NEW ORLEANS – Results from a newly commissioned study on the economic impact of the Louis Armstrong New Orleans International Airport (MSY) reveal the Airport contributed more than $5.3 billion in total economic impact and sustained more than 53,300 jobs in the Greater New Orleans regional economy in 2013.
According to the study, the impact from the Airport also generated more than $2 billion in total earnings, $206 million in state tax revenue and $279 million in local tax collections, for a combined total of $485 million in taxes annually. It also shows the Airport’s total economic impact will grow to more than $6.3 billion with job projections exceeding 64,400 after the new terminal is completed in 2018.
The study, commissioned by the New Orleans Aviation Board, was conducted by local economist and former chancellor of the University of New Orleans, Dr. Timothy Ryan and The Mumphrey Group of New Orleans. The study measured the economic benefits created by passenger, air cargo, and general aviation activities by the Airport. It included the impact of businesses that rely directly on the Airport, such as concessionaires in the terminal, nearby hotels, and construction firms that perform capital improvements at the Airport. It also considered the impact of tourism spending from visitors to New Orleans who arrive via air travel. Based on data published by the New Orleans Convention and Visitors Bureau, 46% of visitors to the New Orleans area arrived by plane in 2013. The study estimated that the tourism impact due to the Airport represents about $2.8 billion in direct spending.
Additionally, the analysis provided a parish-by-parish breakdown of the Airport’s impact in the region, as well as the estimated impact the Airport has on the City of Kenner (more than 7,000 jobs and $32.8 million in tax revenues), where MSY is located.
“Armstrong International Airport is a very significant part of the New Orleans area economy; generating a significant economic impact, supporting jobs, and creating income or earnings for local residents,” says Dr. Ryan in his report.
Based on results from the study, the completion of the North side terminal program is projected to increase the Airport’s impact on the regional economy approximately 21% by the year 2023, after operations have fully stabilized.
“This Airport is the economic asset of our community. This study shows just how important the Airport is to the New Orleans area economy, and how the new North Terminal will bring even more jobs and impact into the New Orleans region,” said Iftikhar Ahmad, Director of Aviation.
In January of this year, the Airport revealed that building the proposed new terminal will generate 13,500 construction-related jobs and have a one-time economic impact of $1.8 billion in addition to the recurring impacts estimated in Dr. Ryan’s analysis.
“The impact of this airport on our community is unsurpassed. The true value of an airport to its community goes unnoticed often times but this report shows what the Airport means to our City,” said Ms. Cheryl Teamer, New Orleans Aviation Board Chairwoman.
“I am pleased to see the level of impact our Airport has on our community. This impact is felt throughout the region and will continue to grow,” stated New Orleans Councilman Jared Brossett, Chair of the Transportation and Aviation Committee.
“The Airport is an integral part of our community and the impact it has on our community only continues to grow with time,” stated Mayor Mitch Landrieu. “The continued growth of our region depends on this valuable asset and growth of one, will stimulate growth of the other,” concluded Mayor Landrieu.
