MWAA Executive Summary_FINAL_14June2019_low-res

The Economic Contribution of the Metropolitan Washington Airports Authority: Executive Summary

An overview of the Airports Authority's contribution to the Virginia-Maryland-Washington, DC region in 2017 $23.6 billion of economic output If all this economic activity were consolidated to one publicly traded company, it would rank #123 on the Fortune 500 $1.1 billion of state $14.4 billion of and local taxes regional GDP $3.0 million a day flowed A contribution of to local tax authorities $39.4 million per day Enough to educate 87,000 students across the region for one year That's equivalent to the 187,200 jobs x4 6th largest city in Virginia Enough to fill FedEx Field, Nationals Park, the U.S. Naval Academy’s Navy-Marine Corps Memorial Stadium, and DC United’s Audi Field combined Output represents the value of sales (i.e., revenues) that are ultimately attributable to transportation activity overseen by the Airports Authority. GDP is the difference between those revenues and their non-labor input costs.

A closer look at economic output and jobs How do different activities drive economic contributions? Economic output ($M) 2,296 7,393 13,928 23,616 Jobs (thousands) 131.3 187.2 11.3 44.6 16,317 23,616 The Airports Travel Visitor spending 124.2 187.2 Authority's local services impact spending impact impact Where do the economic contributions accrue? Economic output ($M) 3,235 4,065 Jobs (thousands) 27.6 35.4 Maryland Washington, DC Virginia The Airports Authority welcomed 8.4 million visitors from around the world who spent nearly $9.0 billion across the region in 2017 Maryland 1.4 million visitors $1.4 billion of spending Washington, DC 2.9 million visitors $3.0 billion of spending Virginia 4.1 million visitors $ 4.5 billion of spending Visitor spending triggered follow-on economic activities such as job creation and the purchases of goods and services. Economic contribution stimulated by visitor spending Economic output Jobs $13.9 billion 131,300

The Airports Authority provided facilities that delivered vital travel services About 300 businesses operated on the airport campuses to support airline operations and deliver travel services to the 46.6 million passengers who passed through the airports in 2017. Economic contribution stimulated by travel services Economic output $7.4 billion Jobs 44,600

The Airports Authority's local spending infused $912 million into the regional economy in 2017 The Airports + The Airports Authority Authority directly employed spent over 1,883 workers $950.6 million $144 million $768 million in wages 80% went to local businesses Building for the Future In 2017, the Airports Authority spent $589.9 million on the Dulles Corridor Metrorail project, of which $496.5 million went to local businesses in Virginia, Maryland, and Washington, DC. This spending underscores the Airports Authority's role in managing large infrastructure projects that encourage transportation-oriented development initiatives across the capital region. Economic contribution stimulated by the Airports Authority local spending Economic output Jobs $2.3 billion 11,300

Executive Summary In 2017, over 46.6 million travelers passed through the thriving economic hubs of Reagan National Airport and Dulles International Airport, including 8.4 million visitors to the Virginia-Maryland- Washington, DC region. While some observers may think the Metropolitan Washington Airports Authority (Airports Authority) is simply the organization that runs both airports, the Airports Authority plays a much broader role in the regional economy. The Airports Authority also operates the Dulles Toll Road and manages the Dulles Corridor Metrorail project. In 2017, the transportation assets the Airports Authority oversees stimulated over $23.6 billion of regional output, delivered $14.4 billion in gross domestic product (GDP), and supported 187,200 local jobs. If all of this activity were in a single, publicly traded company, the Airports Authority would rank 123rd on the Fortune 500. The Airports Authority commissioned IHS Markit to assess and quantify the economic contributions the organization makes to the economies of Virginia, Maryland, and Washington, DC. The analysis was structured around three distinct roles the Airports Authority plays in the regional economic landscape—visitor spending, travel services, and local spending—with the overall economic contributions distributed across these areas. The Airports Authority welcomed 8.4 million visitors who engaged 8.4 million in nearly $9.0 billion of visitor spending across the region in 2017 visitors In 2017, close to 5.5 million domestic and 2.9 million international visitors passed through the airports on journeys to conduct business $9.0 billion or vacation in the region. They directly spent almost $9.0 billion as they shopped, dined, lodged, and experienced the region. This of visitor spending spending triggered follow-on activity as businesses restocked inventory and hired employees. Ultimately, the visitor spending stimulated, in total, over $13.9 billion of economic output, delivered almost $8.5 billion of GDP, and supported nearly 131,300 local jobs across the region in 2017. The Airports Authority provided facilities that delivered vital travel services Washington, DC's two airports are thriving business zones. Individuals traveling through both airports, as well as the airlines themselves, require on-site services ranging from air support to cargo to concessions to ground transportation. IHS Markit estimates companies doing business at the two airports stimulated about $7.4 billion of economic output, delivered nearly $4.4 billion of GDP, and supported over 44,600 jobs across the region in 2017. The Airports Authority's local spending directly infused close to $912 million into the region In 2017, The Airports Authority spent over $950.6 million on its operational expenses and capital projects. Particularly noteworthy is that $767.9 million or 80% of this spending went to businesses located in the region. Additionally, the Airports Authority paid its 1,883 direct employees $143.9 million in wages. The combined $911.8 million of local spending plus wages that the Airports Authority infused into the region drove nearly $2.3 billion of economic output, over $1.5 billion of GDP, and supported close to 11,300 local jobs across the region in 2017.

Key take-aways of the study include: ‒‒ If the $23.6 billion of output stimulated by the Airports Authority were embodied as a single publicly traded company, it would rank No. 123 on the 2017’s Fortune 500. ‒‒ GDP is generally considered the broadest measure of the size and health of a local economy. The Airports Authority's contribution to regional GDP is nearly $14.4 billion. ‒‒ The $14.4 billion in GDP stimulated by the Airports Authority is equivalent to $39.4 million per day. ‒‒ The 187,200 jobs supported by the Airports Authority is equivalent to the sixth-largest city in Virginia. ‒‒ The total number of jobs supported by the Airports Authority is more than enough to simultaneously fill FedEx Field, Nationals Park, the U.S. Naval Academy's Navy-Marine Corps Memorial Stadium, and DC United’s Audi Field combined. ‒‒ The Airports Authority had 1,883 direct employees in 2017. This means that, for every single Airports Authority job, another 100 jobs were supported across the region: 66 in Virginia, 15 in Maryland, and 19 in Washington, DC. Functionally, 70 of these jobs were driven by visitor spending, 24 by companies doing business at the airports, and 6 by the Airports Authority's local spending. ‒‒ The Airports Authority helped stimulate over $1.1 billion in state and local taxes during 2017. This translates to a daily rate of $3.0 million in revenues that flowed to local tax authorities. ‒‒ According to the National Education Association, the annual expenditures per pupil in Virginia, Maryland, and Washington, DC are $11,141, $14,774, and $25,025, respectively. This means the $1.1 billion in state and local taxes generated by the Airports Authority could educate more than 87,000 students across the region for one year.

The Airports Authority's economic contribution by the numbers The Airports Authority's economic contribution to the Virginia-Maryland-Washington, DC region, 2017 Source Economic GDP Wages Employment State and output ($ millions) ($ millions) local taxes Total 187,206 ($ millions) ($ millions) 14,376 8,451 Virginia 124,153 1,108 Maryland 23,616 9,718 5,522 27,612 Washington, DC 1,950 1,178 35,440 749 16,317 2,708 1,751 200 3,235 159 4,065 Visitor spending 13,928 8,482 5,017 131,263 651 Virginia 7,635 4,427 2,499 74,857 351 Maryland 2,346 1,427 21,731 145 Washington, DC 3,947 2,628 824 34,674 155 1,694 Travel services 7,393 4,380 2,745 44,646 371 Virginia 7,091 4,192 2,629 43,133 354 Maryland Washington, DC 243 142 87 1,218 14 59 45 30 295 3 The Airports Authority's 2,296 1,515 689 11,297 86 local spending 1,591 1,099 394 6,163 43 Virginia 646 380 267 4,664 40 59 35 Maryland 28 471 2 Washington, DC Notes: (1) Numbers may not sum due to rounding. (2)The information presented in this document is drawn from a study conducted by IHS Markit on behalf of the Metropolitan Washington Airports Authority report entitled “The Economic Contribution of the Metropolitan Washington Airports Authority in 2017.” The results presented here and in the formal report were derived using models based on economic data from IMPLAN. contact info: About IHS Markit BOB FLANAGAN IHS Markit (Nasdaq: INFO) is a world leader in critical information, analytics and solutions T (781) 301-9158 for the major industries and markets that drive economies worldwide. The company E [email protected] delivers next-generation information, analytics and solutions to customers in business, finance and government, improving their operational efficiency and providing deep BRENDAN O'NEIL insights that lead to well-informed, confident decisions. IHS Markit has more than 50,000 T (202) 481-9239 key business and government customers, including 80 percent of the Fortune Global 500 E [email protected] and the world’s leading financial institutions. Headquartered in London, IHS Markit is committed to sustainable, profitable growth. Copyright © 2019 IHS Markit. All Rights Reserved 337179795-0419-GC