The regional economic impacts of airport operations are tremendous and measurable. For nearly two decades, the Philadelphia Department of Aviation which operates Philadelphia International Airport (PHL) and Northeast Philadelphia Airport (PNE), has turned to Econsult Solutions to analyze the data and report on the multi-faceted benefits to the Greater Philadelphia region. The results of this study were key in messaging for PHL’s inaugural State of the Airport address.
Results of the Study
The 2023 regional economic impact of the airport system was estimated at $18.7 billion, supporting 102,600 jobs with $6.1 billion in earnings. Fiscal analysis estimated that the direct and spillover economic impact associated with PHL generated $547 million in state and local tax revenue in 2023. In conducting these analyses with an equity lens, it was revealed that the Philadelphia Division of Aviation is meeting diversity goals in its workforce, procurement, and securing airport concessions operators, reflective of the demographics of the region.
Methodology
ESI examined regional impacts from the airport system in three tiers of activity, starting on the airfield and radiating throughout the region:
Tier 1 Aviation Operations benefits come from spending on operations, employment, and capital investments by the airlines and the Division of Aviation to support plane and passenger movements;
Tier 2 Airport-Related Operations benefits come from industries located at or near the airport providing support services or benefitting from the logistical advantages of the facility and airspace;
Tier 3 Regional Business and Resident benefits come from the regionwide implications of air service for the tourism economy and for resident and business access to connections to other destinations.
Economic impacts in each tier were based on a range of data sources and economic modeling of direct and spillover impacts within the Philadelphia MSA using the IMPLAN input-output modeling framework. These economic impacts were also estimated at the county level within the MSA, using a mix of IMPLAN variables to estimate the share of activity occurring within each county, and within the portions of each of the four states represented in the Philadelphia metropolitan area. The report also examines the distribution of these economic benefits from an equity lens, highlighting the diverse workforce at the airport as well as the success of the Division of Aviation in meeting diverse goals in procurement and airport concessions operators.
Fiscal modeling was also undertaken to estimate the impact of this economic activity on state and local tax revenues, using a custom fiscal model based on the relationship between economic activity and tax collections (i.e. effective tax rates).
