Using Economic Impact Information at Tampa International Airport. ACI-NA Air Service Data and Planning Seminar January 23, 2011

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1 Using Economic Impact Information at Tampa International Airport ACI-NA Air Service Data and Planning Seminar January 23, 2011

2 Overview What is new service worth at TPA? Summary of Economic Impact of New International Routes at Tampa International Airport Where do we go from here? Strategic Plan for Air Service Development Creating a new Air Service Incentive Program A change in philosophy Bringing our community to the table Gathering support with sweat equity and dollars to support new service 1

3 Over 7.3 Million People Live within a Two-Hour Drive of Tampa International Airport 2010 Estimate* Drive Zone Population Employment 1 - Hour 3,515,582 1,049, Hour 7,310,188 2,007,605 * 2010 estimate is based on 2007 statistics and Woods & Poole growth rate. Sources: Microsoft MapPoint North America 2010; Woods & Poole Economics, CEDDS

4 Tampa Enjoys Nonstop Service to 73 Destinations 10 International and 63 Domestic Halifax Los Angeles Las Vegas Denver Ottawa Manchester Minneapolis Toronto Albany Boston Grand Rapids Rochester Hartford Providence Flint Milwaukee Buffalo Cleveland New York-Long Island Des Moines Pittsburgh New York-JFK, LGA Detroit Newark Omaha Westchester Co. Chicago-ORD,MDW Columbus Akron Philadelphia Atlantic City Indianapolis Baltimore Kansas City Dayton Washington-IAD, DCA Cincinnati Norfolk St. Louis Louisville Nashville Memphis Asheville Charlotte Montreal Raleigh/Durham London Zurich Phoenix Dallas Birmingham Atlanta Source: OAG, Jul-Dec 2011 & Announced May 2012 Austin San Antonio Tallahassee Pensacola New Orleans Houston-IAH, HOU Tampa Cancun Grand Cayman Is. Jacksonville West Palm Beach Ft. Lauderdale Miami Key West Havana Holguin San Juan 3

5 What is New Service Worth at TPA?

6 Source: SH&E Economic Impact of New International Routes at Tampa International Airport

7 Inputs Are Based Upon Routes to Targeted World Regions and Defined Aircraft that Are Most Appropriate to Serve TPA Route Daily service with an estimated block hour time individual to each world region 98% completion factor Load factors based on US Department of Transportation data for current average load factors by world region Percent of visitors based on FL average of similar flights today* - MIDT data Aircraft Type of aircraft based on mileage range and average number of seats Fuel burn based on estimates for each aircraft and block hour of flights US Department of Transportation Form 41 data Source: SH&E Economic Impact of New International Routes at Tampa International Airport Landing weights based on aircraft type and guidance of airport s rates and charges Tampa International Airport * Excludes Asia, where US average was used

8 The Methodology Used Considers On- and Off-Airport Spending and Economic Activity as a Direct Result of the New Flight On Airport Jet fuel Concession spend Ground handling and gate use Station employees/crew expense Off Airport Visitor passenger spend Lodging, restaurants, transportation, shopping and entertainment Aircraft passenger catering Advertising and publicity Landing and parking fees Common use Ticket counter and club room Baggage claim and airside rent

9 New Daily European Service Would Allow for an Additional $154m Worth of Economic Impact and Create Over 1,200 Jobs Tampa Economic Impact of New Service to Europe TPA - Europe Service On-Airport/Direct Fuel $14,180,576 Concessions $960,133 Handling $910,000 Station Employees $158,280 Landing fee $211,764 Parking Fees $55,779 Crew Expense $655,200 Common Use $138,409 Gate Use $66,612 Ticket Counter/Airside/Baggage Claim/Club Room $139,386 Total On-Airport/Direct $17,476,138 Europe Impact Summary ImpactType Employment Labor Income Direct Effect 788 $26,098,000 Spinoff 497 $22,574,000 Total Effect 1,286 $48,672,000 Off-Airport/In-Direct Visiting Passenger Spending $70,705,922 Food Expense $1,060,696 Ad and Publicity Expense $254,072 Total Off-Airport $72,020,690 Total Direct + In Direct Impact $89,496,827 Induced Impacts Assumed Multiplier 0.72 Multiplier Effect $64,437,716 Source: SH&E Economic Impact of New International Routes at Tampa International Airport Total $153,934,543

10 Where do we go from here?

11 Source: Oliver Wyman

12

13 International Growth Opportunities for TPA Frankfurt (Lufthansa / Condor) Sao Paulo (TAM or GOL) Mexico City (Volaris or Aeromexico) Panama City (Copa) Bogota (Avianca) Island Destinations (Southwest) 12

14 New Air Service Incentive Program 13

15 Brand New Air Service Incentive Program for TPA Approved by TPA Board in June to 2-Year Package of Marketing Cash and Fee Waivers Marketing Airline Administers the Marketing Campaign Airport Must Approve Marketing Plan and all Creative in Advance Airline Provides Proof of Completion and all Documentation Airport Reimburses Airline for Approved Marketing Expenses Airport Fee Waiver 1 to 2-Year waiver of Airport Fees Source: Tampa International Airport Air Service Incentive Program. 14

16 Air Service Incentives Air Service Incentives are a necessary tool for air service recruitment, and the potential payoff for the airport and its region are enormous. New Service Incentives Over 2 Years Service Airport Revenues Airport Incentives Community Economic Benefit None TPA-Europe $3.4M $2.1M $300M Source: SH&E Economic Impact Study,

17 Bringing our Community to the Table 16

18 Joint Marketing Efforts to Date Tampa International Airport is working closely with regional partners to increase travel between Tampa and the world. Market Intelligence & Data Sharing Air Service Targeting Market Sizes & Avg. Fares Hotel Revenue Per Available Room Booking Trends Upcoming Conferences/Events Business Development Joint Airline Visits Visit Florida Enterprise Florida Tampa Bay & Co TPA St Pete/Clearwater CVB Tampa Bay Partnership Co-Sponsoring Conferences Routes 2011 Berlin Network 2012 Tampa Greater Tampa Chamber of Commerce Hillsborough County EDC

19 New Flights to Zurich! New flights begin May 25 First new flights to Europe in 15 years Full code-share with Swiss International Air Lines Convenient connections to dozens of markets Paris Frankfurt Rome

20 Using Economic Impact Information at Tampa International Airport ACI-NA Air Service Data and Planning Seminar January 23, 2011

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