Southwest Airlines' Arrival in Denver to Boost Economy by $225 Million

Denver Mayor John Hickenlooper estimated Thursday that the arrival of Southwest Airlines in Denver next year could pump almost a quarter of a billion dollars into the city's tourist economy. The airline's entry typically boosts traffic even for rival airlines, who draw new business for themselves after cutting their own ticket prices in response to the competition. With its rock-bottom fares, Southwest is expected to make a dramatic entrance into any new market.

Key Takeaways:

• The city expects an additional 1.5 million passengers a year after Southwest begins service on January 3, with 55% of them being inbound passengers.
• The increased traffic is likely to generate $10 million to $15 million in spending on items such as food, parking, and other airport services.
• The convention bureau estimates that tourists spend about $274 on a visit to Denver, which could add up to $225 million in additional spending if the projected influx of 800,000 new visitors next year materializes.
• Southwest's decision to re-establish a presence in Denver answers one of the most frequently asked questions in town, according to the convention bureau's Richard Scharf.
• Tourism ranks as the state's second-biggest industry, bringing in more than $7.5 billion a year in revenues, with about $2.3 billion coming into Denver alone.
• The state's ski industry hopes the cheaper ticket prices will bring more tourists, with Southwest's announcement that it will offer direct daily flights to Chicago being a plus.

Statistics:

• $225 million: estimated additional spending on tourist activities in Denver next year
• 800,000: projected number of new visitors next year
• $274: average spending per tourist visit
• $10 million to $15 million: estimated additional spending on airport services
• 1.5 million: additional passengers per year expected after Southwest's arrival
• 55%: percentage of incoming passengers expected to use the airport
• $7.5 billion: total annual revenues from tourism in the state
• $2.3 billion: annual revenues from tourism in Denver
• $138.40: lowest round-trip fare for Southwest flights from Denver to Las Vegas and Phoenix
• $176.90: lowest round-trip fare for Southwest flights from Denver to Chicago

Sources:

• Denver Mayor John Hickenlooper
• Rocky Mountain News
• Denver Metro Convention & Visitors Bureau
• Vicki Braunagel, co-manager of Denver International Airport
• Richard Scharf, president of the Denver Metro Convention & Visitors Bureau
• Rob Perlman, head of Colorado Ski Country USA