Airport’s Economic Impact Up Substantially Since 1995 When Last Study Was Done

Bob Hope Airport is an important engine in the Southern California economy, generating $3.9 billion in total economic output and over 36,000 jobs, according
to a new economic impact study released today by the Burbank-Glendale-Pasadena Airport Authority.  This is the first economic study of the Airport’s impact since 1995, when consultants identified total output of $878 million and 17,000 jobs.

“This study gives an updated picture of the Airport since the mid-1990s. More people are flying for pleasure and personal reasons, and more businesses depend on Airport activity now. The Airport’s place in the economic vitality of the region has never been more important,” said Airport Authority President Carl Povilaitis.

The consulting firm of Unison-Maximus, in association with UCG Associates, produced the study utilizing 2006 economic data and results of a 2007 survey of 1200 airport passengers. Among the principal findings presented to the Airport Authority:

• Bob Hope Airport generated a total economic impact of $3.9 billion in Southern California in 2006. The 1995 report, which was based on 1993 data, documented $878 million in total impact.

• Bob Hope Airport generated 2,400 jobs on the Airport itself and accounted for another 34,000 full-time equivalent jobs in the broader economy. Holders of those jobs received $1.2 billion in earnings.

• The tax component of the Airport’s economic impact in Los Angeles County was $386.3 million, with $260.5 million going to the state and $125.8 million going to local government.

• Bob Hope Airport passengers tend to be well-educated and affluent, suggesting the likelihood of continuing strong demand for Airport services into the future.

• Bob Hope Airport received the highest rating for convenience compared to John Wayne Airport, Long Beach Airport, LAX, and Ontario International Airport. Passengers focused in particular on ease of access, check-in, and TSA security screening.

The study identifies economic activity that takes place directly at the airport involving airlines, concessionaires, general aviation businesses and others, and then traces the economic activity that flows to indirect effects such as businesses that cater  to the needs of the traveling public off the airport  premises. The analysis then identifies the so-called “multiplier effect” of those two types of activity in the broader regional economy.

The passenger survey report includes extensive demographic information about Airport patrons who were surveyed, their opinions about Airport services and facilities, their spending habits and their purpose for traveling.

The two-volume study, which includes a concise executive summary, will be posted on the Airport’s website, www.bobhopeairport.com.