Dallas Fort Worth International Airport estimates a 26.5% increase in passenger numbers in 2022 compared to 2021, which, according to Grapevine, will help bring tourists to the city. (Sandra Sadek / Community Impact Newspaper)
With planes taking off and landing at Dallas Fort Worth International Airport these days, it’s hard to imagine that traffic at the world’s fourth largest airport slowed to unprecedented levels for over a year.
DFW Airport saw a 35% decrease in the total number of passengers passing through the airport between fiscal year 2018-19 and fiscal year 2019-20 due to travel restrictions due to the coronavirus pandemic, according to the airport.
Now, a relaxation of health restrictions in Texas and the introduction of COVID-19 vaccinations earlier this year have set the stage for a shift in air travel demand as more passengers book tickets.
Despite the uncertainty created by the rise in Delta Variant cases in the North Texas area, increased demand for air travel has increased bottom line for the airport and local economies of the host cities of Grapevine, Euless, Coppell and Irving.
“During COVID-19, it is recognized more than ever that regional growth and regional success matter to everyone,” said Grapevine Mayor Pro Tem Darlene Freed. She is a former member of the DFW Airport Board – a body made up of eleven members appointed by the owner cities of Dallas and Fort Worth, and a rotating non-voting member from one of the host cities.
One of four cities the airport calls home, Grapevine’s tourism industry is intertwined with that of the airport to successfully bring traffic and revenue to the city.
Support the local economy
As with many tourist destinations, Grapevine’s economy experienced a downturn in its normally busy months due to pandemic travel restrictions.
But the recent surge in air travel – especially business and leisure travel over the past six months – at DFW Airport has had a positive impact on the city, according to Paul W. McCallum, executive director of the Grapevine Convention and Visitors Bureau.
“[Traveling] turns into a hotel stay. It turns into [spending] in hospitality and retail, ”he said.
McCallum said the Convention and Visitors Bureau estimates that recreational travel currently accounts for about 60% of all visitors coming through downtown, compared with just about 15% -20% of travel that came through the city prior to the pandemic.
“It’s a big swing [but] it won’t stay that way, ”said McCallum. “We can see the trend now because the future bookings we are making for 2022 and 2023 – you can already see the strong return of group business [travel]. “
One of the advantages of Grapevine is that all five of the airport’s terminals are within city limits, which means that the City of Grapevine collects some of the sales taxes that are incurred on purchases made in the terminals.
Data from the City of Grapevine shows that June 2021 sales tax revenue – totaling $ 2.8 million – has already exceeded the same month’s revenue in 2018 and 2019, and is $ 2.7 million and $ 2.7 million, respectively , Raised $ 5 million. In June 2020, the city raised $ 2.1 million.
Although it is unclear how much the surge in air travel contributed to this increased sales tax revenue, Greg Jordan, Grapevine’s chief financial officer, said the Texas reopening in the spring of 2021 encouraged individuals to spend their disposable income.
“The growth we’re seeing is very much what we saw about three years ago,” said Jordan. “If we project that forward based on the same trend line [as we work on fiscal year 2021-22], it really represents very precisely the same values that we saw in fiscal year 2018-19. “
Growth supports jobs
The drop in passenger numbers during the pandemic gave the airport time to continue expanding and redesigning several terminals.
On August 9, the airport board announced an estimated $ 2 billion in Terminal C renovation and expansion projects. According to a press release, this project should be completed in 2026.
“The aim is to convert Terminal C, which has been operating at the airport since the early 1970s, into a modern terminal with the latest technologies and infrastructures,” said Sean Donohue, CEO of DFW Airport, in a press release. “DFW takes into account the expected growth of our partner American Airlines while improving the customer experience to meet the needs of the modern traveler.”
The airport recently completed the expansion of Terminal D South, adding four additional gates at a total cost of $ 160 million. In addition, the High C Gates were renovated, a state-of-the-art Integrated Operations Center opened and runways and taxiways modernized.
According to the airport, these projects have supported over 4,000 jobs in the past 18 months.
The jobs are in line with a resurgence in passenger traffic through DFW airport. A presentation made available to the airport management board on August 5th shows that DFW Airport is “recovering faster than most airports”. An estimated 67.2 million passengers are expected for the fiscal year beginning October 1, 2021 – an increase of 26.5% compared to the current fiscal year 2020-21.
While current passenger traffic is still 8.5% less than in the years leading up to the pandemic, officials expect the airport to recover fully in fiscal year 2022-23.
Freed said the airport’s owning cities and host cities are all competing for business with one another.
“[DFW Airport] did a good job working with all cities across the community to make it a success for the entire region and not just one above the other, ”she said.
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