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Module #1
<br />As an example, let's assume that ari airport support
<br />group has paid a visit to all employers and businesses .. _
<br />on a- general.aviation airport (theirs has about - 80;000.
<br />annual local operations). Using the questionnaire, the
<br />group determines that the total for wages, fees,
<br />charges, taxes, operations and maintenance (0 &M)
<br />costs and capital improvements is $5,500,000 (Direct
<br />Impact) for the current year.
<br />To determine Total Economic Impact add the Direct,
<br />Indirect and Induced - Impacts:
<br />Direct {total-fromquestionnaire)-
<br />$5,500,000
<br />._- Indirect ,
<br />non - aviation businesses. The value. of this impact is ,
<br />Module #2 •'' r
<br />the sum of the fees and charges paid; time and cost
<br />The group contacts the FAA Airport District Office
<br />savings; expenses related to food, lodging,. ground .
<br />or Airports Division of the Regional Office and learns
<br />transportation, and similar outlays. -
<br />that the same airport has 50000 transient opera ;g
<br />By quickly calculating the impact of itinerant oper-
<br />annually. Calculate the Indirect Economic Impact
<br />ations and adding that figure to the direct economic
<br />this way: _ =
<br />:-impact, a total economic impact is developed.
<br />Induced impact is often called "the multiplier effect."
<br />Divide by 2 to determine annual t?'$nsient arrivals.
<br />It gets this name because a dollar, once spent, does
<br />(50,000 _ 2 = 25,000)
<br />not disappear but continues to move through the local
<br />economy until it.is incrementally exported from the
<br />Multiply by the average number of occupants per
<br />community. Each new dollar spent effectively "multip-
<br />aircraft. Assume 2.5: (FAA estimates 2.5 occupants
<br />lies" its own economic effect. There have been a
<br />aboard each general aviation flight.
<br />multitude of economic studies done to definitively
<br />(25,000 x 2.5 = 62,500)
<br />establish this multiplier for various geographic areas
<br />Multiply that figure by the average dollars spent in
<br />and segments of the economy. These studies indicate
<br />"the local economy by transient passengers. Local
<br />that multipliers ranging from two to seven are approp-
<br />Chambers of Commerce or tourism officials can provide
<br />riate for airport economic estimates. Since induced
<br />the average dollars spent by each visitor. Assume $100.
<br />impact is the portion of an impact analysis most subject
<br />(62,500 x $100 = $6,250,000) = Total Indirect Impact
<br />to controversy, it is a good idea to utilize a very
<br />conservative multiplier figure. We recommend a
<br />Next to determine Induced Impact, multiply the sum
<br />multiplier of three in general but recommend that you
<br />of Direct and Indirect Impacts by the multiplier effect
<br />obtaip a figure that is applicable for your airport area
<br />to determine Total Impact. Assume a multiplier of 3.
<br />by contacting the Chamber of Commerce, economic
<br />Induced impact = 3 x (direct + indirect impact)
<br />development authority or appropriate state agency.
<br />_. 3 x ($5,500,000 + $6,250,000)
<br />= 3 x $11,750,000 = $35,250.000
<br />Module #1
<br />As an example, let's assume that ari airport support
<br />group has paid a visit to all employers and businesses .. _
<br />on a- general.aviation airport (theirs has about - 80;000.
<br />annual local operations). Using the questionnaire, the
<br />group determines that the total for wages, fees,
<br />charges, taxes, operations and maintenance (0 &M)
<br />costs and capital improvements is $5,500,000 (Direct
<br />Impact) for the current year.
<br />To determine Total Economic Impact add the Direct,
<br />Indirect and Induced - Impacts:
<br />Direct {total-fromquestionnaire)-
<br />$5,500,000
<br />._- Indirect ,
<br />6,250,000
<br />Induced
<br />35,250,000
<br />TOTAL
<br />$47,000,000
<br />3 -3
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