Section 9 – Economic Impact

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Section 9 - Economic Impact

The Centennial of Flight commemoration will have a broad, multifaceted economic impact in 2003. The impact will be both short-term from events held throughout the year, and long-term from the result of the buildup of parks, facilities and programs spawned by the celebration. In addition to the direct economic impact, the celebration will create value indirectly by fostering educational and entrepreneurial initiatives among those who will be exposed to the formal programs being developed by a variety of sources during 2003 and beyond. It is hard to imagine that the emphasis on education throughout the centennial year will not spawn some new and dramatic inventions or innovations. It is impossible at this time, however, to quantify that impact as a part of this National Plan. An examination of previous national exhibitions, expositions and celebrations reveals that there is a long term, positive impact from new inventions and innovations.

Specifically, Centennial of Flight commemoration activities will generate economic benefits from several sources, including:

Spending by participants at the various events planned throughout the country. Some of these events are predicted to draw a national audience in excess of one million participants over a number of days. There also will be a number of events throughout the nation that will draw smaller and more regional audiences. Combined, it is anticipated that several million participants will take part in the Centennial of Flight commemoration throughout 2003.

Spending by participants visiting the various locations that will be more fully developed as a result of the Centennial of Flight commemoration. These locations include the National Park system; private, not for profit sites; and commercial venues that will have exhibits related to the aviation industry.

Initial construction and exhibit development. Several million dollars are being spent on the construction of park facilities, commercial exhibits and educational facilities throughout the U.S. in response to the Centennial of Flight commemoration. This work is taking place across the nation with significant activities in Ohio, North Carolina, Virginia, Wisconsin and Maryland.

Ongoing maintenance and construction expenditures at the more fully developed locations. Upon completion of the Centennial celebration, there will be a continuation of operations at various sites. These ongoing operations will continue to create an economic impact at those locations.

Employment opportunities at the more fully developed locations. The Centennial of Flight commemoration has created new facilities and helped expand existing programs that are generating more jobs and economic benefits. Several of the sites where capital improvements have taken place will become or expand centers of employment. This will lead to a positive, economic impact at those locations on a very long-term basis.

Estimates of Spending and Multipliers:

There are a variety of studies that have been done on the expenditure patterns associated with events like the Centennial of Flight commemoration. While each event, program and project has identified economic benefits, there are some general figures that can be applied to calculate the economic benefit. For tourism, every dollar spent by a tourist will generate from 40 cents to 80 cents of additional revenue in the area being visited. Ongoing business enterprises such as parkand program operations and construction will generate significantly more impact in excess of one dollar for every dollar spent. This will vary by locale, but it is clear to see the economic potential the Centennial of Flight celebration.

Figure 9A shows the estimated economic impact to be generated by the program partners.

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