FYV Logo ECONOMIC IMPACT OF DRAKE FIELD

The total direct, indirect and induced economic impact of Drake Field on the City of Fayetteville was estimated at $43.3 million for 1995. Regional economic impacts were probably three to four times this amount. The table below summarizes Drake Field's impact on various economic factors in the City of Fayetteville. For a description of terms and methodologies please refer to the Executive Summary below.

Comparison Of Total Economic Impacts
Fayetteville Municipal Airport - Master Plan Update

Economic
Factors		 Economic
Impact
Estimated
For 1995		 Economic
Impact
Projected
For 2000
No Loss Of
Commercial
Carriers		 Economic
Impact
Projected
For 2000
Total Loss Of
Commercial
Carriers
Employment 411 450 66
Personal Income $ 7,865,000 $ 9,161,000 $ 1,745,000
Purchases of Goods
and Services		 10,865,000 12,656,000 3,929,000
Capital Expenditures 6,570,000 7,653,000 2,126,000
Visitor Expenditures 17,975,000 20,939,000 299,000
Total $ 43,275,000 $ 50,409,000 $ 8,099,000




Local Taxes $ 146,000 $ 170,000 $ 24,000

[Source: Public Information Workshop 06-25-97, FYV Master Plan Update 1997-2017]

[From Master Plan Update - Working Paper I, Economic Impact of the Airport on the City of Fayetteville. Prepared by Leibowitz AMC, Inc. for the City of Fayetteville, June 1997]

1.0 EXECUTIVE SUMMARY

The operation of the Fayetteville Municipal Airport contributes to its local surrounding economy by creating employment, generating personal income, business expenditures and local taxes. The objective of this Economic Impact Study is to determine quantitatively how the airport benefited the economy of the City of Fayetteville, Arkansas during 1995. This objective is achieved by estimating the economic impacts that are caused directly by airport activity as well as those that are indirect and induced impacts resulting from the airport's presence. Direct economic impacts are measured in terms of local employment, employees' personal income and business purchases of goods, services and facilities. Indirect economic impacts are caused by the activities of the visitor industry in response to travelers who come to the City through the airport. These indirect visitor impacts are measured in terms of local visitor industry employment, employees' personal income and travelers' expenditures while visiting the City. Induced economic impacts result from the multiplier effects of respending direct and indirect impacts. The local tax impact is measured in terms of property taxes and sales taxes paid to the City by airport-related and visitor industry employees and organizations. The local tax impacts have direct, indirect and induced components similar to the impacts of employment and expenditures.

Different methodologies were used to determine the direct, indirect and induced economic impacts. The methodology used to estimate the airport's direct impacts included conducting an economic activity survey of organizations that were directly related to airport operations. These organizations included airlines, aviation service providers, ground transportation companies, concessions, government agencies and other airport tenants. The methodology used to estimate the airport's indirect impact of the visitor industry was to derive airport-related economic activity from publicly available secondary data. The methodology used to estimate the airport's induced impact was to apply a respending multiplier of 0.5 to the sum of direct and indirect impacts. The methodology used to estimate the airport's local tax impact was to determine the average local tax burden of employment in the City that was directly and indirectly generated by airport activity. The induced local tax impact was also determined by applying a respending multiplier of 0.5 to the sum of direct and indirect tax impacts.

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