Istanbul IETT Professional Development Workshop, #5 of 6 - Presenter: Todd Litman, Victoria Transport Policy Institute - Assistant: Aysha Cohen, UCLA Institute of Transportation Studies Scholar - Presentation Date: June 16, 2015

1. Public Transit and
Economic Development
Todd Litman
Victoria Transport Policy Institute
Presented
IETT Professional Development Workshop
Istanbul
16 June 2015

2. Economic DevelopmentEconomic Development
• Economic development refers to progress
toward a community’s economic goals
including increased productivity,
employment, wages, business activity,
property values and tax revenues.
• Mobility is an important input in most
economic activities, but most mobility only
provides direct user benefits, not economic
development benefits.
• The key to supporting economic
development is to increase transport system
efficiency by favoring higher value trips and
more efficient modes.

3. Transit and EconomicTransit and Economic
DevelopmentDevelopment
High quality transit support economic
development in several ways:
•Reduces transportation costs including road
and parking facility costs, traffic congestion and
accident damages.
•It helps people access schools and jobs
•It supports more compact and efficient land
development which increases accessibility, often
called “agglomeration efficiencies.”
•Shifts consumer expenditures from vehicles
and fuel to more locally-produced goods.
•Supports specific industries such as tourism.

4. Public Transit Travel And GDPPublic Transit Travel And GDP
Higher transit
ridership is associated
with higher economic
productivity (GDP).
(Each dot is a U.S.
city)
R2
= 0.3363
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
0 200 400 600 800 1,000 1,200 1,400
Per Capita Annual Transit Passenger-Miles
PerCapitaAnnualGDP

5. Vehicle Travel And GDPVehicle Travel And GDP
Lower vehicle miles
traveled (VMT) is
associated with higher
economic productivity
(GDP). (Each dot is a
U.S. state)
R2
= 0.2923
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
0 5,000 10,000 15,000 20,000
Per Capita Annual Mileage (2005)
PerCapitaAnnualGDP(2004)

6. Per Capita GDP and Urban DensityPer Capita GDP and Urban Density
Productivity tends to
increase with
population density.
(Each dot is a U.S.
urban region.)
Bureau of Economic Analysis
and Bureau of Transportation
Statistics Data

7. Per Capita GDP and Lane-MilesPer Capita GDP and Lane-Miles
Productivity tends to
decline with increased
roadway supply. (Each
dot is a U.S. urban
region.)
Bureau of Economic Analysis
and FHWA data

8. Fuel Prices And GDPFuel Prices And GDP
Higher fuel prices
are associated with
higher economic
productivity (GDP),
particularly for oil
consuming
countries.

9. GDP Per Vehicle-KilometerGDP Per Vehicle-Kilometer
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
1970 1980 1990 2000 2007
GDPDollarsPerPassenger-Km
United States
United Kingdom
Sweden
Spain
Norway
Netherlands
Japan
Italy
Germany
France
Finland
Denmark
Australia
Economically efficient
countries maximize the
amount of productivity
per vehicle-kilometer.

10. Economic OpportunityEconomic Opportunity
A more diverse transportation
systems helps achieve equity
objectives:
• Increased opportunity to people
who are physically, socially or
economically disadvantaged – it
helps them reach school and jobs.
• Financial savings to lower-income
people, allowing them to invest in
other goods, such as education and
housing.
In most communities, 40-80% of the
population cannot drive due to
constraints including age (teenagers
and seniors), disability and poverty.

11. Keeping Lira In IstanbulKeeping Lira In Istanbul
Istanbul does not produce
petroleum or most vehicles. As
a result, money spent on cars
and fuel leaves the local
economy. Public transit reduces
expenditures on these goods,
resulting in consumers spending
more of their budget on goods
produced within Istanbul,
resulting in more of this money
circulating in the regional
economy.
0
5
10
15
20
25
Petroleum General
Automobile
Expenses
General
Consumer
Expenditures
Public Transit
JobsCreatedPer$1millionExpenditure

12. More Livable CommunitiesMore Livable Communities
High quality public transit helps
create more livable cities –
places that are attractive and
affordable for residents and
visitors. This increases property
development, business activity
and tax revenue.

13. Transit-Oriented DevelopmentTransit-Oriented Development
Transit-oriented development
tends to outperform sprawled
development in terms of
property values, tax revenues
and overall affordability,
considering both housing and
transportation costs.

15. Transit-Oriented DevelopmentTransit-Oriented Development
One study found that in
Sarasota County,
Florida, 3.4 acres of
urban mixed-use
development provides
the same number of
housing units as 30.6
acres of suburban
housing, consumes
about one-tenth of the
land has only 57% the
infrastructure costs, and
provides 8.3 times as
much tax return.

16. Tourism is A Growing IndustryTourism is A Growing Industry
• Worldwide, there were more than one billion
international tourist trips in 2012, of which
approximately 57% were to OECD countries.
• International tourists spent approximately US$1,078
billion worldwide, of which $248 billion was devoted
to passenger transport.
• Among OECD countries tourism directly accounts
for approximately 4.7% of GDP, 6% of employment,
and 21% of services exported.
• Worldwide propensity for international travel is
projected to increase from 11.5 to 20.0 per 100 people
by 2030.
• Emerging economies are experiencing relatively
rapid tourism growth; in 2012 tourism to Asia/Pacific
destinations grew 7% compared to 3% in Europe.
Tourism Contribution to Global
GDP – 2013 Billion US Dollars

17. Tourism Travel DemandsTourism Travel Demands
Type Special Considerations
Affluent tourists Demand high quality service. Accommodate baggage.
Middle-income tourists Price sensitive. Accommodate baggage.
Adventure tourists Often use economy transport, even if uncomfortable.
Family groups Need accommodations for groups with children.
Foreign tourists Often face language barriers.
Hiking & biking tourists Want special facilities (trails and routes) and services.
Tourists with disabilities Require special mobility services and other types of support.
Organized tours Travel in groups. Require coach bus access and parking.
Low-income employees Price sensitive.
Freight Requires large vehicle access (e.g., heavy diesel trucks).

18. Responding to Travel DemandsResponding to Travel Demands
• Collect data on current and future tourist travel demands.
Develop models which predict how demographic and
economic trends, and transport system changes (changes in
service, price, information, etc.) affect travel.
• Plan for all stages in the travel process, including information
gathering, purchasing, baggage handling, waiting, and
border crossing.
• Evaluate total trips including connections and links, and
quality of connections between travel modes, such as the
convenience, comfort and attractiveness of transport hubs.
• Apply universal design: Ensure that facilities and services
accommodate all users, including people with disabilities and
who have heavy baggage.
• Provide affordable travel options for budget tourists and
tourist industry employees, such as public transportation
access to airports, and bicycling for local travel.

19. Transport Network ConnectivityTransport Network Connectivity
• Information – Provide convenient access to various
types of information that a tourist might need.
• Pricing/payment – One card or ticket can pay for all
transportation services in a region.
• Modes – Modes are well connected, for example, with
good local public transportation services to airports, car
and bicycle parking at bus stops and train stations.
• Schedules – Local public transport coincides with
intercity train and air service.
• Baggage handling – Baggage systems provide
convenient transfers between modes.
• Facilities – Transportation facilities, such as stations
and airports, are designed to serve and connect
multiple modes and users (visitors, locals etc.).

20. Transport HubsTransport Hubs
• Traveller information
• Public transport services (local and interregional)
• Automobile and bicycle parking
• Taxi and limousine services
• Car and bike rentals
• Baggage storage
• Clean washrooms and showers
• Shops and restaurants
• Telecommunications (pay phones, telephone cards
and Internet access)
• Banking and currency exchange services
• Accommodations
• Artwork and information about local cultures, history
and activities

21. Towards Sustainable Tourism GrowthTowards Sustainable Tourism Growth
• Accommodate diverse tourism travel demands, including
various types of travellers, budgets, abilities and preferences.
• Create integrated transport systems. Integrate information,
pricing, facilities, modes and schedules in order to provide a
convenient and comfortable travel experience at site, local,
regional and national scales.
• Build cooperation among various government agencies, industry
groups, businesses and professional organizations.
• Consider qualitative factors such as convenience, comfort and
aesthetics, as well as quantitative factors such as travel speed.
• Provide convenient user information, including websites, maps,
guides and signs that serve visitors who cannot speak local
languages.
• Apply sustainability principles to tourist transport planning.

22. Stakeholder ResponsibilitiesStakeholder Responsibilities
Stakeholders:
•Tourism policy makers and
promotion agencies
•Local and national transport
agencies
•Local economic development
agency
•Travel industry (e.g., airlines)
•Businesses and business
organizations
•Nearby residents
Planning Responsibilities:
•Traveller information
•Transportation hubs
•Coordinated public transport services
•Automobile parking
•Taxi and limousine services
•Car and bike rentals
•Baggage storage
•Clean washrooms
•Shops and restaurants
•Telecommunications
•Banking and currency exchange services
•Accommodations

23. Example: MexicoExample: Mexico’s Tourism Cabinet’s Tourism Cabinet
To coordinate its National Tourism Policy implementation
Mexico’s President created a Tourism Cabinet which includes
stakeholders from key government agencies and private sectors.
It supports an ambitious agenda of cross-cutting projects intended
to help attract more tourists, increase the sector’s profitability, and
reaffirm tourism as a driver of sustainable growth.

24. Example:Example: NETSNETS
The Network for Sustainable Mobility in
Tourism (NETS) is a network of sustainable
tourist transportation organizations in Germany
and Austria that work to improve the quality of
vacations and the environment as well as to
raise the standard of living for both guests and
locals. Its partners include tourist destinations
that offer sustainable mobility, travel and
mobility service providers, public agencies and
other organizations that promote
environmentally friendly tourist transport in the
region. NETS helps tourism and transport
experts exchange knowledge, and develop and
promote high quality environmentally
sustainable tourism packages.

25. Example:Example: Greater Sedona TransportGreater Sedona Transport
Arizona’s Sedona/Red Rock region attracts
numerous tourists. In the past, the only feasible
way to visit was by private automobile. In recent
years, city, country, regional, state and federal
government agencies have worked to develop a
transportation management program to protect
environmental and cultural resources and enhance
visitors’ experience. This includes restrictions on
automobile travel and incentives for residents and
visitors to rely more on walking, cycling and public
transit. New trails and shuttle buses will connect
most local businesses and tourist
accommodations with scenic sights.

26. Wasaw AirportWasaw Airport

27. Discussion QuestionsDiscussion Questions
• How will current demographic and economic
trends affect tourism travel demands?
• How well do current policies and planning
practices respond to these changing demand?
• How well do your tourism and transport agencies
cooperate to improve tourist transport?
• What are barriers to better cooperation?
• What specific policy changes could help
overcome these barriers?

28. TOD Benefits CategoriesTOD Benefits Categories
Improved Transit
Service
Increased Use of
Alt. Modes
Reduced Automobile
Travel
More Compact
Development
• Improved user
convenience and
comfort
• Improved travel
options, particularly for
non-drivers
• Improved local
property values
• User cost savings
• User enjoyment
• Economic
development
benefits from
increased access to
education and
employment
• Increased public
fitness and health
• Reduced traffic and
parking congestion
• Road and parking cost
savings
• Consumer cost savings
• Reduced crash risk to
others
• Air and noise pollution
reductions
• Energy conservation
• Economic development
benefits
• More livable
communities
• Reduced land
consumption, heritage
and openspace
preservation, and
public service cost
savings
• Improved accessibility,
particularly for non-
drivers
• Reduced vehicle
ownership
28

29. 29
Economic TrapsEconomic Traps
• Arms races and wars
• Uncompensated external costs
• Congestion
• Positional value (vehicle ownership
and travel as status goods)
• Sprawl
Situations in which people,
businesses and groups
compete in ways that waste
resources:

30. 30
Market Distortions Unfair to TransitMarket Distortions Unfair to Transit
• Roadway costs not borne directly by motorists.
• Free/underpriced parking.
• Fixed vehicle insurance and registration fees.
• Lack of congestion pricing (unpriced road “space”).
• Uncompensated environmental damages.
• Tax policies favoring car use (e.g., company cars).
• Land use policies that favor low-density,
automobile-oriented development.
• Underinvestment in alternative modes.
• Others...

31. Conventional EvaluationConventional Evaluation
Generally Considered
• Congestion impacts.
• Vehicle operating costs.
• Per-mile crash impacts.
• Per-mile pollution
emissions.
Often Overlooked
• Downstream congestion.
• Parking costs.
• Vehicle ownership costs.
• Crash, energy & pollution
impacts of changes in mileage.
• Land use impacts.
• Impacts on mobility options for
non-drivers/equity impacts.
• Changes in active transport
and related health impacts.

32. Supporting Economic DevelopmentSupporting Economic Development
These transport policies are likely to support
economic development:
• Transportation improvements that target freight and other
commercial travel.
• Improving access to an area with undeveloped economic
potential.
• Improve access to education and employment
opportunities.
• More efficient pricing of roads, parking, insurance and fuel.
• Improving resource efficient transport options, including
walking, cycling, ridesharing, public transit, delivery
services.
• Supporting industries with growth potential, such as a
nascent tourism industry.
• More accessible land use development policies.
• Policies that reduce vehicle and fuel imports.

33. Discussion QuestionsDiscussion Questions
• What transit economic development
benefits are most important in Istanbul?
• How well do decision-makers and the
general public understand the ways that
public transit can support economic
development?
• What more information is needed?
• What policy reforms are appropriate in
Istanbul?

34. “The Mobility-Productivity Paradox: Exploring The Negative
Relationships Between Mobility and Economic Productivity”
“Are Vehicle Travel Reduction Targets Justified?”
“Socially Optimal Transport Prices and Markets”
“Smart Transportation Economic Stimulation”
“Transportation Cost and Benefit Analysis”
“Online TDM Encyclopedia”
and more...
www.vtpi.org