Presentation on theme: "2013 Economic Impact Study San Francisco International Airport"— Presentation transcript:
1 2013 Economic Impact Study San Francisco International Airport SFO Connects the Bay Area to the WorldMay, 2013Prepared by:Economic Development Research Group, Inc. 155 Federal Street, Suite 600, Boston, MA 02110In Association with:ICF SH&E, Inc. and Polaris Research and Development, Inc.
3 Findings Direct Impacts On Airport – 33,600 jobs, $5.5 billion in business activityOff Airport – 82,800 jobs from $9.1 billion in visitor spendingOff Airport – 36,400 jobs from cargo valued at $17 billion, originating in the Bay Area and shipped from SFOSpin-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) OutputOn-airport33,580$2,092$5,462Aviation dependent exports36,4304,78616,636Visitor Spending82,7903,0359,126Direct Total152,8009,91331,223Suppliers of goods and services56,5454,86711,905Re-spending of income78,9904,85512,656Total Impact288,334$19,635$55,7834
5 How We Got There Verified on-airport direct employment Conducted a 1,500 person visitor intercept survey in 4 languagesCollected and analyzed freight dataApplied the IMPLAN Modeling PackageIdentified aviation and major state and local tax impacts
7 SFO Plays an Important Role in the Bay Area A jobs center and economic engineAn enabler of business and travel tourismEnhancing the regional economy and hospitality industriesA freight gatewaySupporting goods producing industries throughout the Bay AreaA generator of tax revenues for California and the Bay Area7
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 RevenueSales to airlines and service companies directly dependent on SFO.Reported in terms of direct, indirect (local purchases) and induced (labor re-spending) categories.Personal IncomeWages 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 categoriesType of ActivityDescriptionAirport-GeneratedAirport operations and administrationCapital investment (construction)Passenger & freight airlinesServices to airlinesServices to passengersVisitor IndustrySpending by business and personal travelers arriving from international and U.S. locationsAffected sectors: hotels, restaurants, entertainment, retail shops & off-airport ground transportationAviation Dependent ExportsGoods produced in the Bay Area are shipped to long distance customers through SFO, supporting regional economic developmentMeasures of ImpactJobsPersonal IncomeBusiness RevenueAviation, State & County Taxes9
10 Contribution to the Bay Area Economy Impact TypeEmployment (Jobs)Labor Income (Payroll)$ millionsOutput (Business Revenue)Airport-Generated33,580$2,092$5,462Aviation Dependent Exports36,4304,78616,636Visitor Industry82,7903,0359,126Direct Total152,8009,913$31,223Indirect (Suppliers of goods and services)56,5454,86711,905Induced(Re-spending of income)78,9904,85512,656Total Contribution288,334$19,63$55,78310
11 Jobs Center and Economic Engine IIIJobs Center and Economic Engine
12 33,580 People Work at SFO Jobs at SFO include: Airlines – passenger and cargo activitiesAviation Support Services – catering, in-flight entertainment, aircraft handling, fueling and maintenanceFreight Transport – courier, delivery, customs broker and truckingConcessions – restaurants, retail stores and passenger servicesGround Transportation Services – rental car, taxi, limousine service, and bus companiesAir Terminal Operations Staff – security, building maintenance and facility managementPublic Agencies – FAA, other Federal Agencies and Airport Administration (including Police and Fire Departments)Distribution of On-Airport JobsConcessions15%Construction3%Passenger Airlines47%Freight Transport2%Aviation Support Services7%Passenger Ground Trans.17%Admin., Gov’t & Security9%Direct Personal Income Earned On AirportAverage Personal Income Per Job$2.1 BillionGreater than $62,00012
13 Jobs and Business Revenues by County Airport Generated Business Impacts (3) ($ millions)Jobs Across the Bay Area$35$90$162$103Subtotal Direct: 33,600Subtotal Indirect & Induced: 26,400Total: 60,000$804$394$675$6,663$932(1) By place of residence (2) By location of job(3) Includes direct, indirect, and induced impactsNote: Jobs rounded to the nearest 100.13
14 Visitor Industry Impacts IVVisitor Industry Impacts
15 The Airport Supports Tourism 13.1 million totalDomestic Enplaned Passengers3.6 million totalInternational Enplaned Passengers51.6%55.4%Domestic Visitors6.8 million2.0 millionInternational VisitorsTotal Visitors8.7 million1.2 millionCalifornia5.6 millionRest 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 $800 per tripIndividual Spending per Trip* direct, indirect and induced18
19 Total Impacts of Visitor Spending By County* Business Sales ($Millions)Jobs in CountySolano $93San Mateo$1,416San Francisco$9,556Napa$1,016Marin $192Contra Costa $239Sonoma $725Santa Clara$1,521Alameda$1,524Solano 834San Mateo10,994San Francisco70,710Napa8,670Marin 1,582Contra Costa 1,968Sonoma 6,481Santa Clara11,283Alameda12,671*direct, indirect and induced19
20 Impacts of Air Reliant Users (Freight shippers) VImpacts 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 FreightGoods produced in the Bay Area and shipped from SFORepresent sales of Bay Area companies in international and long distance US marketsThe 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; andparts 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 DeficitComparison of SFO and U.S. Air Exports by ValueSource: US Census Bureau Foreign Trade Division, provided by WISERTrade. Dollars are in nominal value.
24 Shipments by Bay Area Firms through SFO Jobs – 103,144Labor Income (payroll) – nearly $9.9 BillionBusiness Revenue – over $29 BillionEconomic ValueTop International ExportsTop Domestic Shipments$8.64B$7.99BChemicals7%Machinery8%Trans. Equip4%Machinery19%Computer & Electronics67%Computer & Electronics75%Elec. Equip. & Appliances2%All Other 2%Textile / Mill Prod.2%All Other12%Leather & Allied Prod.2%24
25 State & Local Tax Impacts VIState & Local Tax Impacts
26 State & Local Tax Revenues Generated by SFO 2012 SFO State & Local Tax Revenues$629M$9M$927M$942M$2.5B$220M35.0%$323M34.9%$1.2B47.2%$6M66.7%$633M67.2%$409M65.0%$603M65.1%$1.32B52.8%$3M33.3%$309M32.8%26
27 State & Local Taxes Generated On-Airport and from Visitor Spending Subtotal Direct: $1.01BSubtotal Indirect & Induced: $544MTotal: $1.56B$ millions* Direct tax revenues from on-airport employees are based on place of residence27
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$68,000 average income per employee* direct, indirect and induced29
30 Aviation Dependent Exports Many Roles of SFO Create an Economic Engine for the Bay Area and its CountiesImpactsAirport GeneratedVisitor SpendingAviation Dependent ExportsTotal ImpactJobsDirect33,58082,79036,430152,800Indirect & Induced26,41742,40466,714135,535Total Jobs59,997125,193103,144288,334Business Revenue ($millions)$5,462$9,126$16,636$31,223$4,397$7,155$13,008$24,561Total Business Revenue$9,859$16,280$29,644$55,783Payroll/Personal Income ($millions)$2,092$3,035$4,786$9,913$1,755$2,934$5,033$9,722Total Payroll/Personal Income$3,847$5,970$9,819$19,635Weighted Average Income/Employee$64,111$47,684$95,194$68,09830
32 Elements of Economic Impacts and Interrelationships 32
33 Classification of Impacts Direct (Initial Economic Activities)Airport-based economic activities (airport terminal-related and tenants)Off-airport businesses serving airport travelersOff-airport businesses dependent on the airport for cargo movementIndirectSuppliers of goods and services to the airport and air-dependent businessInducedPersonal 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 ($16 billion in total output)CountyDirect Visitor Spending ($millions)Indirect & Induced Output($ millions)Jobs*Payroll*(Labor Income in $millions)Alameda$813$71112,671$504Contra Costa$143$961,968$69Marin$112$801,582$62Napa$582$4348,670$330San Francisco$5,170$4,38670,710$3,759San Mateo$863$55310,994$475Santa Clara$970$55011,283$531Solano$59$34834$25Sonoma$414$3116,481$214Total$9,126$7,155125,193$5,970* direct, indirect and induced34
35 Visitor Destinations Also Reach Beyond the Bay Area Common Visitor Destinations Outside the Bay Area35
Your consent to our cookies if you continue to use this website.