table 3.13 shows that the largest spending
category by aviation visitors was expenditures
for food and drink, with outlays of $142.3
million, or 39 percent of the total. Spending for
retail goods accounted for 36 percent of visitor
spending and was the second largest category,
with outlays of $129.8 million.

21

TABLE 3.13
Economic Impacts of Airline and GA Visitors: Revenues, Payrolls and Employment
Gateway Airport
Category

Revenues

Payrolls

Employment

Lodging

$70,045,000

$22,016,000

581

Food/Drink

142,313,000

48,911,000

2,270

Retail Sales

129,808,000

15,143,000

776

Entertainment

37,604,000

17,695,000

691

Ground Transport

14,204,000

2,541,000

65

393,974,000

106,306,000

4,383

TOTAL

Note: Payrolls and employment figures were derived from the IMPLAN input-output model based on
data from the Arizona Department of Administration and the United States Bureau of Economic
Analysis. Employment is not necessarily full time equivalents; includes full and some part time
workers. Ground Transportation figures do not include on-airport auto rental spending included in
On-Airport Impacts in Table 2.1.

22

SECTION 4: A DAY AT GATEWAY AIRPORT
Airports serve the flying public and support
the regional economy every day of the year.
On a typical day at Gateway Airport, there
are more than 400 overall operations and 28
airliners arrive and depart. Including all
direct and secondary sources, Gateway
Airport contributes a daily economic impact
of $3.6 million to the local economy (Table
4.1).
During each day of the year, businesses and
other tenants at Gateway Airport generate
$1.0 million of revenues. Revenues and
production support jobs, not only for the

suppliers and users of aviation services, but
throughout the economy.
Each day
Gateway Airport provides 2,042 jobs
directly on the airport and in total supports
10,470 area workers.
On an average day during the year, 3,988
passengers (residents and visitors) move
through the airport.
Each day there are
7,002 Gateway Airport air visitors in the
region. Spending by these visitors on a
typical day injects $1.1 million into the local
economy.

TABLE 4.1
Activity Measures and Economic Impacts for an Average Day
Gateway Airport
Activity

Average Day (FY 2013)

All Aircraft Operations

446 Aircraft Arrive and Depart

Air Carrier Operations

28 Airliner Operations Daily

On-Airport Direct Revenues

$1.0 Million Revenues Daily

On-Airport Direct Employment

2,042 Jobs on the Airport

Airline Passengers

3,988 Passengers Daily

Air Visitors (Airline + GA)

7,002 Visitors in the Region Daily

Air Visitor Spending

$1.1 Million Visitor Spending Daily

Total Employment in the Region

10,470 Regional Jobs Supported

Total Economic Impact of the Airport

$3.6 Mil. Economic Impact Daily

Source: Derived from activity reports from Gateway Airport and
IMPLAN regional input-output model

23

SECTION 5: ECONOMIC IMPACT GROWTH
Activity and economic impact measures for
Gateway
Airport
have
increased
substantially in the five years since FY 2008
and are up strongly since FY 2010. Impact
studies utilizing a methodology similar to
the current report were completed in FY
2008 and FY 2010, allowing an examination
of growth over the recent past.
Table 5.1 compares current FY 2013 direct
economic impacts of Gateway Airport with
FY 2008.
Dollar figures were adjusted
from 2008 to 2013 values so the changes
shown represent real (inflation-adjusted)

growth. The most striking comparison is in
the air visitor spending category, with
revenues to firms in the hospitality and
tourism sector up by nearly ten times.
The large increase in total spending was
primarily due to the much greater number of
passengers. Airline visitors increased from
71,407 in the FY 2008 study to 436,893 for
FY 2013, an increase of more than six times.
In addition, spending per person per trip was
greater in FY 2013. In FY 2008, per person
spending (in 2013 dollars) was $496. In the
FY 2013 visitor surveys, per person

TABLE 5.1
Comparison of Direct Economic Impacts: FY 2013 vs. FY 2008
Gateway Airport
On-Airport Activity
FY 2008 (in 2013$)
FY 2013

Revenues

Payrolls

Employment

$218,371,000

$79,636,000

1,251

373,152,000

118,276,000

2,042

Percent Change
Air Visitors

71%

49%

63%

Revenues

Payrolls

Employment

FY 2008 (in 2013$)

39,778,000

14,709,000

527

393,974,000

106,306,000

4,383

FY 2013
Percent Change
All Direct Impacts

890%

623%

732%

Revenues

Payrolls

Employment

FY 2008 (in 2013$)

258,149,000

94,345,000

1,778

FY 2013

767,126,000

224,582,000

6,425

197%

138%

261%

Percent Change

Note: All figures expressed in 2013 dollars.

24

spending was almost double this amount, at
$931. Since 2008 was the first year of the
national recession, it is likely that visitor
spending was weaker than would be
expected in a normal year.

spending, direct on site and visitor
employment related to the presence of
Gateway Airport more than tripled over the
five year period, rising from 1,778 to 6,425
direct jobs in FY 2010.

On-airport revenues increased by 71 percent
between FY 2008 and FY 2013. This
increase is linked to growth in the number
and size of employers on the airport. The
number of on-airport jobs increased by 63
percent, from 1,251 to 2,042, along with a
sharp increase in payrolls. Because of the
strong influence of increased visitor

Increases in the direct economic impacts
between FY 2010 and FY 2013 are set out in
Table 5.2.
On-airport employment
increased over this period as well, rising
from 1,145 to 2,042. The recession likely
affected on-site employment in FY 2010.
The Arizona economy lost jobs in

TABLE 5.2
Comparison of Direct Economic Impacts: FY 2013 vs. FY 2010
Gateway Airport
On-Airport Activity
FY 2010 (in 2013$)
FY 2013

Revenues

Payrolls

Employment

$331,624,000

$72,980,000

1,145

373,152,000

118,276,000

2,042

Percent Change
Air Visitors

13%

62%

78%

Revenues

Payrolls

Employment

FY 2010(in 2013$)

73,871,000

26,014,000

1,024

393,974,000

106,306,000

4,383

FY 2013
Percent Change
All Direct Impacts

433%

309%

328%

Revenues

Payrolls

Employment

FY 2010 (in 2013$)

405,495,000

98,994,000

2,169

FY 2013

767,126,000

224,582,000

6,425

89%

127%

196%

Percent Change

Note: All figures expressed in 2013 dollars.

25

both 2009 and 2010, experiencing a
percentage decline in employment greater
than any state other than Nevada. Therefore,
from a low point in FY 2010, airport
employers expanded and replaced lost jobs,
while new firms brought additional jobs as
the economy recovered into FY 2013.
Between FY 2010 and FY 2013, visitor
spending rose from $73.8 million to $394
million, a four-fold increase. Air visitors
more than doubled, from 211,915 in FY
2010 to 436,893 in FY 2013. (It should be
noted the survey methodology for visitor
spending differed somewhat in the 2010
period. The FY 2013 and FY 2008 surveys
asked visitors to list their outlays by

category, while in FY 2010 the survey asked
for a lump sum figure per trip. The lump
sum methodology could have caused some
to forget or leave out certain spending
categories.
Inflation-adjusted total economic impacts
(incorporating all multiplier effects)
increased strongly in FY 2013 compared to
both FY 2008 and FY 2010 (Table 5.3).
Since FY 2010, total regional employment
supported by Gateway Airport has more
than doubled, payrolls have nearly doubled,
and revenues created in the area have grown
by 79 percent.

TABLE 5.3
Comparison of Total Economic Impacts: FY 2013 vs. FY 2010 & FY 2008
(Including All Secondary Impacts)
Gateway Airport
Total Economic Impacts

Revenues

Payrolls

Employment

FY 2008 (in 2013$)

$580,055,000

$226,962,000

4,075

FY 2013

1,311,232,000

392,036,000

10,470

Percent Change
Total Economic Impacts

126%

73%

157%

Revenues

Payrolls

Employment

FY 2010 (in 2013$)

733,885,000

$201,134,000

4,191

1,311,232,000

392,036,000

10,470

FY 2013
Percent Change

79%

95%

150%

Note: All figures expressed in 2013 dollars.

26

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Mesa, Arizona 85212-6014
(480) 988-7600
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