News

Economic engine – Aviation-related employment, spending high in Colorado, aiding communities large and small

Aviation is a big contributor to Colorado’s economy – supporting 280,000 jobs and generating $23.5 billion in local spending each year – according to a state study released Monday.

By Greg Griffin, Denver Post Business Writer

Nearly three-quarters of that economic impact comes from Denver International Airport, which supports an employment base of 193,000 and accounts for $17 billion in spending.

But smaller airports also contribute mightily to their local economies. Colorado’s four busiest mountain airports – in Aspen, Eagle County, the Yampa Valley and Grand Junction – keep 22,000 people employed and generate nearly $1.4 billion in economic activity.

"One thing that did surprise us was the impact that airports all over the state have. Every one of them has value," said Travis Vallin, aeronautics director for the state Department of Transportation, which commissioned the study. "There are many places in Colorado where a small airport has the same impact on the community as DIA does in Denver."

Aviation-related employment and spending have increased since 1997, when the state conducted a similar study that put employment at 246,000 and spending at $14 billion.

Results of the two studies aren’t directly comparable, Vallin said, because the new one was far more comprehensive. But aviation definitely has grown in Colorado, he said, particularly with businesses moving to the DIA area.

The state used a multiplier in the study to show the total economic impact of aviation as dollars earned by workers or spent by visitors make their way through the local economy.

Without the multiplier, airports and related industry accounted for about 150,000 jobs and $10.5 billion in economic activity. Aviation-related wages were $4.5 billion, compared with $9.7 million with the multiplier.

By comparison, the Colorado workforce is about 2.5 million strong. In 2001, the gross state product – the value of goods and services produced in the state – was $174 billion.

Aviation is stronger in Colorado than in many states. Vallin said of 43 reports he has seen from other states, only in California and Florida do airports have a larger economic impact.

He attributed that to the state’s strong airports. DIA is the nation’s fifth-busiest, and Centennial Airport in Arapahoe County is the second-busiest general-aviation airport in the country.

Another reason is tourism and skiing, Vallin said.

"If you step off an airplane in Eagle County, you’re going to spend some money," he said.

Patty Silverstein, an economist with Development Research Partners, said her firm’s research put Denver at No. 10 nationwide among metropolitan areas for percentage of the workforce employed in aviation.

"The aviation industry is very important to Denver and the Colorado economy," Silverstein said. "We became very painfully aware of that after 9/11, when we saw a reduction in airline and tourism activity. It’s encouraging to see it returning to healthy levels … "

The report includes information from the state’s 13 commercial- service airports and roughly 60 general-aviation airports. It surveyed aviation-related employers across the state.

Vallin said two principal challenges remain for Colorado:

The need to continually upgrade landing capacity and navigational aids at the state’s commercial mountain airports, especially during the winter tourist season. The aim is to avoid diverting planes bound for mountain resorts to Denver or Grand Junction because of bad weather, he said.

To continue to upgrade small general-aviation airports such as those in Meeker, Rifle and Pagosa Springs so they can handle the increasing number of business-jet operators who want to bring passengers directly into those communities.

Denver Post staff writer Jeffrey Leib contributed to this report.

Please refer to the article for additional information:
http://www.denverpost.com/Stories/0,1413,36~33~1742543,00.html

Sorry, we couldn't find any posts. Please try a different search.

Leave a Comment

You must be logged in to post a comment.