Introduction Rhode Island s Aviation System A strong relationship exists between Rhode Island s economy and aviation. In today s global market place, the state s system of commercial service and general aviation airports is essential. Rhode Island s airport system facilitates economic growth and diversification. In addition to supporting the state s economy, Rhode Island s airports are themselves economic generators. Beyond the economic impacts quantified in this report, the airport system also provides essential qualitative benefits to the residents, businesses and visitors, who also rely on the airport system for health, welfare, and safety needs. Further, Rhode Island s airports are also home to military facilities, which are important to our national security. To quantify the economic impacts and other benefits attributable to Rhode Island airports, the Rhode Island Airport Corporation (RIAC) periodically commissions economic impact studies. This update study quantifies the impacts to the New England region, the State of Rhode Island and to the City of Warwick. Rhode Island is served by a diversified system of commercial service and general aviation airports. While T.F. Green accommodates the majority of Rhode Island s commercial passenger activity, both Westerly and Block Island airports also accommodate limited scheduled commercial service. In doing so, T.F. Green, and the other five general aviation airports underpin Rhode Island s business base and tourism industry. Aviation is generally assigned to three categories: commercial, general aviation, or military. Commercial aviation includes all scheduled airline flights, charter flights, and flights flown by air cargo companies. All other flights by civilian aircraft are classified as general aviation. Aside from commercial and general aviation, Rhode Island s public airports also accommodate military aircraft. In fact, two of the airports, Newport and especially Quonset, are home to National Guard Units. Commercial Service Airport T.F. Green is the major commercial service airport in Rhode Island with non-stop scheduled commercial passenger service to airports nationwide. In addition, air cargo carriers such as FedEx, UPS, and DHL rely on T.F. Green. It is worth noting that a high percentage of total annual takeoffs and landings at all commercial airports is attributable to general aviation aircraft. general aviation airports General aviation is the largest segment of aviation in the U.S. General aviation aircraft range from high-powered, sophisticated business jets that fly from Rhode Island non-stop to destinations around the world, to small, single-engine planes flown for recreational use. Rhode Island s five general aviation airports serve different users and purposes ranging from corporate/business jets to smaller twin-engine aircraft to national guard units. Existing Airport System 1 Rhode Island Airport Corporation Airport Economic Impact Study Update 2006 2
Study Methodology Impact Totals A methodology approved by the Federal Aviation Administration (FAA) was used to calculate the economic impacts associated with Rhode Island s civilian airport system. Airport related economic impacts were identified for three types: direct, indirect, and multiplier. Impact totals are measured in three ways: jobs, earnings and economic activity. Rhode Island s six public use airports generate $2.1 billion in annual economic activity, of which $0.7 billion is paid in earnings to 23,318 full-time-equivalent jobs. The vast majority of these impacts (over 93%) reflect activity associated with T.F. Green. The summary impacts are presented below by each airport. impact types Direct impacts associated with on-airport employers, business, and tenants result from the provision of aviation services. Indirect impacts arise from spending by visitors who arrive at one of Rhode Island s public commercial or general aviation airports. As direct and indirect impacts circulate in the local, regional and statewide economies, additional multiplier impacts occur. The economic impacts created by the multiplier effect re-circulate until the benefits ultimately reach their primary source or leak outside of the study region. For this report, multipliers specific to Southern New England and Rhode Island were used to complete the economic impact analysis. impact measures For this report, economic impacts are expressed in terms of jobs/employment, payroll/earnings, and total annual economic activity or output. Each of these measures include the direct, indirect, and multiplier impacts types. Economic Activity + + + = Payroll/ Earnings Direct impacts indirect impacts multiplier impacts total impacts Jobs Example of multiplier impacts Many people in Rhode Island are employed by businesses located at one of the public airports. For instance, aircraft mechanics are found at many facilities. When an aircraft mechanic is paid, he or she uses their income to buy groceries, fuel for their car, shoes for their children, and supplies for their pet. All of this spending helps to support other jobs, payroll and spending in Rhode Island. Airport Commercial Service Airport Economic Activity Earnings Jobs T.F. Green $1,961,400,000 $603,900,000 21,857 General Aviation Airports Block Island $14,245,700 $4,338,600 189 Newport 6,019,700 1,867,000 77 North Central 9,583,900 3,003,000 100 Quonset 102,205,600 45,130,100 994 Westerly 8,436,400 2,618,400 101 Total Gen. Aviation Arpts. $140,491,300 $56,957,100 1,461 Total $2,101,891,300 $660,857,100 23,318 employment impacts Thousands of Southern New England jobs, 2,702 full-time equivalent jobs, are directly created by businesses, tenants and other activities located at commercial service or general aviation airports. In addition, spending by visitors who arrive by air supports an additional 11,452 jobs in the hospitality and service related sectors. These direct at-airport and indirect visitor-related jobs result in an additional 9,155 multiplier-related jobs. Combined, the direct, indirect, and multiplier activities generate a total of regional 23,318 jobs. Most of these jobs, 21,857, are attributable to the extensive commercial passenger, cargo and general aviation service at T.F. Green Airport. In addition, the other five general aviation airports in Rhode island generate another 1,461 jobs. 39% 12% 6% 94% 49% T.F. Green Airport General Aviation Aiports Jobs, Direct Jobs, Indirect Jobs, Multiplier Jobs, T.F. Green Jobs, General Aviation Total Jobs Direct 2,014 697 2,711 Indirect 11,330 122 11,452 Multiplier 8,513 642 9,155 Total 21,857 1,461 23,318 3 Rhode Island Airport Corporation Airport Economic Impact Study Update 2006 4
T.F. Green total impacts and regional distribution PVD T.F. Green Airport has become a vital transportation alternative for air travelers in Southern New England. Indeed, since 1995, passenger traffic at T.F. Green rose from 2.2 million to 5.7 million, and has become a critical catalyst for economic growth. Located in Warwick, Rhode Island, the medium hub commercial service airport serves the State of Rhode Island and an area that stretches into southeastern Massachusetts and eastern Connecticut. The airport is conveniently accessed one mile off of Interstate 95 with the passenger terminal at the end of Exit 13, and Providence is within a short 15-minute drive. Owned by the State of Rhode Island and operated by the Rhode Island Airport Corporation, T.F. Green offers two asphalt runways: Runway 5/23, measuring 7,166 feet long by 150 feet wide; and Runway 16/34, measuring 6,081 feet long by 150 feet wide. on-airport tenants and direct impacts visitors and indirect impacts The total economic impact of T.F. Green on the Southern New England Region totals $2.0 billion in annual economic activity (output), of which $0.6 billion in earnings is paid to an estimated 21,857 full-time equivalent jobs. Detailed surveys and analysis also enabled a breakdown of these impact totals for the State of Rhode Island and the airport s home City of Warwick. The study findings indicate 12,706 jobs (58% of total regional jobs) occur in Rhode Island, and 1,277 jobs (5.8%) occur in Warwick, which represent 3.2% of total city employment. T.f. green Employment impacts New England In 2005, T.F. Green served over 5.7 million air passengers with over 250 daily aircraft operations. In doing so, the airport businesses/tenants and the capital improvement projects generate significant regional impacts. Over 60 on-airport businesses or tenants include airlines, cargo services, aircraft maintenance services, as well as terminal-related support services, restaurants, ground transportation providers, rental car companies, gift shops, etc. Local, state, and/or federal entities charged with the day-to-day operation and maintenance of the airport also generate direct impacts. Construction and capital improvements, such as runway or terminal improvements employ Rhode Island residents and use supplies and other services from local sources. Combined, these tenants and airport operations employed 2,014 people who earned $83.3 million and generated $190.4 million in direct output. Thousands of visitors arrive daily at T.F. Green on a commercial airline flight, a general aviation charter, or a privately owned general aviation aircraft. These visitors typically stay in the region for several days and spend money on hotels, meals, shopping, entertainment, ground transportation, and other items. A detailed passenger survey indicated that approximately 1.2 million of the total 2.9 million annual passengers enplanements were visitors to the region. In 2005, these commercial passenger visitors spent an estimated $776.2 million in the region s hotels, restaurants and retail establishments. General aviation activities attracted another 62,000 visitors who spent approximately $5.5 million. In addition, local travel agents earned $9.8 million booking passengers through T.F. Green. Combined, the indirect impact associated with T.F. Green created 11,330 jobs and total output of $791.5 million. The City of Warwick also received over $11.5 million in airport-related taxes and other payments in 2005. These include $7.4 million in real estate and personal property taxes paid directly to the City. State of Rhode Island taxes from hotel, offairport parking and rental car taxes redistributed back to Warwick totaled another $3.6 million. In addition, RIAC pays the City of Warwick $0.5 million annually for fire and police support. $190.4 million Rhode Island Warwick Multiplier impacts $979.6 million $2.0 billion The circulation of direct and indirect impacts through the regional economy generates additional multiplier impacts associated with suppliers and the respending of earnings and wages. The application of standard, approved methods suggests that these impacts result in an additional 8,513 regional jobs and output of $979.6 million. $791.5 million Total Employment 21,857 $0.6 billion $2.0 billion 5 Rhode Island Airport Corporation Airport Economic Impact Study Update 2006 6
Block Island Newport/Robert F. Wood BID Block Island Airport is located at the center of the ten square-mile island, 14 miles from the mainland. The only access to the island is via air or ferry. The airport is owned by the State of Rhode Island and operated by the Rhode Island Airport Corporation. The airport provides essential emergency, general aviation and limited commercial access to the Island, and is classified as a Special Use General Aviation airport due to its unique location and vital community service. Block Island Airport has one asphalt runway, Runway 10/28, measuring 2,501 feet long by 100 feet wide. The airport generates $2.0 million in direct output, of which $680,600 is paid to approximately 24 direct full-time equivalent jobs. Additionally, over 24,800 visitors arrive at the airport each year, generating another $5.7 million in indirect aviationrelated output. Including the multiplier effect, the airport tenants and visitors at Block Island Airport generate $14.2 million in total economic output, of which $4.3 million in payroll is paid to 189 full-time equivalent jobs. A quick 12-minute scheduled commercial air service links Block Island to Westerly, which is regularly used by residents, tourists and businesses. Other regular airport activities include vital cargo service and emergency/medication evacuation. General aviation usage of the airport is highly seasonal with up to 200 aircraft often parked on the airfield in the summer. The essential link to the offshore vacation retreat provided by Block Island Airport is an essential component of the island s economy and way of life. Colonel Robert F. Wood Airpark, more commonly known as Newport Airport, is located in the Rhode Island town of Middletown on Aquidneck Island, and is less than two miles due north of downtown Newport. It can be accessed via Forest Road from Route 114 and Route 138. The airport is owned by the State of Rhode Island and operated by the Rhode Island Airport Corporation. Newport Airport has two asphalt runways; Runway 4/22, measures 2,999 feet long by 75 feet wide; and Runway 16/34 measures 2,623 feet long by 75 feet wide. The airport generates $2.0 million in direct output, of which $887,600 is paid to approximately 30 direct full-time equivalent jobs. Additionally, about 5,500 general aviation visitors arrive at the airport each year, generating another $1.3 million in indirect aviation-related output. Including the multiplier effect, the airport tenants and visitors at Newport Airport generate $6.0 million in total economic output, of which $1.9 million in payroll is paid to 77 full-time equivalent jobs. Designated as a General Aviation Business Airport, Newport Airport primarily accommodates small multi-engine and single-engine general aviation aircraft. Some smaller corporate aircraft also use the airport. Services at the airport include a basic-service fixed-base-operator, onsite aircraft maintenance and a terminal pilot lounge and flight planning area. These airport facilities and services help support local tourism and the yachting industry. UUU $2.0 million $2.0 million $6.5 million $14.2 million $2.7 million $6.0 million $5.7 million $1.3 million Total Employment 189 Total Employment 77 $4.3 million $1.9 million $14.2 million $6.0 million 7 Rhode Island Airport Corporation Airport Economic Impact Study Update 2006 8
North Central Quonset SFZ The North Central Airport is located in northeastern Rhode Island in the towns of Smithfield and Lincoln, approximately 10 miles northeast of Providence and 10 miles south of the Massachusetts border. North Central Airport can be accessed via Jenckes Hill Road from RI-146, as well as from the north and west via I-295 to RI- 116 to Albion Road. The airport is owned by the State of Rhode Island and operated by the Rhode Island Airport Corporation. North Central Airport has two asphalt runways; Runway 5/23, measures 5,000 feet long by 100 feet wide; and Runway 15/33 measures 3,210 feet long by 75 feet wide. The airport generates $4.8 million in direct output, of which $1.2 million is paid to approximately 30 direct full-time equivalent jobs. Additionally, almost 3,500 general aviation visitors arrive at the airport each year, generating another $0.3 million in indirect aviation-related output. Including the multiplier effect, the airport tenants and visitors at North Central Airport generate $9.6 million in total economic output, of which $3.0 million in payroll is paid to 100 full-time equivalent jobs. North Central Airport is designated as a Reliever Airport capable of accommodating the most demanding general aviation jet aircraft, as well as recreational aircraft activities and flight training. In doing so, the airport serves the Blackstone River Valley and helps meet the growing needs of the business corridor that extends from Providence into Massachusetts. Services offered at North Central Airport include a full-service aircraft maintenance operation, as well as fuel trucks and onsite rental cars. Quonset Airport is located in Rhode Island on the western shore of Narragansett Bay at Quonset Point in the town of North Kingstown. The airport is 16 miles south of downtown Providence and nine miles due south of T.F. Green Airport. Quonset Airport can be accessed via Rt. 4 to Rt. 403, Quonset Point/Davisville Road. The airport is owned by the State of Rhode Island and operated by the Rhode Island Airport Corporation. Quonset Airport has two asphalt runways; Runway 16/34, measures 7,500 feet long by 100 feet wide; and Runway 5/23 measures 4,003 feet long by 75 feet wide. The airport generates $54.7 million in direct output, of which $31.1 million is paid to approximately 587 direct full-time equivalent jobs. Additionally, approximately 5,800 general aviation visitors arrive at the airport each year, generating another $0.5 million in indirect aviation-related output. Including the multiplier effect, the airport tenants and visitors at Quonset Airport generate $102.2 million in total economic output, of which $47.0 million in payroll is paid to 994 full-time equivalent jobs. Designated a Reliever Airport, Quonset Airport serves as a joint use facility with two notable military operations: the Rhode Island Army National Guard and the Rhode Island Air National Guard. The Quonset Point area is also home to a large industrial park with many manufacturing companies including General Dynamics. For these reasons, the area offers unique multimodal access via air, water and rail. In doing so, Quonset Airport supports a full range of aircraft, including corporate/ business jets. Airport services include a limited fixed-base-operator and rental cars. OQU $4.8 million $54.7 million $4.5 million $9.6 million $47.0 million $102.2 million $0.3 million $0.5 million Total Employment 100 Total Employment 994 $3.0 million $45.1 million $9.6 million $102.2 million 9 Rhode Island Airport Corporation Airport Economic Impact Study Update 2006 10
Westerly Other Qualitative Benefits WST Westerly Airport is located in southwestern Rhode Island just north of the Connecticut border. Primary access to Westerly Airport is via U.S. Route 1 to Airport Road, or State Route 78 (Westerly Bypass) to Airport Road. The airport is owned by the State of Rhode Island and operated by the Rhode Island Airport Corporation. Westerly Airport has two asphalt runways; Runway 7/25, measures 4,010 feet long by 100 feet wide; and Runway 14/32 measures 3,980 feet long by 75 feet wide. The airport generates $3.0 million in direct output, of which $0.9 million is paid to approximately 26 direct full-time equivalent jobs. Additionally, approximately 11,100 visitors arrive at the airport each year, generating another $1.6 million in indirect aviation-related output. Including the multiplier effect, the airport tenants and visitors at Westerly Airport generate $8.4 million in total economic output, of which $2.6 million in payroll is paid to 101 full-time equivalent jobs. Designated as a General Aviation Business Airport, Westerly Airport serves the aviation needs of southeastern Rhode Island and northwestern Connecticut. The airport accommodates singleengine general aviation aircraft as well as small corporate aircraft. From Westerly, New England Airlines provides limited, but critical commercial air passenger and cargo service to Block Island. Currently, two fixed-base-operators provide limited aircraft service and some aircraft maintenance. Airports throughout Rhode Island help support and improve the quality of life for all state residents, businesses, and visitors. Airports do so by supporting many activities and services related to one s health, welfare and safety, as well as environmental management. Specifically, study information gathered indicates that airports in Rhode Island support recreational activities, provide gateways to many communities and tourist attractions, facilitate air cargo and air freight shipments, assist in law enforcement, support the military and its operations, expedite emergency access, and address medical needs. The qualitative benefits associated with Rhode Island s airports cannot be quantitatively assessed as those direct, indirect, and multiplier impacts previously documented throughout this study. Nonetheless, the qualitative benefits do exist and are extremely important. Their relative importance becomes clear when one considers the fact that the purpose of aviation transport is to help support the personal and business needs that drive Rhode Island s economy. The type and frequency of benefits that each of the six public use airports provide for Rhode Island residents is shown below. Activity T.F. Green Block Island Newport North Central Quonset Westerly Recreational Flying Corporate/Business Activity Aerial Inspections (Pipeline, etc.) $3.0 million Air Cargo Gateway for Recreational Visitors Police/Law Enforcement Prisoner Transport Very Frequent Frequent Infrequent Military Exercises/Training Career Training/Flight Instruction $3.8 million $8.4 million Search & Rescue/Civil Air Patrol Environmental Patrol (i.e. wildlife) Emergency Medical Evacuation $1.6 million Physician/Medical Transportation Medical Shipments/Patient Transfer Aerial Photography/Surveying Total Employment 101 $2.6 million $8.4 million Real Estate Tours Aerial Advertising/Banner Towing Traffic/News Reporting Air Shows Skydiving 11 Rhode Island Airport Corporation Airport Economic Impact Study Update 2006 12
Aviation s Past and Current Economic Contribution Summary As demand for Rhode Island s airports continues to grow, so will the economic and other benefits attributable to the airport system. In fact, since the economic impacts of Rhode Island s airport system were last measured in 1990, benefits have increased as shown. This impact growth reflects a greater presence of businesses and tenants at the airports, and increased visitors (vacation and business-related) who arrive by air. This report demonstrates the importance of Rhode Island s commercial service and general aviation airports to the regional, state and local economies. The airports provide critical transport services to business and tourism. In doing so, the airports are in themselves an important industry that generate jobs, earnings and economic activity. Beyond the job and dollar impacts the airports also contribute quality of life benefits throughout the state and across the region. Commercial and general aviation airports in Rhode Island support an estimated 23,318 jobs with an annual payroll of $0.7 billion, and generate $2.1 billion in economic activity. Aviation s Economic Impact in Rhode Island 1998 2005 T.F. Green Airport Total Jobs/Employment 16,606 21,857 Annual Payroll/Earnings $302.8 million $603.3 million Annual Economic Activity $1,034.0 million $1,961.4 million General Aviation Airports Total Jobs/Employment 1,347 1,461 Of the 23,318 total jobs, 61% (14,167) are in Rhode Island and 5.5% (1,277) are in the City of Warwick. Since 1998, total jobs attributable to commercial and general aviation airport activity in New England grew 30%, annual payroll grew 88%, and total annual economic output grew 83%. The City of Warwick currently receives $11.5 million in airport-related taxes and other revenues from T.F. Green related aviation activity. A first class airport system is essential to Rhode Island. This study found that, a strategic program to invest in, maintain, and grow commercial and general aviation airports is critical to Rhode Island s economic future. Annual Payroll/Earnings $48.4 million $56.9 million Annual Economic Activity $112.4 million $140.4 million Total Jobs/Employment 17,953 23,318 Annual Payroll/Earnings $351.2 million $660.9 million Annual Economic Activity $1,146.4 million $2,101.9 million Note: these total impact estimates include direct, indirect and multiplier impacts 13 Rhode Island Airport Corporation Airport Economic Impact Study Update 2006 14