Current and Future Economic Impacts of Louis Armstrong New Orleans International Airport
TMG Consulting has been commissioned to update the economic impact analysis for the Louis Armstrong New Orleans International Airport. Our team will work in partnership with Timothy Ryan, Ph.D., distinguished local economist and former Chancellor of the University of New Orleans who conducted the previous economic impact analysis that was completed in 2004.
TMG will utilize the latest available data on expenditures, payroll, and recurring capital investments related to the Airport to determine the Airport’s annual impact on jobs, spending, and tax generation in the region. For this analysis, we will utilize the Regional Input Output Multiplier System (RIMS II) published by the Bureau of Economic Analysis in order to estimate the impact for the New Orleans Metropolitan Statistical Area.
In addition, TMG and Dr. Ryan will also develop a projection of the future economic impact of the new terminal on the North side of the current MSY site announced by Mayor Mitch Landrieu in January 2014 that is scheduled to open in 2018, in time for New Orleans’ tri-centennial celebration.
Portions of the current airport terminal have far exceeded their useful life and have been adapted and repurposed over the years in order to accommodate changes in the aviation industry and TSA security requirements.
Aging Infrastructure of the Current MSY Terminal
The new terminal will feature a modernized design and increased functionality over the current MSY terminal, with consolidated security checkpoints that will allow passengers to access all concourses after security screenings. Combined access to all concourses is expected to increase the number of concessionaires that are willing to operate at MSY and generate additional revenue for concessionaires due to increased exposure to passenger demand.
Moving the terminal to the North will also allow for repurposing of existing Airport properties on the South side of the MSY site. Reuse of the existing south side properties will also result in additional jobs, earnings, and output for the regional economy.
Proposed Repurposing of South Side MSY Properties
In a previous study for the Airport in March 2013, TMG projected that the one-time impact of building the proposed new terminal on the North side along with redevelopment on the South side would result in over 13,000 new construction related jobs for the region.
Conceptual Design for the New MSY Terminal
We anticipate that the combined impact of all these changes and redevelopment efforts will bring more jobs, more spending, and more tax revenues for the Greater New Orleans Area. Greater economic impact will lead to greater opportunities for local businesses and additional resources for local governments in the region.
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