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Economic Benefits

Economic Benefits
Posted on 11/07/2019
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Economic Benefits:

 

The economic benefits provided by North Little Rock Airport come from the on-airport activities of businesses and organizations, as well as capital spending that occurs on the airport. Also included are the economic benefits associated with spending by visitors that pass through the airport. The direct impacts- measured as jobs, payroll, and output – are the inputs to an economic input-output model used to estimate the multiplier and total impacts. Multiplier impacts reflect the degree to which economic benefits recirculate within the boundaries defined by the economic study (in this case, the state of Arkansas) and total impacts are the sum of the direct and multiplier impacts.

 

First Round Impacts - $8,333,000

Second Round Impacts - $ 7,299,000

Total Airport Impacts – 152 Jobs

                                                Payroll - $6,156,000

                                                Total Output - $ 15,632,000

 

The Arkansas Department of Aeronautics commissioned this study to tabulate the many ways in which the airport system provides benefits to the people and businesses of Arkansas, and to determine ways in which the system can improve upon its outstanding performance. The economic impact study made use of an FAA-approved methodology that state airport systems throughout the United States have used to quantify their economic benefits.

 

The airports in Arkansas are integral to the state’s transportation system. These 90 system airports, along with Little Rock Air Force Base, stimulate the Arkansas economy by serving the transportation needs of residents and businesses. Furthermore, these economic engines provide substantial employment opportunities and economic output in their own right. The direct impacts of these airports combined with the multiplier impacts, which occur as initial economic activity circulates throughout the state, create more than 42,400 jobs with an annual payroll totaling nearly $1.5 billion. Overall, the Arkansas airport system generates more than $3.5 billion in economic output.

 

In addition to these tangible benefits, Arkansas airports also provide benefits for which dollar values cannot be readily assigned. These qualitative benefits add to the quality of life of residents in the airport’s market area by enhancing safety, citizen welfare, and health. Examples of these benefits include medical flights, police patrol, forest fire fighting, agricultural application, traffic reporting, educational opportunities, high profile visitors, visits by government officials, and recreational benefits. Furthermore, many off-airport companies depend on aviation in order to conduct business in Arkansas.