The economic impact of the Fredericton Airport on the local knowledge-based industry (New Brunswick)

Fredericton is a growing hub for knowledge-based businesses in the service sector, including information technology (IT) and engineering consulting firms. These businesses have primarily external markets for their products, and are therefore highly dependent on commercial air travel. This study examines the economy of the above noted businesses and estimates the economic impact of Fredericton Airport on them.; The impacts are estimated at two levels, direct and total. They are measured in terms of employment, payroll, and revenue generated by these knowledge-based businesses. The data required to estimate the direct impacts were obtained primarily through a survey of the businesses. The indirect impacts were then estimated by employing the industry specific input-output multipliers.; This study examined two scenarios, one with the airport as is and the other with the airport closed, and estimated the benefits to Fredericton's knowledge-based economy by comparing those two scenarios. The study then projects the cumulative benefits to the economy over a five-year period assuming the airport will continue to exist as is.; The study estimated that the immediate impact of the Fredericton Airport on the knowledge-based economy is about 900 jobs, {dollar}36 million in payroll and {dollar}123 million in revenues during the base year 1999. The study forecasted that the cumulative benefits to the local economy due to the airport over a five-year period (1999–2004) will be 9,083 person years in employment, {dollar}286 million in payroll and {dollar}776 million in revenue.; Through these estimates, the study demonstrates that the knowledge-based economy is highly dependent on the Fredericton Airport for its business travel and that the airport is essential for the location and expansion of this business segment. The study also shows that these businesses would shrink over the years if the airport were to be closed.