Airport worth $1 billion to local economy

Release date: 
11 October 2000 :00am

The Ottawa Airport Authority today released an extensive study that calculated the total regional economic impact of Ottawa Airport and its air transportation partners at $958 million dollars for the year 2000.

Ottawa Airport President and CEO, Paul Benoit, said: "Everyone knows, instinctively, that the airport is a major contributor to the local economy, both in terms of economic impact and job creation.

"Over the past five years, airport employment has grown 40% to reach 4,000 jobs. Total employment, including indirect and induced employment, is fast approaching the 10,000 mark.

"Ottawa Airport Authority and its air travel partners provide an essential service to the community. Together, we also provide thousands of jobs and hundreds of millions of dollars of economic output.

"The Ottawa Airport' mandate is to provide appropriate air travel services to the community. In achieving this goal, the Airport contributes greatly to the local economy. The Airport also allows local businesses to increase their economic output by offering a convenient connection to the global marketplace. Ottawa Airport is growing because the region it serves is growing. And our region's growth is facilitated by better airport services," concluded Mr. Benoit.

Highlights of Economic Impact

  • Ottawa Airport produces $1 billion of annual economic output
  • Ottawa Airport directly contributes $365 million to the local economy each year.
  • Every extra million passengers served by the airport generates 1,160 jobs
  • 3,992 direct jobs in the local economy or 3,455 person-years
  • Average annual salaries for employees is $32,400; total wage bill is $129 million
  • Including multiplier effects, Ottawa Airport stretches its employment reach to an additional 2,509 indirect jobs and 2,277 induced jobs for a total impact of 9,079 jobs
  • Since 1995, airport employment has grown from 2,850 to 4,000 jobs (40%)
  • Airport employment is permanent - seasonal employment accounts for only 2%
  • Full time employment accounts for 75% of jobs and 85% of person-years.

The study clearly demonstrates that Ottawa has achieved consistent growth over the past five years - particularly under Airport Authority management. Since 1995, Ottawa's aviation sector has grown over 40%.

As air transport grows at double the rate of the Canadian economy, the Ottawa Region can look to its international airport for continuing job creation.

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For information
Laurent Benoit, (613) 248-2050
Director of Communications and Public Affairs

Backgrounder

Ottawa Airport provides $1 billion to the regional economy

Ottawa Airport plays a crucial role in our Region's economic development. Our Region's Gateway to the World facilitates the activity of all regionally based business sectors including tourism, high technology and professional services.

Ottawa International grants our thriving local high technology sector essential access to the world's marketplace with over 45 daily direct flights to international destinations and more than 100 flights to Canadian cities. And new entrants like WestJet, Canjet and Royal Airlines continue to competitively improve our Region's connection to the world.

Ottawa International also acts as an economic generator for the region we serve. The total economic output of the Airport closes in on the $1 billion mark.

4,000 jobs for the community
Ottawa Airport and its commercial partners provide almost 4,000 direct jobs on site - $130 million in wages and salaries to Ottawa-Hull workers. Direct employment has grown 40% since 1995. The long-awaited pre-clearance facility, opened by the Airport Authority in 1997 and recently expanded, contributed greatly to this phenomenal growth.

Indirect employment in non-aviation industries that results from airport activity (e.g., suppliers of food to airline catering) total 2,509 jobs. Wages and salaries for this group total $85.3 million. Induced employment (created from expenditures of the directly or indirectly employed) totals 2,277 jobs, with a similar $84.8 million in wages and salaries. In all, over 9,000 jobs can be attributed to Ottawa Airport and its air transport partners.

Annual Economic Impact of Ottawa Airport

Type of impact
Economic Output
Gross Domestic Product
Wages & Salaries
Employment
Jobs
Person-years
Direct
$365
$184
$129
3,992
3,455
Indirect
$298
$123
$85
2,509
2,172
Induced
$295
$149
$85
2,277
2,230
Total
$958 Millions
$456 Millions
$299 Millions
9,079
7,857

Highlights of Economic Impact

  • Ottawa International Airport produces $1 billion of annual economic output
  • Every extra million passengers served by the airport generates 1,160 jobs
  • 3,992 direct jobs in the local economy or 3,455 person-years
  • Average annual salaries for employees is $32,400; total wage bill is $129 million
  • The direct economic impact of this employment base is $365 million
  • Considering multiplier effects, Ottawa International Airport stretches its employment reach to an additional 2,509 indirect jobs and 2,277 induced jobs for a total impact of 9,079 jobs
  • Since 1995, airport employment has grown from 2,850 to 4,000 jobs (40%)
  • Virtually all airport employment is permanent with seasonal employment accounting for only 2%
  • Full time employment accounts for 75% of jobs and 85% of person-years.
  • Air carriers are the largest employers at the airport with just over 1,000 jobs.

As air transport grows at double the rate of the Canadian economy, the Ottawa Region can look to Ottawa airport for continuing job creation.

Ottawa Airport: Positioned for growth