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from the airport). Passengers in the airport terminal spend money on food and beverages, retail
and duty-free merchandise, movies, and various other services.
Total annual expenditures on airline catering and ground-handling, as well as consumer
expenditures in the terminal, are estimated in the table below. Passenger spend rates were
determined by dividing total terminal expenditures by the number of enplaning passengers in
2000. Estimates of catering and ground-handling expense were derived from industry averages.
Figure 8
Mexico Europe Asia
Total Airport Services Expense: $711,704 $1,526,977 $1,908,219
Aircraft Type: A-320 B-777 B-747
Catering Expenditure
Annual Departing Seats: 54,750 109,500 146,000
Catering Factor: 75% 75% 75%
Annual Meals: 41,063 82,125 109,500
Premium Meal Percent: 5% 5% 5%
Premium Meals: 2,053 4,106 5,475
Economy Meals: 39,009 78,019 104,025
Expenditure per
Premium Meal: $8 $15 $15
Economy Meal: $4 $8 $8
Total Catering Expense: $172,463 $685,744 $914,325
Ground Handling
Annual Arrivals: 365 365 365
Ground-Handling Fee: $850 $1,050 $1,050
Total G-H Expense: $310,250 $383,250 $383,250
Passenger Expenditures at Airport:
Ann'l On-Board Departing Psgrs: 38,325 76,650 102,200
Spend Rate Per-Enplanement: $5.97 $5.97 $5.97
Total Psgr Airport Exp: $228,991 $457,983 $610,644
To Denver From:
Annual Airport Service Expenditures Resulting from
1 Additional Daily Flight
Due to larger aircraft size, greater on-board traffic, and longer flight times (requiring more meals
provided per flight), an additional daily flight from Europe or Asia will yield more airport
commercial expenditures than one from Mexico.
II. INDIRECT IMPACT (Off-Airport Expenditures)
Off-airport expenditures consist primarily of visitors to the Denver metropolitan area spending
money on food, lodging, entertainment, and other services. The visitor expenditure level
produced by an additional daily flight is a function of the average spending per visitor from the
region of origin, as well as the number of additional visitors that the flight brings to the Denver
area each year.
Figure 9
Indirect Impact (Off-Airport Expenditures)
$72,693,082
$45,112,572
$11,665,946
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
Mexico Europe Asia
Flight Region of Origin
`
The indirect impact of an additional daily flight from Europe or Asia is several times greater than
one from Mexico. The calculation follows in the sub-sections below.
A. Expenditures per visitor
The International Trade Administration of the US Department of Commerce conducts a quarterly
in-flight survey of international air passengers. Survey data compiled in 2000 indicate that total
trip expenditures by visitors from Mexico, Europe, and Asia are comparable:
Figure 10
Avg. Trip Expenditure per Visitor:
Transportation in US: $216 $198 $217
Lodging: $333 $443 $443
Food and Beverage: $243 $336 $281
Gif ts/Souvenirs: $327 $207 $396
Entertainment: $169 $147 $150
Other Spending: $156 $92 $187
Total per Visitor: $1,444 $1,423 $1,674
Source: US DOC In-Flight Survey
Average Expenditure per Visitor
by Region of Origin
To Denver From:
Mexico Europe Asia
B. Additional visitors to Denver
While average expenditures per trip among Mexican, European, and Asian visitors to the US are
similar, the number of additional visitors anticipated from a new daily flight is not. An
additional flight from Europe is expected to bring nearly four times more visitors to Denver than
a flight from Mexico. Over five times as many Asian visitors will arrive in Denver each year.
Figure 11
Additional Visitors to Denver from One
Additional Daily Flight
43,425
31,702
8,079
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
Mexico Europe Asia
Flight Region of Origin
The number of additional visitors was estimated by first calculating the on-board traffic
transported to Denver from the three regions of origin. Aircraft size and weekly frequencies
were determined earlier in this analysis by examining current carrier service practices from
Mexico, Europe, and Asia. This study assumed a 70% load factor.
Figure 12
Arriving Seats and Passenger Traffic (70% Load
Factor)
102,200
76,650
38,325
43,800
32,850
16,425
146,000
109,500
54,750
0
20,000
40,000
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