In 2006, an Economic Impact Study was conducted by William V. Cheek & Associates on behalf of the Prescott Chamber of Commerce. The results of this survey concluded that the total direct economic impact of aviation activities at the Prescott Municipal Airport exceeds $25 million per year. Coupled with indirect and multiplier effects this total is estimated to be approximately $69 million per year.
The economic impact of an airport is a measure of the benefit it provides to the community. These benefits include the jobs, wages, and expenditures that occur at the airport.
- Direct Impact on the local economy reflects the jobs, payroll, and sales directly related to airport operations and businesses whose existence depends on the viability of the airport. In this case, airlines, tour operators, government installations/operations, concessionaires, educational facilities, flight schools, maintenance shops, airport administration, aircraft owners and tenants of the Airport were included.
- Indirect Impact refers to money flowing into the local economy that would come from individuals, businesses, and organizations related to the airport’s operations or otherwise involved with Airport business. Tourists, students, and businesses that buy, sell or trade in the community help quantify these inputs.
- Induced Impact refers to the so-called “multiplier” effect, which represents the downstream effect of the airport operations and those of businesses dependent on the Airport’s viability. Money generated by Direct Impact and Indirect Impact create additional jobs, rounds of spending and thereby “multiply” the initial inputs. Typically, the Direct Impact and Indirect Impact figures are added together, then a multiplier is applied to determine the Induced Impact.
|Direct Economic Activity||Indirect Economic Activity||Induced Economic Impact||Total Economic Activity|