What does the "direct impact" category in an economic impact study primarily refer to?

Study for the AAAE Certified Member Test. Use flashcards and multiple choice questions, complete with hints and explanations. Get ready for your exam success!

The "direct impact" category in an economic impact study primarily refers to the immediate effects that a specific entity, such as an airport, has on the economy. It encompasses all economic activities that can be directly attributed to the airport's operations, including the wages paid to employees working directly for the airport. This includes airport staff, maintenance personnel, security, and other directly employed individuals whose jobs are a direct result of the airport's presence and operations.

By focusing on airport employee wages, the study captures a tangible economic benefit flowing from the airport to the local community, showcasing the direct infusion of income into the economy as these employees spend their earnings on goods and services. This aspect is crucial in evaluating the overall contribution of the airport to the local and regional economy, as it highlights jobs and incomes generated through airport operations.

While passenger spending at the airport, sales from airport shops, and tax revenue generated by the airport are important economic factors, they are typically classified under secondary or indirect impacts, as they involve broader economic interactions spawned by the airport's operations rather than direct employment and wage payments.

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