Study Shows $18.7 billion impact of PHL and PNE on regional economy
The airports are a tremendous economic force in the greater Philadelphia region contributing an estimated $18.7 billion impact to the regional economy according to an economic impact study conducted by Econsult Solutions. The study also finds that Philadelphia International Airport (PHL) and Northeast Philadelphia Airport (PNE) support 102,600 jobs with $6.1 billion in earnings.
The airport system is a Department of the City of Philadelphia and operates as an enterprise fund. That means the system is financially self-sustaining from revenues and fees and receives no local general fund tax dollars.
“The Department of Aviation team is incredibly proud to support such a significant economic engine in the region,” said Tracy Borda, Chief Financial Officer of the Department of Aviation. “We have worked hard to continue the strategic growth of PHL in a post-pandemic economy and these results help us quantify the effects the Airport has on jobs and overall impact.”
Impact Across the Region
“To get our arms around all of the regional implications, we organize the study into three impact tiers: starting with flight activity and radiate outwards to on-site or nearby airport-related operations and then looking at all of the region-wide benefits to residents and businesses, such as tourism and increased spending as a result of employment. Philadelphia’s airport system is a strong hub of economic activity and a major generator for the Philadelphia region,” said Ethan Conner-Ross, Executive Vice President and Principal of Econsult.
A host of activities support the airports’ nearly 80,000 daily passengers and cargo activity. That includes Tier 1 direct benefits provided by flight activity and businesses at the airport and the impacts from the operations and capital investments of the airport and its airline tenants.
Tier 2 impacts come from all the supporting industries at the airport including retail, hospitality, transportation, parking, warehousing/manufacturing and government.
Tier 3 impacts come from the broader benefits of air service for local residents and businesses such as the host of industries which are supported by the airport such as tourism. The region benefits from increased tourism and visitor spending as air service continues to expand and bring more visitors. Having more than 400 nonstop daily departures to more than 120 destinations attracts more visitors and enhances the overall desirability of the region as a place to visit.
More than half of the 102,600 employees who work for airport related businesses are from the surrounding 11-country region. The economic effects of that related airport activity are felt in every county and state in region surrounding the airports.
There is also a “spillover” impact of indirect benefits as employees recirculate their paychecks in the form of household spending (groceries, housing, leisure activities, etc.) back to their local communities.
Impact on State and Local Revenue
The economic activity the airport generates occurs largely within the private sector and supplies significant tax revenues to state and local governments each year -- a total of $547 million annually in state and local tax revenue. That includes state income, sales and business tax revenue and city wage, sales and business tax revenue.
Impact Across the Community
Finally, the benefits of this economic activity are shared inclusively throughout the community. The airport workforce of more than 17,000 badged employees is diverse and representative of the city of Philadelphia. Airport concessions provide opportunities to minority-owned businesses exceeding goal at 38% participation in the ACDBE program and MWDSBE participation in contracts at 33%.
You can read the full study here.
