Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, December 16, 1993 TAG: 9312160306
SECTION: BUSINESS PAGE: B-8 EDITION: METRO
SOURCE: By JOEL TURNER MUNICIPAL WRITER
DATELINE: LENGTH: Medium
It produces $214 million a year in economic benefits for the Roanoke Valley and the region, jobs for 554 people employed by the airport and the businesses housed there.
The first professional study of the airport's impact on the region "shows that the airport has a significant benefit for the economy," said Mark Courtney, airport director of planning and market development.
"The economic impact of the airport is often overlooked. For the first time, this is an effort to determine its value," Courtney said.
The study was conducted by IPAC Inc., a Washington firm that specializes in airport and aviation-related research.
"If anything, [the consultants] have underestimated the airport's impact," said Bob Johnson, chairman of the Regional Airport Commission.
The total economic benefits will average $234 million a year over the next five years.
Direct benefits of the operation are estimated at nearly $50 million a year, the study said. These include payroll, local spending and capital spending by the airport and businesses based there.
Indirect benefits include income generated by airport operations, such as money spent by business travelers and tourists for lodging, meals and entertainment. These are estimated at $66 million a year.
Induced benefits, the largest category, was estimated at $98 million a year. It represents the additional income created when airport-related income is respent in the community. Airport and airport-related employees spend their money for cars, housing and other consumer goods, generating income for other businesses.
Johnson said the study shows the Roanoke Valley would have suffered a substantial economic blow if a new regional airport had been built in Bedford County as consultants recommended in the 1970s.
The airport also creates an environment for economic vitality, Courtney said. Air travel and cargo facilities benefit local businesses and provide incentives for new industry to move to the region, he said.
Airport landings and takeoffs: The number of commercial and general aviation operations will grow 10 percent over the next five years.
\ Roanoke Regional Airport\ \ Airport landings and takeoffs: The number of commercial and general aviation\ operations will grow 10 percent over the next five years.
Passenger traffic: The airport is used by 650,000 commercial passengers each year. The number of departing passengers is projected to increase by 23 percent by 1997, rising from 326,000 to 400,000 annually.
Planned improvements: Projects include expansion of general aviation facilities with additional ramp and hangar space, a new taxiway, air cargo ramp and helipad. The airport proposes to spend $47 million for capital projects over the next five years.
Savings in travel time: The airport saves passengers an estimated $11 million a year in travel costs, including gasoline and travel time, if they had to commute to other airports.
Air cargo and package services: Besides passenger service, the airport is served by United Parcel Service, Emery Worldwide, Airborne Express and other cargo carriers.
by CNB