2

Demographic Profile
Economic and
2
CHAPTER
ECONOMIC AND
DEMOGRAPHIC
PROFILE

v

ECONOMIC
2 . 1 I N T RO DUC T IO N
This chapter describes the current
economic and demographic profile
of the area served by Toronto
Pearson International Airport with
the focus being on the elements
that determine the demand for air
transportation. Chapter 3 will
discuss the forecasts for aviation
activity resulting from these ele-
ments. Subsequent chapters will
examine airport facilities needed
to meet the forecast aviation
demand.
Transportation is not an end in
itself; rather it is a means to an
end. Transportation is derived
from an underlying need to move
people from one place to another
in order to conduct business, visit
friends and relatives or other per-
sonal reasons, or to ship goods.
The desire to visit the sights and
engage in activities offered by a
region also creates a demand for
transportation through tourism.
The amount of travel to or from a
region is a function of:
the size and composition of the
local populace
the size, vitality, and
composition of the local
economy
the attractiveness of the region
as a place to visit
Chapter 2 > E C O N O M I C AND
AND DEMOGRAPHIC PROFILE
Chapter 2
Thus, a large growing and cosmo-
politan population with high
income will create the demand for
leisure and personal travel necessi-
tating air services to many destina-
tions. Similarly, a large and active
economy is the foundation for
business travel.
There are also people who travel
through a region en route to their
end destination. Some of this rout-
ing is due to the absence of choice
such as for travellers from Northern
Ontario connecting at Toronto
Pearson to other destinations.
Other travellers connect through
Toronto Pearson due to its geo-
graphic location, available air
services, regulatory advantages or
amenities offered at the Airport.
2.1.1 Airport Service Area
The Greater Toronto Area (GTA)
is a 7,125 km2 area consisting of
the City of Toronto plus the
neighbouring regional munici-
palities of Halton, Peel, York, and
Durham, and their 24 con-
stituent municipalities, as
illustrated in Figure 2-1.
Surrounding the GTA is an
almost equally populous
DEMOGRAPHIC PROFILE
2.1
but much larger area (72,306 km2/
27,917.5 mile2). Together they
make up the Airports Total
Service Area (TSA). The TSA is
defined as those census divisions
(CD) with ground transportation
service to Toronto Pearson, illus-
trated in Figure 2-2.
Toronto Pearson is located approxi-
mately at the geographic centre of
both the TSA and the GTA. The
area served by the Airport is sub-
stantial and significant to both
Ontario and Canada. It has a
large, cosmopolitan and well-
educated population. Relative to
the size of its population, it has a
greater proportion of immigrants,
of high-income households and a
lower proportion of low-income
households.
Toronto Pearson is the principal
airport for southern Ontario. The
GTAs large and diverse popula-
tion and economy, supplemented
2.2
by those of surrounding areas,
enable airlines to profitably
serve the Airport with frequent
services to many domestic and
international destinations.
This chapter describes the demo-
graphic and economic profile of
the GTA and the Airports TSA.
The latter sections of the chapter
profile the three municipalities
Chapter 2 > E C O N O M I C AND
closest to the Airport Etobicoke
(now part of the City of Toronto),
Mississauga, and Brampton, as
well as the economic impact of
the Airport.
2.1.2 Data Sources
The main source of data for
Chapter 2 is the 2001 Census of
DEMOGRAPHIC PROFILE
Canada (2001 Census), supple-
mented by other reports prepared
by Statistics Canada. It also
includes data compiled by other
organizations that is based on data
from the 2001 Census. Where
available, results from the 2006
Census have been incorporated
into the profile.

Population forecasts are taken
from the Ontario Ministry of
Finance publication Ontario
Population Projection Update
issued in April 2007.
Other sources of data include
reports and websites from the
City of Toronto, Mississauga and
Brampton, Regional Municipa-
lities of Durham, Halton and
York, Greater Toronto Marketing
Alliance, and Ontario Ministry
of Tourism.
Some economic data is only
published at the provincial level.
However, given the concentration
of population and economic ac-
tivity in southern Ontario, it is
reasonable to assume that the
1 Statistics Canada; Canadian Travel Survey Cat: 87-212-XIE Table 2-b
Chapter 2 > E C O N O M I C AND
province-wide data is driven by
southern Ontario and that trends
in Ontario reflect trends in
southern Ontario.
2 .2 DEMOGRAPHIC
P R OFILE
The size of the population is one
driver of aviation demand. As the
population increases, the demand
for transportation also can be
expected to increase. In addition
to describing the number of
people living in the GTA and in
Toronto Pearsons TSA, this sec-
tion also describes immigration
and education. These variables are
demand drivers as familial ties to
international locations underpin
DEMOGRAPHIC PROFILE
2.3
the demand for personal travel.
There is also a relationship
between higher education and
travel demand.1
2.2.1 Greater Toronto Area
Population: In 2006, the popula-
tion of the GTA was 5.6 million or
46 per cent of Ontarios popula-
tion and 17.6 per cent of the
Canadian total. By 2030, the GTA
population is forecast to increase
by 47 per cent to 8.2 million. The
largest increases in percentage
terms predicted between 2001 and
2030 are in York (122 per cent),
Peel (97 per cent), and Halton
(95 per cent). In absolute terms,
the greatest increase is forecast to
occur in York and Peel followed by
Toronto. Notably the GTAs per-
centage of total Ontario popula-
tion is forecast to increase from
45 per cent in 2001 to 50 per cent
in 2030.
Correspondingly, the population
density of the GTA is forecast to
increase from 713 to 1,149 people
per square kilometre by 2030. The
most densely populated census
division forecast for 2030 is Toronto
(4,829 persons per square kilo-
metre) while Durham at 330 peo-
ple per square kilometre is the least
densely populated census division.
Immigration: In 2001, approxi-
mately 2.1 million residents, or
42 per cent of the GTAs popula-
tion, were born outside of Canada.
Countries of origin that account for
the highest number of immigrants
2.4

TABLE 2-1 GTA POPUL ATION BY CENSUS DIVISION

GTA GTA %
York Toronto Peel Durham Halton Total of Ontario Ontario
Population 1996 Census 592,445 2,385,421 852,526 458,616 339,875 4,628,883 43.0% 10,753,573
Population 2001 Census 729,254 2,481,494 988,948 506,901 375,229 5,081,826 44.5% 11,410,046
Population 2006 Census 892,712 2,503,281 1,159,405 561,258 439,256 5,555,912 45.7% 12,160,282
Population Forecast 2010 1,064,648 2,698,314 1,389,479 627,040 502,200 6,281,681 47.4% 13,260,204
Population Forecast 2020 1,348,174 2,903,297 1,699,333 737,289 620,402 7,308,495 49.1% 14,892,578
Population Forecast 2030 1,616,961 3,048,518 1,943,566 846,696 733,217 8,188,958 50.1% 16,361,150
Change 2001 to 2030 887,707 567,024 954,618 339,795 357,988 3,107,132 4,951,104
% Change from 2001 to 2030 122% 23% 97% 67% 95% 61% 43%
Land area (sq km) 1,762 630 1,242 2,523 967 7,124 0.8% 907,573
Population Density 2001 414 3939 796 201 388 713
Population Density 2030 918 4,840 1,565 336 758 1,149
Based on 100 per cent sample in 2001 Census

to the GTA include the U.K. (7.9

per cent), India (7.1 per cent),
Italy (6.8 per cent), Peoples
Republic of China (6.5 per cent),
Hong Kong (5.3 per cent) and the
Philippines (5 per cent).

Despite accounting for only 17 per

cent of the total population of
Canada, 39 per cent of all immi-
grants to the country reside within
the GTA and a disproportionately
high percentage of immigrants
from certain countries have gravi-
tated to the region. Countries
where more than 70 per cent of all
immigrants to Canada locate in
the GTA include Guyana (82 per
cent), Jamaica (79 per cent), Sri
Lanka (79 per cent), and Trinidad
and Tobago (71 per cent). Thus, if
there is a sufficient critical mass in
Canada to warrant air service to
these countries, Toronto Pearson
would be expected to be able to
offer a higher level of air service
than other airports.
Of all immigration to the GTA,
20 per cent has taken place
2 Canadas Global Cities: Socio-economic Conditions in Montral, Toronto and Vancouver;
P. 8 Statistics Canada July 20, 2006; Data for Toronto CMA
3 Ibid P. 8
Air Travellers at Toronto Pearson
between 1996 and 2001. The
highest numbers of recent immi-
grants have come from the Peoples
Republic of China, India,
Pakistan, the Philippines, and
Sri Lanka.
Between 1987 and 2005, Canada
received an average of 214,000
immigrants per year. Of these, an
average of 85,000 settled in the
Toronto area annually, which made
it Canadas largest immigrant-
receiving area.2 With 44 per cent
of its residents being foreign born,
Toronto has a relatively larger
share of immigrants than other
major cities. In comparison, 40 per
cent of Miamis population was
foreign born, 38 per cent of Van-
couvers population, and 18 per
cent of Montreals population.3
Central to the rise in immigration
is a change in countries of origin.
In Toronto in 1981, 34 per cent
of immigrants arriving in the pre-
vious 10 years came from the
United States or Europe and
another 35 per cent came from
Central or South America. By

Chapter 2 > E C O N O M I C AND DEMOGRAPHIC PROFILE


TABLE 2-2 POPUL AT ION OF THE TSA , ONTARIO AND CANADA
Population 1996 Census
Population 2001 Census
Population 2006 Census
Population Forecast 2010
Population Forecast 2020
Population Forecast 2030
2001, sources of immigration had
shifted strongly to Asia, in par-
ticular South (23 per cent) and
East Asia (22 per cent).
The importance of immigration
in the community is greater still
considering the share of people
with ties to foreign countries.
Altogether, more than 70 per cent
of residents over 15 years of age
in the GTA are either immigrants
or children of immigrants. This
condition provides the potential
demand for air services to a large
selection of countries.
Immigration Quick Facts 4
64 per cent mainly use a
language other than English or
French at home.
61 per cent of immigrants to
Toronto enter Canada in
economic class professionals
or skilled workers compared to
52 per cent in Montreal.
Older recent immigrants are
more likely to attend school than
Canadian-born residents of
similar age.
University graduation of second-
generation immigrants is high
and the economic outcomes
often surpass other Canadian-
born residents.
4 Ibid P. 8
Chapter 2 > E C O N O M I C AND
2.5
Total Service Area Ontario TSA % of Ontario Canada TSA % of Canada
8,753,173 10,753,573 81.4% 28,846,761 30.3%
9,394,239 11,410,046 82.3% 30,007,094 31.3%
10,094,597 12,160,282 83.0% 31,612,897 31.9%
11,112,020 13,260,204 83.8%
12,613,164 14,892,578 84.7%
13,945,280 16,361,150 85.2%
Education: The GTA has a highly and 18 per cent for Canada.
educated population with more Although the TSAs population
than 76 per cent of the population is 82 per cent of the population
over 20 years of age having a high for Ontario, 92 per cent of all
school diploma or higher level of immigrants to Ontario reside in
education. Over 8 per cent of the the TSA.
population has a trade certificate
The highest percentage of immi-
or diploma, with over 16 per cent
grants originated from the United
and 24 per cent having a college
Kingdom (11 per cent), followed
certificate or diploma and a uni-
by Italy (6.9 per cent), India
versity degree respectively. Overall,
(6.0 per cent), and the Peoples
the level of education in the GTA
Republic of China (5.4 per cent).
is higher than the levels in
Ontario and Canada. Education: The education levels
in the TSA are very high. They
are similar to Ontario as a whole
2.2.2 Total Service Area
but higher than the overall
Population: In 1996, the popula- Canadian total. Within the TSA,
tion of the TSA was 8.8 million or 75 per cent of the population
81.4 per cent of the provincial
total and 30.3 per cent of the
Canadian total. By 2006, the
TSAs portions had increased to
over 83.0 per cent for Ontario
and 31.9 per cent for Canada. If
the trends continue as forecast,
over 85 per cent of Ontario resi-
dents will reside in the TSA by
2030.
Immigration: The population of
the TSA in 2001 was 9.4 million.
Of this, 30 per cent were born
outside of Canada compared to the
percentage of immigrant popu-
lation of 27 per cent for Ontario Multicultural Population
DEMOGRAPHIC PROFILE
2.6

power. This section will describe

the income characteristics of the
population in terms of household
income and Personal Disposable
Income (PDI). It will also describe
the local economy in terms of
employment by industry and the
Ontario economy in terms of
Gross Domestic Product.

2.3.1 Greater Toronto Area

Central Business District
over 20 years of age has a high
school diploma or higher level of
education compared to 72 per
cent for Canada. Close to 10 per
cent have a trades certificate or
diploma with 17 per cent and 20
per cent having a college certifi-
cate or diploma and university
degree, respectively. These figures
are similar to the Ontario totals,
but are higher than the Canadian
average of 12 per cent, 16 per
cent and 17 per cent.
Summary: The area served by the
Airport is substantial and signifi-
cant to both Ontario and Canada.
It has a large cosmopolitan and
well-educated population. In com-
bination, these factors create a
high propensity for air travel and
for travel to many destinations.
Toronto Pearson is located in the
geographic centre of the area,
anchored by the GTA. Air carriers
offer a wide range of air services
that can be expected to increase
as the population in its service
area grows.
Chinatown Toronto
2 .3 E CONOMIC PROFILE
The potential demand for air
transportation generated by a
population can only be realized if
it is accompanied by purchasing
Income: There are 1.78 million
households in the GTA, or 42 per
cent of all households in Ontario
and 15 per cent of all households
in Canada. Within the GTA, the
average household income is
$76,298 with 35 per cent of the
households having an income
equal to or greater than $80,000.
Average income for the GTA is
14 per cent higher than the provin-
cial average ($66,836) and 31 per
cent higher than the national aver-
age ($58,360). Similarly, the per-
centage of households in the GTA
having an income greater than
$80,000 is higher than its propor-
tion of total households for both
Ontario and Canada.
Labour Force by Industry Sectors:
The North American Industrial
Classification System (NAICS) is
a systematic arrangement of

TABLE 2-3 DISTRIBUTION OF HOUSEHOLD INCOME FOR GTA , ONTARIO, AND CANADA
% of GTA % GTA %
Geography GTA Total GTA of Ontario Ontario of Canada Canada
Number of Private Households 1,780,500 100% 42% 4,219,410 15% 11,562,975
Under $40,000 575,485 32% 37% 1,541,825 12% 4,918,420
$40,000 to $79,999 588,900 33% 40% 1,458,220 15% 4,005,440
$80,000 and over 616,125 35% 51% 1,219,355 23% 2,639,120
Average household income $ 76,298 114% 66,836 131% 58,360

Chapter 2 > E C O N O M I C AND DEMOGRAPHIC PROFILE

 2.7

TABLE 2-4 G TA E M P LOY M E N T

% GTA % GTA %
Geography GTA Total of GTA of Ontario Ontario of Canada Canada
Goods Producing Industries 602,630 22.0% 40.0% 1,507,590 15.4% 3,909,965
Service Producing Industries 2,135,565 78.0% 47.6% 4,485,170 18.3% 11,666,595
All industries 2,738,195 100.0% 45.7% 5,992,760 17.6% 15,576,560

TABLE 2-5 TSA HOUSEHOLD INCOME

% TSA % TSA %
Geography TSA Total of TSA of Ontario Ontario of Canada Canada
Number of Private Households 3,427,880 100% 81% 4,219,410 30% 11,562,975
Under $40,000 1,229,390 36% 80% 1,541,825 25% 4,918,420
$40,000 to $79,999 1,185,060 35% 81% 1,458,220 30% 4,005,440
$80,000 and over 1,013,375 30% 83% 1,219,355 38% 2,639,120
Average household income $ 68 087 102% 66,836 117% 58,360

TABLE 2-6 TSA EMPLOYMENT

% TSA % TSA %
Geography TSA Total of TSA of Ontario Ontario of Canada Canada
Goods Producing Industries 1,293,695 35.2% 85.8% 1,507,590 33.1% 3,909,965
Service Producing Industries 3,670,695 73.9% 81.8% 4,485,170 31.5% 11,666,595
All industries 4,964,390 100.0% 82.8% 5,992,760 31.9% 15,576,560

industries. Industries are structured
into 20 sectors, 99 sub-sectors,
and 300 industry groups. Within
the GTA, the manufacturing and
retail trade sectors employ the
greatest number of workers. Other
notable sectors include informa-
tion and culture industries; finance
and insurance industries; and pro-
fessional, scientific, and technical
services industry. More than
60 per cent of Ontarians and
25 per cent of Canadians
employed in these industries are
concentrated in the GTA, despite
the region accounting for only
46 per cent of Ontarios popula-
tion and 18 per cent of the
population of Canada.
2.3.2 Total Service Area scientific and technical services
(7.1 per cent). The TSA has 83 per
Income: The average household
cent of Ontarios labour force but
income for the TSA is $68,087
over 90 per cent of the provincial
compared to $66,836 for Ontario
labour force in three industries:
and $58,360 for Canada. How-
management of enterprises,
ever, within the TSA 30 per cent
finance and insurance, and whole-
of households have incomes of
sale trade. Similarly, the TSA has
$80,000 and over, with 36 per
a disproportionately higher per-
cent having household incomes
centage of the total Canadian
less than $40,000. This compares
labour force in certain industries.
to 23 per cent and 43 per cent
Examples include management of
for Canada.
enterprises, finance and insurance,
Labour Force by Industry Sectors: and manufacturing.
Within the TSA, there are 4.9
million people in the labour force
of 15 years of age and older. The
sectors with the greatest numbers
are manufacturing (17.6 per
cent), retail trade (11.2 per cent),
health care and social services
(8.6 per cent), and professional,
Southern Ontarios Automobile Industry

Chapter 2 > E C O N O M I C AND DEMOGRAPHIC PROFILE

2.8
TABLE 2-7 GDP AND PDI
Metric
PDI Canada $
PDI Ontario $
GDP Canada $Million
GDP Ontario $ Million
Canada Per Capita GDP $
Ontario Per capita GDP $
TABLE 2-8 G D P A N D P D I / P E R CA P I TA G R O W T H F O R E CA S T S
Period
2005-2010
2010-2015
2015-2020
2.3.3 Gross Domestic Product
and Personal Disposable Income
Gross Domestic Product (GDP)
is one of the primary measures
used to evaluate the health of the
economy. An increase in real GDP
is interpreted as a sign that the
economy is doing well, while a
decrease indicates that the
economy is not working at its
full capacity. Personal Disposable
Income (PDI) is the residual
income left over after payment of
personal direct taxes, including
income taxes, contributions to
social insurance plans (such as the
Canada Pension Plan and Employ-
ment Insurance premiums), and
other fees. It is a measure of the
funds available for personal expen-
diture on goods and services, such
as travel and personal savings.
Strong and growing economies in
combination with high disposable
income lead to a demand for
transportation. Table 2-7 com-
pares the metrics of Ontario
with Canada.
5 CANSIM Table 384-0013 http://cansim2.statcan.ca/cgi-win/cnsmcgi.exe
6 Ontario Tourism Strategy P. 10
Chapter 2 > E C O N O M I C AND
2001 2002
21,572 22,121
23,080 23,480
1,108,048 11,52,905
453,701 477,763
35,719 36,748
38,133 39,478
GDP PDI/Cap
2.7% 1.3%
2.9% 1.3%
2.6% 1.1%
Over the 2000-2005 period, PDI
and per capita GDP for Ontario
exceeded the national average.5
On an absolute basis, the GDP
for Ontario is about 40 per cent
of the national total. Industry sec-
tors that contribute the most to
Ontarios GDP are manufacturing;
the combined finance, insurance
and real estate (FIRE) industry;
health care and social assistance;
wholesale trade; and professional
and technical services.
Both GDP and PDI are used to
develop aviation forecasts. Esti-
mates of future average annual
growth rates for the forecasts are
shown in Table 2-8.
2.3.4 Tourism
Tourism is an important element
of Ontarios economy, particularly
southern Ontario. Toronto and the
Niagara regions are recognized as
international travel icons. Toronto
is said to be the most diverse
multicultural community in the
world. The Niagara Region has the
DEMOGRAPHIC PROFILE
2003 2004 2005
22,790 23,631 24,382
24,043 24,670 25,230
1,213,408 1,290,788 1,371,425
493,219 517,608 537,657
38,307 40,351 42,460
40,220 41,685 42,810
benefit of having one of the
Natural Wonders of the World
in Niagara Falls, a growing wine
industry, and a wealth of natural
amenities.6 Together they attract
almost 30 per cent of tourists to
Ontario and are a gateway for
tourism to the rest of Ontario.
From the Kawartha Lakes through
to Essex and Bruce counties,
southern Ontario appeals to all
interests. Outdoor Escapes, Arts
and Culture, Festivals and Events,
Sports and Gaming, Aboriginal
and History are among the themes
classified by Tourism Ontario
experienced by visitors to the area.
The following tables show the over-
seas countries and world regions
which make the greatest contribu-
tion to tourism in Ontario.
GTA Tourism Cultural Festivals
2.4 NEIGHBOURING
MUNICIPA LITIES
The former City of Etobicoke
and the cities of Mississauga and
 2.9

above $80,000. Its immigrant

TOP COUNTRIES 2006*
population is the same as
Travellers to Canada Travel by Canadians
Etobicokes in percentage terms
United Kingdom United Kingdom
Japan Japan (47 per cent) with India being the
France Germany most common country of origin,
Germany France followed by Poland and the
Mexico Mexico Philippines.
*Excludes US and same day land via US
Brampton is located to the north
TRAVEL TO ONTARIO 2006* of the Airport. With a population
Top 5 Countries Growth Countries of 433,806 in 2006 the city grew
United Kingdom China over 33 per cent between 2001
Japan South Korea and 2006. Principal countries for
Germany Mexico immigration to Brampton are
Mexico Brazil India, the United Kingdom and
France India Jamaica. Brampton is a relatively
*Excluding US affluent community. With an
average household income of
P E R S O N V I S I T S TO O N TA R I O BY O V E R S E A S R E S I D E N T S *
$78,063, it ranks above Etobicoke,
Europe 53%
the City of Toronto, and the
Africa 2%
Ontario average. While Brampton
Central America 5%
has the same percentage of house-
Caribbean 5%
South America 2% holds with incomes greater than
East Asia 20% $100,000 as Mississauga, it has a
Other Asia 8% lower percentage of households
Pacic 5% with income under $50,000
*Overnight travel by overseas visitors in 2004 30 per cent, compared to 40 per
cent in Mississauga.
Brampton are the three munici- households and the lowest per-
palities closest to the Airport as centage of higher income house-
illustrated in Figure 2-1. Etobicoke, holds. The industry sectors 2 . 5 E CO N O M I C I M PAC T
formerly a separate municipality, is employing the greatest number of
Toronto Pearson is an important
now part of the City of Toronto. residents are manufacturing, retail
component of the economy in
Based on the 2006 Census, trade, and scientific and profes-
southern Ontario. Not only does
Etobicoke had a population of sional services.
the Airport generate economic
334,491, a decline of 1.1 per cent
The majority of airport property is activity in its own right, it
from year 2001. In that year
located in Mississauga, a commu-
47 per cent of the population was
nity of 668,549 bordering the west
born outside of Canada with the
and north of the Airport. In 2001,
most frequent countries of origin
the average household income in
being India, Italy, and Poland. As
Mississauga was $80,444, which
the average household income in
was well above the GTA average
Etobicoke ($71,268) is the lowest
and the highest among the three
of the three municipalities, it fol-
municipalities. Over 40 per cent
lows that the area has the highest GTA Tourism Sports & Gaming
of the households have an income
percentage of lower income

Chapter 2 > E C O N O M I C AND DEMOGRAPHIC PROFILE

2.10
Southern Ontario Tourism Outdoor Escapes
supports those businesses and
industries that rely on air trans-
portation for their success.
Toronto Pearson is an industry in
the Transportation and
Warehousing sector, as defined by
the North American Industry
Classification System (NAICS).
The businesses in this sector pro-
vide scheduled and non-scheduled
air transportation services and
support services for air transporta-
tion such as airport operations, air
traffic control, aircraft mainte-
nance, freight forwarding, customs
brokerage, shipping and ware-
housing services, and ground han-
dling. Other sectors generating
economic activity due to the
Airport include retail trade, con-
struction, and accommodation
and food services. The Airport
also supports other industries by
satisfying the demand for air
transportation created by local
businesses and residents who
travel and ship goods, in addition
to travellers from other areas who
come to the GTA for business,
tourism, and personal reasons.
In satisfying the regions demand
for air transportation, the Airport
and its associated industries make
a major contribution to the
regional economy. Revenue to
Chapter 2 > E C O N O M I C AND
businesses, jobs, personal income,
and taxes are the major outcomes
of airport activity.
2.5.1 Measuring Economic
Impact
The economic impact of a busi-
ness activity is estimated in terms
of three types of effects within a
regional economy, commonly
referred to as direct, indirect, and
induced effects. In the context of
airport operations, these impacts
are defined below:
Direct Effects are the immediate
results of business activity related
to airport operations, in
particular airport tenants, airport
operators, businesses that require
an airport to operate, and
businesses that provide direct
services to the airport. Direct
effects may occur within the
airport as well as off-site. The
distinguishing feature of a direct
impact is that it is an immediate
outcome of airport activity.
Indirect Effects involve spending
related to airport activities on
goods and services that are
DEMOGRAPHIC PROFILE
required as inputs for firms to
operate. They represent output
to other firms further down the
production chain.
Induced Effects result from the
spending on goods and services
by the employees of firms
directly and indirectly related to
the airport. As in the case of
indirect impacts, these
expenditures represent output to
other firms further down the
production chain, primarily
consumer goods and services.
Each of the above effects can be
represented in terms of:
output, or volume of revenue
generated
employment (or number of jobs)
supported by this output
employment income
tax revenue received by all levels
of government.
In 2006, the GTAA conducted a
study to update the model used to
estimate the economic impact of
Toronto Pearson. The estimated
impacts for 2005, in $2005, are
set out in Table 2.9.
 2.11

TABLE 2-9 ECONOMIC IMPACTS OF TORONTOLESTER B. PEARSON INTERNATIONAL AIRPORT

Output ($B) Jobs (000) Income ($B) Taxes ($B)
TOTAL IMPACTS
Total Direct Activity 15.1 106.0 3.3 2.6
Total Indirect Activity 7.7 40.9 2.1 1.0
Total Induced Activity 3.7 38.1 1.4 0.9
Total Economic Impact 26.4 185.0 6.8 4.5
PEARSON IMPACTS
Total Direct Activity 11.3 40.0 2.0 1.0
Total Indirect Activity 5.9 28.3 1.5 0.7
Total Induced Activity 2.9 30.0 1.1 0.7
Total Economic Impact 20.1 98.2 4.6 2.4
AIR TRAVELLER SERVICES
Total Direct Activity 3.8 66.0 1.3 1.6
Total Indirect Activity 1.8 12.6 0.6 0.3
Total Induced Activity 0.8 8.1 0.3 0.2
Total Economic Impact 6.4 86.8 2.2 2.1

The impacts have been grouped
into two categories: impacts gener-
ated by the operation and develop-
ment of the Airport, and impacts
generated by firms providing
services to air travellers in the
community, such as accommoda-
tion, food and beverage, and
entertainment.
Toronto Pearson supports the
economic growth of the region in
three key ways. First, it meets
the ongoing passenger and cargo
transportation needs of the region;
second, as a gateway to other
destinations, it attracts people and
business into the region; and
third, it creates jobs through the
redevelopment of the Airport re-
sulting in significant positive eco-
nomic spin-offs. Toronto Pearson
has played, and will continue to
play, an important role in sup-
porting the regional economy and
the economic sectors that rely on
the Airport for air transportation.

Chapter 2 > E C O N O M I C AND DEMOGRAPHIC PROFILE

 ECONOMIC
Quick Facts City of Toronto
Torontos GDP topped $127 billion in
2005, 11% of Canadas GDP.
Toronto-based businesses export over
$70 billion in goods and services.
Retail sales are $47 billion annually.
Five of Canadas six largest banks have
their headquarters near the countrys
busiest stock exchange.
Toronto is North Americas third largest
nancial services centre.
75% of Canadas foreign banks and 65%
of the countrys pension fund companies
are located in Toronto.
Three universities and ve colleges are
located in Toronto.
Quick Facts Mississauga
40 of the Financial Posts Top 500
Companies and 59 of Fortune Magazines
500 US Companies have head ofces in
Mississauga.
1,177 hectares (2,908 acres) of vacant
employment lands.
Canadas sixth largest city.
A diverse population with 44.2% of the
citys population having a mother tongue
other than English or French.
Quick Facts Brampton
The second most active construction
market in the Greater Toronto Area.
Seventh overall in Canada for total
construction, fourth in residential and
third in industrial.
One of Canadas largest intermodal
railway terminals is located in
Brampton. The 79 ha (195 acre) terminal
operates 5.1 km (16,700 feet) of pad
track and 12 storage tracks.
Chapter 2 > E C O N O M I C AND DEMOGRAPHIC PROFILE
AND D E M O G R A P H I C Q U I C K FA C T S
Quick Facts GTA The Greater Toronto Area is the industrial
and nancial capital of Canada.
The Toronto area is the fth largest
Third largest nancial centre in North
urban region in Canada and the U.S.
America by employment after New York
Approximately 15.5% (162,772) of
and Chicago.
Canadas businesses are located in the
85% of the 41 foreign banks in Canada
Toronto region, creating an economy that
are headquartered in Toronto.
is extremely diverse. Strong employment
Headquarters for six of the top 10 life
in both the manufacturing and business
insurance companies in Canada.
services sectors differentiates Toronto
from most other major North American
Quick Facts Durham Region
cities.
This high concentration of economic Headquartered in Oshawa, General
activity provides employment for 2.8 Motors of Canada is the leading
million people or 18.2% of all employed producer of vehicles in Canada and one
Canadians. This number is expected to of Canadas largest exporters.
grow to 4.1 million jobs by 2031. As the Energy Capital of Ontario,
The region is within an 805 km Durham Region produces 30% of
(500 mile) radius (one days drive or a Ontarios energy generation needs.
one hour ight) of 135 million people. Durham companies represent the full
Direct air service between major cities energy cycle, from local distribution/
in Canada and the U.S. has nearly demand-side management companies
doubled in the past six years. through transmission equipment
manufacturers to companies advancing
FIFTH L ARGEST URBAN REGION conservation technologies.
IN THE U.S. AND CANADA
135,974 ha (330,000 acres) of prime
Name of City Population
agricultural land are located in Durham.
Los Angeles 9.6 million
New York 9.1 million
Quick Facts York Region
Chicago 8.3 million
Washington 5.8 million Retail sales $6.7 billion estimated
Toronto 5.3 million for 2007
Philadelphia 5.0 million Value of exported products in 2003:
Atlanta 4.3 million $12.5 billion
Regional output in 2004: $37.5 billion
G TA N O RT H A M E R I CA N R A N K I N G
Rank Industry Quick Facts Halton Region
2nd Automotive
33,430 enterprises in 2003
3rd ICT
Manufacturing output per worker in
3rd Financial Services
2004: $607,254
3rd Film & Media
Manufacturing value added per
3rd Food & Beverage
production worker in 2002: $252,819
4th Biotechnology