Norfolk International Airport is a significant asset to the Coastal Virginia area. Its value can be assessed in terms of the economic impact it has upon the surrounding region. In 2004, an Economic Impact Study was performed to measure that impact.
Total economic impact is the sum of direct, indirect and induced impacts as described herein:
Direct Impact - This is defined as the employment, payroll and local expenditures of all organizations located at the Airport directly dependent on aviation, including passenger airlines, cargo airlines, fixed base operators, passenger terminal concessionaires, government agencies, rental car companies and other aviation supported businesses.
Indirect Impact - This is defined as the spending made locally by air passenger visitors while in the Airport Service Region and in the Commonwealth of Virginia.
Induced Impact - This is defined as the additional local business that is generated specifically because of the Airport's presence, including related employment, payroll, and employer expenditures. Induced impact also includes the successive rounds of spending caused by the direct and indirect impacts. This "multiplier effect" measures the extent to which the indirect and induced impacts flow from the direct impact.
According to the 2004 Economic Impact Study, Airport tenants and visitors directly or secondarily touch the Airport Service Region with a measurable impact of more than 22,276 jobs, annual paychecks of more than $486 million and a total dollar output of approximately $1,360,000,000. This represents a 71% increase over the total dollar output estimated in a previous study performed in 1997.
Additionally, the Airport's effects extend beyond the Airport Service Region into other areas of Virginia. The study estimates that the Airport also produces a further impact of $68 million and 2,134 jobs with a payroll of $19 million outside of the Airport Service Region into the Commonwealth of Virginia.
Tenants of the Airport itself, including ground and air transportation services, Airport concessions, and government or management operations, provide a total of 1,685 jobs with an estimated payroll of $59.9 million. On top of that payroll, the tenants pump an additional $76.4 million into the local economy each year for goods and services.
Over 775,000 visitors fly into the Norfolk area via the Airport every year. Mostly, they're free-spending leisure, business and military travelers eager to add their own contributions to the local economy. They spend about $566 million a year, creating over 12,500 local jobs with a payroll of over $211 million.
The value of Norfolk International Airport is evident not only in extending commerce into the region and the Commonwealth, but also for developing and maintaining critical air transportation facilities and systems that tie our community to the global marketplace and serve the needs of our residents and visitors.
Download the Norfolk International Airport 2004 Economic Impact Study