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Lecture 8-The Economic Role of Airports

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Airports play a significant economic role in the communities they serve by generating billions in taxes, providing air access to support business growth, and creating hundreds of thousands of jobs. As large public facilities, airports stimulate local economic activity through business opportunities for local services at the airport. This includes activities like food catering, aircraft maintenance, retail, and transportation services. The airport operations and businesses located there represent major employment centers. Airports also benefit communities by supporting tourism and conventions.

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Lecture 8-The Economic Role of Airports

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zuliana
376 views13 pages
Airports play a significant economic role in the communities they serve by generating billions in taxes, providing air access to support business growth, and creating hundreds of thousands of jobs. As large public facilities, airports stimulate local economic activity through business opportunities for local services at the airport. This includes activities like food catering, aircraft maintenance, retail, and transportation services. The airport operations and businesses located there represent major employment centers. Airports also benefit communities by supporting tourism and conventions.

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Airports play a significant economic role in the communities they serve by generating billions in taxes, providing air access to support business growth, and creating hundreds of thousands of jobs. As large public facilities, airports stimulate local economic activity through business opportunities for local services at the airport. This includes activities like food catering, aircraft maintenance, retail, and transportation services. The airport operations and businesses located there represent major employment centers. Airports also benefit communities by supporting tourism and conventions.

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Attribution Non-Commercial (BY-NC)
Download as PPT, PDF, TXT or read online from Scribd
Download as ppt, pdf, or txt
376 views13 pages

Lecture 8-The Economic Role of Airports

Uploaded by

zuliana
Airports play a significant economic role in the communities they serve by generating billions in taxes, providing air access to support business growth, and creating hundreds of thousands of jobs. As large public facilities, airports stimulate local economic activity through business opportunities for local services at the airport. This includes activities like food catering, aircraft maintenance, retail, and transportation services. The airport operations and businesses located there represent major employment centers. Airports also benefit communities by supporting tourism and conventions.

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Lecture 8:

The Economic & Political Role


of Airports
By: Zuliana Ismail
The Economic Role of Airports
Airport:
• Encompass several thousand acres area
• Same functions and infrastructure as a modern city
• Provide necessary public services
• Operating budgets in the tens to hundreds of million dollars
• Capital projects accounting for many millions or billions of
dollars
• Hundreds of occupants and concessionaires engaged in
aeronautical and general business generating revenues.
The Economic Role of Airports

• Among the largest public facilities , airport play significant


roles in shaping economic of the communities they serve.
• Thus, airport management should responsible for leading the
airport positively contributing to the local economy while
minimizing the impacts of airport to the environments.
How airports contribute to the
economic prosperity of the
communities they serve?
airport activity stimulates economic growth
1. TAXES
• Airports generate billion dollar in “taxes "annually
2. AIR ACCESS
• Providing air access for various companies to expand their
business.
3. BUSINESS OPPORTUNITIES
• Local services-most airports generate billion dollar in
economic activity
4. EMPLOYMENT /JOB OPPORTUNITIES
• Most airports generate hundred thousand jobs
5. TOURIST
airport activity stimulates economic growth

Taxes
• Airports generate billions of dollars per year in state and local
taxes.
• These tax dollars increase the revenues available for projects
& services benefit the residents of each state & community.
airport activity stimulates economic growth

Air access
• The airport has become important to the growth of business &
industry in a community by providing air access for various
companies that must meet the demands of supply,
competition & expanding marketing areas.
• Communities without airports or air service have limitations
for economic growth.
• For example: limited industrial development & limited
potential for attracting tourism
• Airports play a key role in the community’s ability to attract
and retain businesses
airport activity stimulates economic growth
Business opportunities
• The use of local services for air cargo, food catering to the
airlines, aircraft maintenance, ground transportation also
stimulates the economic growth.
• Regular purchases of fuel, supplies, equipment & other
services from local distributors inject additional income
into the local community.
FOOD SERVICE

Ground handling
airport activity stimulates economic growth

Employment /job opportunities


• Either aviation or non aviation business located at the airport
represent a major source of employment for many
communities around the country.
• Most airports generate hundred thousand jobs.
• Direct employment – employment attributed to the operation
and management of the airport, airline operations and
associated services. Example: MAHB, KLAS
• Indirect employment – employment in non-aviation
industries that result from airport activity. Example: ERL,
Concessionaries
airport activity stimulates economic growth

Tourist
• Cities with good airport facilities also profit from tourist &
convention business such hotels, restaurants, retail stores,
sightseeing & transportation.
OTHER COMMUNITY BENIFITS

Variety of other public benefits:


• Time & cost savings associated with air
transportation
• Access to national and international markets – global
connections
• Enhancement to community well-being/quality of
life
• Support of increased tourism/conventions
• Comfort and convenience

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