Rapid City Regional Airport has a vital role in facilitating air travel for the Rapid City region. However, that is not the only role RAP has in the local region. RAP also contributes to the region’s economy by creating economic activity, jobs, and income. This economic activity multiplies within the entire regional economy. This study attempts to estimate this economic impact based on commercial visitors, general aviation visitors, RAP operations, RAP capital investments, and RAP business tenants.
Christian Glupker, MBA, Primary Researcher
Paul Isely, Ph.D., Reviewer
Economic Impact
The airport generates $456 million in economic activity for Pennington County.
Employment
The airport supports an estimated 2,883 jobs in Pennington County.
Tax Revenue
Rapid City Regional Airport generates $2,219,801 in tax revenue for Pennington County.
Commercial Airline Service
In 2022 338,458 passengers utilized RAP resulting in $153 million in direct spending and $188 million economic impact.
| Economic Activity – Source | Impact Pennington County |
|---|---|
| Commercial Visitors | $188M |
| General Aviation | $58M |
| Airport Operations | $6M |
| Airport Capital Investments | $8M |
| Airport Business Tenants | $196M |
| Total Annual Economic Activity | $456M |
| Employment – Source | Impact Pennington County |
|---|---|
| Commercial Visitors | 1,439 |
| General Aviation | 543 |
| Airport Operations | 46 |
| Airport Capital Investments | 56 |
| Airport Business Tenants | 796 |
| Total Employment | 2,883 |
Commercial airline visitors are defined as those who arrive at the airport on commercial airlines. An intercept survey was used to collect commercial spending data. The survey was administered via Qualtrics from October 2022, through October 2023. Airport visitors were asked to complete the survey to access free Wi-Fi. Data gathered includes zip code, length of visits, party size, spending patterns, and general demographics. Data from this survey was used to calculate the economic impact of commercial visitor spending and the catalytic effect of RAP on household incomes. 7,537 surveys were collected.
In calculating the economic impact of commercial visitors, only spending associated with nonlocal commercial visitors, that is, visitors who live outside the defined local region, is included. This nonlocal spending is considered ‘new’ money to the local economy. For this study, the local economy is defined as Pennington County.
Slides from special board meeting presentation January 9, 2024
