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Building C, No. 229 HeHai West Road
Changzhou, Jiangsu, China 213022
Ph: (519) 8512 2391 ext. 8002
Fax: (519) 8512 9309
email: rco@reelcraftchina.com
www.reelcraft.com/china
North America
Corporate Headquarters
One Reelcraft Center • P.O. Box 248
Columbia City, IN 46725-0248
Ph: 800-444-3134 • Fax: 800-444-4587
Ph: 260-248-8188 • Fax: 260-248-2605
e-mail: reelcraft@reelcraft.com
www.reelcraft.com
Asia Pacific
P.O. Box 53776
Clark Freeport Zone
Philippines 2023
Ph: +63 (45) 625-6624
Fax: +63 (45) 321-0643
e-mail: rap@comclark.com
www.reelcraft.com/asia
Latin America
and the Middle East
Thompson International, Inc.
P.O. Box 12958
Ft. Wayne, IN 46866
Ph: 260-489-1685
Fax: 260-489-0203
e-mail: info@t-i-i.com
www.reelcraft.com/latinamerica
TM
Economic Impact of International Flights on Denver’s Economy
SUMMARY
The annual economic impact of a single daily flight to Denver International Airport varies
considerably by region of origin. Figure 1 below displays the anticipated impact of one
additional daily flight from Mexico, Europe and Asia. The annual benefit of a daily flight from
Europe would be 3.5 times greater than one from Mexico; that of a flight from Asia would be 5.5
times as large.
Figure 1
Annual Economic Impact of One Daily Flight to DEN
$142,425,029
$90,577,704
$25,732,652
$0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
$140,000,000
$160,000,000
Mexico Europe Asia
Origin of Flight
Annual Economic Impact
The difference in impact among the regions of origin results from two major factors:
􀁸􀀃 Carriers serving Asia and Europe use larger aircraft
Figure 2
Median Aircraft Size of US Departures
Flights to Mexico
Flights to Europe
Flights to A sia
0
50
100
150
200
250
300
350
400
450
Carrier
Seats per Aircraft
Economic benefits from air carrier expenditures are greater for carriers operating
larger aircraft, since they must pay more per flight for airport fees and services.
Larger aircraft also accommodate a larger number of visitors, resulting in a
correspondingly greater aggregate amount of visitor expenditures in the local
region.
􀁸􀀃 Trip directionality: Historical point-of-sale data shows that most passengers
traveling between Denver and Mexico are actually Denver residents visiting
Mexican destinations. In contrast, traffic on flights between Denver and Europe
or Asia shows a more favorable ratio of visitors to local residents.
Figure 3
Directionality of Denver O&D Traffic - 2000
60.7%
50.4%
24.0%
76.0% 49.6% 39.3%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Mexico Europe Asia
Origin or Destination
Denver Residents Traveling Abroad
Non-US Visitors to Denver
Visitors spend money on lodging, food, and entertainment in the Denver area,
contributing a sizable benefit to the local economy. In sum, an additional daily
flight from Europe or Asia will bring more visitors to Denver than one from
Mexico, because 1) the larger aircraft that would likely be employed would carry
more passengers, and 2) because among those passengers, a greater proportion are
likely to be visitors to Denver rather than local residents traveling abroad.
The remainder of this memorandum details the calculation of the total economic benefits shown
in Figure 1.
METHODOLOGY
To estimate the value of an additional daily flight from Mexico, Europe, and Asia, this study
analyzed three components of the total economic impact: a direct impact, an indirect impact, and
an induced impact. The direct impact consists of on-airport expenditures by passengers and
airlines resulting from a new daily flight, and is the simplest to project. The indirect impact
represents off-airport spending, particularly by the visitors brought to Denver by the additional
daily flight. Induced impact occurs as these on- and off-airport expenditures are received as
income and partially re-spent by Denver residents.
The greatest portion of the total economic benefit results from the indirect impact, as Figure 4
demonstrates below:
Figure 4
Annual Economic Impact of 1 Daily Flight at
Denver
$61,039,298
$38,819,016
$11,028,280
$72,693,082
$45,112,572
$11,665,946
$8,692,649
$6,646,116
$3,038,427
　
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