THE 2007 ECONOMIC IMPACT OF
THE PORT OF SEATTLE



BY MARTIN ASSOCIATES
POS Commission Presentation
FEBRUARY 3, 2009
1

Purpose
Measure the economic impact of the Port
of Seattle:
Seattle Seaport:
Marine Cargo
Waterborne Passenger Activity
Fishermen's Terminal/Fishing Vessels
Homeporting at POS Terminals
Marina Impacts
Non-Marine Cargo Real Estate Tenants
Sea-Tac International Airport
2

Purpose
Measure the baseline impacts by
operating unit
Develop impact models that can be used
for sensitivity analysis
Compare the impacts with the 2003 impact
study

3

Flow of Economic Impacts
Port Activity

Business
Revenue

Payroll       Retained        Local     Indirect Jobs
Earnings,      Purchases
Dividends,
Investments

Direct jobs          Re-spending        Induced
Jobs
Taxes
4

Impacts Created by Port Activity
Jobs
Direct
Induced
Indirect
Wages/salaries
Direct
Re-spending
Indirect
Business revenue
Local Purchases
Taxes

5

Methodology
Interviews with 929 Port tenants and service
providers
Formulation of direct impact models from
interview data
Development of Seattle induced and indirect job
models
In-terminal passenger survey (950 passengers)
Cruise passenger survey (600 passengers and
crew)
6

Total Port of Seattle Impacts:
193,986 total direct, induced and indirect
jobs
$9.5 billion of personal income and
consumption expenditures
$17.6 billion of business revenue
$1.4 billion of local purchases
$867.0 million of state/local taxes
7

Distribution of Total Jobs by
Operation



8

Port of Seattle Impacts
2007
MARINE CARGO   FISHING    MARINAS  PASSENGERS* SEA--TAC   SEA-TAC    REAL ESTATE TOTAL
ON-SITE    VISITORS
JOBS
DIRECT JOBS            12,428       5,607      123      1,865     18,773     71,129      1,392      111,317
INDUCED             16,639       8,028      129     1,059     11,538     24,046      689      62,128
INDIRECT               4,224        1,337       100       554      4,723      8,161      1,441      20,540
TOTAL              33,291      14,972      352     3,479     35,034    103,336     3,521     193,986
INCOME (1000$)
DIRECT              $637,375     $823,477     $4,575    $57,825    $778,150   $1,380,523    $79,575    $3,761,500
RE-SPENDING/CONSUMPTION $1,972,676     $966,679    $14,161    $83,633   $1,124,504    $858,685    $46,034    $5,066,373
INDIRECT             $186,731      $51,845     $3,887     $20,472    $210,203    $179,990     $46,689     $699,817
TOTAL            $2,796,782    $1,842,000    $22,623    $161,930   $2,112,858   $2,419,199    $172,298    $9,527,690
REVENUE ($1000)              $3,060,440      $814,364     $13,831    $227,849   $7,596,875    $5,541,631    $304,225    $17,559,215
LOCAL PURCHASES ($1000)         $438,823      $104,163     $7,845     $33,412    $439,320    $345,272     $69,759    $1,438,594
STATE AND LOCAL TAXES ($1000)      $254,507      $167,622     $2,059     $14,736    $192,270    $220,147     $15,680     $867,020



9

IMPACT OF SMALL BUSINESS
PROGRAM
Port of Seattle spent $53.6 million on
services and construction contracts with
local small businesses in 2007
366 full-time equivalent direct, induced and
indirect jobs
90 jobs are with local minority and women owned
businesses
$16.9 million wages and salaries

10

Seaport Impacts



11

2007 Economic Impacts of
Seaport Operations
56,255 total jobs
21,695 direct
26,716 induced
7,845 indirect
$5.0 billion of wages and salaries
$1.6 billion direct
$3.1 billion induced and consumption
$312.8 million indirect
$4.5 billion business revenue
$660.6 million local purchases
$457.5 million state and local taxes
12

Marine Cargo Methodology
Interviews with tenants, terminal operators,
service providers
Develop operational models:
Surface transportation
Terminal operations
ILWU
Pilots/towing
Develop induced model
Bureau of Labor Statistics, Consumer Expenditure
Survey
Personal income multiplier from Bureau of Economic
Analysis (BEA)
13

Marine Cargo Methodology
Develop indirect model to convert expenditures
into indirect jobs, income, and taxes  BEA
RIMSII for Washington and King County
Develop Sensitivity Model:
Cargo levels
Terminal productivity and operations
New projects  terminal, warehouse, cranes, etc
Carrier and terminal analysis
Inland modal distribution
Comparative analysis of alternative uses
Ranking of projects
14

2007 POS Marine Cargo
Impacts
Port of Seattle
Cargo Operations
JOBS
DIRECT                      12,428
INDUCED                     16,639
INDIRECT                       4,224
TOTAL JOBS                    33,291
RELATED USERS
PERSONAL INCOME (1,000)
DIRECT                     $637,375
INDUCED                   $1,972,676
INDIRECT INCOME                $186,731
TOTAL INCOME                $2,796,782
BUSINESS REVENUE (1,000)           $3,060,440
LOCAL PURCHASES (1,000)            $438,823

STATE AND LOCAL TAXES (1,000)         $254,507
15

Distribution of Direct Jobs by
Category, POS 2007
DIRECT JOBS
SURFACE TRANSPORTATION
RAIL                      1,621
TRUCK                1,931
MARITIME SERVICES
TERMINAL EMPLOYEES          444
ILWU/DOCKWORKERS          1,038
TOWING                  95
PILOTS                     20
AGENTS                 166
SURVEYORS/CHANDLERS         492
FORWARDERS             422
WAREHOUSE             1,036
GOVERNMENT             1,770
SHIPYARDS/SHIPREPAIR          1,865
BARGE                1,017
BUNKERS                45
BANKING/INSURANCE/LAW              188
PORT OF SEATTLE                   282
TOTALS                     12,428

16
Totals may not add due to rounding

Distribution of Direct Jobs by
Commodity, POS 2007
Commodity         Direct   1,000 Metric  Jobs/1000 Tons
Jobs      Tons
Containerized Cargo
International                5,703       13,344.0          0.43
Domestic               1,332      1,900.1        0.70
Grain                    468       5,333.0        0.09
Breakbulk                 490        116.6        4.20
Petroleum                 269      1,240.8        0.22
Liquid Bulk                    26         46.7         0.56
Not Allocated               4,141
Total                    12,428      21,981.2


Totals may not add due to rounding                                                              17

Distribution of Direct Jobs By Place
of Residence
PERCENT     DIRECT JOBS
Auburn         1.89%              235
Bellevue          0.57%                71
Bothell           4.49%                 558
Burien           0.83%               103
Des Moines       1.91%              237
Enumclaw       0.20%              25
Federal Way       5.75%               715
Issaquah         0.24%                30
Kent           2.60%              323
Kirkland          0.37%                 46
Mercer Island       0.21%                 26
Normandy Park     0.18%               22
Redmond       0.14%             17
Renton         1.75%              217
Sea-Tac         2.23%               277
Seattle           14.58%                1,812
Tukwila          0.24%                30
Vashon         0.05%               6
Other King        14.41%              1,791
Edmonds       1.02%            127
Everett           1.58%                 196
Mountlake Terrace   0.59%                73
Other Snohomish    7.52%              935
Tacoma        5.80%             721
Other Pierce        7.01%                871
Other WA       21.05%             2,616
Other US         2.79%               347
TOTAL       100.00%           12,428
18
Totals may not add due to rounding

Revenue by Category, POS
2007
REVENUE
($1,000)
SURFACE TRANSPORTATION
RAIL                   $1,512,956
TRUCK               $160,481
MARITIME SERVICES
TERMINAL EMPLOYEES        $324,289
TOWING                $5,399
PILOTS                  $3,851
AGENTS                $1,747
SURVEYORS/CHANDLERS      $113,418
FORWARDERS           $116,859
WAREHOUSE            $86,833
SHIPYARDS/SHIPREPAIR        $309,562
BARGE/BUNKERS          $413,376
BANKING/INSURANCE/LAW            $11,669
TOTALS                   $3,060,440
Totals may not add due to rounding and excludes POS Revenue                             19

2007 Cargo Revenue Impact by
Commodity

Commodity         Direct   1,000 Metric   Revenue per
Revenue    Tons       Ton
Containerized Cargo
International            $1,982,133       13,344.0       $148.54
Domestic            $230,348      1,900.1      $121.23
Grain                 $197,766       5,333.0       $37.08
Breakbulk               $91,943        116.6      $788.53
Petroleum              $226,614      1,240.8      $182.64
Liquid Bulk                 $1,642         46.7        $35.16
Not Allocated             $329,994
Total                 $3,060,440      21,981.2

Totals may not add due to rounding and excludes POS Revenue
20

Impact Of Container Operations
Port of Seattle
Container Operations
2007
JOBS
DIRECT                           7,035
INDUCED                         9,407
INDIRECT                            3,054
TOTAL JOBS                        19,496

PERSONAL INCOME (millions)
DIRECT                          $360.2
RE-SPENDING                      $1,114.9
INDIRECT INCOME                     $135.0
TOTAL INCOME                     $1,610.1
BUSINESS REVENUE (millions)                $2,212.5
LOCAL PURCHASES (millions)                 $317.2
STATE AND LOCAL TAXES (millions)             $146.5
21
Totals may not add due to rounding

Fishing Methodology
Inventory of vessels moored at each facility, by
type, provided by POS
Fishermen's Terminal
Terminal 91
Maritime Industrial Center
Interviews with tenants (suppliers, boatyards,
restaurants, retail, brokers, insurance, lawyers)
Jobs to sales ratios and salaries developed from
survey of suppliers, ship/boat yards, haul-out
services, banking/insurance, equipment M&R
Combined with total expenditures, by type, at
each terminal                      22

POS Fishing Activity Impact, 2007
TERMINAL 91 FISHERMEN'S TERMINAL MARITIME INDUSTRIAL CENTER TOTAL FISHING
JOBS
DIRECT JOBS            4,068       1,310               229          5,607
INDUCED              6,220       1,578              230          8,028
INDIRECT                760        536                41           1,337
TOTAL              11,047      3,424              500         14,972
INCOME (1000$)
DIRECT              $647,520     $154,675            $21,282        $823,477
RE-SPENDING          $760,124     $181,573            $24,983        $966,679
INDIRECT              $30,651      $19,732             $1,462         $51,845
TOTAL            $1,438,295     $355,979           $47,726       $1,842,000
REVENUE ($1000)               $618,383      $179,207             $16,774         $814,364
LOCAL PURCHASES ($1000)         $56,826      $43,868             $3,469         $104,163
STATE AND LOCAL TAXES ($1000)      $130,885      $32,394              $4,343         $167,622


Totals may not add due to rounding

23

Direct Job Distribution -
Fishing



24

Methodology for Recreational Boating
Inventory of boats, by size and type at each
POS marina, moored and transient:
Shilshole
Bell Harbor
Fishermen's Terminal
Harbor Island
Interviews with tenants (yacht clubs, schools,
restaurants, retail, etc.)
Development of typical annual expenditures by
type and for transient
Development of jobs to sales ratios, revenue
and income for suppliers of services from
surveys
25

Economic Impacts of Recreational
Boating Activity, 2007
SUMMARY            TOTAL
JOBS
DIRECT JOBS           123
INDUCED            129
INDIRECT             100
TOTAL             352
INCOME ($1000)
DIRECT             $4,575
RE-SPENDING         $14,161
INDIRECT            $3,887
TOTAL            $22,623
REVENUE ($1000)             $13,831
POS REVENUE $(1000)           $7,780
LOCAL PURCHASES ($1000)        $7,845
STATE AND LOCAL TAXES ($1000)     $2,059
Totals may not add due to rounding

26

Economic Impact of
Cruise Operations
at the Port of Seattle


27

Cruise Impact Model
Number of vessel calls
Size of vessel
Type and length of cruise
Homeport vs. Port of call
Passenger levels
Passenger characteristics
Local purchases
Local residents vs. out-of-town
Pre and post cruise behavior
28

Cruise Methodology
Two sectors of the economy impacted:
Maritime Sector
Services provided to vessels
Interviews with cruise operators:
Princess Cruises
Holland America Line
Norwegian Cruise Line
Royal Caribbean Cruise Lines
Celebrity Cruises
Visitors Industry Sector
Services provided to passengers:
600 passenger and crew surveys
Crew survey
29
Consistent with Martin Associates Seattle-Tacoma model

Economic Impact of 800,000
Passengers, 163 Homeport Calls
and 24 Ports of Call in 2008
Cruise Only       Airport   Total Seaport and Airport
JOBS
DIRECT                    1,675         280        1,955
INDUCED                   953         172        1,125
INDIRECT                     513          188          701
TOTAL                    3,142         640        3,782
INCOME ($1,000)
DIRECT                   $52,546       $11,601       $64,147
RE-SPENDING/LOCAL CONSUMPTION   $75,999       $16,764       $92,764
INDIRECT                   $16,918        $3,134       $20,052
TOTAL INCOME              $145,464       $31,498      $176,963
REVENUE($1,000)               $199,243       $113,254       $312,497
LOCAL PURCHASES            $24,670       $6,549       $31,220
TOTAL REVENUE             $223,914      $119,803      $343,717
STATE/LOCAL TAX ($1,000)          $13,237         $2,866        $16,104

30

Projected Impact for
2009 POS Cruise Season
Total Cruise      Airport Total Seaport and Airport
JOBS
DIRECT                1,876      332      2,208
INDUCED               1,072      204      1,276
INDIRECT                 610      223       833
TOTAL                3,558      759      4,317
INCOME ($1,000)
DIRECT               $59,299    $13,755     $73,053
INDUCED              $85,765    $19,877    $105,642
INDIRECT               $20,128     $3,716     $23,844
TOTAL INCOME         $165,192    $37,347    $202,540
REVENUE($1,000)          $237,225    $134,283     $371,508
LOCAL PURCHASES        $29,469    $7,765     $37,235
TOTAL REVENUE         $266,694   $142,049    $408,743
STATE/LOCAL TAX ($1,000)      $15,033     $3,399      $18,431


31

Real Estate
Consists of Port of Seattle Seaport Tenants that
are not included in cargo, fishing, recreational
boating, or cruise analysis
Based on a survey of 291 tenants not included in
other types of Seaport or Airport activity
Development of sensitivity model to assess
future land uses
Additive with other Seaport types of business

32

Real Estate Impacts
REAL ESTATE
JOBS
DIRECT JOBS          1,392
INDUCED            689
INDIRECT            1,441
TOTAL            3,521
INCOME (1000$)
DIRECT            $79,575
RE-SPENDING        $46,034
INDIRECT           $46,689
TOTAL           $172,298
REVENUE ($1000)             $304,225
LOCAL PURCHASES ($1000)       $69,759
STATE AND LOCAL TAXES ($1000)    $15,680

Totals may not add due to rounding                                                         33
Excludes activity counted in other types of Seaport business

Direct Jobs by Type of Real
Estate Tenant Activity



34

Impacts of Sea-Tac
International Airport


35

2007 Economic Impacts:
Passenger and Air Cargo Activity
Sea-Tac    Sea-Tac    Total
(On-Site)    (Visitors)
Jobs
Direct                                      18,773      71,129      89,902
Induced                                11,538     24,046     35,584
Indirect                                       4,723       8,161      12,884
Total                                       35,034     103,336     138,370
Wages/Salaries (Millions)
Direct                                       $778.1     $1,380.5     $2,158.7
RE-SPENDING                        $1,124.5    $858.7    $1,983.2
Indirect                                       $210.2      $180.0      $390.2
Total                                      $2,112.9     $2,419.2     $4,532.1
Business Revenue (Millions)                     $7,596.9     $5,541.6    $13,138.5
Local Purchases (Millions)                         $439.3      $345.3      $784.6
State/Local Taxes (Millions)                         $192.3      $220.1      $412.4
Aviation Taxes (Millions)                           $439.4         na      $439.4

Totals may not add due to rounding
36

Distribution of Direct Jobs
by Category, 2007
Job Category                   Direct Jobs
Airline/Airport Services Sector
Passenger Airlines                      7,175
Catering                              608
Skycaps                          564
Government Agencies                  1,256
Airport Administration                     1,137
Retail Concessions                     1,525
General Aviation/FBO's                   1,403
Custodial                             179
Parking                             146
Subtotal                            13,993
Freight Transportation Sector
Freight Airlines/Couriers                     912
Freight Forwarders                       247
Subtotal                             1,159
Passenger Ground Transporation Sector
Rental Cars                            821
Cabs/Buses/Limos/Vans                 1,205
2,026
Construction/Consulting                  1,595
37
Total                               18,773

Distribution of Direct Jobs by
Type of Activity, 2007



38

Distribution of Direct On-Site
Jobs By Place of Residence
PERCENT     DIRECT JOBS
Auburn        5.63%        1,058
Bellevue        1.41%           265
Bothell          0.46%            87
Burien         2.53%          475
Des Moines      3.03%          568
Enumclaw      0.70%         131
Federal Way      9.37%         1,759
Issaquah        1.10%          207
Kent          9.15%         1,717
Kirkland         0.66%           124
Mercer Island     0.50%            93
Normandy Park    0.93%          175
Redmond      0.61%        115
Renton        6.38%        1,197
Sea-Tac        6.61%         1,241
Seattle         17.69%          3,321
Tukwila         6.06%         1,138
Vashon        0.16%          31
Other King       3.18%           598
Edmonds      0.34%         64
Everett          0.50%            95
Mountlake Terrace  0.05%            9
Other Snohomish  1.03%          194
Tacoma       6.16%        1,155
Other Pierce      8.73%          1,639
Other WA       4.90%         920
Other US        2.11%          396
TOTAL      100.00%       18,773                   39

7.6 Million Visitors Used Sea-Tac
International Airport in 2007



40

Distribution of Local Visitors'
Purchases - $5.5 Billion



900 passenger survey                                   41

Distribution of 71,129 Direct
Visitor Industry Jobs


900 passenger survey
42

Changes In Impacts Since 2003



2007
2003                          43

Structural Changes
Personal Earnings Multiplier
Specific waterborne transportation sector income
multiplier now estimated by BEA
1.98 in 2003 to 4.095 in 2007 (higher earnings)
Results in significant growth in induced jobs and re-
spending impact
Jobs to sales ratios have fallen, particularly in ship and
boat yards
Overall jobs to sales ratios have fallen for indirect jobs

44

Changes Since 2003
IMPACTS   IMPACTS   CHANGE
JOBS
DIRECT JOBS             111,317    115,835    (4,518)
INDUCED               62,128    51,679    10,449
INDIRECT                20,540     27,319    (6,779)
TOTAL               193,986    194,833    (848)
INCOME (MILLIONS)
DIRECT               $3,761.5   $3,006.5    $755.0
RE-SPENDING            $5,066.4   $3,004.9   $2,061.5
INDIRECT                $699.8     $795.9    ($96.0)
TOTAL               $9,527.7   $6,807.2   $2,720.5
REVENUE (MILLIONS)              $17,559.2   $12,121.3   $5,437.9
LOCAL PURCHASES (MILLIONS)        $1,438.6    $1,502.5    ($63.9)
STATE AND LOCAL TAXES (MILLIONS)      $867.0     $631.8    $235.3
Totals may not add due to rounding
Loss of direct jobs concentrated with air
passengers impact on visitor industry
45

Operational Changes-- Seaport
Tonnage Changes:
Growth in containerized cargo and grain
Operational Changes
Increased share of intermodal cargo
65% in 2003
75% in 2007
Inclusion of barge based crew for Alaskan break bulk
Terminal productivity remained nearly the same as
did charges

46

Changes in Seaport Cargo
Tonnage
2007      2003
Commodity        1,000 Metric 1,000 Metric    Change
Tons     Tons
Containerized Cargo        15,244.1       9,790.9       5,453.2
Grain                  5,333.0       3,107.7      2,225.3
Breakbulk                116.6        117.9         (1.3)
Petroleum               1,240.8        909.9       330.9
Liquid Bulk                  46.7         46.8          (0.1)
Total                   21,981.2      13,973.3       8,008.0

Totals may not add due to rounding

47

Changes in POS Cargo Driven
Impacts
Port of Seattle      Port of Seattle
Cargo Operations   Cargo Operations      CHANGE
2007          2003
JOBS
DIRECT                      12,428          9,681        2,747
INDUCED                     16,639          5,804       10,835
INDIRECT                       4,224           2,707        1,517
TOTAL JOBS                    33,291         18,192       15,099

PERSONAL INCOME (millions)
DIRECT                      $637.4         $480.7        $157
RE-SPENDING                 $1,972.7         $471.5       $1,501
INDIRECT INCOME                 $186.7          $103.2         $84
TOTAL INCOME                 $2,796.8        $1,055.3       $1,741
BUSINESS REVENUE (millions)           $3,060.4          $1,438.3        $1,622
LOCAL PURCHASES (millions)            $438.8          $251.6         $187
STATE AND LOCAL TAXES (millions)         $254.5           $104.5         $150

Totals may not add due to rounding                                              48

Changes in Direct Jobs By Job
Category
2007       2003    CHANGE
DIRECT JOBS  DIRECT JOBS
SURFACE TRANSPORTATION
RAIL                            1,621      1,080    541
TRUCK                      1,931     1,535    396
MARITIME SERVICES
TERMINAL EMPLOYEES                444       334    110
ILWU/DOCKWORKERS               1,038      776    262
TOWING                       95       59    36
PILOTS                          20        22     (2)
AGENTS                      166      136    30
SURVEYORS/CHANDLERS              492      161    331
FORWARDERS                  422      281   140
WAREHOUSE                  1,036      982    54
GOVERNMENT                  1,770     1,010   760
SHIPYARDS/SHIPREPAIR                1,865      2,354    (489)
BARGE                     1,017      311   706
BUNKERS/MISCELLANEOUS              45       21    24
BANKING/INSURANCE/LAW                      188       188     0
PORT OF SEATTLE                           282       432    (151)
TOTALS                             12,428      9,681   2,747

Totals may not add due to rounding                                                                 49

Changes in Cruise Industry
Impacts
Increased number of cruise calls:
99 calls in 2003
187 calls in 2008
Passengers increased from:
345,000 in 2003
800,000 in 2007

50

Comparison of POS Cruise
Activity
2008      2003     Change
Impacts    Impacts
JOBS
DIRECT                             1,955      530      1,425
INDUCED                           1,125     177       948
INDIRECT                               701      365       337
TOTAL JOBS                           3,782     1,072      2,710

PERSONAL INCOME (1,000)
DIRECT                           $64,147.0   $13,665.7    $50,481.3
RE-SPENDING                       $92,763.5   $13,629.4    $79,134.1
INDIRECT INCOME                      $20,052.2   $11,635.7     $8,416.5
TOTAL INCOME                      $176,962.7  $38,930.8   $138,031.9
BUSINESS REVENUE (1,000)                  $312,497.0  $106,897.6    $205,599.5
LOCAL PURCHASES (1,000)                   $31,219.8   $17,039.0    $14,180.7
STATE AND LOCAL TAXES (1,000)                $16,103.6   $3,815.2    $12,288.4

Totals may not add due to rounding
51

Changes in Fishing Impacts
Decline in number of fishing fleet at Fishermen's
Terminal:
370 ships in 2003
250 ships in 2007
Growth in factory trawlers and processors at T-91:
21 vessels in 2003
58 vessels in 2007
Increase in crew and average annual salary
Decline in boatyard employment per dollar of
expenditures
Increase in income multiplier since 2003  induced jobs
and re-spending impact                    52

Comparison of POS Fishing
Impacts
2007       2003     CHANGE
FISHING    FISHING
JOBS
DIRECT                             5,607      5,877     (270)
INDUCED                           8,028      4,184    3,844
INDIRECT                             1,337      1,774     (438)
TOTAL JOBS                          14,972     11,836    3,136

PERSONAL INCOME (millions)
DIRECT                          $823,476.6   $392,243.3  $431,233.3
RE-SPENDING                       $966,679.1   $384,790.7  $581,888.5
INDIRECT                           $51,844.5    $68,990.0  ($17,145.4)
TOTAL INCOME                     $1,842,000.2   $846,024.0  $995,976.3
BUSINESS REVENUE (millions)                 $814,363.6    $672,008.5  $142,355.1
LOCAL PURCHASES (millions)                 $104,163.2    $113,712.3   ($9,549.1)
STATE AND LOCAL TAXES (millions)             $167,622.0    $83,756.4   $83,865.6

Totals may not add due to rounding

53

Changes in Marina Impacts
Decline in jobs at boat yards and reduced
jobs per dollar of expenditures for boat
repair operations
Closing of several service providers and
restaurants at POS marinas
Decline in 195 vessels moored at POS
marinas since 2003
54

Comparison of POS Marina Activity
2007       2003     CHANGE
MARINAS   MARINAS
JOBS
DIRECT                              123       315     (192)
INDUCED                            129       164     (35)
INDIRECT                              100       209     (109)
TOTAL JOBS                           352       688     (336)

PERSONAL INCOME (millions)
DIRECT                            $4,575.4    $11,850.7   ($7,275.3)
RE-SPENDNG                      $14,160.8    $11,625.5   $2,535.3
INDIRECT                            $3,886.6     $8,254.2   ($4,367.6)
TOTAL INCOME                      $22,622.8    $31,730.4   ($9,107.6)
BUSINESS REVENUE (millions)                 $13,831.4    $26,109.3  ($12,277.8)
LOCAL PURCHASES (millions)                  $7,845.4    $11,962.7   ($4,117.3)
STATE AND LOCAL TAXES (millions)               $2,058.7     $3,141.3   ($1,082.6)

55
Totals may not add due to rounding

Operational Changes - SeaTac
Growth in passenger activity:
26.8 million in 2003
31.3 million in 2007
International passengers remained about the same as
in 2003
Air cargo fell:
351,418 tons in 2003
319,013 tons in 2007
Post Office non-airport activity moved off-site
Reduced construction expenditures
$95.6 million in 2003
$56.3 million in 2007
56

Comparison of SeaTac
Economic Impacts (On-site)
2007      2003     Change
(On-Site)     (On-Site)
Jobs
Direct                                       18,773      19,017       (244)
Induced                                11,538     10,205     1,333
Indirect                                        4,723       3,917        806
Total                                       35,034      33,139      1,895
Wages/Salaries (Millions)
Direct                                       $778.1      $762.4      $15.7
Re-Spending                           $1,124.5     $747.9     $376.6
Indirect                                       $210.2      $166.5       $43.7
Total                                      $2,112.9     $1,676.8     $436.1
Business Revenue (Millions)                     $7,596.9     $4,329.4    $3,267.5
POS Revenue
Local Purchases (Millions)                         $439.3      $376.7      $62.6
State/Local Taxes (Millions)                         $192.3      $166.0      $26.3
Aviation Taxes (Millions)                           $439.4      $264.3      $175.1

Totals may not add due to rounding
57

Comparison of Direct On-site
Jobs by Category
Job Category                  Direct Jobs Direct Jobs Change
2007    2003
Airline/Airport Services Sector
Passenger Airlines                    7,175    7,594    (419)
Catering                           608     505    103
Skycaps                        564     573    (9)
Government Agencies                1,256    1,712   (456)
Airport Administration                   1,137     1,171     (34)
Retail Concessions                   1,525    1,137    388
General Aviation/FBO's                 1,403     445    958
Custodial                           179     215    (36)
Parking                           146     182    (36)
Subtotal                          13,993    13,534    459
Freight Transportation Sector
Freight Airlines/Couriers                   912      712    200
Freight Forwarders                     247     259    (12)
Subtotal                          1,159     971    188
Passenger Ground Transporation Sector
Rental Cars                          821     874    (53)
Cabs/Buses/Limos/Vans               1,205     906    299
2,026    1,780    246
Construction/Consulting                1,595    2,732  (1,137)
58
Total                             18,773    19,017    (244)

Changes in Air Passengers
Air visitors increased from 7.1 million to 7. 6
million
Growth in share of domestic business
travelers
60% in 2007 compared to 30% in 2003
May reflect timing of surveys
Change in composition of spending:
Increased share of total purchases made on
hotels vs. restaurants
Hotels have a lower job per dollar of
expenditure ratio than restaurants
59

Comparison of SeaTac
Economic Impacts
(Visitor Industry)
Visitors Indsutry    Visitors Industry  Change
2007      2003
Jobs
Direct                            71,129       78,982       (7,853)
Induced                       24,046      29,926      (5,880)
Indirect                             8,161       18,127       (9,966)
Total                            103,336      127,035      (23,699)
Wages/Salaries (Millions)
Direct                           $1,380.5      $1,272        $109
Re-Spending                    $858.7     $1,248      ($389)
Indirect                            $180.0        $425        ($245)
Total                            $2,419.2      $2,945       ($526)
Business Revenue (Millions)            $5,541.6      $5,328       $214
Local Purchases (Millions)               $345.3       $695       ($349)
State/Local Taxes (Millions)              $192.3       $249        ($57)
60