YLW’S ECONOMIC IMPACT REACHES FAR AND WIDE
BY TRACEY FREDRICKSON A
recent Economic Impact assessment conducted at Kelowna International Airport demonstrates the significant economic impact the airport, its airlines and partner businesses have on the regional and provincial economy.
YLW provides 11 non-stop flight destinations in Canada, the United States and Mexico, with access to 375 destinations world-wide with a one stop connection. The airport worked with InterVISTAS Consulting last fall, surveying 118 businesses to determine the contribution the rapidly growing facility – which set a record of just under 1.4 million passengers in 2010 – has on the economy.
The survey looked at three types of impacts: direct measures such as businesses which are located at the airport or are airport-dependent (airlines, aircraft maintenance, airport operators and on-site vendors, for example); indirect measures such as businesses in the community that provide supplies and services to the airport, and induced measures including the impact of spending by those employed directly or indirectly by the airport and its suppliers. With such studies, emphasis is placed on direct impacts as they measure clearly identifiable factors such as employment and wages.
The data shows that 1,400 jobs are directly associated with YLW, representing 1,290 person-years of employment and nearly $70 million in wages annually. The impact of this direct employment on the provincial economy is estimated to be $120 million in gross domestic product (GDP) and $300 million in economic output. When direct, indirect and induced measures are factored together, the airport’s annual economic impact is significant:
• 2,730 jobs • 2,520 person-years of employment • $140 million in wages • $250 million in GDP • $610 million in economic output
Another way to measure the airport’s economic impact is tax revenues, points out YLW Director Sam Samaddar. YLW contributes over $30 million in annual tax revenue; of this, $22 million goes to the federal government, $7 million to the province and $1 million to the municipal government.
The data also shows how employment is created every time an aircraft lands or takes off at YLW. For example, over a one-year period a typical one-hour flight to Calgary generates 16 person-years of employment and $950,000 in wages. In comparison the daily long-haul service to Toronto generates 21 person-years of employment and $1.2 million in wages annually.
“The impact of our Calgary and Toronto non-stops is important,” says Samaddar. “Our Calgary connection is our busiest city pairing, and Calgary is a connecting hub to destinations in Europe, the United States and Asia. As demand for long- haul flights continue to increase, there will eventually be sufficient numbers of passengers to warrant direct, non-stop flights to some of these destinations.” Daily flights between Kelowna and
Toronto move approximately 132,000 passengers annually between the two cities. “In addition to these direct economic benefits, the Kelowna/Toronto connection provides tremendous marketing opportunities for our local ski hills, golf courses and convention business while also connecting Kelowna directly to the business and financial capital of the country,” notes Samaddar.
The next economic impact assessment for YLW will likely be conducted in five years when traffic at YLW is expected to have reached a milestone of more than 1.6 million passengers per year.
Note: a copy of the full report will be available on the airport’s website
ylw.kelowna.ca by May 2.
Sam Samaddar - Airport Director
SPRING 2011 | 5
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32