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i <br />.._.... I-41Z <br />sance factors like airplane noise or perceived safety <br />risks. <br />Economic impact —jobs, sales, taxes —is often the <br />only defense for an airport being surrounded by houses <br />or coveted by real estate barons. Unfortunately, those <br />impacts usually haven't been calculated or communi- <br />cated to city or county officials and the media. This. <br />comes home to roost when officials hard - pressed to <br />pay for anew watertreatment plant and harassed by <br />anti -noise activists sit downand look at the "high cost" <br />of operating an airport. <br />You and your airport support group must challenge <br />citizens who are concerned about local economic <br />stability and growth, or who care about the tax base <br />that pays for schools, roads and hospitals, to care about <br />their local airport. If you demand the facts, you will <br />discover that deregulation and a changing national <br />economy have not diminished the value of general <br />aviation airports but that they are needed now more <br />than ever. By following the steps outlined in the next <br />section, your group can prove to the community that <br />airports are for people who don't fly. <br />CALCULATING ECONOMIC IMPACT <br />The centerpiece of the Airport Packet is a modular <br />approach to calculating the direct, indirect and induced <br />economic impacts of an airport. <br />"What's Your Airport Worth ?" is a booklet that <br />provides the information and instructions an airport <br />group needs to perform an easy, simplified, cost- <br />benefit analysis that quantifies-the airport's economic <br />contribution _to the region. The. booklet offers a <br />layman's method for accomplishing-a credible study <br />and adds modules of increasingly sophisticated infor- <br />mation that comprise the building blocks for expanding <br />the study. This building -block approach allows the <br />airport group, using available expertise and resources, <br />to decide how detailed an economic study it wishes to <br />perform. . <br />Any airport group can quickly perform a preliminary <br />economic impact study of its public -airport to prove <br />that the facility attracts outside dollars and contributes <br />economic benefits, like jobs, services and taxes. Those <br />numbers are an effective lobbying and public relations <br />tool in defending or promoting the airfield. That kind <br />of information also makes an excellent news item for <br />distribution to the local media. As a demonstration of <br />its simplicity, an example of this basic method conduct- <br />ing a preliminary study follows. <br />The preliminary study can also provide the impetus <br />for an appropriate agency to conduct or fund an <br />in -depth follow -up cost/benefit. analysis. Using this <br />basic method as a starting point sets the stage for a <br />professional, detailed and unassailable audit ofMdi- <br />tional transportation and aviation activity pdyoffs..• <br />Groups can use preliminary results to chmpaign for <br />more intense (and costly) studies by experts using <br />more sophisticated formulas. These£ormulas can then <br />be provided to consultants and universities, which <br />often undertake these more advanced studies at the <br />behest of pilot groups and local government agencies. <br />THE BASIS OF ECONOMIC IMPACT <br />The economic impact of an airport is a measure of <br />the benefits it provides to the community. These <br />benefits include the jobs, wages and expenditures that <br />take place at the airport. They also include the effects <br />of these expenditures in moving from hand to hand <br />through the community, enhancing economic activity <br />far from the airport itself. <br />Economic benefits also include expenditures made <br />by those transient passengers who use the airport but <br />spend their money at other locations. Savings in time <br />and money that the existence of the airport permits <br />represent another economic benefit that resides with <br />the community. Finally, economic benefits also include <br />the intangible effect the airport has on business deci- <br />sions to locate or remain in a specific area. Business <br />location decisions based on airport availability are <br />tangible and harder to identify and quantify. Unfortu- <br />nately, these last benefits and the social values are <br />difficult to measure. <br />Economic impact as a whole comprises direct, <br />indirect and induced impacts. Direct impact is as- <br />sociated with providers of services at the airport. <br />These providers include the airport operator (public <br />or private), fixed -base ope ators, air carriers, freight <br />haulers, concessionaires, government installations, <br />educational institutions, military facilities, flight <br />schools and maintenance operations, among others. <br />The value of direct impact is the sum of all payroll, <br />capital expenditures, operating and maintenance <br />costs, taxes and fees incurred by every provider of <br />services. With some research, a total dollar -value <br />figure can be obtained for almost any facility through <br />the one -page economic survey found at the end of this <br />section. <br />Indirect impact is associated with the users of <br />airport services. These include both corporate and <br />public users, government agencies and aviation and <br />3 -2 <br />