2013 Economic Impact Study
San Francisco International Airport
SFO Connects the Bay Area to the World
May, 2013
Prepared by:
In Association with:
Economic Development Research Group, Inc.
155 Federal Street, Suite 600,
Boston, MA 02110
ICF SH&E, Inc.
and
Polaris Research and Development, Inc.
I
Executive Summary
Findings

Direct Impacts
–
–
–


On Airport – 33,600 jobs, $5.5 billion in business activity
Off Airport – 82,800 jobs from $9.1 billion in visitor spending
Off Airport – 36,400 jobs from cargo valued at $17 billion,
originating in the Bay Area and shipped from SFO
Spin-off “ripple” effects of 135,500 jobs and
$24.6 billion in business revenues
$2.5 billion in state and local tax revenues
3
Total Economic Impact
Impact Type
Labor
Income
Employment ($Millions)
Output
($Millions)
On-airport
33,580
$2,092
$5,462
Aviation dependent exports
36,430
4,786
16,636
Visitor Spending
82,790
3,035
9,126
152,800
9,913
31,223
Suppliers of goods and services
56,545
4,867
11,905
Re-spending of income
78,990
4,855
12,656
288,334
$19,635
$55,783
Direct Total
Total Impact
4
How We Got There


Verified on-airport direct employment
Conducted a 1,500 person visitor intercept survey
in 4 languages

Collected and analyzed freight data

Applied the IMPLAN Modeling Package

Identified aviation and major state and local
tax impacts
5
II
Overview
SFO Plays an Important Role in the Bay Area

A jobs center and economic engine

An enabler of business and travel tourism
–

A freight gateway
–

Enhancing the regional economy and hospitality industries
Supporting goods producing industries throughout the Bay Area
A generator of tax revenues for California and
the Bay Area
7
What are the impacts?

Jobs
–
–
–

Business Revenue
–
–

Direct Jobs – generated by SFO and would not exist without SFO.
Indirect Jobs – generated when SFO or SFO-dependent firms buy goods
and services from businesses located in the area.
Induced Jobs – generated by spending of wages that are earned by
workers of SFO or SFO - dependent firms, and by employees of suppliers,
for items such as food, clothing and housing.
Sales to airlines and service companies directly dependent on SFO.
Reported in terms of direct, indirect (local purchases) and induced
(labor re-spending) categories.
Personal Income
–
–
Wages and salaries received by individuals employed due to SFO activity.
Reported in terms of direct, indirect (local purchases) and induced (labor
re-spending) categories.
8
Categories and Measures of Impacts

Jobs, business revenues, personal income and taxes are shown
by airport-generated, visitor industry, and air cargo related
categories
Type of Activity
Airport-Generated
Description
•
•
•
•
•
Airport operations and administration
Capital investment (construction)
Passenger & freight airlines
Services to airlines
Services to passengers
Visitor Industry
• Spending by business and personal
travelers arriving from international and
U.S. locations
• Affected sectors: hotels, restaurants,
entertainment, retail shops & off-airport
ground transportation
Aviation Dependent
Exports
• Goods produced in the Bay Area are
shipped to long distance customers
through SFO, supporting regional
economic development
Measures of
Impact
•
•
•
•
Jobs
Personal Income
Business Revenue
Aviation, State &
County Taxes
9
Contribution to the Bay Area Economy
Employment
(Jobs)
Labor Income
(Payroll)
$ millions
Output
(Business Revenue)
$ millions
Airport-Generated
33,580
$2,092
$5,462
Aviation Dependent Exports
36,430
4,786
16,636
Visitor Industry
82,790
3,035
9,126
152,800
9,913
$31,223
Indirect
(Suppliers of goods and services)
56,545
4,867
11,905
Induced
(Re-spending of income)
78,990
4,855
12,656
Total Contribution
288,334
$19,63
$55,783
Impact Type
Direct Total
10
III
Jobs Center and
Economic Engine
33,580 People Work at SFO
Jobs at SFO include:







Airlines – passenger and cargo activities
Aviation Support Services – catering,
in-flight entertainment, aircraft handling,
fueling and maintenance
Distribution of On-Airport Jobs
Concessions
15%
Construction
3%
Freight Transport – courier, delivery, customs
broker and trucking
Concessions – restaurants, retail stores and
passenger services
Ground Transportation Services – rental car,
taxi, limousine service, and bus companies
Air Terminal Operations Staff – security,
building maintenance and facility management
Public Agencies – FAA, other Federal
Agencies and Airport Administration
(including Police and Fire Departments)
Passenger
Airlines
47%
Admin., Gov’t
& Security
9%
Passenger
Ground Trans.
17%
Aviation
Support
Services
7%
Freight
Transport
2%
Direct Personal
Income Earned On
Airport
Average Personal
Income Per Job
$2.1 Billion
Greater than $62,000
12
Jobs and Business Revenues by County
Airport Generated
Business Impacts (3)
($ millions)
Jobs Across the Bay Area
$35
$90
$162
$103
Subtotal Direct:
33,600
Subtotal Indirect
& Induced:
26,400
Total:
$804
60,000
$394
$675
$6,663
$932
(1) By place of residence
(2) By location of job
(3) Includes direct, indirect, and induced impacts
Note: Jobs rounded to the nearest 100.
13
IV
Visitor Industry
Impacts
The Airport Supports Tourism
Domestic Enplaned
Passengers
International Enplaned
Passengers
13.1 million total
3.6 million total
51.6%
55.4%
Domestic Visitors
International Visitors
Total Visitors
6.8 million
2.0 million
8.7 million
California
Rest of U.S.
1.2 million
5.6 million
Note: Totals may not add due to rounding.
Sources: SFO Traffic Statistics; U.S. DOT O&D Survey, YE 2Q 2012; U.S. DOT, T-100 Database; IATA, PaxIS Database; U.S.
DOC, International Air Travel Statistics, 2011.
15
SFO Binds the Bay Area to the Nation
525 Daily Departures to 72 Domestic Markets (non-stop)
Source: OAG, July 2013.
16
SFO is the Bay Area’s International Gateway
546 Weekly Departures to 33 International Markets (non-stop)
Source: OAG, July 2013.
17
The Airport Supports Tourism


Visitors spend on hotels, restaurants, retail purchases, recreation,
and local travel (taxis, car rental, and public transportation)
International business travelers on average spend close to
$2,000 per trip while domestic leisure travelers spend more than
$800 per trip
Individual Spending per Trip
* direct, indirect and induced
18
Total Impacts of Visitor Spending By County*
Business Sales
($Millions)
Alameda
$1,524
Santa Clara
$1,521
Jobs in County
San Mateo
$1,416
Napa
$1,016
Alameda
12,671
Santa Clara
11,283
San Mateo
10,994
Napa
8,670
Sonoma 6,481
Sonoma $725
Contra Costa $239
Marin $192
Solano $93
San Francisco
$9,556
*direct, indirect and induced
Contra Costa 1,968
Marin 1,582
Solano 834
San Francisco
70,710
19
V
Impacts of Air Reliant
Users (Freight shippers)
Air Freight at SFO Supports the Bay Area Economy

Enables transport of goods from Bay Area to customers in
both long-distance domestic and international markets.
–

Cargo services at SFO support Bay Area firms’ efforts to sell products
across the U.S. and the world, and thereby maximize shares of national
and international trade.
Without the freight services offered at SFO (and if the similar
scale of services are not assumed by another regional
airport)
–
–
Companies in the Bay Area that produce and ship products would find
markets limited and market shares curtailed.
In turn, economic activity in the Bay Area that is associated with
production of goods shipped through SFO would be reduced.
21
Value of Air Freight
Goods produced in the Bay Area and shipped from SFO



Represent sales of Bay Area companies in international
and long distance US markets
The sales bring income into the Bay Area from these
markets to support jobs in the region.
“Multiplier” effects (supplier sales and worker spending)
generate additional jobs in the Bay Area.
–
–
Parts of the sales revenue are paid as wages & profits that are spent in
the region; and
parts of the sales revenue is paid to supplier firms in the region for
purchase of good and services that support additional jobs and wages
22
Exports from SFO Exceed Imports (by value)
Value of Exports by Air – Value of Imports by Air = Surplus or Deficit
Comparison of SFO and U.S. Air Exports by Value
$1,200
San Francisco Int'l. Airport
$4
$800
U.S.
$2
$400
SURPLUS
$0
$0
DEFICIT
-$2
-$400
-$4
-$800
-$6
-$1,200
-$8
-$1,600
2003
2004
2005
2006
2007
2008
2009
2010
Source: US Census Bureau Foreign Trade Division, provided by WISERTrade. Dollars are in nominal value.
2011
Air Value of U.S. Exports (billions)
Air Value of SFO Exports (billions)
$6
Shipments by Bay Area Firms through SFO
Economic
Value
Jobs – 103,144
Labor Income (payroll) – nearly $9.9 Billion
Business Revenue – over $29 Billion



Top International Exports
Top Domestic Shipments
$8.64B
$7.99B
Chemicals
7%
Machinery
8%
Computer &
Electronics
67%
Trans. Equip
4%
Elec. Equip. &
Appliances
2%
All Other
12%
Computer &
Electronics
75%
Machinery
19%
All Other 2%
Textile / Mill Prod.
Leather & 2%
Allied Prod.
2%
24
VI
State & Local Tax
Impacts
State & Local Tax Revenues Generated by SFO
2012 SFO State & Local Tax Revenues
$629M
$9M
$220M
35.0%
$927M
$942M
$323M
34.9%
$6M
66.7%
$1.2B
47.2%
$633M
67.2%
$603M
65.1%
$409M
65.0%
$3M
33.3%
$2.5B
$309M
32.8%
$1.32B
52.8%
26
State & Local Taxes Generated On-Airport and from
Visitor Spending
Subtotal Direct:
$1.01B
Subtotal Indirect
& Induced:
$544M
Total:
$1.56B
$ millions
* Direct tax revenues from on-airport employees are based on place of residence
27
VII
Summary of Impacts
SFO- Economic Engine for the Bay Area*



288,000 jobs
$55.8 billion in business revenues, of which
$19.6 billion is personal income
$68,000 average income per employee
* direct, indirect and induced
29
Many Roles of SFO Create an Economic Engine
for the Bay Area and its Counties
Airport
Generated
Visitor
Spending
Aviation
Dependent
Exports
Direct
33,580
82,790
36,430
152,800
Indirect & Induced
26,417
42,404
66,714
135,535
Total Jobs
59,997
125,193
103,144
288,334
Business Revenue ($millions)
Direct
Indirect & Induced
Total Business Revenue
$5,462
$4,397
$9,859
$9,126
$7,155
$16,280
$16,636
$13,008
$29,644
$31,223
$24,561
$55,783
Payroll/Personal Income ($millions)
Direct
$2,092
Indirect & Induced
$1,755
$3,035
$2,934
$4,786
$5,033
$9,913
$9,722
Total Payroll/Personal Income
$3,847
$5,970
$9,819
$19,635
Weighted Average
Income/Employee
$64,111
$47,684
$95,194
$68,098
Impacts
Total Impact
Jobs
30
VIII
Appendix
Elements of Economic Impacts and Interrelationships
Business and Government
Agencies Located at SFO
Direct Payroll
at SFO
Spending by Visitors
to Bay Area via SFO
Purchases of
Goods & Services
Visitor Purchases of
Goods & Services
(Meals, Hotels,
Transportation, Retail)
Direct Effect
Direct Effect
Jobs at the Airport
Income to Workers
Jobs in Retail & Services
Income to Workers
Indirect Effects (Off-Site)
Sales at Supplier Businesses:
Jobs and Income
to their Workers
Induced Effect (Off-Site)
Spending of Direct + Indirect Worker Income
on Consumer Purchases:
Sales at Other Businesses
Jobs & Income to Workers
Total Economic Impacts
Sum of Direct + Indirect + Induced Jobs & Income
Fiscal Impacts:
Government Tax Revenues
Flow of Causation
Calculation of Total Ef f ect
32
Classification of Impacts

Direct (Initial Economic Activities)
–
–
–

Indirect
–

Airport-based economic activities (airport terminal-related and tenants)
Off-airport businesses serving airport travelers
Off-airport businesses dependent on the airport for cargo movement
Suppliers of goods and services to the airport and air-dependent
business
Induced
–
Personal income spent by households in the Bay Area and re-circulated
in the economy (earned by jobs in airport-based activities, visitor
spending, air-dependent businesses, and suppliers of goods and
services).
33
Direct Visitor Spending Ripples Through the Bay Area
$9 billion of visitor
spending in the Bay
Area generated:
County
Alameda
Contra Costa
Marin
Napa
San Francisco
San Mateo
Santa Clara
Solano
Sonoma
Total
* direct, indirect and induced



125,000 jobs
$6 billion in labor income
$7 billion in additional indirect and induced
output ($16 billion in total output)
Direct Visitor
Spending
($millions)
$813
$143
$112
$582
$5,170
$863
$970
$59
$414
$9,126
Indirect & Induced
Output
($ millions)
$711
$96
$80
$434
$4,386
$553
$550
$34
$311
$7,155
Jobs*
12,671
1,968
1,582
8,670
70,710
10,994
11,283
834
6,481
125,193
Payroll*
(Labor Income
in $millions)
$504
$69
$62
$330
$3,759
$475
$531
$25
$214
$5,970
34
Visitor Destinations Also Reach Beyond the Bay Area
Common Visitor
Destinations Outside
the Bay Area
35