Economic Impact
Tennessee’s airports serve a much greater market than just Tennesseans. Almost 7 million out-of-state visitors traveled through one of the state’s commercial service and/or general aviation airports, contributing $9 billion to the state’s economy. That’s not all they support—Tennessee’s airports directly employ 1,250 people and are home to almost 450 businesses. These businesses in turn employ an additional 31,640 people. The economic impact attributable to this on-airport activity accounts for almost $12 billion!
Tennessee’s airports also contribute to the state’s economy with freight/cargo services, which support over 82,000 jobs and $19 billion in economic impact.
To understand how Tennessee’s 78 system airports support the economy, the Tennessee Department of Transportation (TDOT) Aeronautics Division undertook this Aviation Economic Impact Study. Data for this study were collected for calendar year 2019 and represent a snapshot in time for that year. The total economic impact of $40 billion reflects is how much airports contributed to the state’s economy in 2019 alone.
Tennessee’s Statewide Aviation Economic Benefits
The statewide economic impact of Tennessee’s airports consists of three major categories: On-Airport, Visitor Spending, and Freight/Cargo. Together, they account for $40 billion in economic impact for Tennessee.
On-Airport
TOTAL OUTPUT $12 billion
Impacts related to the activity of airport administration, business tenants, and capital improvements on airports
Visitor Spending
TOTAL OUTPUT $9 billion
Impacts related to out-of-state visitor spending at both commercial service and general aviation airports
Freight/Cargo
TOTAL OUTPUT $19 billion
Impacts related to air cargo operations
What is Economic Impact?
The economic impact of each airport, TDOT Region, and the state are defined by the total jobs, payroll, value added, and business revenue generated by aviation in the state.
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JOBS
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220,936 |
Number of employed people, including full-time and part-time |
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PAYROLL
|
$13 |
Total employment compensation, including wages and other benefits (e.g., healthcare insurance payments, retirement contributions, etc.); also known as “labor income” |
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VALUE ADDED
|
$21 |
The economic productivity of each aviation-related business establishment, calculated as business revenue earned minus the cost of purchasing goods and services from other businesses; also reflects a company’s or industry’s contribution to Tennessee’s GDP |
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BUSINESS REVENUE
|
$40 |
The incorporation of expenditures needed to administer airports, sales of goods and services by airport tenants, budget expenditures to public sector agencies located on airports, the cost of capital expenditures, and visitor spending in Tennessee’s hospitality-related sectors; the term “economic impact” is also used to describe business revenues |
Want to learn more about the Aviation Economic Impact Study?
Tennessee Department of Transportation, Aeronautics Division
7335 Centennial Boulevard
Nashville, TN 37209
615.741.3208
https://www.tn.gov/tdot/aeronautics.html