Oregon Aviation System PlanState of Oregon Aeronautics Division
3040 25th STREET SE, SALEM, OREGON 97310-0100
NEIL GMDS04A0T PHONE (503) 378-4880 FAX PHONE (503) 373-1688
August 1990
Oregon Aviation System Plan
Airport Economic Benefit
Studv Users Guide
The enclosed document is a product of the Oregon Aviation System Plan, accomplishes
in cooperation vith Vie_Federal Aviation Administration through a grant from the airpor
and airway improvement act of 1982, as amended.
This work element was undertaken to -provide a working document for airport owners it
developing an airport economic benefit study for their airport"
The time and effort expended in understanding and de-.vloping the airport's economic
benefit to the community should provide a basis for gaining broader community suppor,
for the airport and its development programs. We encourage you to use th;s guide anc
do an economic impact assessment Please let us know if we can assist you, or answer
any questions.
-n--e Oreuon Sta,e Aeronautics Division would like to recognize our consultant, Marjorie
Hanley & Associates, for the level of effort expended in developing a difficult subject into
a straighdotward, useable document
We encourage airport owners and others to utilize this document for the benefit of aviation
in your communities.
Sincerely,
PAUL MEYERHOFF II
Administrator
PRIg
M ( NO 0 Wll�
`t+c
PREPARED
+� P # !1'E 1
FEDERAL #ADMINISTRATION
AND
The preparation of this document was financed in part through
grant from the Department of Transportation, Federal Aviatio
Administration, under provisions of the Airport and Airwa
Improvement Act of 1M as amended.
This document includes products for Federal Grant 3-41-OOOp_S3
Element 17.
page
Preface ... ............................................. ......................................... ..,, �.............................................. ..,....
3
Introduction ...............................................................................................................................
7
MethodokW ..........................................................................................................................�..
I 1
Definitions..........................................................................m...............................................:....
11
Choosingthe Study Area....................................................................................................
12
DataCollection........................................................................................................................
12
SurveyAnalysis ................................................................................................................
1
Publishingthe Results..........................................................................................................
23
Keepingthe Study Up -To -Date ..................................... ..b......................... .................... ....
23
Instructions For Calculation of Airport BenefitS ............................................................
27
DirectBenefits.....................................................................................................................
27
IndirectBenefits ...................................................................-..............................................
29
InducedBenefits ..................................................................._...............................................
40
TotalBenefits ........................................................................................................................
40
Economic BenefitRedmond Municipal Airport .............................................
47
o 'c Benefit Study Roses � g Municipal Airport ..............................................
67
Appendix A Selected BhoA Worlaheet......................................................................
83
� "�'
Survey NO. Page
I Survey of Airport Businesses and Organizations ............ ..-............................................ 15
IIGeneral Business Survey ...................................................... .._........................................... 17
BI Transient General Aviation Survey ..................................... .._.......................................... 20
IV Airline Passenger Survey ............................................................. 22
........................................
LIST OF TABLES
Table No. Page
1 Categories of Benefit and the Surveys From Which They Are Derived ................... 14
2 Direct Benefits From Airport Businesses and Organizations ..................................... 28
3 Transient General Aviation Survey Tally....................................................................... 30
4 Transient GA Visitor Expenditure Worksheet Sample ................................................ 31
5 Income and Employment per $1,000,000 of Direct Sales, Oregon, 1987 ................. 32
6 Non -Resident Airline Passenger Survey Tally................................................................ 34
7 Airline Visitor Expenditure Worksheet........................................................................... 34
8 Sample Employment Benefit Worksheet, Surveyed Firms .......................................... 37
9 Worksheet For Calculating Study Area Total Indirect Job Benefits ......................... 37
10 Income and Sales per Direct Employee, Oregon, 1987............................................... 38
11 Sample Worksheet For Study Area Indirect Job, Sales and Income Benefits ........ 39
12 Sample Summary Sheet For Total Indirect Benefits .................................................... 39
13 Multipliers Used To Estimate Total Benefits, Oregon, 1987....................................... 40
14 Total Direct and Related Induced Benefits................................................................... 41
15 Total Indirect and Related Induced Benefits................................................................. 42
16 Indirect and Related Induced Benefits From Visitors Arriving By Air .................... 43
17 Total Economic Benefit Summary .................................................................................... 44
:u�:: ''� :i'
PREFACE
The Oregon Aeronautics Division places a high priority on its Aviation Planning programs. Several
of these planning programs are consolidated under one overall funding system. The contents of this
and other reports comprise the Continuous Aviation System Planning Program.
NEED FOR CONTINUOUS AVIATION SYSTEM PLANNING
Continued information on a statewide system basis is even more important today than it has been
in the past. Some areas of concern given special attention are noted below:
• The present climate of severe constraints on public funds and the increased cost of providing
aviation facilities and related services.
• The continuing changes occurring in air carrier and regional airline service in the State.
• The importance of air transportation services to the states economic development.
• The need to guard against duplication of aeronautical facilities.
The need to protect the investment represented by the existing airport system by effective
use of local, State and Federal funds.
• The need for better information about the level and type of aircraft activity at Oregon
airports.
• The need to coordinate with local units of government to assure compatible land use zoning
around airports and heliports.
The need to identify the economic benefits provided by aviation activity in the state.
PLANNING PROGRAM
The work program generally conformed to the phases and elements of work summarized in FAA
Advisory Circular 15015050-5 "The Continuous Aviation System Planning Process" and FAA Advisory
Circular 15015050-6 "Airport -Land Use Compatibility Planning'.
3
PROGRAM PHASES
The phases within which the elements of the work program were developed are
following
Phase I -- Administration of Study
This phase included the work program, study design, and management of the stuc
Phase II " Inventory and Data Collection
This phase included collection of information about the aviation system, airport op
and obstruction identification surveys.
Phase III -- Identification of Aviation System ReQuirements
Forecasts of aviation activity, the airport requirements lists, and unit cost updates of
were accomplished during this phase.
Phase IV -- Development and Evaluation of Oregon's Aviation System Plan.
This phase reevaluated the policy plan and the recommended facility plan as well
the financial resources available to implement the recommendations of the System
Phase V -- Implementation Program
Ongoing activities to implement the plan recommendations by monitoring airpor
development was the main purpose of this phase.
Phase VI -- Information and Public Involvement
This phase provided for the coordination of planning meetings, public informati(
supporting information between state system plan efforts, regional system plan effc
master plan studies. Publication of plan documents was also accomplished.
Phase VII -- Special Studies
This phase developed such elements as: an airport pavement evaluation progra
statewide economic benefit studies, a pilot and aircraft owner general aviation survey.
management handbook.
4
INTRODUCTION
The Oregon Aeronautics Division, as part of the Oregon Aviation System Plan, has developed an
Airport Economic Benefit User's Guide for airport managers and local officials. The Guide outlines
a method to identify and promote an understanding of the economic contribution of local airports
in the state.
The intent is to describe the process of conducting an airporteconomic benefit stud
y so local airport
managers or other interested persons can produce an acceptable study without the r length3
gr'costly analysis. There has been an attempt to keep a balance between the need to..provxie a.
relatively simple method and at the same time produce results that will be basedon focal"
information, not national "rules of thumb". If an economic benefit study is to be of any tq, it must,
result in estimates of employment, income and sales generated by the airport that will bey evable
sand understood by the general public. This requires some time and effort to be put into the process.
To understand the process and the steps outlined in this User's Guide, most people will need to read
the instructions carefully and work through the examples given in Tables 1 through 17. For your
convenience, additional blank copies of selected tables are included in Appendix A. These are
intended for use by those who would like to reproduce them and work through the examples for
clarity as they read through the User's Guide.
This User's Guide was tested at two Oregon airports, Redmond Municipal (Roberts Field) and the
Roseburg Municipal Airport. Roseburg Municipal Airport was chosen to show the economic benefits
of a general aviation airport. Roberts Field in Redmond was used as an example of the economic
benefits provided by an airport with airline service as well as general aviation activity. These airport
economic benefit studies are provided as examples in the last two sections of the User's Guide.
Development of the User's Guide would not have been possible without the assistance and
cooperation of the managers and airport businesses at these airports, as well as the responsiveness
of businesses and individuals in the communities and counties within the study areas.
THE NEED FOR AIRPORT ECONOMIC BENEFIT STUDIES
Airports are key transportation links for many communities in the state. They serve the needs of
industry, agriculture and general business, and, in many cases, provide the means of access for
tourists and recreational visitors. The typical airport is a much less capital intensive portion of the
transportation netvEKirk '0 highway system. Yet the airport often plays a very substantial role
in the commeiai !bo of accessibility it provides enables a remote community to be
an active p Ohty In a way that would otherwise be much more difficult.
t ror the airport manager/operator to be able to provide
no�mic contribution of the local airport. Nationwide, the
aft tt closures, andFinancial the number of new airports becoming
At the local level, particularly at airports with only general aviation service, the general popula
may not have had occasion to use the facility and may not be aware of what it offers. Elected I
officials may be in office for some time before an airport issue crosses their desk, and the air
is not always a high priority. Despite the services that an airport provides, it is not always perce
as an important part of the community infrastructure. It may be perceived as simply a personal
facility rather than as a business asset. But most airports provide services affecting all citizens.
example:
• Emergency medical evacuation from small communities to those with larger, m
specialized hospitals.
• Shipment of blood, organs, medications and other hospital items, such as lab specimen
® Speedy transfer of canceled checks, reducing "float" and lowering Financial cost
businesses in the community.
• Shipment of inventory allowing "Just -In -Time" (JM inventory management and reduci
business costs and delays.
• Air photo and aerial survey work.
• Shipment of newspapers, flowers, film and other time -sensitive items.
s Provision of alternative speedy transportation for business and personal travel.
• Range and forest management and agricultural spraying.
• Access to overnight small package delivery services.
When it comes to financing the local share (usually 10%) of a federally funded capital program
an airport, it may be difficult to justify the local expenditure because the airport is so poor
understood. Some airports do not require local taxpayer support; but, in places and at times wher
operating support is needed, a poor understanding of the role of the airport by the general publ.
and many local decision makers may hinder the approval of such funds.
The same issue arises when policy -making support is needed. For example, when restrictions on to
structures or on noise -sensitive developments are needed in order to protect the airport, communit
support is not always available.
If local officials and citizens alike are to fully understand the importance of the airport to th,
community, there must be an attempt to inform them of the important economic contribution.
provided by the airport. In the past few years, a growing number of airport economic studies havt
been produced. These studies vary widely in the methodologies used. Some tend to exaggerate the
role of the airport; others present so many statistics that the value or usability at the local level i:
questionable. Few if any methodologies have been developed that are (a) soundly based on loca
data, and (b) simple enough that the airport manager and other local people can find the time t(
conduct the study, publicize it, and keep it current. This User's Guide attempts to provide such
methodology.
H:
METHODOLOGY
DERNMONS
There are three types of economic benefits associated with airports - direct, indirect and induced.
Not all studies address all three categories, nor are they always defined exactly the same way. For
this User's Guide the following categories will be used as defined below.
DIRECT BENEFITS
The direct,benefits of an airport are the jobs and sales generated by businesses and organizations
located at the airport itself and dependent upon access to the airport facilities. This includes such
establishments as fixed base operators, airport management offices, airline facilities, FAA airport
facilities, car rental agencies and airport concessions. This is the most straightforward measure of
economic benefit and the easiest to obtain by surveying businesses on the field.
INDIRECT (USER) BENEFITS
Indirect or user benefits are jobs and sales generated in non -airport businesses within the community
due to the use of the airport. This includes all organizations in a community that are dependent on
the airport for a portion or all of their economic activity. Examples include motel, restaurant and
other service industries dependent on non-resident air travelers for some portion of their trade. It
also includes any sector of the economy that uses air services to transport goods, supplies, personnel,
or other resources in order to enhance business opportunities. This type of benefit provided by an
airport is the most difficult to quantify and as a result it is often ignored. Surveys are needed to
gather necessary information to establish a basis for assigning these benefits.
INDUCED BENEFITS
[rd!iginal
dollars generated in a community are subject to recycling --the income earned by the local charter
Hot is spent, for example, on housing, food, taxes and so on. A portion may be saved, and a portion
y be spent outside the community in question. Owing to these two "leakages", the amount of the
dollar that is recycled shrinks with each round of spending, until it is infinitesimal. But the
ginal dollar brought into the community stimulates activities which ultimately create a final impact
ue larger than the original dollar value. This is called the multiplier effect. The size of the
multiplier" value depends on the type of industry the dollar was generated in, and the nature of the
mmunity economy. The sales multiplier, as this recycled spending dollar is called, is paralleled by
knemployment multiplier with similar effects. One job resulting from aviation will result in other
in the community.
ncc OCegon User's Guide makes use of an economic .model .to estimate relationships between
ton and the rest of the economy. -This is an Inpt2ti0utput (I/O) model developed by the U.S.`
'Orcxt ice. The model, called IMPLAN, can provide information for each state and county in
be Country
1. Jobs and income per $1,000,000 of sales by industry - this is used to make estimates of in
and sales from jobs, or jobs and income from sales, in cases where survey data is incompl(
2. Sales, income and employment multipliers, by industry - used to calculate the final inc
(multiplier) impact of the direct and indirect economic benefits attributable to the airpor
WIFOINIVI xwAftt-]U211 Ail
It is important to carefully define the area to be studied because many data items you will n
collect relate to a specific geographic area. Usually the study area should correspond rou
the airport financial jurisdiction. Ile area can be a county or group of counties. Dividing co
3
is not recommended because some data that will be needed are not available at less than
levels. An ocample is employment data by major industrial sector, which is usually readily av
by county, but not for smaller geographic segments.
vast
The minimum data required is an estimate of annual aircraft operations at the airport during
latest year. General aviation (GA) operations must be broken out separately from airline actin
General aviation activity will also need to be separated into local and itinerant operations. .
operation is a landing or a take -off of an aircraft. Local operations include "touch-and-go" and ot]
training operations in which aircraft do not leave the vicinity of the airport` All other operations ,
itinerant, whether performed by aircraft based at the field or by transient aircraft. In additi(
background information about the facilities and types of aircraft traffic at the airport would be use
to provide interest to the publication.
If the airport has scheduled airline service, the number of passengers enplaned during the last yc
by each airline serving the field must be determined. Enplaned passengers are also referred to
passenger boardings. Only passenger boardings (enplanements) should be counted.
The annual aircraft operations information, as well as airline passenger enpl.anement data, can
obtained either from airport management or from:
Oregon Aeronautics Division
3040 25th St. S.F-
Salem OR 97310
Telephone 1-800452-9105
IN
COUNTY DATA
floe ooe essential piece of information to obtain in this category is annual employment data for the
Atett available year by Standard Industrial Classification (SIC). This is available for each county in
jW State from the Research and Statistics section of the Oregon Employment Division. Total income
ar saks in the county would also be useful to compare aviation economic benefits to other economic
amity is the county, however, this should be regarded as extra material.
- U.S. FOREST SERVICE IMPLAN DATA
.n ` -
7be major reports available from this Input/Output study have been discussed previously. These
are tables a tables showing jobs and income per $1,000,000 of sales by industry and the table showing
=pryment, income and sales multipliers by industry. These tables for Oregon and for Deschutes
and Douglas Counties for 1987 will be provided later in this User's Guide. If you would like
additional county information, or would like to obtain future updates to the data, write to:
Oregon Department of Transportation
Strategic Planning Unit
405 Transportation Building
Salem OR 97310
SURVEY INFORMATION
rhd primary sources of information for airport benefit studies are a series of surveys to be
)erformed locally. Sample surveys, shown on pages 15 to 22, are provided for your guidance in
ieveloping surveys for your airport. All airports will need three surveys:
I -- Survey of `Airport Businesses and Organizations
II - General Business Survey
III -- Transient General Aviation Survey
Ur carrier airports will also require:
IV — Survey of Non -Resident Airline Passengers
urveys III and IV should be conducted for at least one week during an average activity period.
loliday or peak seasons should be avoided as well as the low activity periods often experienced
uring the winter season. If time permits, surveys done for one week during each quarter of a year
'ould be preferred. Generally, though, this is not possible due to time or budget constraints.
possible a computer spreadsheet program, such as Lotus 1-2-3 or SuperCalc, should be used to
3mpile the data from the survey. This is especially useful for entering all survey data and calculating
ie results.
13
Table 1 shows the use of each of these surveys. A discussion of each survey and samples
use follow.
TABLE I
CatGgorlw of Banat wW
The to From Which They Are Derkvd
Airport Businesses and Organizations
Non - Resident Airline Passengers
Serve y I _, the Survey of Airport Businesses and Organizations, is used to obtain needed datE
airport businesses and organizations. The sample survey on page 15 is for an air carrier airpc
adapt it for use at a general aviation airport, delete check list items in question 2 that do not
The person conducting the study should visit all airport related businesses and organizations lc
at the airport to explain the study and its purposes as well as to fill out the survey during the
If the local personnel of any firms cannot provide the information, the parent company shoo
contacted. Some business activities at the airport may not be airport related activities at all, bu
be located there for other reasons. Do not include these organizations, although it may be necc
to visit them to make absolutely sure that no aspect of their activity is directly related to the air
As airport businesses are often in competition with each other, it is essential to stress confident
(not to reveal data for any business sector unless there are at least 4 firms represented). The ai
manager should usually not be involved with this survey of airport businesses. Some businesses
be reluctant to divulge revenue information to the manager because of lease rate negotiatio,
other conflicting interests. Whoever is chosen to do the survey must make clear to the tenants
information from individual firms will not be made available to the airport management nor v
be made public.
During the survey visits the survey manager may also discover ideas and suggestions as to he
more supportive atmosphere in the community can be created for the airport. If it is decided t
the airport economic benefit study with a working committee partially made up of airport bus;
representatives, it may be desirable to hold the first committee meeting before making survey
to the airport tenants. The same might be true if the economic benefit study is part of an Air
Master Plan effort.
14
SURVEY V
SURVEY OF AIRPORT BUSINESSES AND ORGANIZATIONS
AIRPORT
JThe (Sponsoring A�encvl is conducting a study of the value of aviation to the
community economy. To do this we need information which only you can provide. Please take a few
minutes to complete this survey. All information will be kept confidential. Please provide the re-
quested information using data for Calendar Year 19_, if possible. If this is not possible, please
provide data for the most recent 12 month period available and indicate the time frame to which the
data applies: from to Thank you for your cooperation.
1. Company
Address
Respondent
Telephone
P_ Please briefly describe the nature of your business (check those which apply):
FBO - full service
FBO - specialty (specify)
FAA Installation (specify)
f;
Other (specify)
Airline - Cargo/Freight
Airline - Passenger
Manager's Office
Car Rental
Other Concession
r: What were the gross annual sales at this location in 19 ? $
(If organization is governmental, show gross operating budget.)
What percent of these sales were to:
Aviation and air travelers % Other - non -aviation
• How many full time equivalent employees worked for the firm in this location in 19_?
r -
What was the total 19 payroll of your employees at this location? S
P. ; If the airport closed to all flying activity what percent reduction in sales or employment
.`..would you expect? Sales % Employment %
,]CDmments
15
&D= H - The General is-.usiness Survey is used to obtain an estimate of total indirect bei
attributable to the airporL The example of this survey on pages 17 and 18 is for an air a
u tion 2. c. to read "What Oregon air c—a
Agriculture, Forestry and Fishirr,!4
Mining
Construction
Manufacturing
Wholesale Trade
Retail Trade
Finance, Insurance and Real Estate
Services
Government
The survey size will depend on the total number of firms in the airport study area. For exam
a 10 percent sample is desired, calculate the total number of firms and take 10 percent of
number to determine how many surveys to send. In general, a 10% sample will be adequate, P1
a larger sample is desired and the cost would not be too great, use a larger percentage.
It is best to stratify the sample by the major business categories. Send surveys to all large fir
employing over 500, for example. The remainder of the sample should be drawn from the ma ' categories based on the percent of total employment in the airport study area represented by tj
category. For example, if 30 percent of the employment in the area is in manufacturing, 301% of i
surveys should be sent to manufacturing firms.
Only firms with five or more employees should be included in this survey. The reason for excJudi
smaller firms is that they are more likely than the others to have gone out of business since t
mailing list information was gathered. Including them in your survey will increase the number
surveys returned by the Postal Service as not deliverable.
The best source for the mailing lists, if requested by an Oregon public agency, is:
Oregon Employment Division
Research and Statistics Section
Salem OR 97310.
Since state law requires that Employment Division lists be kept confidential, the Division must revi(
the survey and must do the labeling and mailing. The Division will charge for this service. Son
counties may also have lists of all the businesses in their jurisdiction and may be willing to provi,
a similar service.
1 A
SURVEY 11
Sponsoring Agency Letterhead
GENERAL BUSINESS SURVEY
he Sponsoring Agency is conducting a study of the value of the Airport
the economy of County(ies). To do this we need information from a statistical
,in of businesses in this area. Your firm has been selected as part of this sample. It is important
gat we get as many responses as possible so the results will be valid. Please take a few minutes to
)mplete the questions_ All information you provide will be kept confidential and there is no way
identify individual firms. Please provide the requested information using data. for Calendar Year
>� if possible. If this is not possible, please provide data for the most recent 12 month period and
dicate the time frame to which the data applies: from to Thank
lu for your cooperation.
.EASE RESPOND BY
BUSINESS ACTIVITY
Please check the category which best describes your business in the County area and give a brief
description of the product or service provided.
General Category
I. Agriculture, Forestry and Fishing
2. Mining
3. Construction
4. Manufacturing
5• _ Transportation & Public Utilities
,.q:,
6• _ Wholesale Trade
��= 6 Retail Trade
Finance, Insurance and Real Estate
9. Services
Government
1• , Other (Please Specify)
Product/Service Provided
(OVER)
17
II. USE OF AIR TRANSPORTATION
2. Do your employees use commercial airline service in conducting business?
NO YES _
aFApproximatelyhow
many of your o
em l
during 19 for a business trip? P Y i?sedmW p COmairline service at least once
F'�
b- Approximately how much did your company s.' -''"'�
for your employees, S . P,,,j, u 19 foc commercial airline service
c- What percent of these tri used .._ .. .
ps
i•`A .., �... .
3. Does your company use commercial air car o
Airport? —NO —YES g /pack - e� e�:tm►1 tn:.
•.� � .K from the
Ad, wrn,�
4. Does an ;
NO � YESur com P Y own any airplanes or helicopters based `� :..:
of Airport?
IF YES:
s
a. How many and what type of aircraft? --
b. How many total hours were these aircraft flown in 19?� - --
S. Does your company charter aircraft at
IF YES:.`-"
How much did your company spend in 19£
_
$ � h`
� �'"� Airport?
t l
- . If passible, please estimate the percentage of your bus
availability ` ,'lily of the Airport. e lends on the
9�
ECONOMIC IMPACT INFORMATION
r 7* f 'What is/are the zip code(s) of the location(s) of your com
Pang tyn1;3=:
} County
- Ho many full time equivalent employees work for your companyMinf r 19 ?
County
In
9. 'lf
What was the total 1986 payroll of your employees located in '
L1�W_J in 17 %
for were your firms gross sales in County in 19_?
_';` ganization is governmental, show gross operating budget_) - ` �k---177
the
11. IE ._.
x '"reduction in a Airport were no longer available to your company ibou t mployment and sales would you expect in the t' +`` (bpr�nt
.: iPlOyment
=: ts�� --- —°I� Sales qo :"a ..�n :.:. _ t3► aces?.
THANK U FOR YOUR PARTICIPATION.
18
Transient General Aviation (GA). This survey, shown on page 20, is intended to gather
rination about the amount of money spent in the airport impact area by general aviation visitors
outside the study area. Local retidents of the impact area should not be given the sutwy. This
sy can be conducted for a one to two week period on the airport ramp while fueling or other
are being provided. If possible, the survey should be filled out at that time. However,
n should be made to have the transient GA user complete the questionnaire later and mail
as an alternative if it is not possible to complete on -site.
.t- ,-
"survey example on page 20 can be used as a guideline to develop a survey specific to your
For use on the ramp, it is more convenient to type the survey with smaller print size and/or
uoe it so it will fit on 41/4" by 11" card stock. This enables a person to fill the survey out more
easily while standing.
19
SURVEYN.*�
TRANSIENT GENERAL AVIATION WRVE*A�44��V-A-,YAFPORT
The (-SV2 e AF-encv1 is seeking informasoif ibifuf tr� -general aviation activity at
AirporL This will aid us in estimating the ewn0Mk;446j�6f"iWj_*rt to the community. To
do this we need information which only you can provide. pkaW tO Complete this survey.
All information you provide will. be kept confidential and o* smdftW va be published. ONLY
- yq•ice• F
0 1 W- S T R. W -- -0,
I H'AW 'if IF-.64
and phone number this would help us in the event th answers are unclear. Thank
at some of yo
J "t.
you for your participation.
1. (Optional)
Name of Respondent
.&ddrem
Phone Number
Type of business (if applicable)
IF YOU ARE A RESIDENT OF COUNTY(IES) DO NOT COMPLEM THIS SURVEY. NON-
RESIDENTS PLEASE CONTINUE
2- Please indicate the principal reason for this visit (check only
passing throughstopped for fuel, etc. d. _ ag. application
b. business travel to this community� e. instruction
C, air taxi flight L personal travel
other (please specify)
3. What is the ultimate airport destination of this trip?
4. How many passengers are on this flight, including the pilot?
5. How long do you plan to stay here (or have you been here, if leaving)?
a. leave the same day. c. _ 2 overnights
b. 1 overnight d. 3 + overnights (specify)
6. Approximately how much do you and your passengers expect to spend (or have you spent, if leaving)
in county(ies) during this visit.
a. Hotel/Motel Lodging S d. Entertainment S
b. Food and Beverages S e. Rental Car $
c. Retail Stores S f. Other (Specify) S
7. Where do you and your passenger(s) reside? (Please indicate the zip code number for each person
in your party).
8. Comments
OHI
Lme anaMPT-Fau i-
year would be ideal. Outgoing, not incoming, passengers should be surveyed because non-resident
travelers leaving the community will be more able to give precise figures concerning spending in the
study area and length of stay.
Usually, the airlines do not have the staff available to conduct this survey for y o-u. Even if the station
manager agrees to have staff hand out the survey cards, the consistency and completeness of
--r'#VW?ge t.S_-PJ!S--t+Ae 2iralz 7'0'-Srk_TzS!
during the same time period. Even without the aircarriers active involvement, however, they must
�'e 103Ful
be discussed.
Best results will be obtained if the airport manager can assign staff to administer the survey or
ma�; ,e can be hired tem%oraih p to conduct it, SuriLe,_ 0 Lcersonnel shoul
gate areas to answer questions and collect completed surveys. Clearly labeled boxes for completed
surveys should also be located near the boarding area.
If the survey is being conducted at a busier aircarrier airpoM a medium or large hub, attempting to
hand out a survey to every boarding passenger would be impossible. In these cases, a sample size
should be calculated, being careful to provide the correct relative mix by days of the week and of
regional/commuter, major, national and foreign flag passengers. For example, if the medium or large
hub airport being surveyed is expected to average 20,000 boarding passengers a week during the
survey period, you may wish to survey only 20% (4,000) of the boarding passengers. If an average
of 60% (12,000) of the total (20,000) passengers board regional/commuter airlines your sample
should reflect this stratification. Of the total 4,000 sample surveys handed out� 60% (2,400) should
be given to regional/commuter passengers.
Tle survey example shown on page 22 can be used as a guideline for a survey specific to your
airport. To make it easier for passengers to fill out while standing in the boarding area, the survey
should be typed or reduced to fit on 4 1/4" by 11" card stock.
21
SURVEY N
Reduce and prirtc on 4114 Wi b�►1
(&RPORTI SURVEY —
The i(SpQnsodpg AgenW _ is seeking information a
This will aid us in estimating the economic value of the airport
the County(ies) economy. s
All information you provide will be confidential. Please place yol
as you board your flight or hand it to the survey personnel in i
BE COMPLETED FOR FAMILIES OR OTHER GROUPS TRAY
EXPENDITURES WILL BE SHOWN IN QUESTION 7.
Thank you for your cooperation.
1. Please provide the following information for this flight.
a. Airline
b. Flight Number
c. Today's Date
2. What is your principal reason for this trip? Check main reason only,:
a. Business
b. Vacation
C. Visit Friends or Relatives
d. Attend School
e. Military, Under Orders
f. Other (Please Specify)
3. What is the ultimate airport destination of this trip?
(Airport/City)
4. tip code of your residence.
it Airport.
and the value of aviation to
e in the box provided
SURVEY SHOULD
WHOM COMBINED
IF YOUR PERMANENT RESIDENCE IS IN COUNTY(IE5), PLEASE INDICATE
NUMBER OF PERSONS, INCLUDING YOURSELF, TRAVELING TOGETHER ON THIS FLIGHT AND
STOP HERE.
NON-RESIIDENTS PLEASE CONTINUE
5. How many days away from home did you spend in the County(ies) area
during this trip.
6. How many persons including yourself are traveling together for whom combined expenditures will be
shown in your answer to question 7 below?
7. How much did you spend in the County(ies) areas while away from home during this trip?
If traveling as a family or other group for which expenditures were combined, piease record all
expenditures made by the group
a. Hotel/Motel Lodging S d. Entertainment $
b. Food and Beverages S e. Rental Car *- S
c. Retail Stores S f. Other (Specify) S
8' COn►ments
PUBLISHING THE RESULTS
`'a a provides detailed information on the method, results and conclusions of the
:The report will contain g individual
all results, but will not include the worksheets affecting
.study:
uimpanics. If desired, data gathered from the survey for background information can be presented
add interest. For example, a section on the various types of businesses using the airport or a
ion of business use of the airport that is unusual or of major interest can be added.
a
Afi` Fxecutive Summary presents the key findings with a few tables, a brief discussion, and some
F'background color' stories. This can provide the basis fora hure about the airport's economic
:`role, which can take the Executive Summary material and add selected information about key users
aid the airport organizational structure. It may be multicolored and may include photos, depending
on budget.
News Releases about the study may be based on the executive summary or brochure. All TV
stations, radio stations and newspapers in the study area should be contacted. A press conference
with a tour or open house of the airport could also be a highly effective form of communicating the
results.
presentations to business and civic groups may be based on a slide/tape package developed from the
Executive Summary, with the presenter being someone able to respond to questions and provide
more detail. A good slide show can reach a wide audience and several people can be trained to
present it.
Videotape shows, though more expensive, are even easier to use. Successful video shows need action
and should be filmed in the field. Video shows covering mostly graphs, charts and tables do not
sustain interest in the same way.
KEEPING THE STUDY UP-TO-DATE
As stated earlier, it may be beneficial to conduct a General Aviation transient survey each quarter
to find out who is using the airport, why and what they are spending. It may be possible to use the
initial airport economic benefit study to identify key users and then, over a period of time, arrange
in-depth meetings with key individuals in these companies. An update of the study can then highlight
or profile why the airport is important to major companies in the area. Annual or quarterly air -
passenger surveys can also be conducted. A further aspect of periodic updating is that it keeps some
positive airport issues in the public eye. If the initial study is set up using a computer spreadsheet
program to organize the tables, it will be easy to enter new data from survey updates.
23
As shown in Table 1, page 14, the results of several surveys are combine( nd
indirect benefits. The following discussion will work through each survey to
show how each is used to arrive at an estimate of economic benefiL San ive
been included in the methodology discussion on pages 15 to 22. The amc )le
tables in this section are for illustrative purposes and do not refer to any 5 'J ide
data from the Input/Output model, shown in Tables 5 and 10 on pag ual
numbers and can be used in your survey if 1987 data is acceptable. If in )ut
data are needed, the source is given on page 13.
Turn,to the study examples for Redmond Municipal Airpom beginning onpa'g�p(!''
47, and for
Roseburg Municipal, beginning on page 67, to see how actual data are used. Alt " iu responses to_
all survey questions should be tabulated, preferably with a computer spreadsheet program, only those
needed for calculation of benefits will be shown in sample workshects in this discussion.
All direct economic benefit data come from Survey I (page I5), the Survey of Airport Businesses
and Organizations. Table 2 shows a sample worksheet for tallying the direct impact. It will be easier
for you to follow the discussion if you refer to Survey I (page IS) and Table 2 (page 28).
uestion 1 asks for the company name, respondent name and phone number. This is to identify who
to call if survey responses are unclear.
Question 2 is used to check that all surveyed organizations are related to the airport and derive
income/employment at least in part from airport related activities. The types of organizations should
be grouped if there is more than one in any category. For instance, data will be summed for all FBO
organizations. The reason for this will become clear when the induced benefits are derived, using
Table 10, which shows different multipliers by type of business.
Question 3 asks for gross sales for the year. This figure should be adjusted for each survey by the
answer to Question 4 to arrive at the total gross sales related to aviation. In most cases, the answer
to Quotion 4, which asks the percentage of sales attributed to aviation, will be 100% aviation if the
surveys were given to the right organizations. When the value is less than 100%, multiply the total
gross sales figure (Question 3) by the percent shown in Question 4 as aviation related to obtain gross
sales attributed to aviation. An example of a value less than 100% is shown in Table 2, page 28, for
Car Rental #2, lines 2 and 3.
Question 5 asks the average number of full time equivalent employees for the year. This is an
essential part of the study. Use the percentage attributed to aviation in Question 4 to arrive at avia-
tion related employment. Sometimes employment may be the only factor that can be obtained
because a company refuses to give gross sales or payroll figures. If this occurs, Table 10 on page 38
gives the data needed to convert employment to estimated sales and income.
27
Questions{ asks for the total payroll for the year. This figure should also be adjusted by the
percentage given in Question 4 to obtain payroll attributed to aviation.
Dxne8igml asks what percent reduction in sales and employment would occur if the airport closed.
This is a check for consistency with Question 4. If the business is 80% related to airport activity, then
about that percentage decline in sales and employment should occur if the airport closed.
TABLE 2
Direct Beneitts From Airport Buslnesses and Organ
Sample Worksheet
......:...
! ! ! ! !
Airline' 11
0-
MM!! !!!
NA = not applicable
' sales not attributed to the airport unless it is airline head
office.
2 sales = gross operating budget.
Note: This is a work table. only grand totals may be published
unless there are at least 4 businesses of each type, or
unless permission is giN-en to release individual data.
'I\
5urvey 11 the General Business survey, shown on page 17, is sent to a sample of all non -aviation
businesses in the airport study area. The businesses surveyed are a representative sample from all
the business sectors listed on page 16, including hotels, motels, restaurants and other firms providing
services to visitors. The analysis of Survey 11, therefore, provides an estimate of total indirect (user)
benefits attributable to the airport. However, although the benefits due to visitor spending are
included in this total, they cannot be estimated separately using Survey IL
Because the amount of sales, income and employment brought into the airport study area by air
carrier and general aviation visitors is of special interest, separate surveys must be done to identify
these sub -categories of indirect visitor benefit. Survey M, for transient general aviation visitors
(shown on page 20), and Survey TV, for airline visitors (shown on page 22), identify the portions of
total benefits provided by visitors arriving by air.
Visitor spending data come from two different sources:
1. Transient General Aviation Survey - non-resident off -airport spending.
2. Airline Passenger Survey - non-resident off -airport spending.
Transient General Aviation Survey (page 20)
This survey is used to determine total off -airport expenditures by visitors arriving in general aviation
aircraft. Expenditures made at the airport are counted as sales of airport businesses in the direct
benefit section. Table 3, on page 30, shows a sample worksheet for calculating the results of the
survey. An actual worksheet would also include a column for each expenditure type shown on the
survey, such as Hotel/Motel and Food. Table 3 shows total expenditures only, to keep the example
simple.
Question I is the name of the respondent and a phone number where they can be reached if there
is a problem with the survey responses. Not everyone will want to fill this in, so it is optional.
Question 2 asks for the principal reason for the trip. Results can be used to give interest to the final
write-up, but are not needed for the benefit calculation.
uestion 3 asks the ultimate airport destination for background information. This information is used
to discuss origin and destination linkages, but is not needed for the benefit calculation.
Questions 4, 5, and 6 must all be answered for a survey form to be usable. These questions ask for
the number of passengers in the aircraft and the number of days and dollars spent in the study area.
For each survey response, tabulate how many passengers and pilots, how long the stay, and how
much was spent at off -airport locations in the area. Be sure to delete on -airport purchases, such as
fuel, from this total. These have been counted as direct sales to airport business. Calculations can
then be made for average number of passengers, average length of stay per person and average
expenditures per person per day.
29
Ouestions 7 asks for passenger residence zip codes, and is used primarily to make sure that the
respondent is not a resident of the airport impact area. The information can also be tabulated to
identify origin/destination linkages. However, this information is not needed for the study.
TABLE 3
Transient General Avtstion Survey Tally
Sample Worksheet
..
.yTOTAL
.r. ,.EXPENDITURES
Including
pilot
After Table 3 has been completed for all usable transient GA survey forms, the results are used to
calculate three important factors.
1. Calculate the average number of passengers per transient aviation flight. This is done by dividing
the total number of passengers by the number of surveys. From Table 3, this is the Column 2
total divided by the final Column 1 survey number. 13 _ 6 = 2.17 passengers.
2. Calculate the average number of days spent in the study area. This is done by dividing total
person days (Column 4) by the total number of passengers (Column 2). For Table 3, this is 36
=13 = 2.77 days.
3. Calculate average expenditures per passenger per day by dividing total expenditures (Column
5) by total person days (Column 4). For Table 3, this is $2,370 _ 36 = $65.83. The same
procedure can be used to calculate expenditures per passenger per day for each expenditure
type shown on the survey.
The Aircraft Owners and Pilots Association (AOPA) has developed a formula to convert general
aviation transient expenditures identified in a sample survey such as this into an estimate of annual
expenditures by general aviation visitors. The AOPA formula assumes 1/3 of the annual itinerant
aircraft arrivals at an airport are true transient arrivals. The remainder are itinerant flights made
by aircraft based at the field and should not be counted for visitor impact. An estimate of total
itinerant general aviation operations for the airport for the most recent year should have been
obtained as part of the study. A discussion of where this information can be obtained in on page
12. Dividing the annual itinerant operations number by 3 results in a transient operations estimate.
Dividing again by 2 will result in an estimate of transient arrivals.
30
For example, Airport "A" has 30,000 itinerant operations per year. Assuming that 1/3 of these are
transient operations results in an estimate of 10,000 transient operations and dividing that number
by 2 gives 5,000 transient arrivals. The next step is to apply the three factors obtained from Table
3 to the estimate of 5,000 transient GA arrivals for the airport. The process is shown in Table 4.
TABLE 4
TransWd GA Vlsttor Expenditure workaheet Sampie
The types of expenditures should also have been tabulated for each survey. Assume this has been
done for the Tables 3 and 4 examples and that expenditures were 1/3 for general retail purchases,
1/3 for hotel and lodging, and 1/3 for eating places. This results in $659,507 spent on each of the
three categories, as shown below.
Transient GA Visitor Expenditures by Type
Once expenditure (sales) benefits are calculated for non-resident GA visitors, income and
employment benefits can be derived from Table 5, page 32, which shows jobs and income per
$1,000,000 of sales by SIC group for Oregon. If you wish to obtain Table 5 information for a specific
Oregon county, the source is discussed on page 13. To calculate income and employment benefits
for the above example requires the following steps:
For general retail trade take the $573,500 listed in the income column of Table 5 and
multiply by .659507 (the percentage the retail expenditures in our example were of
$1,000,000). This results in income benefits of $378,227. Applying the same percentage
(.659507) to the retail trade employment factor of 50.72, from the employment column of
Table 5, results in an employment benefit of 33.4.
2. Apply the same process to the hotel and lodging income and employment factors from Table
5. This results in $350,528 in income benefits and 23.2 in employment benefits.
31
3. For eating places the resulting benefits are $241,248 in income and 23.1 in employment.
To obtain figures for the total indirect benefits generated from transient GA visitors, simply sum the
results, as shown below.
Industry Group
Sales
Jobs
Income
General Retail Trade
$ 659,507
33.4
$378,227
Hotels & Lodging-659,507
23.2
350,528
Eating Places
659,507
23.1
241,248
Total 8eneiits.
$1;97g,521
79.'7
$'370,003...`:
Income and Employment Per $1,000,000 of Direct Sales'
Oregon, 9''
INDUSTRY GROUP
INCOME
EMPLOYMENT
A riculture Forestr & Fishin
404,300
22.44
Mininq
$474,900
11.91
Construction
Manufacturing
403,800
349,700
13.21
11.59
Aircraft Equipment and Parts
390,600
14.67
Transportation & Public Utilities
$ 478,600
11.37
Aviation Services
Wholesale Trade
$ 280,000
$ 573,300
8.77
50.19
Retail Trade
573,500
50.72
Eating Places
$ 365,800
35.04
Finance, Insurance & Real Estate
$ 512,500
15.28
Services
$ 572,600
25.09
Hotels & Lod in
$ 531,500
35.20
Governments
$ 339,200
14.14
Source: Computed by Oregon Department of Transportation from the Oregon
Input/Output Model as generated by Implan. See U.S.D.A. Forest
Service Implan User's Guide, Fort Collins Colorado, 1983.
Does not include induced impacts.
2 Sales for Government category are budgets
32
This survey is used to determine total off -airport expenditures by visitors using commercial airlines.
Table 6 shows a sample worksheet for calculating the results of the survey.
Question 1 asks the airline, flight number and date and is used to verify the count of completed
surveys for each flight..
Question_Z is to determine the percent of business versus personal travcL This is for background
information and will be of interest in the final report. It is not needed to calculate the economic
benefits.
g_ugation 3 asks the ultimate destination of the trip and can be used to show important
It is naf-veedel. for cadg-da-ficiv ofkenefits_
Question 4 asks where the passenger lives. It is very important that you find what percent of total
responses to this question are non-resident. Only non-resident responses will be used in calculating
expenditures in the community. Non-resident surveys will be separated from resident surveys for
further calculation.
Question 5 asks how long the non-resident(s) stayed in the airport study area. This question m
be answered or the survey will not be usable. Calculate how many total responses to this questi
by non-residents. Tally the responses for each survey. Each response will be multiplied times t
number of people travelling together (from Question 6) to obtain person days spent in the area.
Cal 1. 1
-Question 6 asks how many persons are traveling together for whom expenditures will be shown in
Question 7. This question must be answered or the survey will not be usable.
Question 7 asks non-residents how much they spent in the area. This question must be answered or
the survey will not be usable. To keep the example as simple as possible, Table 6 on page 34 only
shows calculations of total expenditures. The amount spent should be tallied for each expense
category and summed so that the total amount spent for accommodations, off -airport food and
restaurants, all other purchases in the study area and the total can be calculated. After the total has
been calculated for all surveys, divide this value by the number of non-resident person days from
questions 5 and 6 to arrive at average expenditures per day per non-resident airline passenger.
33
TABLE 6
Non-Rasident Alr9ne Passenger Survey T1
Sample Worlmheet
Col I
Col 2
Col 3
Col 4
C01 5
Q5
Q6
Q5 x Q6
Q7
1
OF
OF
I OF
TOTAL
SURVEY #
DAYS
PEOPLE
PERSON DAYS
EXPENDITURES
1
3
2
6
$ 400
2
1
1
1
0
3
4
1
4
200
4
1
1
1
100
5
1
1
1
70
6
2
3
6
70
7
6-
4
24
800
8
1
1
1
20
..... .... .. ... .. .. .. .........
After Table 6 has been completed for all non-resident airline passenger surveys, the results are used
to calculate two important factors.
1. Calculate the average number of days spent in the study area. This is done by dividing the total
number of person days (Column 4) by the total number of people (Column 3). For Table 6 this
is 44 - 14 = 3.14
2. Calculate average expenditures per passenger per day. This is done by dividing total expenditurw
(Column 5) by total person days (Column 4). For Table 6 this is $1,660 - 44 = $37.73.
Calculation of the responses to survey question 4, discussed on page 33, gives the percent of survey
passengers who are non-resident. This percent is applied to the total number of passengers enplaned
at the airport during the last year to estimate annual non-resident passenger enplanements. For
example, Airport "A" has 20,000 enplaned passengers per year. Tabulating question 4 for all survey
forms indicates that 40% of the enplaning passengers are non-resident. Taldng 40% of the 20,000
annual enplaned passengers results in an estimate of 8,000 non-residents arriving by airline.
Next use the two factors obtained from Table 6 to obtain total airline visitor expenditures. The
process is shown in Table 7.
TABLE 7
AlrMw Visitor ExpendG WorkshGet
Annual airline visitors
8,000
Average
days in study area
x 3.14
Total.*.visitbr
da-Y6
25?120*
Average
expenditure ]2er visitor per day
x $37.73
Total
'airline'visit6r expenditures
$ 947,778
Wil
Once total sales generated by non-resident airline passengers have been calculated, employment and
income can be derived from Table 5 on page 32. If you want to obtain Table 5 information for a
specific Oregon county, the source is given on Page 13.
Employment and income benefits are calculated the same way as described for transient GA visitors,
on page 31. The same assumption is made for this example; that tabulating expenditures by category
results in a 1/3 split of total expenditures among retail sales, eating places, and hotels and lodging.
The three step process described on pages 31 and 32 is repeated, this time with 1/3 of $947,778, or
$315,926, in each category. Referring to Table 5 for income and job factors results in the following
estimated benefits from airline visitor expenditures.
Benefits From Non -Resident Akkw Visitors
35
Survey of General Business (pages 17 and 18)
This survey is used to estimate total study area indirect sales, income and employment generated by
the airport. To arrive at this estimate the following process is used:
Question, This is necessary to make use
-- is used to group responses within the correct SIC category.
of the IMPLAN relationships shown in Tables 10 and 13, pages 38 and 40.
Questions 2 through 6 indicate the uses made of the airport. This information can be used for
background in the written report, but is not necessary for calculation of benefits.
Question 7 asks for the zip code of the firm and is a check for proper location of the responding
firms.
Questions 8,9- and 10 ask for employment, payroll, and sales of the firm in the study area. Calculate
the totals for each SIC category of business. In the vast majority of cases respondents will answer
the employment questions and not answer the payroll and sales questions. As a result, only the
employment responses will be tallied and used in conjunction with the input/output relationships
shown on Table 10, page 38, to derive sales and income. The few responses to the sales and payroll
questions can be used as verification of the Table 10 information. If desired, questions 9 and 10 can
be left off of the questionnaire.
Question 11 asks what percent reduction in employment or sales would occur if the airport were no
longer available. This is used to identify the businesses that have a quantifiable economic benefit
from the airport. Other businesses may use the airport, but unless some estimate can be made of
decline in sales or employment if the airport closed there can be no quantification of the benefits.
From Question 11, calculate for each business having a decline the dollar amount of sales and
number of employees lost if the airport were to clos,-- Group the responses by major business
categories, such as manufacturing and services, as indicated in the responses to Question 1.
The following method can be used to arrive at total indirect sales, employment and income
attributable to the airport.
1. Group all survey data by type of business, as shown in Table 8, page 37. For each of the 10
categories of business presented in the survey, derive the number of employees lost from that
business category and the total number of survey area employees that business category
represented in the survey sample. Only Manufacturing and Services are shown in the Table 8
sample, but the same process must be done for each SIC category.
2. Next calculate the total jobs that would be lost in the study area if the airport were not available.
As shown in Table 9, page 37, this is done by combining the totals from Table 8 for each
category and applying the results to total job figures in the study area. County employment
information is available from sources discussed on page 12. Table 9 shows totals for only two
SIC groups, but this should be done for all 10 categories.
36
TABLE 8
Sample Employment Benefit Worksheet
Surveyed Firms
Q1
Q8
Q11
f LOST
TYPE OF
TOTAL
% OF LOST JOBS
JOBS
SURVEY #
BUSINESS
JOBS
IF NO AIRPORT
li X 08
1
Manufacturin
400
.10
40.0-
2
Manufacturing
300
.00
0.0
3
Manufacturinq
65
.OS
32.5
4
Manufa.cturin
0
.02
a&-Eur
8Q5
+ ...
6
Services
100
.10
-
10.0
6
;Services
220
.OS
11.0
Services
i5
.00
0.0
8
Services
6
.20
1.2
g
Services
24
.10
2.
TOTAL _
Services
365
�#7
24 6
' This percentage is obtained
for each SIC category by
dividing the
total lost
jobs for that category by
the total jobs
in the study
area at surveyed
firms for
that category. For manufacturing, in
Table 8,
this percent is
80.5 + 805
= .10. For services it is
24.6 + 365
= .067.
TABLE 9
WorkshW For Calculating Study Area Total Indirect Job Benefits
TOTAL
JOBS LOST
TOTAL3
TOTAe
LOST JOBS
JOBS AMONG
AMONG
STUDY
SURVEY
INDUSTRY
IF NO
SURVEY
SURVEY
AREA
AREA
GROUP'
AIRPORTS
RESPONDENTS
RESPONDENTS
JOB;
JOBS LOST
A
B
C
D
E)-
-
-(F)-
Manufacturing
(F)-Manufacturing
80.5
805
.10
2 000
200
Services
24.6
365
_067
3 000
201
TOTAh;
105:1
i170....
' From Question 1.
2 From Table 8.
3 From county employment data by SIC group.
` For each SIC group, the result of Column D (percent jobs lost among
survey respondents) multiplied by Column E (total jobs in the study
area in that category).
37
INDUSTRY GROUP
SALES
INCOME
A riculture Forestr & Fishing
44,563
S18,017
83 963
S39,874
.Mininq
Construction
S 75,700
S30,568
Manufacturing
86.281
S30,173
Aircraft Equipment and Parts
Transp2rtation & Public Utilities
S 68,166
87,951
$26,626
$42,093
Aviation Services
$114,025
$31,927
Wholesale Trade
$ 19,924
$11,473
Retail Trade
$ 19,716
11 307
Eatinq Places
$ 28,539
10,439
Finance Insurance & Real Estate
$ 65 445
$33,541
Services
$ 39,856
$22,822
Hotels & Lodging
Government
$ 28,409
$ 70,721
$15,099
$23,989
Sources Computed by Oregon Department of Transportation from the Oregon
Input/Output Model as generated by Implan. See U.S.D.A., Forest
Service Implan User's Guide, Fort Collins, Colorado.
' Does not include induced benefits.
2 Sales for Government category are budgets.
38
3. Sales and income impacts can now be developed using data from Table 10, Income and Sales
Per Employee. A sample calculation of sales and income impact is shown in Table 11 for two
industry groups, but this must be done for all 10 industry categories.
TABLE 11
Sample Worksheet For Study Area Indirect Job, Sales and Income Beneflta
Total indirect jobs, income and sales benefits created by the airport at non -aviation (user) businesses
have been calculated from Survey H. These are shown in Table 11 above. These indirect benefits
include benefits accruing to all non -aviation businesses in the study area, including hotels, motels,
eating establishments and other firms receiving business from visitors arriving by air.
The previous discussion, on page 29, explained that because general aviation and air carrier visitor
impacts are included in, but cannot be identified separately from, the General Business Survey
(Survey II) results, transient GA and airline passenger surveys must be done. For our example, the
benefits from GA visitors are shown on page 32 and those from air carrier visitors are shown on
page 35. Table 12 below summarizes the indirect benefit estimates from the GA and airline visitor
surveys. These visitor benefits are then subtracted from the General Business Survey total indirect
benefits, shown in Table 11, to obtain an estimate of indirect benefits received by other (non -visitor
related) businesses in the airport study area. Total indirect benefits, shown in both Table 11 and
Table 12, are the sum of these three categories.
TABLE 12
Sample Summary Sheet For Total Indirect Benefits
INDIRECT BENEFIT CATEGORY
JOBS
INCOME
SALES
Transient GA Visitors}
79.7
$ 970,003
$ 978,521
Non -Resident Airline Visitors2
38.2
464,665
947,778
Subtotal Visi"tors
177.9.
1,4�4 668.::
other Indirect Benefits
283.1
9,187,154
22,340,957
TOTALINDIRECT.BENEFITS4 ;:
401 O
$i0�62.1$22'
$25y267,256
Benefits From Transient GA Visitors, page 32.
2 Benefits From Non -Resident Airline Visitors, page 35
a Derived by subtracting the Visitor subtotal in Table 12 from the.indirect
benefits totals in Table 11.
Total indirect from Table 11.
39
Each dollar generated by aviation activity is used in one oft ways: 1) a portion may be saved,
2) a portion may become income to people outside the study area, 3) a portion may become income
to people within the study area. That portion which is spent in the study area goes on through the
three processes until nothing remains. The impact of the initial dollar is substantially greater by the
time this happens. This is called the multiplier effect, and its economic impacts are called induced.
Multipliers for Oregon for each industry group have been obtained from the EWPLAN model. Sales,
Income and Employment multipliers for the State of Oregon are shown in Table 13.
For each industry group, the relevant multiplier mast be used to generate total benefits. Induced
benefits are then derived by subtracting the direct and indirect benefits from the total benefits
obtained after applying the multipliers. Table 14 shows the process used to identify induced and total
benefits for the direct benefit sectors. Direct sales, jobs and income are obtained from the results
of the Survey of Airport Businesses and Organizations in Table 2, page 28. Using the sample data
from Table 2, the Table 14 worksheet is constructed to show how induced and total benefits are
ferived from the i1rect av� sectors. IndustWgrou-�rcs included from Table 13 will deyend on what
types of aviation related businesses are located at the specific airport.
TABLE 13
Multipliers Used To EzUrriate Total Ben
Oregon, 1987 1-
GROUP
SALES
INCOME
EMPLOYMENT
-INDUSTRY
Aqriculture, Forestry & Fishing
1.70
1.87
1.58
Mininq
Construction
1.41
1.43
1.41
1.49
1.57
1.61
Manufacturinq
1.67
1.85
2.00
Aircraft, Eg2i2Ment and Parts
1.45
1.55
1.58
Transportation & Public Utilities
1.51
1.53
1.75
Aviation Services
1.41
1.62
1.76
Trade
1.78
1.67
1.27
-Wholesale
Retail Trade
1.93
1.81
1.38
Eating Places
1.87
2.05
1.43
Finance, Insurance & Real Estate
1.58
1.58
1.76
Services
1.64
1.56
1.49
Hotels & Lod in 1
1.76
1.71
1.40
Government 1
1.60
1.82 1
1.67
Source: Computed by Oregon Department of Transportation from the
Oregon Input/Output Model as generated by Implan. See
U.S.D.A., Forest Service Implan User's Guide.
all
TABLE 14
Total Direct and Related Induced Benefits
INDUSTRY
IEEE
A
2iJL- _ - TIP IEe
8
INDUCED
t0 - Ay
(G
Tt AL
(A 8)
{ 0 }
EMPLOYMEW
Transportation, etc.
10
1.75 7.5
17.5
Aviation Services
33
1.76 25.1._
_ 58.1
Retail Trade
33
1.38 12,.5
45.
Services
13
L 1.9 6.4
19.4
Goverment
13
1.67 8.7
21.7
'OTAT. 102
INCOME
0housard
Transportation, etc.
S25t.0
1.53
_132.5
382.5
Aviation Services
940.0
1.62
582.8
1,522.8
Retail Trade
390.0
1.81
315.9
705.9
Services
470.0
1 1.56
263.2
733.2
Government
300.0
1.2
246.0
5.0
TOTAL
25 '0.fit ,, .
t�
1 `54t#.
Transportation, etc.3
--_
s-a
---
Aviation Services
$4r7OO.O
1.41
$1,927
$ 6 627
Retail Trade
1 360.0
1.3
1 209
2,509
Services
2,600.0
1.64
1,664
4,264
Government
500.0
1.60
300
800
TOTAL -
9 `100
I From Table 2, page 28.
2 e
From the .relevant Industry Group line and Sales, Income or Employment
column of Table 13, page 40.
a Airline sales are not counted unless airline headquarters is in the
study area.
Table 15, on page 42, shows the process used to identify induced and total benefits for the indirect
benefit sectors. Total indirect jobs, income and sales are obtained from Survey II, the General
Business Survey. A sample of the results of this type of survey appears in Table 11, on page 39. The
example in Table 11 contains only two Industry Groups, manufacturing and services. This was done
to save space and keep the example as simple as possible. In a real study, all 10 industrial groups
would be included, as shown in Table 15. For the Table 15 sample, x's have been placed in. the
vacant columns to show where additional information should be placed.
41
TABLE 15
Total IndIroct and Rotated Induced Boneft
INDUSTRY
INDIRECT
A
MULTIPLIER'
B
INDUCED
(D - A)
C
TOTAL
(A X B)
D
EMPLOYMENT
Agriculture, Fdrestry, Fishin�L_
Mining
Construction
x
x
x
x
x
x
x
x
x
x
x
x
Manufacturinq
Transportation, Public Utilities
Wholesale Trade
Retail Trade
Finance, Insurance, Real Estate
200
x
X,
x
x
2.0
x
x
x
x
200
x
x
x
x
400
x
x
x
x
Services
201
1.49
98
299
Government
x
x
x
x
:.--.-.-TOTALEMPL ... 6 Y M.- ENT
INCOME
sand $)
9
:::.699
Forestry, Fishing
x
x
x
x
,Agriculture,
Mininq
x
x
x
x
Construction
x
x
x
x
Manufacturina
Trans22rtation, Public Utilities
Wholesale Trade
S 6,035
x
x
--1.85
x
x
$5r130
x
x
_1IL_165
x
x
Retail Trade
x
x
x
x
Finance, Insurance Real Estate
x
x
x
x
Services
4,587
1.56
2 569
7,156
Government
OTAL. INC
x
x
x
991"
x
-$I ; :321
SALES fthotmand $)
Agriculture,_E2Etstry, Fishing
x
x
X,
x
Mining
x
x
x
x
Construction
x
x
x
x
Manufacturing
S17,256
1.67
$11,562
S28,818
Transportation, Public Utilities
x
x
x
x
Wholesale Trade
x
x
x
x
Retail Trade
x
x
x
x
Finance, Insurance, Real Estate
x
x
x
x
Services
8-f011
1.64
5127
13,138
Government
x
x
x
x
.TOTAL SALES
$25,267
NIA
$161689
$41,956
From Table 11, page 39. For an actual survey, data would also be available
for sectors where x's are shown.
2 From Table 13, page 40.
aj
Surveys III and IV, the transient GA visitor and non-resident airline surveys, provide information on
an important subset of indirect benefits. The portion of induced and total indirect benefits provided
by GA and airline visitors should also be calculated. Table 16 combines visitor data from Table 12,
page 39, and from the analyses on pages 32 and 35 to summarize indirect, induced and total benefits
from visitors arriving be air.
TABLE 18
Indired and Related Induced Benellts From Vk t m Arriving By Air
INDUCED
TOTAL
INDI :ECT'
TIPLIE
(U - A)
(A x 8)
INDUSTRY
A
$
C
D
EMPLOYMENT
Retail Trade General
49.4
1.38
18.8
68.2
Eatinq Places
.34.2
1.43
14.7
48.9
Hotels and Lod in
34.3
1.40
13.7
48.0
€I [n
thousand
Retail Trade General
559.4
1.81
453.1
$1,012.5"
Eating Places
356.8
2.05
374.6
731.4
Hotels and Lod an
51.4
1.71
381
.5
,:I�CO►
1 434 ..;
,.; Nei . ;.
1 -19 r.8 ` , ,
S 8 Qn
toousand
964
Retail Trade Genl
era--
- --
975.4
1.93
913.0
Eat ncl Places
975.4
1.7
854.3
1 829.7
Motels and Lod in
975.4
1.76
746.6
1,722.0
1+0TAL EA,LEB.
;21926 2
From Tables 4 and 7
and discussion on pages 32
and 35. This assumes
1/3 share of total
expenditures for each of
general retail
trade,
eating places, and hotels and lodging.
From Table 13, page
40.
43
Total benefits are the sum of direct, indirect and induced benefits from Tables 14,15 and 16. Total
benefits can be presented in a summary table similar to Table 17 below.
BENEFIT TYPE
DIRECT
%NDIRECT
INDUCED TOTAL
EMPLOYMENT
Direct°<:
102'.0
-
60:2
`:162.2
Indirect
visitors
---
117.9„
4.7.2
165.1
Other Indirect
- - -
283.1
250.8
533.9
Total :...Ind reot ....-
;
; 401 D .
298'. 0
_ : f 99.0
Total Em lo" ent .:::
102.0
4d2.0
INCOME
(thousand $)
$2 350
=
$ 1; 540 4
$,' 3` 890.4
Indirect
Visitors
---
$ 1,434.6
1,195.8
2,630.4
Other Indirect
---
8,887.4
6,503.2
15,690.6
Total Zndirectd
--
10 622.0
7y 6990
_'18`321 0
TotaI.:. Income.
$2;`35Q..
$I01622.0.
$ 9239.4
$22;211.4
SALES
(thousand $)
Drecti: ..
$9;100...
-- _
$ 5,100.0..:
....
$14,200.0
Indirect
---
Visitors 2
---
$ 2,926.2
2,513.9
5,440.1
Other Indirect3
---
22,340.8
14,175.1
36,515.9
Tot .indirect°
-
- 25, 267 D
lb 689 0
Total Sales .;.
25 267.D :-
21789:0 ..>.
56 156 0
' From Table 14, page 41.
2 From Table 16, page 43.
3 Derived by subtracting the Visitors totals in Table 17 from the
Total Indirect amounts obtained from Table 15, page 42.
a From Table 15, page 42. 11
M.
Pare
Smumary and
i............................................................................................................... 47
Backgroundand Purpose ............................................................... :............. .................................... 48
Method
® ............................................ ........................................................... ................................. 49
Definitions.......................................... ............ ....................... »......... .................................... 49
Choosingthe Study Area........................................................................................... . 49
DataCollection......................................................................:............................................. 49
DirectBenefits ......................................................................................................................
IndirectBenefits ................................................................................................................... 54
Induced Ben
TotalBenefits ........................................................................................................................
61
TABLESLIST OF
Table No.
Page
1A
Total Deschutes County Economic Benefits From Redmond Municipal
Airport, 1987...................................................................................................................
47
2A
Average Annual Employment by Industry Group, Deschutes County, 1987 ............
50
3A
Income and Employment per $1,000,000 of Direct Sales,
DeschutesCounty, 1987................................................................................................
51
4A
Income and Sales Per Direct Employee, Deschutes County, 1987 .............................
52
5A
Multipliers Used to Estimate Total Benefits, Deschutes County, 1987 .....................
53
6A
Transient GA Visitor Expenditures...................................................................................
56
7A
1987 Transient GA Expenditures in Deschutes County by Type ................................
56
8A
Airline Visitor Expenditures...............................................................................................
58
9A
1987 Airline Visitor Expenditures in Deschutes County by Type ...............................
58
Table No. Page
10A Deschutes County Indirect Job Benefits, 1987 ............................................................... 59
11A Indirect Job, Sales and Income Benefits, Deschutes County, 1987 ........................... 60
13A Total Direct and Related Induced Benefits, Deschute's' County, 1987 ................. . ... 62
14A Total Indirect and Related Induced Benefits, Deschutes County, 1987 .................... 63
15A Indirect and Related Induced Benefits from Visitors Arriving By Air,
DeschutesCounty, 1987 ................................................................................................ —14
SUMMARY AND CONCLUSIONS
The Redmond Municipal Airport is an important element of the transportation system in Deschutes
County, providing airline service for 43,755 enplaning passengers in 1987. The airport had an
estimated 30,200 aircraft operations during 1987, including airline, general aviation and U.S. Forest
Service activity. Deschutes County received a total benefit of $151,870,000 in sales, $69,740,000 in
income and 3,028 jobs in 1987 due to activity at the airport. Sales, income and employment impacts
are summarized in Table 1A below.
TABLE 1A
Total Deschutes County Economic Benefits From
Redmond Municipal Airport 1987
47
Deschutes County is located in Central Oregon and includes part of the beautiful Cascade Mountain
Range as well as the fertile valley, range and forest lands of the high country plateau. Population
in 1987 was estimated at 65,600. Principal industries are lumber, agriculture and tourism, although
the economy is becoming more diversified as other industries, lured by the natural beauty of the
area, have begun to locate in the County.
Tourism has been a rapidly growing industry during the past several years. Recreational opportunities
for downhill and cross-country skiing, fishing, hunting, hiking and rock hounding and the relatively
dry and sunny climate have led to development of several resort facilities.
Redmond Municipal Airport is located about one mile southeast oft and is an excellent facility
with an airline terminal building, full general aviation services, and precision instrument approach
capability. The FAA maintains a Flight Service Station at the airport and the U.S. Forest Service has
a major regional facility there.
By highway, Redmond is 144 miles from Portland, 324 miles from Seattle and 513 miles from San
Francisco*, the nearest medium and large hub airports. any of these miles are along -heavily
travelled two-lane highways. Winter snow storms add to the surface access difficulties. This relative
remoteness lends added importance to the airport, which links the County to the national aviation
system.
Airline passenger service has been provided by a variety of carriers over the years. In 1987, Horizon
Airlines, Pacific Southwest Airlines and United Express provided service. 50 general aviation aircraft
were based at the airport and an estimated 22,282 general aviation operations were performed.
Another 6,718 operations by airlines and 1,200 by military aircraft brought total operations to 30,200.
The importance of an airport is not always apparent to local citizens who may not have occasion to
use it regularly. As a result, the perception of economic benefits generated in the community because
of the airport is unclear. The people of Deschutes County have been supportive in the past in
efforts to retain airline service. But the need exists to identify the benefits the airport brings to the
local economy so local support will continue. This study has been accomplished to identify the
benefits generated in Deschutes County by the Redmond Airport in terms of jobs, income and sales.
To estimate the number of jobs and the total sales and income generated by the airport, a series of
surveys were conducted with the airport businesses, airline passengers, businesses in the County, and
transient general aviation users.
To provide additional assistance in estimating the benefits, the U.S. Forest Service Implan input/out
model was used to generate multipliers and other information specific to Deschutes County.
EH:
zr#07k*-�*k �
The methods used in this study were those outlined on pages I I to 23. The main components were
established'by use of surveys and the Implan input/output model developed by the U.S. Forest
Service. Economic benefits are described in terms of employmen4 income and sales in the study
area.
1,030,2101•
M11-11717 =-11
trade. It also includes firms that use air services to transport goods, supplies, personnel or other
resources in order to enhance business opportunities. Induced benefits are the result of the
"multiplier" effect -- any dollar added to the economy in wages or other expenditures win be spent
and respent several times over. Each time the money is spen� it becomes income to someone else.
"skj jildA
0 W7110-11me 1107-16WARM !ILtt�* 11PRONLEF 'Ar gt'�� AL
The sum of direct, indirect and induced benefits for sales, income and employment equals the total
economic benefit generated by the airport.
Deschutes, Crook and Jefferson Counties were initially considered to be the study area. Completion
of the airline passenger and GA transient surveys, however, showed that the vast majority of
economic benefits appeared to accrue to Deschutes County. At that point the study area was
redefined to include Deschutes County alone.
The following information was gathered for use in the study.
071=1 M
Information essential to the study consisted of 1987 data for:
Itinerant General Aviation Operations - 11,000
Enplaned Airline passengers - 43,755
Me
County Data
Table ZA shows 1997 average annual employment in Deschutes County by Standard Industrial
Classification (SIC). This information was obtained from the Research and Statistics Section of the
Oregon Employment Division.
TABLE 2A
Average Annual Employment By Industry Group
Deschutes County, 1967
INDUSTRY GROUP
We i
Agriculturet Forest;y_-&Fishing
Construction
Manufacturing
Transportation & Public Utilities
wholesale Trade
i Retail Trade
Places ---
l
Finance, Insurance Real Estate
i
s _ n
Hotels & Lodging
_
t
Covered employment data is from
Oregon Employment Division
U.S. Forest SerA a Implan Data
Tables 3A, 4A and 5A contain the three Implan input/output reports for Deschutes County needed
for completion of the Redmond Municipal Airport Economic Benefit Study. Table 3A shows 1987
income and employment per $1,000,000 of direct sales for Deschutes County by industry group.
These factors will be used to derive income and employment benefit estimates from the sales
benefits identified with the Transient GA and Airline Visitor Surveys. Table 4A shows Sales and
Income per Employee for Deschutes County by industry group. This data will be used to derive
income and sales benefit estimates from the General Business Survey employment benefit results.
Table 5A shows the 1987 employment, sales and income multipliers for Deschutes County by
industry group. These are used to obtain estimates of induced and total benefits.
TABLE 9A
Income and Employment Per $1,000,000 of Direct Sales'
Deschutes County, 1987
INDUSTRY GROUP
INCOME
EMPLOY)MMENT
Agriculture, Forestry & Fishing
401 800
24.76
Mining
472 800
11.36
Construction
$394,100
8.29
Manufacturin
301 300
12.17
Transportation & Public Utilities
$387,400.
10.17
Wholesale Trade
$572,420
45.90
Retail Trade
$573,200
45.74
Eating Places
$365 800
37.56
Finance Insurance & Real Estate
$578 500
13.72
Services
$553,200
32.05
Hotels & Lodging
$490 300
42.70
Government2
$445,600
22.08
Source: Computed by Oregon Department of Transportation from the Oregon
input/out model as generated by Implan. See U.S.D.A. Forest
Service Implan User's Guide, Fort Collins Colorado, 1983.
Does not include induced impacts.
2 Sales for Government category are budgets
51
INDUSTRY GROUP
INCOME
SALES
Agriculture, Forestry & Fishing
16 288
S
40.388 _
Minin
41 620
88,000
Construction
47 539
120,627
Manufacturing
24 758
82,169
Transg2rtation & Public Utilities
38 092
98,328
Wholesale Trade
$12,471
21 786
Retail Trade
12 532
21,863
Eatinq Places
9,739
26,624
Finance Insurance & Real Estate
42 165
$
72,886
Services
$17 260
$
31,201
Hotels & Lod ging
$11,482
$
23,419
Government2
$20,181
$
45,290
Source: Computed by Oregon Department of Transportation from the Oregon
input/out model as generated
by Implan.
See U.S.D.A.
Forest
Service Implan User's Guide,
Fort Collins
Colorado, 1983.
' Does not include induced impacts.
2 Sales for Government category are
budgets
W
TABLE SA
Multipliers Used To Estimate Total Beneft
Deschutes County, 1987
INDUSTRY GROUP SALES
INCOME
EMPLOYMENT
A riculture Forestry & Fishina 1.56
1.79
1.46
Mining 1.24
1.26
1.43
Construction 1-261
1.33
1.69
Manufacturin 1.47
1.72
1.68
Aircraft Equipment and Parts 1.33
1.43
1.49
Transportation & Public Utilities 1.34
1.45
1.64
Aviation Services 1.30
1.53
1.69
Wholesale Trade 1.60
1.57
1.25
Retail Trade - 1.73
1.70
1.36
Eating Places 1.61
1.87
1.34
Finance Insurance & Real Estate 1.42
1.40
1.61
Services 1.57
1.56
1.40
& Lodging 1.74
1.80
1.36
t 1.69
1.75
1.46
Eeromputed by Oregon Department of Trans rtation from the
regon input/output model as generated by Implan. See
.S.D.A. Forest Service Zmplan User's Guide.
m
SuEM 1. vage 15, was used to gather information from airport businesses and organizations. Data
concernine the amount of income and sales and the number of jobs generated by aviation related
firms were compiled.
M I"Plirim WAW1W.T.1W1VQII0,f4W11kVI Id SIT&M461 KIMIN Ito VIM flu-] 111914 EM-91"HWADIAN11
Is-4110
as UW-T
eVFfUrY1,nTP1-_L1un UL We YYLT�h. income wouiG De it Ine airporf were nof availaD 9 W_1L 1W,
to drop Crook and Jefferson County from the study, since too few survey responses were received
from those counties. 240 usable surveys were returned from Deschutes County.
person per Day in irfiwk(W
0'�m wt,5
passengers, were returned.
A total of 949 passengers boarded 71 flights during that period. Of these passengers, 662 (69.8%)
returned usable surveys. This survey was used to estimate the percent of enplaning passengers whLic
were non-resident and to estimate the average number of days spent in Deschutes County and the
average expenditures per passenger per day.
All direct economic benefit data came from Survey L page 15, the Survey of Airport Businesses and
Organizations. Because of the need for confidentiality, no information can be shown for individual
firms. However, after completion of the survey results, the following direct economic benefits from
the Redmond Municipal Airport were identified for 1987.
SALES
JOBS
INCOME
Total direct benefits
$4,074,419
92.5
$2,073,217
RU97fq
Total indirect benefits are obtained from Survey II, the General Business Survey, and from the
U.S.F.S. Implan input/output model. Although the benefits due to visitor spending are included in
this total, they cannot be estimated separately using Survey II. Survey III, for transient general
aviation visitors, and Survey IV for airline visitors, identify the portion of total indirect benefits
provided by visitors arriving by air.
M,
The survey of transient general aviation activity began on July 18, 1987 and continued througil�
August 5, 1987. During this period 22 surveys representing 59 people were returned.
The ultimate destinations listed were:
Oregon 30 (50.8%)
Washington 6 (10.2%)
Bend
1
ttle area 6
Corvallis
Eugene
1
Other 16 (27.1%)
Portland area
12
Montana 4
Redmond
is
Texas 2
Wyoming 6
California 7 (11.9%)
Canada 4
Los Angeles area
I
San Francisco area
2
Susanville
4
The principal reasons for the trips were:
® Just passing through, stopped
for fuel, etc 25 (42.4%)
• Business travel to this community
13 (22.0%)
• Air taxi flight
9 (15.2%)
• Instruction
6 (10.2%)
® Personal travel
6 (10.2%)
The places of residence listed were:
Oregon 20 (33.9%)
Washington 8 (13.6%)
Portland area
16
Seattle area 6
Other Oregon
4
Other Washington 2
California 21 (35.6%)
Other 10 (16.9%)
Los Angeles area
9
Alaska 2
San Francisco area
6
Kentucky 4
Other California
6
Wyoming 2
Canada 2
An average of 1.2 days per visitor was spent in the County. 35 visitors (593%) spent less than one
day in the County, while 24 (40.7%) spent one day or more. The number of passengers per transient
flight, including the pilot, averaged 2.7. Expenditures per person per day were:
Hotels & Lodging $ 9.42 (39.7%)
Eating Places 7.15 (30.1%)
Retail Stores 2.25 9.5%)
Entertainment 1.01 4.2%)
Rental Cars 3.91 (16.5%)
Total $23.74
55
In 1987 there were an estimated 11,000 itinerant general aviation operations. The Aircraft Owners
and Pilots Association (AOPA) formula assumes 1/3 of annual itinerant flights are transient (visitor)
flights. To convert the 11,000 itinerant operations into the number of estimated transient flights
requires dividing by 3 to get transient operations and then by 2 to get transient arrivals. This results
in an estimate of 1,833 transient general aviation arrivals at Redmond in 1987. Applying survey
factors from page 55 to this number results in an estimate of GA expenditures of $140,990, as shown
in Table 6A.
TABLE SA
Transient GA Visitor Expenditures
GA transient arrivals
1,833
Average
number of
visitors p2r arrival
2.7
o'tA :-trahs-erit:
-
:- via Itors
`cX
949.1
Average
number of
days in study area
1.2
Totalb-
'' .1"'
'f
is I
I'tor, daVs
Average
expenditures per visitor per day23.74
dotal:.:,:,t
The survey average daily visitor expenditure categories, shown on page 55, give the percentage each
expenditure type was of the total. These percentages were applied to the total annual expenditure
estimate and the result is shown in Table 7A.
TABLE 7A
1987 Transient GA Expenditures In DescWes County By Type
Hotels
& Lod in
CM
—,973
Eating
Places
42,438
.Retail
Stores
13,394
Entertainment
5,922
1 Rental
Cars
23,263
,X.... Total.
.......
. ....... .......
40P990
Table 3A, page 51, shows income and employment per $1,000,000 of sales by SIC group for.
Deschutes County. The data in Table 7A was used in conjunction with the income and employment
factors shown on Table 3A to estimate the employment and income generated in Deschutes County
by transient GA visitors in 1987, shown below.
111111111111111111 r11111111
Industry Group
Sales
Jobs
Income
Hotels & Lodging
$ 55,973
2.4
$27,444
Eatinq Places
42,438
1.6
15,524
Retail Stores
13 394
.6
7,677
Entertainment'
*
922
5,922
.2
3,276
Rental Cars'
.��.Total Benefits
23,263
140'990
.7
5.5
12,869
$669790
1
I
Both Entertainment and Rental Cars are included in the Services
Industry Group in Table 3A, page 51.
The survey of airline passengers began on July 18,1987 and continued through July 24, M67. A total
of 949 passengers boarded the 71 flights included in the survey. Of these passengers, 662 (69.8%)
returned usable surveys.
San Francisco (15.9%)
Portland
Seattle
-(11. 6
Los Angeles
Rurbank
Orange County
Washington
Ontario
San Diego
Phoenix
Tucson
Of the 452 Were _tMm
outside of Deschutes County.
Non-resident passengers were asked to answer several questions about their trip to Deschutes
County and their place of residence. 474 non-residents responded to the question asldng their place
of residence. The places of residence listed were:
California
Oregon
Washington
Arizona
All other states
Other countries
201 (42.4%)
73 (15.4%)
53 (11.2%)
26 ( 5.5%)
116 (24.5%)
5 ( 1.0%)
Business
205
(42.2%)
Vacation
139
(28.7%)
Visit Friends/Relatives
122
(25.2%)
Other
18
3.7%)
Total
484
Questions about the amount of expenditures and number of days spent in Deschutes County were
answered by 415 non-resident passengers. Airline visitors spent an average of 5.0 days in Deschutes
County. Expenditures per person per day averaged:
Hotels & Lodging
Eating Places
Retail Stores
Entertainment
Rental Cars
Other
Total
$13.26 (30.0%)
10.95 (24.8%)
6.44 (14.6%)
4.24 9.6%)
4.00 9.1%)
5.27 (11.9%)
$44.16
RM
In 1987 there were 43,755 enplaned airline passengers at Redmond. With this information and
factors from the survey results shown on page 57, annual visitor expenditures were estimated, as
shown in Table 8A.
TABLE SA
AlrUne VIsItor Expenditures
Deschutes County, 1987
The average daily visitor expenditure categories, shown on page 57, give the percentage each
expenditure category was of the total. These percentages were applied to the total annual
expenditure estimate, as shown in Table 9A-
TABLE 9A
1987 Aldine Visitor Expend1tures In Deschutes County By Type
Hotels & Lod _qi.�.__�2
EaLim-iiac—es
236 �068
1,765,816
Retail Stores
1f039 553
Entertainment
683,542
Rental ars-
647,940
Other
847,307
Fatah;
1:."-$7':120 22 6.
Once total airline visitor expenditures (sales) benefits were identified, income and employment
benefits were derived from Table 3A, page 51. The information shown in Table 9A was used in
conjunction with the factors shown in Table 3A to estimate the employment and income generated -
in Deschutes County by airline visitors in 1987.
111 17111111 111 1
MNEMONIC 1105IS:111 11111111E 1111111 11111 111 111 1
all
Industr Group
Sales
Jobs
Income
[Industry
Hotels
Hotels & Lodging
$21136,068
91.2
Eatinq.Places
in Places [Retail
11765,816
66.3
645,935
St
Retail Stores
1 039,553
47.5
595,872
Entertainment'
683,542
21.9
378,135
Rental Cars'
647,940
20.8
358,440
Other'
847,307
27.2
468,730
::'-<Total Benefits
�7,120,226
274.9
$3,494,42 6
1
Entertainment, Rental Cars and Other are included in the
11 Services Industry Group in Table 3A, page 51.
K2
The transient GA and airline visitor analyses have identified the portion of indirect benefits
generated by air travelers. There are many other firms, in the County that would either relocate or
be forced to cut back on employment and operations if the Redmond Airport were no longer
available. The General Business Survey was sent to a sample of 600 Deschutes County non -aviation
businesses and organizations. These included a sample of those firms used by visitors arriving by air
as well as all other non -aviation businesses. Table 10A shows the total indirect (non -aviation) jobs
generated in Deschutes County by activities and services provided at Redmond Airport. These jobs
would not remain in the County if the airport closed. ne indirect 5.5 jobs generated by GA visitors,
shown on page 56, and the 274.9 indirect jobs generated by airline visitors, shown on page 58, are
included in the 1,938 total indirect jobs in Table 10A.
TABLE 1 GA
Xwehutes County Total Indirect Job Beneft, 1987
LOST
SURVEY
TOTALS
JOBS
TOTAL
JOBS
TOTAL!
COUNTY
IF NO
SURVEY
LOST
COUNTY
JOBS
AIRPORT
JOBS
(A + B)
JOBS
LOST
INDUSTRY GROUP
A
B
C
D
(C x D)i
Agriculture, Forestr & Fishin2
0
21
0.0
324
0
Mining
0
0
0.0
19
0
Construction
9
62
14.5
1,124
163
Manufacturinq
235
2,872.5
8.2
4 818
395
Transportation & Public Utilities
17
228
7.4
875
65
Wholesale Trade
3
89
3.4
755
26
Retail Trade-
80
562
14.2
5,452
774
Finance, Insurance & Real Estate
9
105
8.6
1,521
131
Services
186
3,232.5
5.6
5 704
319
Government 1
17
228
7.4
875
65
Total. Indirect s:
ix'4*6t, Job
5 43"."'
1�r`
822
::W
From General Business Survey, 1987.
2 Table 2A, page 50.
3 For each SIC group, the result of Column C (percent jobs lost among
survey respondents) multiplied by Column D (total jobs in the County
in that SIC group).
Sales and income impacts were developed using Table 4A, page 52, Income and Sales per Employee
by industry group. Table 11A, page 60, shows total indirect job, sales and income benefits for
Deschutes County. These are the indirect jobs, sales and income that would be lost by each industry
group if the Redmond Municipal Airport were to close. These indirect benefits are those in the study
area accruing to all non -aviation businesses, including firms receiving business from visitors arriving
by air.
RZ
TABLE 1 1A
IndIrect Job, Sales and Income Beneft
Deschutes County, 1987
COUNTY'
INCOME
LOST
SALES"
COUNTY
PER
COUNTY
JOBS
PER JOB
LOST SALES
JOB
LOST INCOME
INDUSTRY GROUP
A
g
(A x B)
_LqL_
(A X C)
Acric., Forestry, Fishing
0
S 40,388
0
$16,288
0
Mining
0
88 000
0
41 620
0
Construction
163
120j.627
_$19 662 200
47,539
$ 7,748,900
Manufacturinq
395
82.L169
32,456,800
24,758
9,779,400
Trans., Public Utilities
65
98,328
6,391,300
38,092
2,476,000
Wholesale Trade
26
21,786
566,400
12j471
324,200
Retail Trade
774
21 863
161922r000
12 532
9,699,800
Finance, Ins., Real Estate
131
72,886
9 548,100
42,165
5,523,600
Services
319
31,201
9,953,100
17,260
5,505,900
Government
65
45,290
2,943,8001
20,1811_1,3_11
800
TdtA n.
:Indirect en
A
�98,443 700
NA 1$42
`369 60 0*
From Table 10A, page 59.
2 From Table 4A, page 52.
The relationships among transient GA visitor benefits, airline visitor benefits and total indirect
benefits in Table I 1A are shown in Table 12A. The previous discussion, on page 54, explained that
because general aviation and air carrier visitor impacts are included in, but cannot be identified
separately frqm, the General Business Survey (Survey H) results, transient GA and airline passenger
surveys must bie done. The benefits from GA visitors to Redmond Airport are shown on page 56 and
those from air carrier visitors are shown on page 5& Table 12A below summarizes the indirect
benefit estimates from the GA and airline visitor surveys. These visitor benefits are then subtracted
from the total indirect benefits, shown in the last line of Table 11 A, to obtain an estimate of other
(non -visitor related) indirect benefits received by businesses in the airport study area.
M 777Z s 7 7 �,,# 25701271R:
M 0 5 F-I _; R IT, a,X4 fol� Mm 1;
INDIRECT BENEFIT CATEGORY
JOBS
INCOME
SALES
Transient GA visitors'
5.5
$ 66,790
140,990
Non-resident airline visitors2
274.9
3,494,426
7,120,226
Subtotal , V a :tdks'
`280.4
3'
::7 261 :216
Other Indirect Benefit S3
1,657.6
38,808,384
91,182,484
b
Total .Indirect Benefits..:: >4
$42369 0!::�;
:60
`,
$98 '443:700.
Benefits From GA Visitors To Deschutes County,
page 56.
2 Benefits From Airline Visitors To
Deschutes County, page 58.
Derived by subtracting the Visitors Subtotal in Table 12A from the Total
Indirect Benefits in Table 11A.
4 From Table 11A.
01
For each industry group the relevant multiplier must be applied to calculate total benefits. Induced
benefits are then derived by subtracting direct benefits from the total benefits. Table 13A shows th*
process used to identify induced and total benefits for the direct benefit sectors represented by th4
aviation related businesses and organizations located at the airport. Direct sales, jobs and income
were obtained from the survey and the multipliers are from Table 5A.
W
TABLE13A
Total Direct and Related Induced Benefits
Deschutes County, 1987
Table 14A shows the process used to identify induced and total benefits for the indirect benefit
sectors. Total indirect jobs, income and sales areobtained from Survey H, the General Business
Survey. The result of this survey appears in Table 11A, on page 60.
Surveys HI and IV, the transient GA visitor and non-resident airline surveys, provide information on
an important subset of indirect benefits. The portion of induced and total indirect benefits provided
by GA and airline visitors was also calculated. Table 15A combines data from Tables 6A, page 56,
and 8A, page 58, and the analysis on pages 56 and 58, to summarize indirect, induced and total
benefits from visitors arriving by air.
A summary of the total Deschutes County direct, indirect and induced benefits generated by the
Redmond Airport is shown in Table 1A, on page 47.
99
TABLE14A
Total kxkW and Related Induced Beneft
Deschutes County, 1987
INDUSTRY
INDIRECT
A
MULTIPLIER!
INDUCED
(D - A)
C
TOTAL
(A X B)
J: (A )(
D
EMPLOYMENT
Agriculture, Forestry, Fishing_
Minin
0
0
1.46
1.43
----1
— 0 -
0-
D
0
0
Construction
163
1.69
112
275
manufacturing
395
1.68
269
664
Trans rtati+an Pub. Utilities
65
1.64
42
107
Wholesale Trade
26
1.25
32
A211
Retail Trade
774
1.36
279
I-OS3
1 0
Finance, Insurance, Real Estate
131
1.61
80
l
Services
Government
319—
65
1.40
1.46
128
30
4471
95
Agriculturieyorestry, Fishin I
IV
1VV,q---w-uf
if
1. Construction
acturiTia
Finance, insurance,
Finance,
Real Estate 5,524
-1.40
2,210
7,734
[Government
5- 506
1.56
3,083
81589-
1f312
1.75
984
21296
-:;iota -.Tnc6me:
370',
6C'
:',':':$66'-33
SALES
fthousand
Construction
19,662
1.26
5,112
24t774
Manuactun
32
457
1.47
15
255
4
TranB22rtation, Pub. Utilities
6,391
1.34
2j
173
81564-
Wholesale Trade
566
1.60
340
906
Retail Trade
16,922
1.73
12,353
29,275
Finance, Insurance, Real Estate
9,548
1.42
4,010
13,558
Services
9,953
1.57
51673
1-5,626
Government
2,944
1.69
2
031
4,975
Total S
Sales
�98
443
NA
246,947
$145
390
From Table 11A, page 60. 2
From
Table SA, page
53.
63
TABLE I SA
Indirect and Related Induced Beneft From Visitors Arriving By Ak
Deschutes County, 1987
INDUCED
TOTAL
INDIRECT
MULTIPLIERS2
(D - A)
(A x B)
INDUSTRY
A
B
C
D
EMPLOYMENT
Retail Trade 122p2ral.L,
48.1
1.36
17.3
65.4
Eatinq Places
67.9
1.34
23.1
91.0
Services General
70.8
1.40
28.3
99.1
Hotels and Lodcring
93.6
1.36
33.7
127.3
fiotal
28Z1.4...:;
-102..�b
« ..382 c 8
w ►aaa I= ..,
Retail Trade General
$ 604
1.70
$ 423
$ 1,027
Eating Places
661
1.87
575
1 236
Services General
1 221
1.56
684
1 905
Hotels and Lodging
1,075
1.80
860
1,935
:Total
561
SALES On
NA :
th d $)
2 542
b 103
Retail Trade General
$1,053
1.73
769
$ 1,822
,Eating Places
1,808
1.61
1,103
2,911
Services General
2 208
1.57
1 258
3 466
Hotels and Lodqinq
2,192
1.74
1,622
3,814
Total 'Sales:.=
; . ? 261
, .' NA::::
4 752<
12' 023.
The sum of the Benefits From GA Visitors, page 56, and the Benefits
2 From Airline Visitors, page 58.
From Table 5A, page 53.
M.S.
r+ • � �
f. �� '�" 7 .+ �. _. � riVn i'�L�[•• � `ram � �,r� ,, r}.'�. ~ � � � � 4
� ,p � fit' tS �n' 1r /' �'t t t'•,,�i)1 •r F i ����' � � � �� ;V, � � N•.
°'Fi�irt�
#C'CI s f+. � 1'7f,� + � .� C � �-'�, }n .yiF �k ,Xr� � /" "[•; �S"^�'� c `'"-'it - ' � R� c 1
f �T •} r►1 �, �i.i � � � W'. T f ..}• t � ,�t� .r �•�F � F�c ',��,` � l�jy�� I�I 1 �� . i.; �7
Pap
...............................................................................................................
67
Backgroundand Purpose .................................................................................................................
68
Methodology.......................................................................................................................................
68
Definitions...................................................................................................................
68
DataCollection....................................................................................................................
69
Eemornic BenefitResults ......................................................................................................
73
DirectBenefits ......................................................................................................................
73
IndirectBenefits...................................................................................................................
-73
InducedBenefits...................................................................................................................
78
TotalBenefits........................................................................................................................
78
LIST OFT
Table o.
Pap
1B Total Douglas County Economic Benefits From Roseburg Municipal
Airport, 1987....................................................................................................................
67
2B Average Annual Employment by Industry Group, Douglas County, 1987 ................
69
3B Income and Employment per $1,000,000 of Direct Sales, Douglas
County, 1987.........................................................................................................................
70
4B Income and Sales Per Direct Employee, Douglas County, 1987.............................. ».
71
SB Multipliers Used to Estimate Total Benefits, Douglas County, 1987 .........................
72
6B Transient GA Visitor Expenditures...................................................................................
74
7B 1987 Transient GA Expenditures in Douglas County by Type ....................................
75
8B Douglas County Total Indirect Job Benefits, 1987..........................................................
76
9B Indirect Job, Sales and Income Benefits, Douglas County, 1987.................................
77
10B Summary of Indirect Benefits, Douglas County, 1987....................................................
77
11B Total Direct and Related Induced Benefits, Douglas County, 1987 ..........................
78
12B Total Indirect and Related Induced Benefits, Douglas County, 1987 ........................
79
SUMMARY AND CONCLUSIONS
The Roseburg Municipal Airport is an important element of the transportation system in Douglas
County. The airport had an estimated 20,900 general aviation aircraft operations during 1987.
Douglas County received a total benefit of $74,568,000 in sales, $27,594,000 in income and 915 jobs
in 1987 due to activity at the airport. Sales, income and employment impacts are summarized in
Table 1 B below.
TABLE 18
Total Douglas County Economic Benefits From
Roseburg Munlclpal Airport, 1987
EMPLOYMENT
Visitor Benefits
--
13
5
1.8
Other Indirect
®-
481
407
888
Total --Indirect:-..:
494
4106
;
`Total Em to ent
8
434"
41
CIS
INCOME I tho
I
PI I� III' _ I' pl lli
l�
i
SALES (thousand ;}
Direct - $571 18w3
Indirect
Visitor Benefits
---
$ 349
210
559
Other Indirect
---
43,953
29,315
73,68
Total Indirect::
---
44,30=-._`
29,55.
73,87,_.":
Total Sales
$571.
$44, 302 : "
.:$297 ,
67
# " •
Douglas County extends from the Pacific Ocean to the Cascade Mountains. The Umpqua River lies
within the County boarders and marks the dividing line between northern and southern Oregon. The
County contains over 2 million acres of forest lands, which provide the main livelihood. Agriculture,
including field crops, orchards and livestock is another important economic factor. The 1987
population was 93,000.
Roseburg Municipal Airport is located less than one mile northwest of the central business district
and has a 4600 by 100 foot paued a. `d lighted runway. There has been no airline service at Roseburg
since Air `Oregon, a commuter airline that merged with Horizon in the early 1980's, served the
community with Piper Navajo aircraft from March 1977 to February 1980. By highway, Roseburg is
177 miles from Portland, 96 miles from Medford and 70 miles from Eugene, the three nearest air
service airports. In 1987, 78 general aviation aircraft were based at the airport and an estimated
20,900 operations were performed.
The importance of an airport is not always apparent to local citizens who may not have occasion to
use it regularly. As a result, the perception of the economic benefits generated in the community
because of the airport is unclear. The increased urbanization surrounding the airport has led some
in the community to advocate closing the airport and using the land for commercial purposes. The
need exists to identify the benefits the airport brings to the local economy so local support will
continue. This study has been accomplished to identify the benefits generated in Douglas County by
the Roseburg Airport in terms of jobs, income and sales.
To estimate the number of jobs and the total sales and income generated by the airport, a series of
surveys were conducted with the airport businesses, non -aviation businesses in the County and
transient general aviation users.
To provide assistance in estimating the benefits the U.S. Forest Service Implan input/output model
was used to generate multipliers and other information specific to Douglas County.
The methods used in this study were those outlined on pages 11 to 23. The main components were
established by use of surveys and the Implan Input/Output model developed by the U.S. Forest
Service. Economic benefits are described in terms of employment, income and sales in the study
area. The study area was defined as Douglas County.
DEFINITIONS
There are three types of economic benefit associated with the airport - direct, indirect and induced.
Direct benefits consist of the employment, income and sales of aviation related businesses and
organizations located at the airport. Indirect benefits are jobs, income and sales generated in non -
aviation related businesses in the study area due to use of the airport. This includes organizations
that are dependent on the airport for a part or all of their economic activity. Examples include
motel, restaurant and other industries dependent on visitors arriving by air for some portion of their
trade. It also includes firms that use air services to transport goods, supplies, personnel or other
resources in order to enhance business opportunities. Induced benefits are the result of the
"multiplier" effect -- any dollar added to the economy in wages or other expenditures will be spent
"multiplier" effect -- any dollar added to the economy in wages or other expenditures will be spent
and respent several times over. Each time the money is spent, it becomes income to someone else.
Part of it may go to savings and part may be spent outside the study area, but the rest stays within
the study area. The cycle repeats until all effect is lost by leakages outside the study area.
The sum of direct, indirect and induced benefits for sales, income and employment equals the to
economic benefit generated by the airport. i
0+ ' is, M I
Information essential to the study consisted of 1987 data for itinerant general aviation operations,
which were estimated to be 11,600.
Table 2B shows 1987 average annual employment in Douglas County by Standard Industrial
Classification (SIC). This information was obtained from the Research and Statistics Section of the
Oregon Employment Division.
TABLE 2B
Average Annual Employrrient By Industry Group
Douglas County, 1997
INDUSTRY GROUP
EMPLOYMENT
Aqriculture, Forestry & Fishing
618
Mining
91
Construction
740
Manufacturing
10,532
Transportation & Public Utilities
1,549
Wholesale & Retail Trade
6,180
Eating Places
2,034
Finance, Insurance & Real Estate
799
Services
4,983
Hotels & Lodging
480
Government
6,272
Count y
Covered employment data is from Oregon Employment Division
M
U.S. Forest SerAc a Implan Data
Tables 3B, 4B and 5B contain the three Implan Input/Output reports for Douglas County needed
for completion of the Roseburg Municipal Airport Economic Benefit Study. Table 3B shows 1987
income and employment per $1,000,000 of direct sales for Douglas County by industry group. These
factors will be used to derive income and employment benefit estimates from the sales benefits
identified with the Transient General Aviation Surveys. Table 4B shows Sales and Income per
Employee for Douglas County by industry group. This data will be used to derive income and sales
benefit estimates from the General Business Survey employment benefit results. Table 5B shows
the 1987 employment, sales and income multipliers for Douglas County by industry group. These are
used to obtain estimates of induced and total benefits.
TABLE 38
Income and Employment Per $1,000,000 of Direct Sales'
Douglas County, 1987
INDUSTRY GROUP
INCOME
EMPLOYMENT
.Agriculture,_ Forestry & Fishing
430 300
17.86
Mininq
$396,600
12.27
Construction
$404,100
8.84
Manufacturing
315 700
8.51
Transportation & Public Utilities
$683,000
15.35
Wholesale & Retail Trade
$574,300
45.17
Eating Places
$365,800
37.61
Finance Insurance & Real Estate
$587 000
16.85
Services
$577,500
30.25
Hotels & Lodging
$544 700
38.46
overnment2
2
$440,800
19.85
Source: Computed by Oregon Department of Transportation from the Oregon
input/output model as generated by Implan. See U.S.D.A. Forest
Service Implan User's Guide, Fort Collins Colorado, 1983.
' Does not include induced impacts.
2 Sales for Government category are budgets
t�
INDUSTRY GROUP
INCOME
SALES
A riculture Forestry & Fishina
$24,,093
55,991
Minin
32 333
81 500
Construction
45 713
2113 122
Manufacturinq
37 098
$117,509
Trans nation & Public Utilities
44 495
65,147
Wholesale & Retail Trade
12 714
22,139
Eat in Places
S 9,726
$ 26,589
Finance Insurance & Real Estate
$34 837
59-347
Services
$19 091
$ 33 058
Hotels & L0d2inq
$14 163
$ 26,001
Government
$22,206
$ 50,378
Source: Computed by Oregon Department of Transportation from the Oregon
input/output model as generated by Implan. See U.S.D.A. Forest
Service Implan User's Guide, Fort Collins Colorado, 1983.
Does not include induced impacts.
2 Sales for Government category are budgets
71
TABLE 58
Multipliers used To Estimate Total Benefits
Douglas County, 1987
INDUSTRY GROUP
SALES
INCOME
EMPLOYMENT
Agriculture, Forestry & Fishing
1.54
1.64
1.58
Mining
1.32
1.43
1.47
Construction
1.24
1.30
1.58
Manufacturing
1.69
1.86
2.06
Transportation & Public Utilities
1.35
1.35
1.50
Aviation Services
1.33
1.62
1.50
Wholesale & Retail Trade
1.65
1.61
1.32
Eating Places
1.59
1.84
1.34
Finance Insurance & Real Estate
1.40
1.37
1.58
Services
1.52
1.47
1.39
Hotels & Lodging
1.63
1.61
1.35
Government
1.56
1.70
1.49
Source: Computed by Oregon Department of Transportation from the
Oregon input/output Model as generated by Implan. See
U.S.D.A. Forest Service Implan User's Guide.
Survey Information
The primary sources of information for the Roseburg Airport Economic Benefit Study were a series
of surveys performed locally during 1987. Sample surveys are shown on pages 15 to 22.
SurvLey I, page 15, was used to gather information from airport businesses and organizations. Data
concerning the amount of income and sales and the number of jobs generated by aviation related
firms were compiled.
Survey H. page 17, was sent to a sample of 520 Douglas County businesses. This survey asked about
the firms use of the Roseburg Airport and what the impact on jobs, sales and income would be if
the airport were not available.
Survey 111 Rage 20, the Transient General Aviation Survey, was conducted from August 25 through
September 1, 1987. This survey was used to estimate the average number of passengers (including
the pilot), the average number of days spent in Douglas County and the average expenditure per
person per day in Douglas County for GA visitors. During this period 55 surveys, representing 152
passengers, were returned.
72
If ii, W i1i I LeC-1:4Z 149 1
All direct economic benefit data came from Survey 1, page 15, the Survey of Airport Businesses and
Organizations. Because of the need for confidentiality, no information can be shown for individual
firms. However, after completion of the survey results, the following direct economic benefits from
the Roseburg Municipal Airport were identified for 1987.
Total direct benef its
11,11101 11114:14i In -0300 4Z V
Total indirect benefits are obtained from Survey H, the General Business Survey, and from the
U.S.F.S. Implan input/output model. Although the benefits due to visitor spending are included in
this total, they cannot be estimated separately using Survey II. Survey III, for transient general
aviation visitors, identifies the portion of total indirect benefits provided by visitors arriving by air.
The survey of transient general aviation activity began on August 25, 1987 and continued through
September 1, 1987. During this period 55 usable surveys representing 152 people were returned.
The ultimate destinations listed were:
Oregon 118 (77.6%)
Portland Area 31
Roseburg 48
Salem 12
Sunriver 12
Other. Oregon 15
California 21 (13.8%)
Los Angeles area I
San Diego Area 13
San Francisco Area 7
The principal reasons for the trips were:
Washington 10 ( 6.6%)
Seattle area 7
Other Washington 3
Other 3 ( 2.0%)
Arizona 1
Nevada 2
® Just passing through, stopped for fuel, etc 22 (14.5%)
® Business travel to this community 58 (38.2%)
® Air taxi flight 29 (19.1%)
® Instruction 1 ( 0.6%)
Personal travel 35 (23.0%)
Other 7 ( 4.6%)
73
The places of residence listed were: (142 answered)
Oregon 95 (66.9%)
Portland area 45
Salem 14
Other 36
California 14 ( 9.8%)
Los Angeles area 4
San Francisco area 7
Other California 3
Washington 20 (14.1%)
Seattle area
is
Other Washington
5
Other 13 ( 9.2%)
Airzona
I
New Mexico
2
Tennessee
10
An average of 3.1 days per visitor was spent in the County. 49 visitors (32.2%) spent less than one
day in the County, while 103 (67.8%) spent one day or more. The number of passengers per
transient flight, including the pilot, averaged 2.8. Expenditures per person per day were:
• Hotels & Lodging
$ 9.81
(47.1%)
• Eating Places
7.22
(34.7%)
• Retail Stores
0.62
( 3.0%)
• Entertainment
1.08
( 5.2%)
• Rental Cars
1.11
( 5.3%)
• Other
0.98
( 4.7%)
• Total
$20.82
In 1987 there were an estimated 11,600 itinerant general aviation operations. The Aircraft Owners
and Pilots Association (AOPA) formula assumes 1/3 of annual itinerant flights are transient (visitor)
flights. All others are performed by local aircraft. To convert the 11,600 itinerant operations into the
number of estimated transient flights requires dividing by 3 to get transient operations and then by
2 to get transient arrivals. This results in an estimate of 1,933 transient general aviation arrivals at
Roseburg in 1987. Applying the above survey factors to this number results in an estimate of
transient GA expenditures in Douglas County in 1987 of $349,318, as shown in Table 6B.
TABLE 68
Transient GA Visitor Expenditures
VE.
The survey average daily visitor expenditure categories, shown on page 74, give the percentage each
expenditure type was of the total. These percentages were applied to the total annual expenditure
estimate and the result is shown in Table 7B.
TABLE 7B
1987 Transient GA Expenditures In Douglas County By Type
Hotels & Lod in
$164,530
Bating Places
121,213
Retail Stores
10,480
Entertainment
18,164
Rental Cars
18,514
Other
16 417
Table 3B, page 70, shows income and employment per $1,OW,000 of sales by SIC group for Douglas
County. The data in Table 713 was used in conjunction with the income and employment factors
shown on Table 3B to estimate the employment and income generated in Douglas County by
transient GA visitors in 1987, shown below.
1987 Benefits From GA Visitors to Douglas County
Industry Group
Sales
Jobs
Income
Hotels & Lod g in
$164,530
6.3
$ 89,619
Eating Places
121,213
4.6
44,340
Retail Stores
10,480
0.5
-6t019
Entertainment
18,164
0.5
10,490
Rental Cars'
18,514
0.6
10,692
Other
16,417
0.5
s,:
Total: 'Benefits
Entertainment, Rental Cars and Other are included in the
Services Industry Group in Table 3B, page 70.
75
Total Indirect Benefits
The transient GA visitor analysis has identified the portion of indirect benefits generated by air
travelers. There are many other firms in the County that would either relocate or be forced to cut
back on employment and operations if the Roseburg Airport were no longer available. The General
Business Survey was sent to a sample of 520 Douglas County non -aviation businesses and
organizations. Table 8B shows the total indirect (non -aviation) jobs generated in Douglas County by
activities and services provided at Roseburg Airport. These jobs would not remain in the County if
the airport closed.
TABLE 8B
Douglas County Total Indirect Job Benefits, 1987
s
LOST
SURVEY
TOTAL'
JOBS'
TOTAL'
JOBS
TOTAL
COUNTY
IF NO
SURVEY
LOST
COUNTY
JOBS
AIRPORT
JOBS
(A T B)
JOBS
LOST
INDUSTRY GROUP'
A
B
C
I D
C x D
Agriculture, Forestry & Fishing
0
12
0.0
618
0
Mining
5
50
10.0
91
9
Construction
0
51
0.0
740
0
Manufacturing
152
4,920
3.1
10,532
326
Trana22rtation & Public Utilities
0
367
0.0
1,549
0
Wholesale & Retail Trade
5
818
0.6
6,180
37
Finance, Insurance & Real Estate
1
257
0.4
799
3
Services
29
1,450
2.0
4,983
100
Government
9
3,006
0.3
6,272
19
To a3tndirect.;fobs: :<..
2011..,
10�3.31;<.
a�A .::31,7b4`94
' From General Business Survey, 1987
2 Table 28, page 69.
' For each SIC group, the result of Column C (percent jobs lost among
survey respondents) multiplied by Column D (total jobs in the County
in that SIC group).
Sales and income impacts were developed using Table 4B, page 71, Income and Sales per Employee
by industry group. Table 9B, page 77, shows total indirect job, sales and income benefits for Douglas
County. These are the indirect jobs, sales and income that would be lost by each industry group if the
Roseburg Municipal Airport were to close.
76
TABIE 9B
- indirect Job, Sales and Income Beraft
Douglas County, 1987
COUNTY
INCOME 2
LOST
SALE s-2
COUNTY
PER
COUNTY
JOBS
PER JOB
LOST SALES
JOB
LOST INCOME
IN
INDUSTRY GROUP
-(A)
(B)
(A x B)
L C1 __ _
(A x C)
-
Qric., Forestrv, Fishinq
0
$ 55,991
0
$24jO93_
0
ining
9
81 500
tl.= �
0
32,333
290 997
nstruction
0
113,122 —$
733,500
_45 713
0
anufacturing
326
117,509
38,307,934
37,098
12,093,948
ransp. & Public Utilities
0
651?147
0
44L495
0
holesale & Retail Trade
37
22 139
819 143
12 714
470 418
Finance, Ins., Real Estate
3
59,347
178,041
34,837
104L5II
Services
100
33,058
3,305,800
19,091
Government
19
50,378
957,182
22,206
.1,909,100,
421,914
-Tot a l"In'da.'r, 6 c' t�*:::'::':'-
.4 4
....... . —
$443017�`600
$ 1'5150 888
From Table 8B, page 76.
2 From Table 4B. page 71.
ne relationship between GA visitor benefits and the total indirect benefits in Table 9B is shown in
Table 10B. The indirect benefits generated by visitors arriving by air are a subset of total indirect
benefits and must be subtracted from the totals shown in Table 9B.
TABLE I OB
Summary of Indirect Beneft
Douglas County, 1987
JOBS INCOME SALES
Benefits from GA transient visitors' 13 $ 170,640 349,318
Other Indirect Bene fitS2 481 15,120,248 43,952,282
... . ... ............
Trstal
:Indirect "'B6ne i s
Benefits From GA Visitors To Douglas County, page 75.
2 Derived by subtracting the.GA transient visitor benefits from the Total
Indirect benefits from Table 9B.
3
From Table 9B. I
77
INDUCED BENEFITS
Each dollar generated by the airport is used in one of three ways; 1) a portion may be saved 2) a
portion may become income and sales to people outside of Douglas County 3) a portion may
become income and sales to people within Douglas County. That portion which is spent within
Douglas County repeats the cycle above until nothing remains. The impact of the initial dollar
generated by the airport is substantially more after this "multiplier effect" occurs. This multiplier
effect is called induced benefit. Multipliers for Douglas County for each industry group have been
obtained from the U.S. Forest Service Implan model. Safes, income and employment multipliers for
Douglas County are shown in Table 5B, page 72
TOTAL BENEFITS
Total Direct and Related Induced Benefits
For each industry group the relevant multiplier must be applied to calculate total benefits. Induced
benefits are then derived by subtracting direct benefits from the total benefits. Table 11B shows the
process used to identify induced and total benefits for the direct benefit sectors represented by the
aviation related businesses and organizations located at the airport. Direct sales, jobs and income
were obtained from the survey and the multipliers are from Table 5B.
TABLE 11 B
Total Direct and Related Induced Benefits
Douglas County, 1967
Total Indirect and Related Induced Benefits
Table 12B shows the process used to identify induced and total benefits for the indirect benefit
sectors. Total indirect jobs, income and sales are obtained from Survey II, the General Business
Survey. The result of this survey appears in Table 9B, on page 77.
A summary of the total Douglas County direct, indirect and induced benefits generated by the
Roseburg Airport is shown in Table 1B, on page 67.
m
TABLE 12B
Total In&W and Related Induced Beneft
Douglas County, 1987
INDUSTRY
I
INDIRECT
A
2
MULTIPLIER
B
INDUCED
(D - A)
C
TOTAL
(A Y 8)
D
EMPLOYMENT
Agriculture, Forestry,Fishin
0
1.58
0
0
Mining9
1.47
4
13
Construction
0
1.58
0
0
Manufacturing26
2.0
346
672
Transportation, Pub. Utilities
0
1.50
0
0
Wholesale & Retail Trade
37
1.32 _
12
49
Finance, Insurance, Real Estate
3
1.58
2
5
Services
100
1.39
39
139
Government
19
1.49
9
28
Tcital Em lo" ent ;:: :......
44
A
........ 906._;
INCOME
(thousand
$}
Agriculture, Forestry, Fishing
0
1.64
0
0
Mining
21
1.43
15
416
Construction
a
1.30
0
0
Manufacturing
12,094
i.86
10,401
22,495
Transportation, Pub. Utilities
0
1.35
0
0
Wholesale & Retail Trade
470
1.61
287
757
Finance Insurance Real Estate
105
1.37
39
144
Services
1 909
1.47
897
2,806
Government
422
1.70
295
717
Total Income'
15;231
�A :.
12 044 _=
_
SALES {thousand $)
Agriculture, Forestry, Fishing_
0
1.54
0
0
Mining
734
1.32
235
969
Construction
0
1.4
0
0
Manufacturing
38,308
1.69
26,432
64,740
Transportation, Pub. Utilities
0
1.5
0
0
Wholesale &•Retail Trade
819
1.65
532
1,351
Finance Insurance Real Estate
178
1.40
71
249
Services
3,306
1..52
1-719
5 025
Government
957
1.56
_536
1 493
'::Total Sales.:
' From Table 9B, page 77. 2 From Table 5B, page 72.
79
The following blank work sheets have been provided for use in following the various instruction steps
on pages 27 through 44. You may find that reproducing these work sheets and filling in the blanks
as you read through the instructions will help to clarify the process.
E-IM
WORK SHEEIr 2
Direct Benefits From Airport Businesses and Organizations
Sample Waimheet
E:I
WORK SHEET 3
Transient General Avlation Survey Taly
Sample Worksheet
Col 1
Cal 2
Col 3
Col 4
Carl S
Q4
QS
Q4 x Q5
Q6
# OF
# OF
# OF
TOTAL
SURVEY #
PAX
DAYS
PERSON DAYS
EXPENDITURES
..TOTAL'...:.
' Including
pilot
WORK SHEET 4
Transient GA Visitor Expenditure Worksheet Sample
85
WORK SHEET 6
Non -Resident Airline Passenger Survey Tally
Sample Worksheet
Col 1
Col 2
Col 3
Col 4
Col 5
Q5
Q6
Q5 x Q6
Q7
# OF
# OF
# OF
TOTAL
SURVEY ,f`-
DAYS
PEOPLE
PERSON DAYS
EXPENDITURES
WORK SHEET 7
Airline Visitor Expenditure Worksheet
WORK SHEET 8
Sample Employment Benellt Workshest
Surveyed Firms
Ql
Q8
Q11
LOST
TYPE OF
TOTAL
OF LOST JOBS
JOBS
SURVEY
BUSINESS
JOBS
IF 1qO AIRPORT
11008
TOTAL.
Ism
..........
..................................
- - - - - - - - - - - - - -
"nr
�'TOTAL:-..
...... .
-M
WORK SHEET 9
Worksheet For Calculating Study Area Total Indirect Job Seneft
TOTAL?
% JOBS LOST2
TOTAL*
TOTAL4
2
LOST JOBS
JOBS AMONG
AMONG
STUDY
SURVEY
INDUSTRY
IF NO
SURVEY
SURVEY
AREA
AREA
GROUP
AIRPORTS
RESPONDENTS
RESPONDENTS
JOBS
JOBS LOST
(A)
(B)
(C)
(D)
(E)
IF)
TOTAL
777777=
. . . . . . . . . . . . . .
I From Question 1.
2 From Table 8.
3 From county employment data by SIC group.
For each SIC group, the result of Column D (percent jobs lost among
survey respondents) multiplied by Column E (,total jobs in the study
area in that category).
RE
WORK SHEET: 11
Sample Worksheet For Study Area Indirect Job, Sales and Income Beneffis
TOTAL
TOTAL
STUDY AREA
STUDY AREA
2
SALES
STUDY AREA
INCOME2
TOTAL
INDUSTRY
LOST JOBS
PER JOB
LOST SALES
PER JOB
LOST INCOME
GROUP
A
g
(A x B)
(C)
(A X C)
T1
... .... . ..... . ..
. .......... . .
....... . ...
...... ..... ....
.......
.
..... ..
. ..
,RT
. .
.. . ... . ... . ..
I ... ...
..... . ....
... .... ....
...... ...........
....
From the
last column of Table 9,
page 37.
2
From Table 10. page 38.
WORK SHEET 12
Sample Summary Sheet For IndIrect Benefits
WORK SHEET 14
Total Direct and Related induced Benefits
WORK SHEET 17
Total Economic Benefit Summary
0