1. 2013 Economic Impact Study San Francisco International Airport
SFO Connects the Bay Area to the World
May, 2013
Prepared by:
Economic Development Research Group, Inc. 155 Federal Street, Suite 600, Boston, MA 02110
In Association with:
ICF SH&E, Inc. and Polaris Research and Development, Inc.

2. I
Executive Summary

3. Findings Direct Impacts
On Airport – 33,600 jobs, $5.5 billion in business activity
Off Airport – 82,800 jobs from $9.1 billion in visitor spending
Off Airport – 36,400 jobs from cargo valued at $17 billion, originating in the Bay Area and shipped from SFO
Spin-off “ripple” effects of 135,500 jobs and $24.6 billion in business revenues
$2.5 billion in state and local tax revenues

4. Total Economic Impact Impact Type Employment Labor Income ($Millions)
Output
On-airport
33,580
$2,092
$5,462
Aviation dependent exports
36,430
4,786
16,636
Visitor Spending
82,790
3,035
9,126
Direct Total
152,800
9,913
31,223
Suppliers of goods and services
56,545
4,867
11,905
Re-spending of income
78,990
4,855
12,656
Total Impact
288,334
$19,635
$55,783 4

5. How We Got There Verified on-airport direct employment
Conducted a 1,500 person visitor intercept survey in 4 languages
Collected and analyzed freight data
Applied the IMPLAN Modeling Package
Identified aviation and major state and local tax impacts

6. II
Overview

7. SFO Plays an Important Role in the Bay Area
A jobs center and economic engine
An enabler of business and travel tourism
Enhancing the regional economy and hospitality industries
A freight gateway
Supporting goods producing industries throughout the Bay Area
A generator of tax revenues for California and the Bay Area 7

8. What are the impacts? Jobs Business Revenue Personal Income
Direct Jobs – generated by SFO and would not exist without SFO.
Indirect Jobs – generated when SFO or SFO-dependent firms buy goods and services from businesses located in the area.
Induced Jobs – generated by spending of wages that are earned by workers of SFO or SFO - dependent firms, and by employees of suppliers, for items such as food, clothing and housing.
Business Revenue
Sales to airlines and service companies directly dependent on SFO.
Reported in terms of direct, indirect (local purchases) and induced (labor re-spending) categories.
Personal Income
Wages and salaries received by individuals employed due to SFO activity.
Reported in terms of direct, indirect (local purchases) and induced (labor re-spending) categories. 8

9. Categories and Measures of Impacts
Jobs, business revenues, personal income and taxes are shown by airport-generated, visitor industry, and air cargo related categories
Type of Activity
Description
Airport-Generated
Airport operations and administration
Capital investment (construction)
Passenger & freight airlines
Services to airlines
Services to passengers
Visitor Industry
Spending by business and personal travelers arriving from international and U.S. locations
Affected sectors: hotels, restaurants, entertainment, retail shops & off-airport ground transportation
Aviation Dependent Exports
Goods produced in the Bay Area are shipped to long distance customers through SFO, supporting regional economic development
Measures of Impact
Jobs
Personal Income
Business Revenue
Aviation, State & County Taxes 9

10. Contribution to the Bay Area Economy
Impact Type
Employment (Jobs)
Labor Income (Payroll)
$ millions
Output (Business Revenue)
Airport-Generated
33,580
$2,092
$5,462
Aviation Dependent Exports
36,430
4,786
16,636
Visitor Industry
82,790
3,035
9,126
Direct Total
152,800
9,913
$31,223
Indirect (Suppliers of goods and services)
56,545
4,867
11,905
Induced
(Re-spending of income)
78,990
4,855
12,656
Total Contribution
288,334
$19,63
$55,783 10

11. Jobs Center and Economic Engine
III
Jobs Center and Economic Engine

12. 33,580 People Work at SFO Jobs at SFO include:
Airlines – passenger and cargo activities
Aviation Support Services – catering, in-flight entertainment, aircraft handling, fueling and maintenance
Freight Transport – courier, delivery, customs broker and trucking
Concessions – restaurants, retail stores and passenger services
Ground Transportation Services – rental car, taxi, limousine service, and bus companies
Air Terminal Operations Staff – security, building maintenance and facility management
Public Agencies – FAA, other Federal Agencies and Airport Administration (including Police and Fire Departments)
Distribution of On-Airport Jobs
Concessions
15%
Construction 3%
Passenger Airlines
47%
Freight Transport 2%
Aviation Support Services 7%
Passenger Ground Trans.
17%
Admin., Gov’t & Security 9%
Direct Personal Income Earned On Airport
Average Personal Income Per Job
$2.1 Billion
Greater than $62,000 12

13. Jobs and Business Revenues by County
Airport Generated Business Impacts (3) ($ millions)
Jobs Across the Bay Area
$35
$90
$162
$103
Subtotal Direct: 33,600
Subtotal Indirect & Induced: 26,400
Total: 60,000
$804
$394
$675
$6,663
$932
(1) By place of residence (2) By location of job
(3) Includes direct, indirect, and induced impacts
Note: Jobs rounded to the nearest 100. 13

14. Visitor Industry ImpactsIV
Visitor Industry Impacts

15. The Airport Supports Tourism
13.1 million total
Domestic Enplaned Passengers
3.6 million total
International Enplaned Passengers
51.6%
55.4%
Domestic Visitors
6.8 million
2.0 million
International Visitors
Total Visitors
8.7 million
1.2 million
California
5.6 million
Rest of U.S.
Note: Totals may not add due to rounding.
Sources: SFO Traffic Statistics; U.S. DOT O&D Survey, YE 2Q 2012; U.S. DOT, T-100 Database; IATA, PaxIS Database; U.S. DOC, International Air Travel Statistics, 2011.

16. SFO Binds the Bay Area to the Nation
525 Daily Departures to 72 Domestic Markets (non-stop)
Source: OAG, July 2013. 16

17. SFO is the Bay Area’s International Gateway
546 Weekly Departures to 33 International Markets (non-stop)
Source: OAG, July 2013. 17

18. The Airport Supports Tourism
Visitors spend on hotels, restaurants, retail purchases, recreation, and local travel (taxis, car rental, and public transportation)
International business travelers on average spend close to $2,000 per trip while domestic leisure travelers spend more than $800 per trip
Individual Spending per Trip
* direct, indirect and induced 18

19. Total Impacts of Visitor Spending By County*
Business Sales ($Millions)
Jobs in County
Solano $93
San Mateo
$1,416
San Francisco
$9,556
Napa
$1,016
Marin $192
Contra Costa $239
Sonoma $725
Santa Clara
$1,521
Alameda
$1,524
Solano 834
San Mateo
10,994
San Francisco
70,710
Napa
8,670
Marin 1,582
Contra Costa 1,968
Sonoma 6,481
Santa Clara
11,283
Alameda
12,671
*direct, indirect and induced 19

20. Impacts of Air Reliant Users (Freight shippers)V
Impacts of Air Reliant Users (Freight shippers)

21. Air Freight at SFO Supports the Bay Area Economy
Enables transport of goods from Bay Area to customers in both long-distance domestic and international markets.
Cargo services at SFO support Bay Area firms’ efforts to sell products across the U.S. and the world, and thereby maximize shares of national and international trade.
Without the freight services offered at SFO (and if the similar scale of services are not assumed by another regional airport)
Companies in the Bay Area that produce and ship products would find markets limited and market shares curtailed.
In turn, economic activity in the Bay Area that is associated with production of goods shipped through SFO would be reduced. 21

22. Value of Air Freight
Goods produced in the Bay Area and shipped from SFO
Represent sales of Bay Area companies in international and long distance US markets
The sales bring income into the Bay Area from these markets to support jobs in the region.
“Multiplier” effects (supplier sales and worker spending) generate additional jobs in the Bay Area.
Parts of the sales revenue are paid as wages & profits that are spent in the region; and
parts of the sales revenue is paid to supplier firms in the region for purchase of good and services that support additional jobs and wages

23. Exports from SFO Exceed Imports (by value)
Value of Exports by Air – Value of Imports by Air = Surplus or Deficit
Comparison of SFO and U.S. Air Exports by Value
Source: US Census Bureau Foreign Trade Division, provided by WISERTrade. Dollars are in nominal value.

24. Shipments by Bay Area Firms through SFO
Jobs – 103,144
Labor Income (payroll) – nearly $9.9 Billion
Business Revenue – over $29 Billion
Economic Value
Top International Exports
Top Domestic Shipments
$8.64B
$7.99B
Chemicals 7%
Machinery 8%
Trans. Equip 4%
Machinery
19%
Computer & Electronics
67%
Computer & Electronics
75%
Elec. Equip. & Appliances 2%
All Other 2%
Textile / Mill Prod. 2%
All Other
12%
Leather & Allied Prod. 2% 24

25. State & Local Tax ImpactsVI
State & Local Tax Impacts

26. State & Local Tax Revenues Generated by SFO
2012 SFO State & Local Tax Revenues
$629M
$9M
$927M
$942M
$2.5B
$220M
35.0%
$323M
34.9%
$1.2B
47.2%
$6M
66.7%
$633M
67.2%
$409M
65.0%
$603M
65.1%
$1.32B
52.8%
$3M
33.3%
$309M
32.8% 26

27. State & Local Taxes Generated On-Airport and from Visitor Spending
Subtotal Direct: $1.01B
Subtotal Indirect & Induced: $544M
Total: $1.56B
$ millions
* Direct tax revenues from on-airport employees are based on place of residence 27

28. VII
Summary of Impacts

29. SFO- Economic Engine for the Bay Area*
288,000 jobs
$55.8 billion in business revenues, of which $19.6 billion is personal income
$68,000 average income per employee
* direct, indirect and induced 29

30. Aviation Dependent Exports
Many Roles of SFO Create an Economic Engine for the Bay Area and its Counties
Impacts
Airport Generated
Visitor Spending
Aviation Dependent Exports
Total Impact
Jobs
Direct
33,580
82,790
36,430
152,800
Indirect & Induced
26,417
42,404
66,714
135,535
Total Jobs
59,997
125,193
103,144
288,334
Business Revenue ($millions)
$5,462
$9,126
$16,636
$31,223
$4,397
$7,155
$13,008
$24,561
Total Business Revenue
$9,859
$16,280
$29,644
$55,783
Payroll/Personal Income ($millions)
$2,092
$3,035
$4,786
$9,913
$1,755
$2,934
$5,033
$9,722
Total Payroll/Personal Income
$3,847
$5,970
$9,819
$19,635
Weighted Average Income/Employee
$64,111
$47,684
$95,194
$68,098 30

31. VIII
Appendix

32. Elements of Economic Impacts and Interrelationships32

33. Classification of Impacts
Direct (Initial Economic Activities)
Airport-based economic activities (airport terminal-related and tenants)
Off-airport businesses serving airport travelers
Off-airport businesses dependent on the airport for cargo movement
Indirect
Suppliers of goods and services to the airport and air-dependent business
Induced
Personal income spent by households in the Bay Area and re-circulated in the economy (earned by jobs in airport-based activities, visitor spending, air-dependent businesses, and suppliers of goods and services). 33

34. Direct Visitor Spending Ripples Through the Bay Area
$9 billion of visitor spending in the Bay Area generated:
125,000 jobs
$6 billion in labor income
$7 billion in additional indirect and induced output ($16 billion in total output)
County
Direct Visitor Spending ($millions)
Indirect & Induced Output
($ millions)
Jobs*
Payroll*
(Labor Income in $millions)
Alameda
$813
$711
12,671
$504
Contra Costa
$143
$96
1,968
$69
Marin
$112
$80
1,582
$62
Napa
$582
$434
8,670
$330
San Francisco
$5,170
$4,386
70,710
$3,759
San Mateo
$863
$553
10,994
$475
Santa Clara
$970
$550
11,283
$531
Solano
$59
$34
834
$25
Sonoma
$414
$311
6,481
$214
Total
$9,126
$7,155
125,193
$5,970
* direct, indirect and induced 34

35. Visitor Destinations Also Reach Beyond the Bay Area
Common Visitor Destinations Outside the Bay Area 35